Unemployment is 'involuntary' when the price is above its…
“Unemployment is 'involuntary' when the price is above its market clearing level. Workers are unemployed because jobs are not available at the prevailing wages, period. The only recourse is to either expand the number of jobs or somehow lower the wage.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Unemployment is involuntary when wages are set above market clearing, leaving workers jobless.
In simple terms: High wages cause joblessness.
Adjust wages or create jobs.
Themes
Mood
Type
When to use this quote
- policy design
- employment strategy
- business planning
Key Concepts
Questions to Reflect On
- How can policy balance wages and employment?
- What alternatives exist to wage reduction?
Lowering wages may reduce living standards.