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RE: Economic Growth and Inflation
This proved to me that not everyone wants a job, everyone wants money but not everyone wants to work for it.
That's true.
Economic growth and inflation
I've never seen it that way. I used to think inflation was always a bad thing.
Sometimes my friends and I reminisce about the time when goods didn't cost much. We often wondered what triggered the change. Perhaps it was too much growth.
I'm curious, is there anything like too little inflation? Like the country grows but there's little to no inflation
During the Obama administration young people coming out of college didn't have jobs available to them because of too little growth or not enough inflation. As a result the military was getting all the applicants it needed to the point is was difficult to get in the military. It wasn't just college kids, but everyone. Too little growth/inflation led people to look for jobs until they gave up looking. One of the tricks in the unemployment number is that if you aren't looking for work, you're not unemployed. You have to look at the Labor Force Participation Rate which measures the percent of people either working or looking for work.
If you look at the link and select the 10 year time frame, you'll see that between 2008 and 2016 the participation rate fell from just over 66% to under 63%. Obama claims that during his administration unemployment rates were dropping and they were but this is the reason. Any claims by Democrats about the unemployment rate when Trump was elected, just add 3% to their unemployment number. Too little growth/inflation leads to this situation. When people give up looking for work and learn to live on either their retirement savings (which will now run out before they originally planned) or welfare/food stamps/etc. it's hard to lure them back into the workforce. From memory, something on the order of 20 million families went on food stamps during this time and I don't remember how many were added to the welfare rolls.
While I am all for helping those truly in need, something needs to be done with those that can work but choose to sit on the couch waiting for a government check. But to answer your question, with older people working until later in life and young people trying to get jobs I can't think of a situation where we are growing enough while generating little to no inflation.
🤔
I think I'm a part of the of the 'unemployed' that isn't looking for a job. I used to think it was a grand thing. Now that I see how it effects the economy, I know better.
From what I've read so far, it seems a growing economy needs everyone to participate. A lag in another sector would cause a pull down on other sectors creating inflation without economic growth to provide a balance
I think I'm becoming an amateur economist.
Lol
Blessings
Welcome to the club of amateur economists. My education is in engineering and math which taught me to think about things very logically. I have done reading on economics and picked up a great deal during my life through work experience.
Someone with an education in economics may come along and poke holes in my thoughts on the economy but to me they make sense. It's usually better to have common sense than book smarts.