The General Theory of Employment, Interest, and Money (by John Maynard Keynes)

John Maynard Keynes' *The General Theory of Employment, Interest, and Money* revolutionized economics by arguing that total demand (spending by households, businesses, and the government) is the main driver of employment and economic health. When demand is low, businesses produce less and lay off workers, leading to unemployment. Keynes emphasized that government intervention—through spending and policy measures—can boost demand and help stabilize the economy during downturns. His ideas shifted economic focus from traditional reliance on self-correcting markets to active policy tools, highlighting the importance of managing demand to achieve full employment and economic stability.