[lbo-talk] RE: full employment

[joanna bujes]

According to St. Allan's latest pronouncements, which ranged widely and 
waxed positively philosophical, there's no worry about full employment 
(hence no worry about inflation) because there's so much "slack" in the 
labor market. That is, a lot of people who have dropped out (and no 
longer count as unemployed) do compete for jobs when these become 
available. As a result, unemployment does not fall because these "drop 
outs" take jobs --without affecting the unemployment rate.

 Joanna