Say's Law is an economic principle that states that supply creates its own demand. This means that when goods are produced, they will generate enough income for consumers to purchase them. Essentially, the act of producing goods and services leads to the creation of purchasing power in the economy. According to Jean-Baptiste Say, the economist who formulated this law in the early 19th century, a market economy will naturally balance itself. If businesses produce more goods, it will encourage consumption, as people will have jobs and income to spend. Thus, overproduction is unlikely to lead to prolonged economic downturns.