Jonathan shares this quote:
"Let us not forget that The General Theory runs in
broad, aggregative terms and is therefore precluded from dealing, and is
not designed to deal, with sectional unemployment, which is the result
of faulty allocation of resources or of shifts in demand. It is meant to
deal only with general, mass unemployment resulting from a deficiency
in aggregate effective demand (deflation). Its author clearly assumed
that the smaller problems would take care of themselves, if only
aggregate effective demand was kept on an even keel or raised when
necessary, for example when the wage and price level is pushed up."
I think this is the sense in which one can talk about Keynes dealing with aggregates and not disaggregated issues. Not the sort of stuff that Boudreaux has been posting lately or that he has been citing from Horwitz and White. The market process generally balances competing uses of resources well. Keynes was explicit on this point. The market process does not always guarantee a full employment of all resources.
We can of course talk about interesting specific cases, but this is generally my view of things too.
Nobody Said That - NYTimes.com
2 hours ago