I keep hearing people complain that the ‘mainstream media’ does not understand economics and that we’re talked down to as if everything must be explained as if the economy is a household. In this thread I explain all you (and they) need to know. Economics in one thread then....— Richard Murphy (@RichardJMurphy) December 12, 2020
Unemployment remains at 5% in Australia because it provides a competative job market for companies. This, in turn, increases domestic and international investment in australian companies. It could be argued unemployment helps the society under capitalism
I'm not an economist, and i'm not sure if this is a gross oversimplification... But i always understand this part of capitalist economics as "someone has to lose in our ponzi scheme in order for it to work"
Some people might say that unemployment was the neoliberal solution to the stagflation at the end of post-war Keynesian economics. It's an inflation check and a price stabilizer that doesn't require the top dogs to lose any of their relative economic power.
Unemployment remains at 5% in Australia because it provides a competative job market for companies. This, in turn, increases domestic and international investment in australian companies. It could be argued unemployment helps the society under capitalism
I'm not an economist, and i'm not sure if this is a gross oversimplification... But i always understand this part of capitalist economics as "someone has to lose in our ponzi scheme in order for it to work"
Some people might say that unemployment was the neoliberal solution to the stagflation at the end of post-war Keynesian economics. It's an inflation check and a price stabilizer that doesn't require the top dogs to lose any of their relative economic power.
Couldnt find the link I wanted, but this article expresses the murdoch / state explanation of unemployment and inflation
https://www.smh.com.au/business/few-good-reasons-why-5-unemployment-is-considered-full-employment-20100709-1047v.html