The General Theory Of Employment, Interest And ... -

1️⃣ Effective Demand: Jobs exist because people spend, not just because workers are cheap.2️⃣ Animal Spirits: Our economic decisions are driven by emotion and "spontaneous optimism," not just math.3️⃣ Fiscal Policy: Governments have the power—and responsibility—to bridge the gap during crises.

"The difficulty lies, not in the new ideas, but in escaping from the old ones." — John Maynard Keynes 🖋️ #Economy #Investing #History #Keynesian The General Theory of Employment, Interest and ...

In 1936, JM Keynes dropped The General Theory of Employment, Interest and Money . His big realization? The economy can get stuck in a "low-employment trap" indefinitely. 1️⃣ Effective Demand: Jobs exist because people spend,

It introduced terms we use every day, like The Multiplier Effect and Liquidity Traps . It's the reason we look at "Aggregate Demand" to see if the economy is healthy. The economy can get stuck in a "low-employment

It’s the total spending in the economy that drives employment, not just the price of labor.