Essentials of Constructive Heterodoxy: Say's Law

Abstract

The core problem of economics is that the representative economist never managed to keep political and theoretical economics properly apart. The mixture is toxic indeed. As Joan Robinson said about what parades as economics: Scrap the lot and start again. Yet, the question then arises where to start. To solve the Starting Problem -- first formulated by J. S. Mill -- is the all-dominant initial step of a paradigm shift. The most urgent task of a constructive Heterodoxy is to rethink pivotal concepts like market, Say's Law, profit, etcetera. The reconstruction of the theoretical superstructure from scratch is an absolute methodological necessity.

Keywords: new framework of concepts, structure-centric, Law of Supply and Demand, market clearing, budget balancing, full employment, indifference

JEL Classification: B59, E10