John Maynard Keynes Quotes
Whenever you save five shillings you put a man out of work for a day.
Keynes, John Maynard. "Saving and Spending." Essays in Persuasion, Macmillan, 1931, p. 152.
Asked why he wanted to legalize gambling casinos in Chicago:
There is a substantial problem for convicted criminals in gaining employment after their jail sentence. The reluctance of employers to have a convicted felon in the company is understandable for many combinations of jobs and criminals. Yet if a criminal released from jail has no job, the chance of rehabilitation is much less and society will have to pay welfare costs to maintain him which creates a problem for society.
Mormons in later years found this principle difficult to enforce where there was unemployment and workers were idle through no fault of their own. The local Mormon churches were very active in encouraging wealthier Mormons to hire those who were unemployed.
This is the classic conservative argument against raising the minimum wage. Historically, if the minimum wage was raised well after there has been a period of wage inflation, there has been little or no negative effect on the lowest paid workers. However, when the minimum wage has been raised during a period of wage stability, there is an effect of making some workers simply not worth the rate that they must be paid. However, even then, after a year or two, the negative effect begins to dissipate.
The debate in America around jobs during the Great Recession in 2012 may have seemed like a new issue for many Americans. The government wanted to economize, but there was a very high unemployment. Should the government spend money to employ more people or cut back on government jobs. The same issue faced the British in 1848. Most of the politicians and the Parliament wanted to reduce government spending. The Prince (husband of Queen Victoria) and the Queen observed that the economy solution would fall more heavily on the working class. At this time, the British monarchy was far more liberal than most of the politicians.
One of the arguments in favor of machinery and automation has always been that new and better jobs are created for the people who run and maintain the machines. However as Marx observed in 1867 that is of no comfort to the person who is replaced by the machine. Also with the computer and modern robots, the control and operation is often done by another computer. Even much of the computer programming is done by computer.
Actually during this period, automation and other forms of technological unemployment have been far more responsible for the loss of good jobs in America than offshoring which has been far more responsible than competition from immigrants.
John Maynard Keynes, 1st Baron Keynes, CB, FBA (5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in mathematics, he built on and greatly refined earlier work on the causes of business cycles. One of the most influential economists of the 20th century, he produced writings that are the basis for the school of thought known as Keynesian economics, and its various offshoots. His ideas, reformulated as New Keynesianism, are fundamental to mainstream macroeconomics.
