Introducing A Tiger by the Tail - Joseph T. Salerno - Mises Institute

Introducing A Tiger by the Tail - Joseph T. Salerno - Mises Institute: "Keynes wrongly assumed that unemployment typically involves the idleness of resources of all kinds in all stages of production. In this sense, Keynesian economics left out the vital element of the scarcity of real resources, the pons asinorum of undergraduate economic-principles courses. In Keynes's illusory world of superabundance, an increase in total money expenditure will indeed increase employment and real income, because all the resources needed for any production process will be available in the correct proportions at current prices. However, in the real world of scarcity, as Hayek shows, unemployed resources will be of specific kinds and in specific industries, for example unionized labor in mining or steel fabrication."