Say’s Law, Poverty Persistence, and Employment Neglect

Grass roots methods of poverty alleviation will fail unless jobs are created or stimulated by governments (whether central or local). In the presence of high unemployment at all levels, improving the capabilities of job seekers (making them better fed and housed and educated) will only lead to more unemployment and not to more paid employment or self‐employment above the subsistence level (call this the ‘Kerala Effect’). To believe that...