J.B Say's Theory

French Economist Jean Baptise Say is one of the backbone of classical thoughts which formed as a base for many classical theories. Says's theory is based on the similar assumption that classicists used to assume. Simply stating, Say's main idea is that supply creates its own demand. In an economy, in order to make demand for goods and services, first the production and supply of those goods and services is necessary. According to him, market is self-adjusting in nature. So, whatever goods and services are produced, the demand makers ultimately emerges after production without any hindrances.
Say's law argues that demand cannot be created without supplying. For making consumption, at first supply of goods is necessary. After supplying only, a person gets to know about the product and gets information about the product and at last consumer demands it. For example, I am producer of a XYZ toffee. My motive is to gain profit from selling my product. But, for selling my product, demand from consumers is necessary. Hence, I advertise my product and then people get to know through primary and secondary advertisement and then gradually it's demand emerges. This is the simplistic theory of market according to J.B Say.
During the invention of his theory, barter system was still in existence and his theory was completely correct for barter system. During barter system, people at first produce their goods and services and after production, they get opportunity to demand those products. And the remaining surplus demand where Supply>Demand, the remaining are exchanged for other goods in the market. Similarly, store of value was not in practice and everyone were self-employed and saving was only for strengthening his/her production. For example, a farmer cultivates potato in his land. S/He consumes his production after some period. When producer has enough for himself, he gets to the market to exchange his products with other products like wheat, rice, other vegetables and his/her daily requirements for consumption.
Say's law was applicable in money economy as well but not as accurate as in the barter system. According to Say, money was only for transaction of goods and services. Generating income in monetary terms was only for expending it on his/her consumption expenses and satisfy wants and needs. Similarly, saving of money was only for investing it. Hoarding of money was not possible as Saving=Investment. Whatever amount of money was saved, through the help of financial institutions, those money were loaned to investors/producers at certain interest.
Total aggregate income would equal to aggregate expenditure according to Say. But, his law was very simplistic and destructive as of the other classical views which led to worldwide destruction during 1930's. I agree with Say's law in context to the barter system. But in our present society where money is given primary emphasis, it results to be misleading. His idea that demand emerges after supply does not holds to be true. Without any kind of demand in the market, a producer if according to Say's law, keeps on producing his goods then there arises problem of overproduction which will ultimately lead towards unemployment and destruction of the economy. His other idea like role of money and S=I and wage price flexibility in the market are heavily criticized by J.M Keynes. Concluding this topic, I want to say that Say along with other classical economists believed their economies will always remain in an ideal world far away from all kinds of obstacles which was short-sighted and resulted them as well as innocent people suffer.