Dear Sirs:
In his recent essay, “To Work Is to Live”, Kevin D. Williamson gave about as nifty an explanation of Say’s Law as you will find anywhere. We buy goods with other goods, and money is merely the indirect medium of exchange. What we produce is important, because others place the value, in money terms, on our production and thereby establish our standard of living. John Maynard Keynes tried to refute Say’s Law in his General Theory of Employment, Interest and Money, but he failed miserably despite what his admirers think. Digging holes and filling them back up, as Keynes famously recommended, will not produce a good that anyone values; therefore, printing money and paying people for doing this worthless task is a violation of Say’s Law.
Patrick Barron
