Disciples of Keynes, who focus on aggregate demand, view any increase in household wealth as raising employment because they say it adds to consumer demand.

After a major loss of dynamism in the 1960s, productivity growth rates began dropping in most countries, falling by half in the U.S. in the 1970s and more or less ceasing altogether in France, Germany and Britain in the late 1990s.

Economists of a classical bent lay a large part of the decline of employment, and thus lagging output, to a contraction of labour supply.

Edmund Phelps Quotes