Say's Law

Say's Law is an economic principle stating that supply creates its own demand. In other words, when goods and services are produced, the income generated from their sale enables people to buy other goods and services. This suggests that overall, production leads to enough demand to match it, making widespread unemployment or excess inventory unlikely in the long run. The idea emphasizes that economic output naturally drives consumption, though it’s debated how perfectly this works in real-world economies, especially during recessions.