Have I ever mentioned before that the level of unemployment is unrelated to the level of aggregate demand?

In the news today.

RECOVERY SUMMER! Record jobs gain of 4.8 million in June smashes expectations; unemployment rate falls to 11.1%. Democrats, media hardest hit.

By the way, my latest book has just been released: Classical Economic Theory and the Modern Economy. The two references on the back cover:

‘In Classical Economic Theory and the Modern Economy, Kates seeks to correct this dangerous intellectual detour economists took due to Keynes and finally get modern economists to practice economics beyond the shadow of Keynes. It is a Herculean task, but armed with J.B. Say and especially J.S. Mill, Steven Kates makes as strong an effort for resurrection of classical economy theory as can be marshaled. This will be a must read for all students of economics, and a compelling contribution to the history of economic doctrine.’
– Peter Boettke, George Mason University, US

‘This book delivers hard blows to the tenets of modern economics, retells its history and evolution, and pokes holes at our misperceptions of classical economic theory. The result is as much a burial of the macroeconomics of Keynes as it is a resuscitation of the classical economics of J.S. Mill.’
– Per Bylund, Oklahoma State University, US

For a change, we have two people commenting on a book who actually seem to have read it and know what it says.

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5 Responses to Have I ever mentioned before that the level of unemployment is unrelated to the level of aggregate demand?

  1. NoFixedAddress

    Good on you Steve.

    Next book you write should be titled, “Keynes to The Max” or maybe “Keyne’d to the Wheel”.

  2. Mak Siccar

    Well done Steve and congratulations. Can you please send an A4 summary, in layman’s terms, to the federal treasurer and all state counterparts for their enlightenment ?

  3. flyingduk

    All that aside, given the lack of savings nowadays (brought about by government policies which rescue indigent citizens and penalise savings), it is generally true that people who are not working are instead being funded by those that are (rather than by their own savings). This means that it is the employment rate that matters, not the unemployment rate (more-so because so many of those not working are hidden by giving them other labels: pension, disability etc). Even before the ‘rona, the ’employment rate’ in Australia was in the mid 60% range. With current circumstances it is likely in the 50% range or less.

  4. Peter Gallagher


    Having read your arguments about classical economics here at the CAT for several years, I would like to buy your book. But I don’t want a hard-cover. I find it much more convenient to read an e-book that I can mark up for my own notes and reference.

    But your publisher insists on a specific format (DRM’d PDF) that means I would have to use the WORST digital reading app in the world (Adobe Digital Editions) to ready your book. It is so awful that it ruins the experience of any book. I have stopped buying e-books in that format.

    If your publisher, or you, would sell the digital version in another format (e.g. watermarked PDF or protected .mobi or .epub format) I’d be a keen customer.

  5. Ah the dreaded story of aggregate demand. The scourge of the last hundred
    My fable on the matter

    keep up the good work

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