I am interested in the the 1930 essay ‘Economic Possibilities for our Grandchildren’ written by Keynes. But I don’t really understand it…
Keynes described the economic problem as people worked too hard to satisfy basic need, what does he mean with ‘work too hard’? does he mean like inefficient production? and how does it relate to the ‘great economic problem’ that deals with resource scarcity?
Plus, what are Keynes assumptions on access of wealth?
Thanks in advance 🙂
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Keynes means that people are working hard to earn enough money to buy the things they need, but they don’t have enough time to enjoy life or do other things they enjoy because they are always working. The great economic problem is that there are limited resources available, so people have to compete for them. This can lead to conflict and wars.
Keynes’s assumption on access of wealth can be summarized as follows: people are rational and want to improve their standard of living; they participate in the economy by working, investing, and spending; government policy can affect economic activity; and the overall level of prices is determined by the balance of demand and supply in the economy.
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