Wolff's presentation describes what was read in chapters 16 to 18 when talking about unemployment. He insists on the points of aggregate demand, unemployment and the government's monetary and fiscal policies. As defined in the textbook in Chapter 16, “aggregate demand is the total demand for goods and services during a year.” It consists of the total amount of spending on consumption (consumer goods), investment (capital goods), government spending (public products and services) and net exports. As stated several times in the textbook, Keynes suggests that government can reduce unemployment. If we changed taxation and unnecessary government spending, we would be able to create more jobs, thus leading to a lower unemployment rate. Employment rates would have the ability to increase through deficit spending, lowering interest rates and raising wages. The concept of unemployment affects society in 2 ways. These ways manifest themselves in the form of waste of goods and services, as well as insecurity and personal difficulties. As for insecurity and personal difficulties, as seen in many jobs, especially in small retail stores, employees are not compensated much. Many are not offered insurance, workers' compensation, disability, etc. And it's worse when you're unemployed. You depend on government assistance. If the government helped create jobs for the unemployed, avoiding spending unnecessary money, there would be more jobs in society. This leads to a decrease in the number of unemployed. It is interesting how Keynes believes that unemployment would decrease if the government was involved, but Wolff's argument is different. He says the United States has tried several times and in various ways to adopt monetary and fiscal policies to emerge from a depression, repression or even unemployment. He gave the example of the great crisis of the 1930s, of the great depression. From 1929 to 1939, President Hoover and Roosevelt grew tired of these policies and failed to emerge from the Depression. He failed. It was only during World War II that the United States was able to free itself from the depression. Furthermore, Japan has been in a severe recession since 1989. Japan has not emerged from its depression, even 18 years later. And they tried these monetary and fiscal policies and it didn't work. The Keynesian notion of government monetary and fiscal policies is just wishful thinking in Wolff's mind. I agree with him, if I look at the facts of the past and his numerous failures. I thought the idea of American exceptionalism was very interesting.
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