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Unemployment: Why Can’t People Who Want to Work Find Jobs?

In: Who's Afraid of John Maynard Keynes?

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  • Paul Davidson

    (University of Tennessee at Knoxville)

Abstract

Every penny spent on buying a thing in the market is a penny someone earns by selling the thing. But a penny saved is a penny not spent in the market and therefore it is a penny someone else cannot earn. Enterprises will hire more workers if they expect market demand for their output is increasing. Unemployment occurs when market demand is insufficient to make it profitable for enterprise to hire the unemployed.

Suggested Citation

  • Paul Davidson, 2017. "Unemployment: Why Can’t People Who Want to Work Find Jobs?," Springer Books, in: Who's Afraid of John Maynard Keynes?, chapter 0, pages 39-54, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-64504-9_4
    DOI: 10.1007/978-3-319-64504-9_4
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