falling food prices might reduce demand for agricultural labor, but they free up just enough money to be spent elsewhere in the economy so that overall employment is maintained.22 The money is spent not just buying more of the existing goods, but also on newly invented products and services. This is the core of the economic argument that technological unemployment is impossible. KEYNES DISAGREED. He thought that in the long run, demand would not be perfectly inelastic. That is, ever lower (quality-adjusted) prices would not necessarily mean we would consume ever more goods and services.
