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Response to MrScorpio (Original post)

Thu Jan 10, 2013, 09:53 PM

16. Not bad, but it is so much more

The unemployed are a critical component of the free market system as operated in this country. The price of things in this market is controlled by excess supply. The unemployed are the excess supply of labor. If everyone who wanted one had a job, then every employer seeking to fill a new position would have to compete with an existing employer for their labor, in short they would have to steal you from your current employer. This usually costs because workers face a risk that they will not like the new job / employer so it takes an incentive to get many of them to move.

This is a great thing for workers but usually results in inflation pretty quickly. Bankers and Wall Street types do not like inflation, and they pretty much do not like rising labor costs. So on most occasions the FED steps in to tighten money with higher interest rates to slow the economy down. This produces unemployment and keeps labor cheap. The fact that some of the people are almost always unemployed is an artifact of monetary controls to tame inflation. To some very real extent unemployment is by design and quite intentional.

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Replies to this discussion thread
Arrow 17 replies Author Time Post
MrScorpio Jan 2013 OP
LeftofObama Jan 2013 #1
The Magistrate Jan 2013 #2
ck4829 Jan 2013 #3
Wednesdays Jan 2013 #10
nightscanner59 Jan 2013 #11
sheshe2 Jan 2013 #4
gollygee Jan 2013 #5
cantbeserious Jan 2013 #6
AverageJoe90 Jan 2013 #7
ms liberty Jan 2013 #8
flying rabbit Jan 2013 #9
ReRe Jan 2013 #12
patrice Jan 2013 #13
TxDemChem Jan 2013 #14
SCantiGOP Jan 2013 #15
LineNew Reply Not bad, but it is so much more
quaker bill Jan 2013 #16
happyslug Jan 2013 #17
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