General Theory of Employment, Interest, and Money

The General Theory of Employment, Interest, and Money, by John Maynard Keynes, explains how economies create jobs and grow. It suggests that total spending in an economy (by consumers, businesses, and governments) determines overall output and employment. When demand is low, companies produce less and fewer jobs are available; when demand is high, employment rises. Keynes argues that government intervention through spending and monetary policies can stimulate demand during downturns, helping to reduce unemployment. Overall, the theory emphasizes the importance of aggregate demand in maintaining full employment and economic stability.