The Elgar Companion to Post-Keynesian Economics (2nd edition)

Economists are a curious breed, with an astounding ability to ignore facts. When a biochemist, for example, theorises that a certain reaction will take place, and then finds that it does not, he assumes that his theory was wrong. Economists just carry on regardless. Say's law, formulated some two centuries ago, that “supply creates its own demand” proves, inter alia, that long-term unemployment cannot occur in a situation of perfect market freedom. A casual historical inspection of society would suggest to anyone except an economist that there was something wrong with the theory. Laisser-faire economists however still stick grimly...