“Why are people unemployed? Because there is no work. Why is there no work? Because people are not buying products and services. Why are people not buying products and services? Because they have no money. Why do people have no money? Because they are unemployed” — Craig Bruce
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This quote by Craig Bruce outlines a self-perpetuating cycle of unemployment and lack of economic demand. It suggests that unemployment occurs because there is insufficient demand in the economy for companies to hire more workers or expand production. When people are unemployed, they have less money to spend, which reduces consumer buying of products and services.
With lower sales, companies then see less need to take on more employees or increase output. The reduced consumer spending in turn leads back to continued unemployment, completing the cycle. The overall interpretation is that unemployment breeds more unemployment due to the lack of aggregate demand in the economy caused by many individuals not having jobs and income to spend on goods and services.