ABSTRACT
In this chapter Hayek agrees that unemployment is primarily a monetary phenomenon: too few net IOUs being issued to meet the accumulative demand of capitalists and others. First, he admitted that it is possible for unemployment to be a monetary phenomenon, rather than a matter of the labour market failing to clear, though only during an actual deflation, a decrease of the quantity of money. The more subtle opponents of immigration argue that it should be the responsibility of each country to deal with its own unemployment rather than 'exporting the problem'. Second, Hayek seems at one point to have endorsed the idea of running government deficits by hiring otherwise unemployed workers: In general it is probably true to say that an equilibrium position will most effectively be approached if consumers demand is prevented from falling substantially by providing employment through public works, from which workers will wish to move as soon as they can to other and better-paid occupations.
