“ For if entrepreneurs offer employment on a scale which, if they could sell their output at the expected price, would provide the public with incomes out of which they would save more than the amount of current investment, entrepreneurs are bound to make a loss equal to the difference ”
John Maynard Keynes, The General Theory of Employment, Interest and Money (1936). copy citation
| Author | John Maynard Keynes |
|---|---|
| Source | The General Theory of Employment, Interest and Money |
| Topic | investment loss |
| Date | 1936 |
| Language | English |
| Reference | |
| Note | |
| Weblink | http://gutenberg.net.au/ebooks03/0300071h/printall.html |
Context
“Thus the proceeds realised from the increased output will disappoint the entrepreneurs and employment will fall back again to its previous figure, unless the marginal propensity to consume is equal to unity or the reduction in money-wages has had the effect of increasing the schedule of marginal efficiencies of capital relatively to the rate of interest and hence the amount of investment. For if entrepreneurs offer employment on a scale which, if they could sell their output at the expected price, would provide the public with incomes out of which they would save more than the amount of current investment, entrepreneurs are bound to make a loss equal to the difference; and this will be the case absolutely irrespective of the level of money-wages. At the best, the date of their disappointment can only be delayed for the interval during which their own investment in increased working capital is filling the gap.”
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