[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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