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91-400: The facility tested V-2 combustion chambers' compatibility with turbopumps since the rocket did not have a controller for reducing the turbopumping of propellant into the chamber if pressure became too high. The World War II facility used as a starting base the cellars and storage tunnels of an old brewery. Construction of the facility was under the command of SS-Obergruppenführer Hans Kammler who

182-499: A company store , owned by their employers. A specific kind of truck system, in which credit advances are made against future work, is known in the U.S. as debt bondage . Many scholars have suggested that employers use such systems to exploit workers and/or indebt them. This could occur, for example, if employers were able to pay workers with goods which had a market value below the level of subsistence , or by selling items to workers at inflated prices. Others argue that truck wages were

273-400: A cul-de-sac (Hansen's term was "leakage"); the only culs-de-sac he acknowledged were imports and hoarding, although he also said that a rise in prices might dilute the multiplier effect. Jens Warming recognised that personal saving had to be considered, treating it as a "leakage" (p. 214) while recognising on p. 217 that it might in fact be invested. The textbook multiplier gives

364-501: A 1928 Treasury memorandum ("with imports as the only leakage"), but the idea was discarded in his own subsequent writings. Soon afterwards the Australian economist Lyndhurst Giblin published a multiplier analysis in a 1930 lecture (again with imports as the only leakage). The idea itself was much older. Some Dutch mercantilists had believed in an infinite multiplier for military expenditure (assuming no import "leakage"), since ... ...

455-663: A convenient way for isolated communities, such as during the early colonial settlement of North America, to operate when official currency was scarce. By the early 20th century, truck systems were widely seen, in industrialised countries, as exploitative; perhaps the most well-known example of this view was a 1947 U.S. hit song " Sixteen Tons ". Many countries have Truck Act legislation that outlaws truck systems and requires payment in cash. Though most closely associated with Medieval Europe, governments throughout human history have imposed regular short stints of unpaid labour upon lower social classes. These might be annual obligations of

546-412: A culprit as Kahn and Samuelson, wrote that ... ... in connection with the multiplier (and indeed most of the time) what Keynes is referring to as "investment" really means any addition to spending for any purpose ... The word "investment" is being used in a Pickwickian, or Keynesian, sense. Kahn envisaged money as being passed from hand to hand, creating employment at each step, until it came to rest in

637-719: A debt, or transportation to a desired country. While historically unfree labour was frequently sanctioned by law, in the present day most unfree labour now revolves around illegal control rather than legal ownership, as all countries have made slavery illegal. As mentioned above, there are several exceptions of unfree or forced labour recognised by the International Labour Organization : Some countries practise forms of civil conscription for different major occupational groups or inhabitants under different denominations like civil conscription , civil mobilization , political mobilisation etc. This obligatory service on

728-475: A demand to hoard, is not admitted by the simplified liquidity preference model of the General Theory . Once he rejects the classical theory that unemployment is due to excessive wages, Keynes proposes an alternative based on the relationship between saving and investment. In his view, unemployment arises whenever entrepreneurs' incentive to invest fails to keep pace with society's propensity to save ( propensity

819-648: A few weeks or something similarly regular that lasted for the labourer's entire working life. As the system developed in the Philippines and elsewhere, the labourer could pay an appropriate fee and be exempted from the obligation. A form of forced labour in which peasants and members of lower castes were required to work for free existed in India before independence. This form of labour was known by several names, including veth , vethi , vetti-chakiri and begar . Another historically significant example of forced labour

910-447: A free market policy would. Under the classical theory, the wage rate is determined by the marginal productivity of labour , and as many people are employed as are willing to work at that rate. Unemployment may arise through friction or may be "voluntary", in the sense that it arises from a refusal to accept employment owing to "legislation or social practices ... or mere human obstinacy", but "...the classical postulates do not admit of

1001-831: A joint study of historians featuring Zhifen Ju, Mark Peattie , Toru Kubo, and Mitsuyoshi Himeta, more than 10 million Chinese were mobilised by the Japanese army and enslaved by the Kōa-in for slave labour in Manchukuo and north China. The U.S. Library of Congress estimates that in Java , between 4 and 10 million romusha ( Japanese : "manual labourer") were forced to work by the Japanese military. About 270,000 of these Javanese labourers were sent to other Japanese-held areas in South East Asia. Only 52,000 were repatriated to Java, meaning that there

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1092-412: A marginal propensity to consume of 2/3, they will now spend $ 666.67 on new consumption goods. The producers of these goods will now have extra incomes... they in turn will spend $ 444.44 ... Thus an endless chain of secondary consumption respending is set in motion by my primary investment of $ 1000. Samuelson's treatment closely follows Joan Robinson 's account of 1937 and is the main channel by which

1183-450: A newly created Committee of Economists, Keynes tried to use Kahn's emerging multiplier theory to argue for public works, "but Pigou's and Henderson's objections ensured that there was no sign of this in the final product". In 1933 he gave wider publicity to his support for Kahn's multiplier in a series of articles titled "The road to prosperity" in The Times newspaper. A. C. Pigou was at

1274-504: A political pamphlet seeking to "provide academically respectable economic arguments" for Lloyd George's policies. It was titled Can Lloyd George do it? and endorsed the claim that "greater trade activity would make for greater trade activity ... with a cumulative effect". This became the mechanism of the "ratio" published by Richard Kahn in his 1931 paper "The relation of home investment to unemployment", described by Alvin Hansen as "one of

1365-404: A serious academic scholar, rather than just as the author of stinging polemics", and marks a large step in the direction of his later views. In it, he attributes unemployment to wage stickiness and treats saving and investment as governed by independent decisions: the former varying positively with the interest rate, the latter negatively. The velocity of circulation is expressed as a function of

1456-428: A somewhat lesser extent. Keynes adds that "this psychological law was of the utmost importance in the development of my own thought". Keynes viewed the money supply as one of the main determinants of the state of the real economy. The significance he attributed to it is one of the innovative features of his work, and was influential on the politically hostile monetarist school . Money supply comes into play through

1547-512: A unified mathematical basis for this approach, which the Lausanne School generalized to general equilibrium theory. For macroeconomics, relevant partial theories included the Quantity theory of money determining the price level and the classical theory of the interest rate . In regards to employment, the condition referred to by Keynes as the "first postulate of classical economics" stated that

1638-579: A voluntary basis. Although personal benefits may be realised, it may be performed for a variety of reasons including citizenship requirements, a substitution of criminal justice sanctions, requirements of a school or class, and requisites for the receipt of certain benefits. During the Cold War in some communist countries like Czechoslovakia , the German Democratic Republic or the Soviet Union

1729-520: A war could support itself for an unlimited period if only money remained in the country ... For if money itself is "consumed", this simply means that it passes into someone else's possession, and this process may continue indefinitely. Multiplier doctrines had subsequently been expressed in more theoretical terms by the Dane Julius Wulff (1896), the Australian Alfred de Lissa (late 1890s),

1820-413: A whole". At the time that Keynes wrote the General Theory , it had been a tenet of mainstream economic thought that the economy would automatically revert to a state of general equilibrium: it had been assumed that, because the needs of consumers are always greater than the capacity of the producers to satisfy those needs, everything that is produced would eventually be consumed once the appropriate price

1911-577: Is a term to define the recruiting, harbouring, obtaining and transportation of a person by use of force, fraud, or coercion for the purpose of subjecting them to involuntary acts, such as acts related to commercial sexual exploitation (including forced prostitution ) or involuntary labour. The archetypal and best-known form of unfree labour is chattel slavery , in which individual workers are legally owned throughout their lives, and may be bought, sold or otherwise exchanged by owners, while never or rarely receiving any personal benefit from their labour. Slavery

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2002-499: Is any work relation, especially in modern or early modern history, in which people are employed against their will with the threat of destitution , detention , or violence , including death or other forms of extreme hardship to either themselves or members of their families. Unfree labour includes all forms of slavery , penal labour , and the corresponding institutions, such as debt slavery , serfdom , corvée and labour camps . Many forms of unfree labour are also covered by

2093-505: Is classical but incorporates ideas that later played a part in the General Theory . In particular, looking at the hyperinflation in European economies, he drew attention to the opportunity cost of holding money (identified with inflation rather than interest) and its influence on the velocity of circulation . In 1930, he published A Treatise on Money , intended as a comprehensive treatment of its subject "which would confirm his stature as

2184-401: Is estimated that in the last 50 years more than 50 million people have been sent to Chinese laogai camps. A more common form in modern society is indenture, or bonded labour , under which workers sign contracts to work for a specific period of time, for which they are paid only with accommodation and sustenance, or these essentials in addition to limited benefits such as cancellation of

2275-585: Is executed only in a handful of communities in Germany and currently none in Austria. Beside the conscription for military services, some countries draft citizens for paramilitary or security forces , like internal troops , border guards or police forces . While sometimes paid, conscripts are not free to decline enlistment. Draft dodging or desertion are often met with severe punishment. Even in countries which prohibit other forms of unfree labour, conscription

2366-481: Is generally justified as being necessary in the national interest and therefore is one of the five exceptions to the Forced Labour Convention , signed by the most countries in the world. Community service is a paying job performed by one person or a group of people for the benefit of their community or its institutions. Community service is distinct from volunteering, since it is not always performed on

2457-626: Is mandatory to join the so-called Militia Fire Brigades , as well as the obligatory service in Swiss civil defence and protection force. Conscripts in Singapore are providing the personnel of the country's fire service as part of the national service in the Civil Defence Force . In Austria and Germany citizens have to join a compulsory fire brigade if a volunteer fire service can not be provided, due to lack of volunteers. In 2018 this regulation

2548-405: Is one of Keynes's synonyms for "demand"). The levels of saving and investment are necessarily equal, and income is therefore held down to a level where the desire to save is no greater than the incentive to invest. The incentive to invest arises from the interplay between the physical circumstances of production and psychological anticipations of future profitability; but once these things are given

2639-567: Is the orthodox Treasury dogma, steadfastly held ... [that] very little additional employment and no permanent additional employment can, in fact, be created by State borrowing and State expenditure. Keynes pounced on a flaw in the Treasury view . Cross-examining Sir Richard Hopkins , a Second Secretary in the Treasury, before the Macmillan Committee on Finance and Industry in 1930 he referred to

2730-404: Is volatile and unstable and that, consequently, a market economy often experiences inefficient macroeconomic outcomes, including recessions when demand is too low and inflation when demand is too high. Further, they argue that these economic fluctuations can be mitigated by economic policy responses coordinated between government and central bank . In particular, fiscal policy actions taken by

2821-487: The liquidity preference function, which is the demand function that corresponds to money supply. It specifies the amount of money people will seek to hold according to the state of the economy. In Keynes's first (and simplest) account – that of Chapter 13 – liquidity preference is determined solely by the interest rates r —which is seen as the earnings forgone by holding wealth in liquid form: hence liquidity preference can be written L ( r ) and in equilibrium must equal

Redl-Zipf - Misplaced Pages Continue

2912-610: The General Theory, in Chapter 22, Section IV and Chapter 23, Section VII . Numerous concepts were developed earlier and independently of Keynes by the Stockholm school during the 1930s; these accomplishments were described in a 1937 article, published in response to the 1936 General Theory, sharing the Swedish discoveries. In 1923, Keynes published his first contribution to economic theory, A Tract on Monetary Reform , whose point of view

3003-495: The Great Depression from the ideas presented by Keynes in his 1936 book, The General Theory of Employment, Interest and Money . Keynes' approach was a stark contrast to the aggregate supply -focused classical economics that preceded his book. Interpreting Keynes's work is a contentious topic, and several schools of economic thought claim his legacy. Keynesian economics, as part of the neoclassical synthesis , served as

3094-525: The Mittelwerk (turbopump/chamber compatibility testing for Mittelwerk production was also performed at the Lehesten facility). Karl Heimberg , who had worked at Peenemünde Test Stand 7 , was transferred to " Vorwerk Süd " at Redl-Zipf and then, for the period from late 1944 to early April 1945, to Lehesten (he later returned to Peenemünde with Walter Riedel III to burn design office files and participated in

3185-778: The Pacific War (such as the Burma Railway ). Roughly 4,000,000 German POWs were used as "reparations labour" by the Allies for several years after the German surrender; this was permitted under the Third Geneva Convention provided they were accorded proper treatment. China's laogai ("labour reform") system and North Korea 's kwalliso camps are current examples. About 12 million forced labourers, most of whom were Poles and Soviet citizens ( Ost-Arbeiter ) were employed in

3276-528: The Spanish Empire , or the work of Indigenous Australians in northern Australia on sheep or cattle stations ( ranches ), from the mid-19th to the mid-20th century. In the latter case, workers were rarely or never paid, and were restricted by regulations and/or police intervention to regions around their places of work. In late 16th century Japan, "unfree labour" or slavery was officially banned; but forms of contract and indentured labour persisted alongside

3367-610: The United Kingdom , the so-called Bevin Boys , had been conscripted for the work in coal mines . In Belgium in 1964, in Portugal and in Greece from 2010 to 2014 due to the severe economic crisis , a system of civil mobilisation was implemented to provide public services as a national interest. In Switzerland in most communities for all inhabitants, no matter if they are Swiss or not, it

3458-617: The post-war Operation Backfire ). The Operation Bernhard forced labor team at Sachsenhausen concentration camp for producing counterfeit British money was transferred to the Schlier-Redl-Zipf subcamp until the beginning of May 1945, when the team of prisoners was ordered to transfer to the Ebensee concentration camp . 48°02′22″N 13°30′17″E  /  48.03944°N 13.50472°E  / 48.03944; 13.50472 Forced labor Forced labour , or unfree labour ,

3549-413: The quantity theory of money protects the classical school from the conclusion Keynes expected from it. Saving is that part of income not devoted to consumption , and consumption is that part of expenditure not allocated to investment , i.e., to durable goods. Hence saving encompasses hoarding (the accumulation of income as cash) and the purchase of durable goods. The existence of net hoarding, or of

3640-408: The "first proposition" that "schemes of capital development are of no use for reducing unemployment" and asked whether "it would be a misunderstanding of the Treasury view to say that they hold to the first proposition". Hopkins responded that "The first proposition goes much too far. The first proposition would ascribe to us an absolute and rigid dogma, would it not?" Later the same year, speaking in

3731-408: The 1920s and 1930s. Underconsumptionists were, like Keynes after them, concerned with failure of aggregate demand to attain potential output, calling this "underconsumption" (focusing on the demand side), rather than " overproduction " (which would focus on the supply side), and advocating economic interventionism . Keynes specifically discussed underconsumption (which he wrote "under-consumption") in

Redl-Zipf - Misplaced Pages Continue

3822-572: The 1929 General Election on a promise to "reduce levels of unemployment to normal within one year by utilising the stagnant labour force in vast schemes of national development". David Lloyd George launched his campaign in March with a policy document, We can cure unemployment, which tentatively claimed that, "Public works would lead to a second round of spending as the workers spent their wages." Two months later Keynes, then nearing completion of his Treatise on money , and Hubert Henderson collaborated on

3913-646: The Abolition of Forced Labour Convention (C105), one of the fundamental conventions of the ILO. According to the ILO Special Action Programme to Combat Forced Labour (SAP-FL), global profits from forced trafficked labour exploited by private agents are estimated at US$ 44.3 billion per year. About 70% of this value (US$ 31.6 billion) comes from trafficked victims. At least the half of this sum (more than US$ 15 billion) comes from industrialised countries. Trafficking

4004-532: The Americas, Asia, or Europe, where their status as slaves was almost always inherited by their descendants. The term "slavery" is often applied to situations which do not meet the above definitions, but which are other, closely related forms of unfree labour, such as debt slavery or debt-bondage (although not all repayment of debts through labour constitutes unfree labour). Examples are the Repartimiento system in

4095-451: The German war economy inside Nazi Germany. More than 2000 German companies profited from slave labour during the Nazi era, including Daimler , Deutsche Bank , Siemens , Volkswagen , Hoechst , Dresdner Bank , Krupp , Allianz , BASF , Bayer , BMW , and Degussa . In particular, Germany's Jewish population was subject to slave labour prior to their extermination. In Asia, according to

4186-594: The German/American Nicholas Johannsen (same period), and the Dane Fr. Johannsen (1925/1927). Kahn himself said that the idea was given to him as a child by his father. As the 1929 election approached "Keynes was becoming a strong public advocate of capital development" as a public measure to alleviate unemployment. Winston Churchill, the Conservative Chancellor, took the opposite view: It

4277-670: The Global Economy (1999), there are now an estimated 27 million slaves in the world. Blackbirding involves kidnapping or trickery to transport people to another country or far away from home, to work as a slave or low-paid involuntary worker. In some cases, workers were returned home after a period of time. Serfdom bonds labourers to the land they farm, typically in a feudal society. Serfs typically have no legal right to leave, change employers, or seek paid work, though depending on economic conditions many did so anyway. Unlike chattel slaves, they typically cannot be sold separately from

4368-471: The backdrop of high and persistent unemployment during the Great Depression, Keynes argued that there was no guarantee that the goods that individuals produce would be met with adequate effective demand, and periods of high unemployment could be expected, especially when the economy was contracting in size. He saw the economy as unable to maintain itself at full employment automatically, and believed that it

4459-461: The claim that the effect of public works is at the expense of expenditure elsewhere, admitting that this might arise if the revenue is raised by taxation, but says that other available means have no such consequences. As an example, he suggests that the money may be raised by borrowing from banks, since ... ... it is always within the power of the banking system to advance to the Government the cost of

4550-446: The cost of the roads. The demonstration relies on "Mr Meade's relation" (due to James Meade ) asserting that the total amount of money that disappears into culs-de-sac is equal to the original outlay, which in Kahn's words "should bring relief and consolation to those who are worried about the monetary sources" (p. 189). A respending multiplier had been proposed earlier by Hawtrey in

4641-483: The debate is thus unwarranted. The International Labour Organization (ILO) estimates that at least 12.3 million people are victims of forced labour worldwide; of these, 9.8 million are exploited by private agents and more than 2.4 million are trafficked . Another 2.5 million are forced to work by the state or by rebel military groups. From an international law perspective, countries that allow forced labour are violating international labour standards as set forth in

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4732-407: The discussion. These contributions maintain that, because Marxist theory failed to understand the centrality of unfreedom to modern capitalism, a new explanation of this link is needed. This claim has been questioned by Tom Brass . He argues that many of these new characteristics are in fact no different from those identified earlier by Marxist theory and that the exclusion of the latter approach from

4823-402: The economy operates below its potential output and growth rate. Prior to Keynes, a situation in which aggregate demand for goods and services did not meet supply was referred to by classical economists as a general glut , although there was disagreement among them as to whether a general glut was possible. Keynes argued that when a glut occurred, it was the over-reaction of producers and

4914-763: The ensuing discussion concerned the extent to which different relational forms constituted obstacles to capitalist development, and why. During the 1960s and 1970s, unfree labour was regarded as incompatible with capitalist accumulation, and thus an obstacle to economic growth, an interpretation advanced by exponents of the then-dominant semi-feudal thesis. From the 1980s onwards, however, another and very different Marxist view emerged, arguing that evidence from Latin America and India suggested agribusiness enterprises, commercial farmers and rich peasants reproduced, introduced or reintroduced unfree relations. However, recent contributions to this debate have attempted to exclude Marxism from

5005-412: The existence and nature of general gluts . A number of the policies Keynes advocated to address the Great Depression (notably government deficit spending at times of low private investment or consumption), and many of the theoretical ideas he proposed (effective demand, the multiplier, the paradox of thrift ), had been advanced by authors in the 19th and early 20th centuries. (E.g. J. M. Robertson raised

5096-592: The facility as a rocket technician and had arrived four months earlier on April 28, 1944. All of those killed in the explosion were given a state funeral and are interred at the Vöcklabruck-Schöndorf cemetery. After the August 1944 explosion, liquid oxygen production at the Schlier plant stopped once again which led to the establishment of a third V-2 liquid oxygen plant (5000 tons/month) at a slate quarry at Lehesten near

5187-443: The facility for almost two months. A report to Albert Speer indicated the cause of the explosion was a liquid oxygen leak and an open carbide lamp carried by the plant foreman. Another serious explosion at 12:29 PM on August 28, 1944, killed 27 people and caused significant damage to the facility. Among the 27 casualties was Ilse Oberth (1924–1944), the youngest daughter of rocket pioneer Hermann Julius Oberth . Ilse Oberth worked at

5278-543: The general population, since they are unable or unlikely to report their conditions to the authorities. Unfree labour re-emerged as an issue in the debate about rural development during the years following the end of the Second World War, when a political concern of Keynesian theory was not just economic reconstruction (mainly in Europe and Asia) but also planning (in developing "Third World" nations ). A crucial aspect of

5369-403: The government and monetary policy actions taken by the central bank, can help stabilize economic output, inflation, and unemployment over the business cycle . Keynesian economists generally advocate a regulated market economy – predominantly private sector , but with an active role for government intervention during recessions and depressions . Keynesian economics developed during and after

5460-418: The great landmarks of economic analysis". The "ratio" was soon rechristened the "multiplier" at Keynes's suggestion. The multiplier of Kahn's paper is based on a respending mechanism familiar nowadays from textbooks. Samuelson puts it as follows: Let's suppose that I hire unemployed resources to build a $ 1000 woodshed. My carpenters and lumber producers will get an extra $ 1000 of income... If they all have

5551-498: The ideas that became the basis for Keynesian economics in his main work, The General Theory of Employment, Interest and Money (1936). It was written during the Great Depression , when unemployment rose to 25% in the United States and as high as 33% in some countries. It is almost wholly theoretical, enlivened by occasional passages of satire and social commentary. The book had a profound impact on economic thought, and ever since it

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5642-452: The impression that making society richer is the easiest thing in the world: the government just needs to spend more. In Kahn's paper, it is harder. For him, the initial expenditure must not be a diversion of funds from other uses, but an increase in the total expenditure: something impossible – if understood in real terms – under the classical theory that the level of expenditure is limited by the economy's income/output. On page 174, Kahn rejects

5733-457: The incentive is independent of income and depends solely on the rate of interest r . Keynes designates its value as a function of r as the "schedule of the marginal efficiency of capital ". The propensity to save behaves quite differently. Saving is simply that part of income not devoted to consumption, and: ... the prevailing psychological law seems to be that when aggregate income increases, consumption expenditure will also increase but to

5824-471: The land, and have rights such as the military protection of the lord. A truck system, in the specific sense in which the term is used by labour historians , refers to an unpopular or even exploitative form of payment associated with small, isolated and/or rural communities, in which workers or self-employed small producers are paid in either: goods, a form of payment known as truck wages , or tokens, private currency ("scrip") or direct credit, to be used at

5915-442: The laying off of workers that led to a fall in demand and perpetuated the problem. Keynesians therefore advocate an active stabilization policy to reduce the amplitude of the business cycle, which they rank among the most serious of economic problems. According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation . The Liberal Party fought

6006-437: The multiplier has influenced Keynesian theory. It differs significantly from Kahn's paper and even more from Keynes's book. The designation of the initial spending as "investment" and the employment-creating respending as "consumption" echoes Kahn faithfully, though he gives no reason why initial consumption or subsequent investment respending should not have exactly the same effects. Henry Hazlitt , who considered Keynes as much

6097-411: The one hand has been implemented due to long-lasting labour strikes , during wartime or economic crisis, to provide basic services like medical care, food supply or supply of the defence industry. On the other hand, this service can be obligatory to provide recurring and inevitable services to the population, like fire services, due to lack of volunteers. Between December 1943 and March 1948 young men in

6188-658: The originally voluntary work on Saturday for the community called Subbotnik , Voskresnik or Akce Z became de facto obligatory for the members of a community. In some Austrian and German states it is feasible for communities to draft citizens for public services, called hand and hitch-up services . This mandatory service is still executed to maintain the infrastructure of small communities. Comprehensive Employment and Training Act Keynesian Heterodox Keynesian economics ( / ˈ k eɪ n z i ə n / KAYN -zee-ən ; sometimes Keynesianism , named after British economist John Maynard Keynes ) are

6279-468: The overall price level, the interest rate , the level of employment, and income (or equivalently output) measured in real terms . The classical tradition of partial equilibrium theory had been to split the economy into separate markets, each of whose equilibrium conditions could be stated as a single equation determining a single variable. The theoretical apparatus of supply and demand curves developed by Fleeming Jenkin and Alfred Marshall provided

6370-550: The paradox of thrift in 1892 . ) Keynes's unique contribution was to provide a general theory of these, which proved acceptable to the economic establishment. An intellectual precursor of Keynesian economics was underconsumption theories associated with John Law , Thomas Malthus , the Birmingham School of Thomas Attwood , and the American economists William Trufant Foster and Waddill Catchings , who were influential in

6461-701: The period's penal codes' forced labour. Somewhat later, the Edo period 's penal laws prescribed "non-free labour" for the immediate families of executed criminals in Article 17 of the Gotōke reijō (Tokugawa House Laws), but the practice never became common. The 1711 Gotōke reijō was compiled from over 600 statutes that were promulgated between 1597 and 1696. According to Kevin Bales in Disposable People: New Slavery in

6552-408: The possibility of the third category," which Keynes defines as involuntary unemployment . Keynes raises two objections to the classical theory's assumption that "wage bargains ... determine the real wage". The first lies in the fact that "labour stipulates (within limits) for a money-wage rather than a real wage". The second is that classical theory assumes that, "The real wages of labour depend on

6643-487: The rate of interest. He interpreted his treatment of liquidity as implying a purely monetary theory of interest. Keynes's younger colleagues of the Cambridge Circus and Ralph Hawtrey believed that his arguments implicitly assumed full employment , and this influenced the direction of his subsequent work. During 1933, he wrote essays on various economic topics "all of which are cast in terms of movement of output as

6734-403: The roads without in any way affecting the flow of investment along the normal channels. This assumes that banks are free to create resources to answer any demand. But Kahn adds that ... ... no such hypothesis is really necessary. For it will be demonstrated later on that, pari passu with the building of roads, funds are released from various sources at precisely the rate that is required to pay

6825-404: The standard macroeconomic model in the developed nations during the later part of the Great Depression , World War II , and the post-war economic expansion (1945–1973). It was developed in part to attempt to explain the Great Depression and to help economists understand future crises. It lost some influence following the oil shock and resulting stagflation of the 1970s . Keynesian economics

6916-760: The state use of convict labour. Australia received thousands of convict labourers in the eighteenth and nineteenth centuries who were given sentences for crimes ranging from those now considered to be minor misdemeanours to such serious offences as murder, rape and incest. A considerable number of Irish convicts were sentenced to transportation for treason while fighting against British rule in Ireland . More than 165,000 convicts were transported to Australian colonies from 1788 to 1868. Most British or Irish convicts who were sentenced to transportation, however, completed their sentences in British jails and were not transported at all. It

7007-656: The term forced labour , which is defined by the International Labour Organization (ILO) as all involuntary work or service exacted under the menace of a penalty. However, under the ILO Forced Labour Convention of 1930, the term forced or compulsory labour does not include: If payment occurs, it may be in one or more of the following forms: Unfree labour is often more easily instituted and enforced on migrant workers, who have travelled far from their homelands and who are easily identified because of their physical, ethnic, linguistic, or cultural differences from

7098-502: The time the sole economics professor at Cambridge. He had a continuing interest in the subject of unemployment, having expressed the view in his popular Unemployment (1913) that it was caused by "maladjustment between wage-rates and demand" – a view Keynes may have shared prior to the years of the General Theory . Nor were his practical recommendations very different: "on many occasions in the thirties" Pigou "gave public support [...] to State action designed to stimulate employment". Where

7189-438: The two men differed is in the link between theory and practice. Keynes was seeking to build theoretical foundations to support his recommendations for public works while Pigou showed no disposition to move away from classical doctrine. Referring to him and Dennis Robertson , Keynes asked rhetorically: "Why do they insist on maintaining theories from which their own practical conclusions cannot possibly follow?" Keynes set forward

7280-512: The various macroeconomic theories and models of how aggregate demand (total spending in the economy ) strongly influences economic output and inflation . In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy . It is influenced by a host of factors that sometimes behave erratically and impact production, employment, and inflation . Keynesian economists generally argue that aggregate demand

7371-426: The wage bargains which labour makes with the entrepreneurs," whereas, "If money wages change, one would have expected the classical school to argue that prices would change in almost the same proportion, leaving the real wage and the level of unemployment practically the same as before." Keynes considers his second objection the more fundamental, but most commentators concentrate on his first one: it has been argued that

7462-403: The wage is equal to the marginal product, which is a direct application of the marginalist principles developed during the nineteenth century (see The General Theory ). Keynes sought to supplant all three aspects of the classical theory. Although Keynes's work was crystallized and given impetus by the advent of the Great Depression , it was part of a long-running debate within economics over

7553-511: Was a death rate of 80%. Also, 6.87 million Koreans were forcefully put into slave labour from 1939 to 1945 in both Japan and Japanese-occupied Korea. Kerja rodi ( Heerendiensten ) , was the term for forced labour in Indonesia under Dutch colonial rule . The Khmer Rouge attempted to turn Cambodia into a classless society by depopulating cities and forcing the urban population ("New People") into agricultural communes . The entire population

7644-564: Was common in many ancient societies , including ancient Egypt , Babylon , Persia , ancient Greece , Rome , ancient China , the pre-modern Muslim world , as well as many societies in Africa and the Americas . Being sold into slavery was a common fate of populations that were conquered in wars. Perhaps the most prominent example of chattel slavery was the enslavement of many millions of black people in Africa, as well as their forced transportation to

7735-451: Was forced to become farmers in labour camps . Convict or prison labour is another classic form of unfree labour. The forced labour of convicts has often been regarded with lack of sympathy, because of the social stigma attached to people regarded as common criminals. Three British colonies in Australia – New South Wales , Van Diemen's Land and Western Australia – are examples of

7826-483: Was found for it. This perception is reflected in Say's law and in the writing of David Ricardo , which states that individuals produce so that they can either consume what they have manufactured or sell their output so that they can buy someone else's output. This argument rests upon the assumption that if a surplus of goods or services exists, they would naturally drop in price to the point where they would be consumed. Given

7917-425: Was later redeveloped as New Keynesian economics , becoming part of the contemporary new neoclassical synthesis , that forms current-day mainstream macroeconomics . The advent of the financial crisis of 2007–2008 sparked renewed interest in Keynesian policies by governments around the world. Macroeconomics is the study of the factors applying to an economy as a whole. Important macroeconomic variables include

8008-412: Was necessary for the government to step in and put purchasing power into the hands of the working population through government spending. Thus, according to Keynesian theory, some individually rational microeconomic-level actions such as not investing savings in the goods and services produced by the economy, if taken collectively by a large proportion of individuals and firms, can lead to outcomes wherein

8099-463: Was published there has been debate over its meaning. Keynes begins the General Theory with a summary of the classical theory of employment, which he encapsulates in his formulation of Say's Law as the dictum " Supply creates its own demand ". He also wrote that although his theory was explained in terms of an Anglo-Saxon laissez faire economy, his theory was also more general in the sense that it would be easier to adapt to "totalitarian states" than

8190-592: Was responsible for Nazi civil engineering projects and its top secret weapons programs and used forced labor from the Schlier-Redl-Zipf subcamp of the Mauthausen-Gusen concentration camp . The construction added a large number of tunnels and supporting structures and included a liquid oxygen generation plant in one of the tunnels. A large explosion on February 29, 1944, killed 14 people, destroyed several installations, and halted production of liquid oxygen at

8281-523: Was that of political prisoners , people from conquered or occupied countries, members of persecuted minorities, and prisoners of war , especially during the 20th century. The best-known example of this are the concentration camp system run by Nazi Germany in Europe during World War II, the Gulag camps run by the Soviet Union , and the forced labour used by the military of the Empire of Japan , especially during

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