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Home› Part II – Political economy propositions› Chapter 7 - Employment›Proposition 7.2
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7.2 The possibility of a close relationship between the national stock of capital and the state of employment is certain.

1. The relationship between the sum of the financing used by enterprises and the number of jobs in enterprises is certain.

Since capital is part of this sum, the existence of a relationship between the national stock of capital and the state of employment is certain, although more or less close.

2. The inclination to "support demand" through dissaving eludes the obvious.

Of course, dissaving through purchases from enterprises supports market activity, but savings invested in capital support it just as much at first and then for a longer period of time. Initially, these investments finance purchases from enterprises and contribute to wage funds that allow them to hire. For a longer period of time, the wage funds constantly replenished by sales help to maintain jobs.

3. Savings in capital co-finance or finance the creation of jobs.

The greater the share of capital – in the financing of firms, and therefore in their liabilities – the closer the relationship between the national stock of capital and the state of employment.

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