Former Treasury Secretary Lawrence Summers said the US jobless rate would need to rise above 5% for a sustained period in order to curb inflation that’s running at the hottest pace in four decades.
A reserve army of labour is required in order for people to accept jobs with unfavourable compensation. High unemployment makes people desperate to work ensuring that they can be exploited more easily.
The inflation is largely an artifact of unbridled money printing and wage stagnation. It looks like they want to lower prices by paying people even less. This will only inflame the contradictions further and eventually lead to civil unrest.
He doesn’t explain anything. It’s just assertions.
You can imagine why people might link unemployment to deflation, or for that matter a dozen other things. From what he says, it doesn’t sound like he has a deeper understanding than your average armchair economist.
May someone please explain this to me? I don’t understand all this capitalist jargon
A reserve army of labour is required in order for people to accept jobs with unfavourable compensation. High unemployment makes people desperate to work ensuring that they can be exploited more easily.
This is the part I understand unfortunately. How does it eventually lead to inflation though?
The inflation is largely an artifact of unbridled money printing and wage stagnation. It looks like they want to lower prices by paying people even less. This will only inflame the contradictions further and eventually lead to civil unrest.
He doesn’t explain anything. It’s just assertions.
You can imagine why people might link unemployment to deflation, or for that matter a dozen other things. From what he says, it doesn’t sound like he has a deeper understanding than your average armchair economist.