--- title: "Meaning & Key Takeaway of: Will capitalist economies operate at full…" description: "\"Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not. Do policy makers have the knowledge and abi..." image: "https://sms4smile.com/quotes/i/467/janet-yellen-2828_ability_will-capitalist-economies-operate-at-ful_2311464.png" --- # Will capitalist economies operate at full employment in… ![“Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not. Do policy makers have the knowledge and ability to improve macroeconomic outcomes rather than make matters worse? Yes.” quote by Janet Yellen](https://sms4smile.com/quotes/i/467/janet-yellen-2828_ability_will-capitalist-economies-operate-at-ful_2311464.png) [Download](https://sms4smile.com/quotes/i/467/janet-yellen-2828_ability_will-capitalist-economies-operate-at-ful_2311464.png) [Open image](https://sms4smile.com/quotes/i/467/janet-yellen-2828_ability_will-capitalist-economies-operate-at-ful_2311464.png) > “Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not. Do policy makers have the knowledge and ability to improve macroeconomic outcomes rather than make matters worse? Yes.” [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Full employment cannot be sustained without policy; policymakers often lack perfect knowledge, making interventions risky. **In simple terms:** Economy needs active policy, but expertise is limited. Key Takeaway Policy must be cautious and evidence‑based. Themes economics policy employment Mood analytical serious Type economic policy‑oriented When to use this quote - budget planning - central banking - labor market analysis Key Concepts macroeconomic stability government intervention Questions to Reflect On - What data should guide intervention? - How can we improve policymakers’ expertise? A Different Perspective Policy can be delayed by political constraints. ★ ★ ★ ★ ★ No ratings yet [Ability](https://sms4smile.com/quotes/about/ability/) [Absence](https://sms4smile.com/quotes/about/absence/) [Capitalism](https://sms4smile.com/quotes/about/capitalism/) [Economies](https://sms4smile.com/quotes/about/economies/) [Employment](https://sms4smile.com/quotes/about/employment/) [Intervention](https://sms4smile.com/quotes/about/intervention/) [Knowledge](https://sms4smile.com/quotes/about/knowledge/) [Routine](https://sms4smile.com/quotes/about/routine/) ## Related quotes > [Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not. Are deviations from full employment a social problem? Obviously.](https://sms4smile.com/quotes/janet-yellen/will-capitalist-economies-operate-at-full-employment-in-the-absence/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not,](https://sms4smile.com/quotes/janet-yellen/will-capitalist-economies-operate-at-full-employment-in-the-absence-2/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [The miserable failures of capitalist economies in the Great Depression were root causes of worldwide social and political disasters.](https://sms4smile.com/quotes/james-tobin/the-miserable-failures-of-capitalist-economies-in-the-great/) [James Tobin](https://sms4smile.com/quotes/author/james-tobin/) > [Productivity - the amount of output delivered per hour of work in the economy - is often viewed as the engine of progress in…](https://sms4smile.com/quotes/tim-jackson/productivity-the-amount-of-output-delivered-per-hour-of-work-in-the/) [Tim Jackson](https://sms4smile.com/quotes/author/tim-jackson/) > [If we looked in the world of 1945 and looked at the map of capitalist economies and democratic polities, they were the rare exception,…](https://sms4smile.com/quotes/ashraf-ghani/if-we-looked-in-the-world-of-1945-and-looked-at-the-map-of-capitalist/) [Ashraf Ghani](https://sms4smile.com/quotes/author/ashraf-ghani/) > [Our tragedy today is not just that millions of people who called themselves communist or socialist were physically liquidated in Vietnam, Indonesia, Iran, Iraq,…](https://sms4smile.com/quotes/arundhati-roy/our-tragedy-today-is-not-just-that-millions-of-people-who-called/) [Arundhati Roy](https://sms4smile.com/quotes/author/arundhati-roy/) > [Between the Great Depression and the 1970s, private business was viewed with suspicion even in most capitalist economies. Businesses were, so the story goes,…](https://sms4smile.com/quotes/ha-joon-chang/between-the-great-depression-and-the-1970s-private-business-was/) [Ha-Joon Chang](https://sms4smile.com/quotes/author/ha-joon-chang/) > [At the outset of the creation of the euro in 1999, it was expected that the southern eurozone economies would behave like those in…](https://sms4smile.com/quotes/alan-greenspan/at-the-outset-of-the-creation-of-the-euro-in-1999-it-was-expected/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [It used to be that companies with industrial economies of scale created business success. Now, success will come from the information economies of scale,…](https://sms4smile.com/quotes/tucker-max/it-used-to-be-that-companies-with-industrial-economies-of-scale/) [Tucker Max](https://sms4smile.com/quotes/author/tucker-max/) > [Latin America's economies are organized in a way that concentrates wealth in a few hands but then leaves it untaxed, depriving governments of the…](https://sms4smile.com/quotes/denise-dresser/latin-america-s-economies-are-organized-in-a-way-that-concentrates/) [Denise Dresser](https://sms4smile.com/quotes/author/denise-dresser/) > [Local economies are suffering as people spend more on fuel and less on consumer goods and travel.](https://sms4smile.com/quotes/dan-lipinski/local-economies-are-suffering-as-people-spend-more-on-fuel-and-less/) [Dan Lipinski](https://sms4smile.com/quotes/author/dan-lipinski/) > [The hacker community may be small, but it possesses the skills that are driving the global economies of the future.](https://sms4smile.com/quotes/heather-brooke/the-hacker-community-may-be-small-but-it-possesses-the-skills-that/) [Heather Brooke](https://sms4smile.com/quotes/author/heather-brooke/) > [We need to decarbonise our societies and economies.](https://sms4smile.com/quotes/sharan-burrow/we-need-to-decarbonise-our-societies-and-economies/) [Sharan Burrow](https://sms4smile.com/quotes/author/sharan-burrow/) > [Emerging market economies have long grappled with the challenges posed by large and volatile cross-border capital flows.](https://sms4smile.com/quotes/jerome-powell/emerging-market-economies-have-long-grappled-with-the-challenges/) [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) > [I started digging and found that Israel signed a peace treaty with the United Arab Emirates after the country had diversified their economy, instead…](https://sms4smile.com/quotes/shai-agassi/i-started-digging-and-found-that-israel-signed-a-peace-treaty-with/) [Shai Agassi](https://sms4smile.com/quotes/author/shai-agassi/) ## More by Janet Yellen > [Nationally, the share of mortgages that are underwater fell by about one-half between 2011 and 2014.](https://sms4smile.com/quotes/janet-yellen/nationally-the-share-of-mortgages-that-are-underwater-fell-by-about/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not. Are deviations from full employment a social problem? Obviously.](https://sms4smile.com/quotes/janet-yellen/will-capitalist-economies-operate-at-full-employment-in-the-absence/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Individuals out of work for an extended period can become less employable as they lose the specific skills acquired in their previous jobs and…](https://sms4smile.com/quotes/janet-yellen/individuals-out-of-work-for-an-extended-period-can-become-less/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [For decades, the pace of technological change in manufacturing has outstripped that in the economy as a whole. And, so, firms - manufacturing firms…](https://sms4smile.com/quotes/janet-yellen/for-decades-the-pace-of-technological-change-in-manufacturing-has/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow…](https://sms4smile.com/quotes/janet-yellen/for-my-own-part-i-did-not-see-and-did-not-appreciate-what-the-risks/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [It's important for market participants to have a sense of how we think about the economy and the appropriate path of policy, to look…](https://sms4smile.com/quotes/janet-yellen/it-s-important-for-market-participants-to-have-a-sense-of-how-we/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [If there is a job that you feel passionate about, do what you can to pursue that job; if there is a purpose about…](https://sms4smile.com/quotes/janet-yellen/if-there-is-a-job-that-you-feel-passionate-about-do-what-you-can-to/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Although we work through financial markets, our goal is to help Main Street, not Wall Street.](https://sms4smile.com/quotes/janet-yellen/although-we-work-through-financial-markets-our-goal-is-to-help-main/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [I felt that the Fed had always been the agency that picked up the pieces when there was a financial crisis, and it was…](https://sms4smile.com/quotes/janet-yellen/i-felt-that-the-fed-had-always-been-the-agency-that-picked-up-the/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Increased business sales would almost certainly raise the productive capacity of the economy by encouraging additional capital spending, especially if accompanied by reduced uncertainty…](https://sms4smile.com/quotes/janet-yellen/increased-business-sales-would-almost-certainly-raise-the-productive/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [There were a lot of manufacturing jobs lost over a long period of time and particularly after - during the Great Recession. We've had…](https://sms4smile.com/quotes/janet-yellen/there-were-a-lot-of-manufacturing-jobs-lost-over-a-long-period-of/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Uncertainty about sales impedes business planning and could harm capital formation just as much as uncertainty about inflation can create uncertainty about relative prices…](https://sms4smile.com/quotes/janet-yellen/uncertainty-about-sales-impedes-business-planning-and-could-harm/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Stronger productivity growth would tend to raise the average level of interest rates and, therefore, would provide the Federal Reserve with greater scope to…](https://sms4smile.com/quotes/janet-yellen/stronger-productivity-growth-would-tend-to-raise-the-average-level-of/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [The Federal Open Market Committee (FOMC) is committed to policies that promote maximum employment and price stability, consistent with our mandate from Congress.](https://sms4smile.com/quotes/janet-yellen/the-federal-open-market-committee-fomc-is-committed-to-policies-that/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [To me, the greatest asset of the Fed is the people. We have a tremendously dedicated staff... They feel proud to work for the…](https://sms4smile.com/quotes/janet-yellen/to-me-the-greatest-asset-of-the-fed-is-the-people-we-have-a/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) [Explore all 148 Janet Yellen quotes ](https://sms4smile.com/quotes/author/janet-yellen/) ## More Ability quotes > [I don't think there's a direct correlation between my sexuality and my skiing ability. But I think because I was so concerned about it…](https://sms4smile.com/quotes/gus-kenworthy/i-don-t-think-there-s-a-direct-correlation-between-my-sexuality-and/) [Gus Kenworthy](https://sms4smile.com/quotes/author/gus-kenworthy/) > [“the importance of ability. The things that make a great job great, I discovered, are rare and valuable. If you want them in your…](https://sms4smile.com/quotes/cal-newport/the-importance-of-ability-the-things-that-make-a-great-job-great-i/) [Cal Newport](https://sms4smile.com/quotes/author/cal-newport/) > [Ambition drives you on, ability certainly helps, but the fickle finger of fate and luck are great things.](https://sms4smile.com/quotes/fergus-henderson/ambition-drives-you-on-ability-certainly-helps-but-the-fickle-finger/) [Fergus Henderson](https://sms4smile.com/quotes/author/fergus-henderson/) > [The ability of the gospel to unite us on common strengths and common truths is one of the great miracles . . . of the gospel.](https://sms4smile.com/quotes/jeffrey-r-holland/the-ability-of-the-gospel-to-unite-us-on-common-strengths-and-common/) [Jeffrey R. Holland](https://sms4smile.com/quotes/author/jeffrey-r-holland/) > [Maybe law enforcement would like the ability to turn on the camera on your Mac.](https://sms4smile.com/quotes/tim-cook/maybe-law-enforcement-would-like-the-ability-to-turn-on-the-camera-on/) [Tim Cook](https://sms4smile.com/quotes/author/tim-cook/) > [I've seen guys come along with more ability - they've been faster or bigger or stronger - but they never worked hard to develop…](https://sms4smile.com/quotes/steve-largent/i-ve-seen-guys-come-along-with-more-ability-they-ve-been-faster-or/) [Steve Largent](https://sms4smile.com/quotes/author/steve-largent/) > [The youth of India has the strength to move the entire World with a click of a mouse, we have generated that ability!](https://sms4smile.com/quotes/narendra-modi/the-youth-of-india-has-the-strength-to-move-the-entire-world-with-a/) [Narendra Modi](https://sms4smile.com/quotes/author/narendra-modi/) > [Time hath not yet so dried this blood of mine, Nor age so eat up my invention, Nor fortune made such havoc of my…](https://sms4smile.com/quotes/william-shakespeare/time-hath-not-yet-so-dried-this-blood-of-mine-nor-age-so-eat-up-my/) [William Shakespeare](https://sms4smile.com/quotes/author/william-shakespeare/) > [An absolutely necessary part of a writer's equipment, almost as necessary as talent, is the ability to stand up under punishment, both the punishment…](https://sms4smile.com/quotes/irwin-shaw/an-absolutely-necessary-part-of-a-writer-s-equipment-almost-as/) [Irwin Shaw](https://sms4smile.com/quotes/author/irwin-shaw/) > [I'd be more frightened by not using whatever abilities I'd been given. I'd be more frightened by procrastination and laziness.](https://sms4smile.com/quotes/denzel-washington/i-d-be-more-frightened-by-not-using-whatever-abilities-i-d-been-given/) [Denzel Washington](https://sms4smile.com/quotes/author/denzel-washington/) > [Bring into captivity every thought to the obedience of Christ. Take what I cannot give: my heart, body, thoughts, time, abilities, money, health, strength,…](https://sms4smile.com/quotes/elizabeth-prentiss/bring-into-captivity-every-thought-to-the-obedience-of-christ-take/) [Elizabeth Prentiss](https://sms4smile.com/quotes/author/elizabeth-prentiss/) > [You can only do the work to the very best of your ability.](https://sms4smile.com/quotes/christine-baranski/you-can-only-do-the-work-to-the-very-best-of-your-ability/) [Christine Baranski](https://sms4smile.com/quotes/author/christine-baranski/) > [Judge a person not by his ability to make money but by his ability to retain it.](https://sms4smile.com/quotes/vikrant-parsai/judge-a-person-not-by-his-ability-to-make-money-but-by-his-ability-to/) [Vikrant Parsai](https://sms4smile.com/quotes/author/vikrant-parsai/) > [Balance is the ability to be happy in the midst of the most chaotic or even boring or transient circumstance.](https://sms4smile.com/quotes/frederick-lenz/balance-is-the-ability-to-be-happy-in-the-midst-of-the-most-chaotic/) [Frederick Lenz](https://sms4smile.com/quotes/author/frederick-lenz/) > [Bobby had faith in my ability as a singer.](https://sms4smile.com/quotes/julie-london/bobby-had-faith-in-my-ability-as-a-singer/) [Julie London](https://sms4smile.com/quotes/author/julie-london/) [Browse all 9,990 Ability quotes ](https://sms4smile.com/quotes/about/ability/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Will capitalist economies operate at full employment in the absence of routine intervention? 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