Browsing All posts tagged under »Boom«

Unemployment as a consequence of failed capital policy

October 11, 2010


The business cycle creates a disequilibrium in capital which in turn reduces employment. Stimulating demand may only stimulate those capital goods that are already fully employed. Without additional investment, no further job growth will take place. In any economy, employment is tied to capital goods. Robinson Crusoe may arrive on the island with barely clothes, […]