Five Observations
by Keynes
| 1 | In the 20th Century, wages and prices
are no longer free to fall.
(Due to unions.) |
| 2 | Simon Kuznets (the American) was right, "The value of incomes earned equal the value of output created." |
| 3 | Equilibrium in the national economy occurs when total spending purchases the value of total output, and utilizes total income earned. (Disequilibrium occurs when total spending exceeds or is less than the value of output or income.)
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| 4 |
"Men are disposed as a rule and on the whole to increase their spending when their incomes rise, but not by as much as the rise in income."
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5
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Employment is proportional
to income and output. |