Hello,
I'd like to understand more clearly how Full employment in Austrian theory is possible?
Because nobody knows if some activity/business will be successful or not and people don't lose their jobs...
Regards,
http://www.eurokonsultantai.lt/
As long as they're willing to work for a given wage, there will be full employment. Involuntary unemployment disappears when minimum wage laws are eliminated, because employers are always willing to hire more people if the costs of doing so are low enough.
To make a comparison, you can always sell your potatoes if your offer is good enough. To make it more abstract, there's always an equilibrium price (perhaps except on abundant things, such as air, but there are few such things), depending on demand and offer, where the market clears (everything is sold/bought).
Mantas: Hello, I'd like to understand more clearly how Full employment in Austrian theory is possible? Because nobody knows if some activity/business will be successful or not and people don't lose their jobs...
Labour is scarce in relation to land (at the moment at least), therefore there will always be employment available. Now, whether this will be paid employment is besides the point, and hard to determine. The fact of the matter is that labour is relatively scarce and hence as long as people are willing to find a job they can.
"You don't need a weatherman to know which way the wind blows"
Bob Dylan
Lower your wage demands enough and you will find employment...
Freedom of markets is positively correlated with the degree of evolution in any society...