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

The General Theory of Employment, Interest, and Money by John Maynard Keynes explains that economic activity and employment depend on overall demand—how much households, businesses, and the government are willing to spend. When demand is high, businesses produce more and hire more workers. If demand drops, unemployment rises. Keynes argued that during downturns, private spending often isn't enough to sustain full employment, so government should step in with spending and policies to stimulate demand and boost the economy. This approach shifted economic thinking, emphasizing active policy measures over relying solely on market forces.