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This is deeply, deeply untrue. There is a direct relationship between low unemployment and high inflation.
by PeterHolzwarth 1y ago
This is deeply, deeply untrue. There is a direct relationship between low unemployment and high inflation.
- UltraSane 1y agoDoes inflation rise faster than wages? In the US with unionization so suppressed labor has no leverage.
- smt88 1y agoWe saw under Biden that wages for most people outpaced price inflation, but "most" isn't "all," and it was disproportionately working out well for people who were wealthier. Regardless, people loathe inflation even if their wages keep up with it. It makes them feel like their career progress is being robbed from them.
- PeterHolzwarth 1y agoLow unemployment means there is more competition among employers for workers. This competition takes the form of higher wages. Higher wages means the price of what is produced goes up: inflation. This is why central banks try to keep unemployment down to, but very definitely not below, anywhere from 2-4 percent, depending on the country. This is pretty much an economic law of nature, so to speak.
- kubb 1y agoInflation is only bad when you have cash. On the other hand low unemployment creates a pressure to raise wages. Which causes the inflation because you can charge people more.