Reply #52: Flatly untrue [View All]

[Nederland]

Investment without anticipated returns = 0 jobs.

This is completely untrue. If I invest $10 million dollars in a factory and hire 1000 people to produces widgets that I know nobody wants, I have still created jobs. The fact that they are producing worthless items is irrelevant because the money that I pay those people will be used by them to buy food, clothing and all sorts of other things that create economic activity.

That's why Keynes said that employment was a function of consumption AND investment. The reasoning is a simple logical argument. Creating a job requires having money to pay someone to do it. That money can come from one of two sources: investment OR sales of a product. EITHER one will do. You can get the money to pay for something by selling stuff, OR you can get it from an investor. You keep on saying that one of those sources of money creates jobs and the other doesn't. That's NOT what Keynes said because its not remotely true.