Understanding Say's Law of Markets

[Brett Nortje]

Where's that money come from? Where does someone else get it?

The Malthusian Trap has to do with subsistence living. This is from Gregory Clark's A Farewell to Alms: A Brief Economic History of the World:

Okay, where does the capital come from? it has to start somewhere, subsistence farming maybe?

[Peter1469]

The capital comes from all economic activity. But the Malthusian trap is a fraud. Malthus based his theory on the premise that science was at its apex and man would not be able to feed larger populations. He was wrong.

I don't understand why people drag Malthus out from his grave. Silly.

[Chris]

The capital comes from all economic activity. But the Malthusian trap is a fraud. Malthus based his theory on the premise that science was at its apex and man would not be able to feed larger populations. He was wrong.

I don't understand why people drag Malthus out from his grave. Silly.

That his predictions were wrong does not make him a fraud. Was Newton a fraud because Einstein refined his laws of gravity?

[Chris]

Okay, where does the capital come from? it has to start somewhere, subsistence farming maybe?

Production. Supply drive demand.

[Brett Nortje]

Production. Supply drive demand.

Okay, where does the capital for production come from? isn't subsistence farming, collecting what is over and trading it for goods, the real root of the economy, or, where it started?

[Peter1469]

That his predictions were wrong does not make him a fraud. Was Newton a fraud because Einstein refined his laws of gravity?

Malthus was definite in his predictions. He claimed that science (food production) was at its limit and nothing more could be done.

Yes, Malthus was totally incorrect.

[Chris]

Malthus was definite in his predictions. He claimed that science (food production) was at its limit and nothing more could be done.

Yes, Malthus was totally incorrect.

I agree, he was incorrect. His model describes civilization pretty much up to the Industrial Age when Science and Technology kicked in.