[lbo-talk] RE: full employment
joanna bujes
jbujes at covad.net
Fri Jan 16 00:47:47 PST 2004
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
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