Unemployment

In the article posted above, "Model of a Keynesian depression, Involuntary Unemployment", talks about how we can look at the relationship between people getting paid the wage they are supposed to get, and the wages they are getting from the company, as equilibrium. If both money and wages go down at the same time they are still in equilibrium, but this is obviously not the case since unemployment does exist in our world. The author states that the company cannot afford to lower prices by 10% and still be able to produce outcome, this is why people are laid off. The company or firm does not have a sufficient amount of money to pay for all the workers, and still maintain their output. "Reducing supply eliminates the excess supply of commodities by throwing the burden of excess supply back on the labor market. Thus, output and employment give way before prices do". People are in such a demand for money to get out of unemployment, but their expectations are too high when they try to get back into the work force, and they ultimately fail again. If, with the system in this state, money wages do not give way and the money supply is not increased, the economy will remain at this level of unemployment indefinitely. One major problem though is the level of money income is too low to provide for full employment. I believe this relates to "Roger & Me" because the companies are too consumed with the output their company is providing, and they would rather keep that level high and make more than having to spend it on employees. This is why they start laying people off and closing companies. It is a shame, but it is the harsh reality. Companies have to look out for their profit, no matter what it takes.

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