Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

BlueCheeseAgain

(1,983 posts)
9. I think the majority belief among economists is that the ideal situation...
Wed Nov 2, 2022, 01:36 PM
Nov 2022

... is a stable, growing economy with around 2% inflation and 5% unemployment.

High unemployment is obviously bad, because people are out of work. Very low unemployment is bad, because high wages cause inflation. (When I took economics, economists believed that too-low unemployment caused inflation to accelerate, in that it would cause inflation to keep rising indefinitely, not just settle in at a higher level. Not sure if that's still the prevailing belief.)

Recommendations

0 members have recommended this reply (displayed in chronological order):

Latest Discussions»General Discussion»High unemployment, bad! ...»Reply #9