Page:The Economics of Unemployment.djvu/60

It is the failure of the so-called 'national economic checks' (falling interest and falling prices) that brings into operation the more effective but very costly check of under-production and under-saving. When production is sufficiently slowed down, and fresh saving is sacrificed to current needs of consumption, the congestion due to over-production is gradually carried off, during a prolonged period of under-production lasting until the channels of industry are once more free to receive the products of a new period of industrial activity. There are some evidences that this costly process of liquidation is already approaching completion and that a new wave of industrial activity is rising in the economic world.