Quote:
Originally Posted by creekster
It is bad for it to be too low if we are having labor shortages. I don't think we are there yet. If so, we would expect the economy to start overheating and perhaps experience wage driven inflation.
I am not sure about this comparison of UE rates, however. Do the generous social benefits available in most European economies affect their structural rate of unemployment?
|
That's another argument. Maybe high unemployment is really good for the masses, because it indicates the government is more concerned about a fair distribution of wealth than the economy. It didn't work for the Russian communists, maybe it is for the Chinese.