What he said
Quoting, in full, a recent post from Mark Thoma:
The Demand for Jobs
Businesses won't hire workers because there is not enough demand to support them, and the public can't supply the needed demand because too many people don't have jobs.
That's what's so frustrating. If the unemployed had jobs, the demand would be there to support them. But the demand has to come first, and workers won't be hired until the demand is there.
I wonder who could provide the missing demand needed to overcome this problem?
It's not the first time we've seen this argument:
"We're caught in a vicious cycle: Businesses aren't hiring because their chief concern is poor sales, and people aren't buying because they've lost their jobs."
Back then, we were presenting an "elevator pitch" for the Americans Want to Work Act. The logic, and the argument, is just as sound today.