ABSTRACT
J. B. Say, underlying the importance of investment and hence of saving as a prerequisite of growth, observed that a glut never originates in an increase of production but is, in every case, a consequence of the misapplication of the ability to produce and address investments toward effective needs expressed in the market. The economic dynamics based on motivations and behaviors become cumulative and contribute to producing a social structure characterized by a locked market where goods can be sold if prices are reduced by compressing wages. Sismondi criticized the fact that the income of workers depended on decisions taken by capitalists in the initial stage of production and not on the basis of the effective surplus obtained through the market exchange. On the contrary, market expansion has to be attained thanks to the real increase of wealth that is thanks to the increased purchasing power resulting from a better surplus distribution.
