Open AccessHow Interest Causes Unemployment
Author(s) -
Abdul Karim Abdullah
Publication year - 2013
Publication title -
islam and civilisational renewal
Language(s) - English
Resource type - Journals
eISSN - 2041-8728
pISSN - 2041-871X
DOI - 10.52282/icr.v4i2.480
Subject(s) - economics , unemployment , recession , debt , government debt , government (linguistics) , order (exchange) , point (geometry) , work (physics) , interest rate , raising (metalworking) , economic policy , monetary economics , keynesian economics , macroeconomics , finance , mechanical engineering , linguistics , philosophy , geometry , mathematics , engineering
A number of nations are currently mired in an economic recession. Conventional economic theory seems unable to point to a way out. Many households, individuals, firms and even governments are trapped in sizable levels of debt. Keynes argued in favour of overcoming the Great Depression by raising government spending in order to stimulate economic growth. This was to be financed by borrowing. This solution worked then but is unlikely to work now, as many governments are already deeply in debt.