John Keynes - Economic Possibilities for our
Grandchildren
Tutorial 6 - Assignment
. Why does Keynes say that “we are suffering just now from a bad
attack of economic pessimism”?
4 People during the Great Depression thought that they wouldn’t be able to
recover from it
. What is Keynes trying to argue in this essay?
Keynes will argue his views on what the world will look like 100 years from then
and how the economy will have progressed
Technological advancements -> increase productivity, allowing society to
produce more goods and services with less labor
People would work less hours without sacrificing basic needs
= economic problem will be solved, people will have more leisure time
3
. Explain which factors will lead to technological unemployment. Why do
they lead to technological unemployment?
– Rapid pace of technological advancement -> technological progress
outpaces the economy’s ability to absorb displaced workers into new
roles
(Discovery of means of economising the use of labour - e.g. new technologies
and more efficient method of production / less labor)
– Labour-saving technology -> as new technologies emerge that reduce
the need for human labor, jobs in industries reliant on manual work are
2
often displaced
. What does Keynes mean with mankind’s ‘economic problem’? How is
his definition of this problem different from that of ‘The Great
Economic Problem’ as we studied it in the course? Does Keynes’ deny
scarcity of resources, you think?
1
The ‘economic problem’ that Keynes talks about is how to meet basic needs
like shelter, food etc. However, ‘The Great Economic Problem’ is how to allocate
scarce resources efficiently yo maximise utility and fulfil human wants. Keynes
does not deny the scarcity, but he envisions a future where the traditional
Grandchildren
Tutorial 6 - Assignment
. Why does Keynes say that “we are suffering just now from a bad
attack of economic pessimism”?
4 People during the Great Depression thought that they wouldn’t be able to
recover from it
. What is Keynes trying to argue in this essay?
Keynes will argue his views on what the world will look like 100 years from then
and how the economy will have progressed
Technological advancements -> increase productivity, allowing society to
produce more goods and services with less labor
People would work less hours without sacrificing basic needs
= economic problem will be solved, people will have more leisure time
3
. Explain which factors will lead to technological unemployment. Why do
they lead to technological unemployment?
– Rapid pace of technological advancement -> technological progress
outpaces the economy’s ability to absorb displaced workers into new
roles
(Discovery of means of economising the use of labour - e.g. new technologies
and more efficient method of production / less labor)
– Labour-saving technology -> as new technologies emerge that reduce
the need for human labor, jobs in industries reliant on manual work are
2
often displaced
. What does Keynes mean with mankind’s ‘economic problem’? How is
his definition of this problem different from that of ‘The Great
Economic Problem’ as we studied it in the course? Does Keynes’ deny
scarcity of resources, you think?
1
The ‘economic problem’ that Keynes talks about is how to meet basic needs
like shelter, food etc. However, ‘The Great Economic Problem’ is how to allocate
scarce resources efficiently yo maximise utility and fulfil human wants. Keynes
does not deny the scarcity, but he envisions a future where the traditional
