Below is a review of chapter XV from the book 1 of Jean- Baptiste Say’s A Treatise on Political Economy.

This chapter is entitled Of the Demand or Market for Products.

Jean- Baptiste Say, A Treaties on Political Economy, Book I, chapter XV, 1803.

It is a common knowledge especially to the producing unit in the society that the disposition of products
is far more a problem than producing it. And that a product will always be of sufficient quantity only if
there is a ready demand and market for it. When the demand for a product is slow, it leads to a fast rise
in the price of the commodity. To be able to establish a strongly founded notion regarding the market of
a product, we must carefully examine the most credible facts there are and apply them to the inferences
we already deduced. Through this, we may arrive into new facts, give a better enlightenment and give
confidence to the measures gathered by the government.

A tradesman should therefore be aware that the consummate of his product depends on how a buyer
successfully sells the product of his own. It is impossible for a tradesman to say that he only want money
and not commodities in exchange for his product. For upon the acceptance of money, he will then spend
for some commodities that he desires personally. Therefore it is the product that he wants and not the
money. For the letting go of money is an infinite process; as one person receives it, he then use to
purchase other product from another person and so on. After all, money is the agent of transfer of
values. Money will never be insufficient for the circulation and mutual interchange of other values.
Merchants know well enough how to substitute the product serving as the medium of exchange or
money and money itself soon pours in, for this reason, that all produce naturally gravitates to that place
where it is most in demand.

When a producer had the finish product, he is anxious to sell it immediately as well as he is anxious to
spend the money he gain from selling the product for these may devaluate in his hands. However, the
only way of money disposition is by purchasing some product or other. Thus the mere circumstance of
one product immediately opens a vent for other products.

The success of one branch of commerce supplies enough means of purchase, and consequently opens a
market for the products of all the other branches; however, a stagnant branch of commerce affects all
other branches.

A larger quantity of producers and a wider variety of products in a community results to a more prompt,
numerous and extensive are their markets for the production and therefore garnering bigger profits for
the producers as price rises with the demand.

Each individual is interested in the prosperity of all. In whatever line or profession a man devotes
himself into, he is the better paid and the more readily finds employment if he sees others working as
hard as he does. A merchant in a bigger and richer community sells in a much larger amount than a
merchant in a poor district. In a small deserted and semi- barbarous town in a remote corner of Poland
or Westphalia, an active and intelligent manufacturer, in no fear of competitor would still sell little
because little was produced. On the other hand, in Paris, Amsterdam, or London, in spite of many
competitors, a manufacturer may still do business on a larger scale because he is surrounded by people
who produce largely in an infinity of ways and who make purchases with his respective products from
the money arising from the sale of what he may have produced.
The division of nations into agricultural, manufacturing, and commercial is interrelated to one another.
For the success of people in agriculture causes the prosperity of the manufacturing and commercial
industry, as well as the flourishing condition of manufacture and commerce reflects upon the success of
agriculture.

A nation has an interest in the prosperity of its neighbouring countries. This was clearly shown as the
United States help their neighbours Creek Indians to become more civilized with the idea of introducing
habits of industry amongst them and by making sure they’ll be capable of carrying on a barter trade with
the States of the Union. This is for them to have something out of their neighbouring country for they
will not have anything to gain from a country who has nothing to pay for their produce. From this, we
may draw further conclusion, that it is no injury to the internal or national industry and production to
buy and import commodities from abroad.

For the same reason that a creation of a new product is the opening of new market for other products,
the consumption or destruction of a product stops the vent for this product.

In a community, city, province, or nation that produces abundantly and adds every moment to the sum
of its products, almost all the braches of commerce manufacture, and generally of industry, yield
handsome profits because the demand is great, and because there is always a large quantity of products
in the market ready to bid for new productive services. Vice versa, as the production of a product is
stagnant or does not keep up with the pace of consumption, the demand will gradually decline, the
value of product is less than the charges of its production, no production exertion is properly rewarded,
profits and wages decrease, the employment of capital becomes less advantageous and more
hazardous. The labouring classes experience a want of work, families before in tolerable circumstances
are more cramped and confined, and those before in difficulties are left altogether destitute.
Depopulation, misery, and returning barbarism, occupy the place of abundance and happiness.

Jean- Baptiste Say, at the start of this chapter explained the main reason of producing a product, it is to
exchange it with another product or to earn profit from it and therefore giving the producer a
purchasing power for other commodities. He then made a good point in addressing the relationship
between the production and the demand of a product and the importance of having a balance between
the two. I definitely agree to him when he pointed out how an unbalanced economy cause serious
problems in the society. Addition to what he mentioned, I believe it will be better said if he explained
demand and production in a circular cycle when a disruption of one activity stops the economy.
Therefore, if a firm stops producing their commodity, even if there is a great demand for it, there will no
economy. Vice versa, if there is no demand for a product there is no reason for them to produce a
certain product. The transition between the relationship of one producer with other producers in the
beginning to how a production is related to demand is definitely commendable. Overall, the article is a
very helpful one especially for beginning economists to better understand the basics and the foundation
of the economy.