<h1> <h1> <h1> <h1> historical aspects of inflation # 10 </ h1> </ h1> </ h1> </ h1> </ h1>
He understood very well that wage rates could be too high in relation to the market, that is, too high to justify the decision of the employers to increase their number of employees with the benefit, too high in terms of the entire busy population, since salary rates imposed by trade unions, exceeding the market level, prevented some of those who seek to earn a salary to get a job.
Keynes said that mass unemployment, which continued year after year, is definitely an extremely unpleasant situation.
But instead of suggesting that wage rates can and should be adapted to market conditions, he stated that "if the currency is depreciated and the workers are not smart enough to accept this, they will not resist the fall of real wages." As long as the nominal wage rates remain unchanged. "
In other words, Lord Keynes argued that if a person gets the same number of pounds today, as before the devaluation of the currency, he will not understand that in fact he is now getting less or preferred, although the macroeconomic phenomenon is understood as large-scale.
To tell things by name, Keynes offered to "save appearance". Indeed, instead of declare without wages that wages must be adjusted in accordance with market conditions, because otherwise, part of the working force will inevitably remain unused, he said, "full-time employment can only be achieved through inflation practices. Let's deceive the workers. "
The most interesting is the fact that by the time of publication of his general theory (general theory), the deception has already become impossible, because people have already realized the importance of indexation.
But the desire to fully use labor remains the main political purpose of all governments.
The implementation of the full use of labor comes from the unimpeded, competitive labor market, therefore, a market not controlled by trade unions or government.
In this market, the wage rates for each type of work performed tend to the level on which everyone wants to get a job, and can get any employer who has all the workers in which he needs (perfect competition).
As the demand for labor increases, the wage rate will have a tendency to increase, and when less workers are required, the salary rate will tend to decline. Lebensläufe kostenlos online erstellen https://cv2you.com/de/ .
