ECON 104 Lecture Notes - Lecture 2: Bond Credit Rating, Money Supply, Financial Regulation
3 Oct 2017
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April 8, 2016: in 1946, the u. s. government established the employment act, which committed the government to establish full employment as a central goal of government policy. Full employment can be difficult for a capitalist economy, economist karl marx believed that high unemployment was a key factor in running a capitalist economy. When unemployment is high, the power falls in the capitalists which in turn gives them more bargaining power. In contrast, economist john keynes was well aware of the issues of high unemployment in a capitalist economy, however he strived to find a way in which it was possible could create an economy with full employment. During the years of war in 1941-1945, after the depression had just ended in 1940, there was huge economic growth and full employment. However after the war, with 12 million soldiers coming home and no more military spending, the government feared another depression and passed the.
