I have a question, and please correct me on any wrong assumptions / errors in understanding.
In the news i read, it is said that the FED is judging how bad inflation is, by checking CPI and Unemployment rate.
And they want the unemployment rate to get higher.
How is a higher unemployment rate good?
The argument i heard was - lower unemployment rate means less workforce available and this gives the working people more room to negotiate higher pays. (again, how is that bad?).
And also, in bad times, where everything is more expensive, people will take any job. Even if the pay is super shitty. And that would mean that unemployment is lowering.
PopayMcGuffin t1_j7ykntr wrote
Reply to I am Louis Barajas, and I am a financial expert. Let’s talk about inflation, layoffs, debt and making more money. AMA! by loubarajas
I have a question, and please correct me on any wrong assumptions / errors in understanding.
In the news i read, it is said that the FED is judging how bad inflation is, by checking CPI and Unemployment rate. And they want the unemployment rate to get higher.
How is a higher unemployment rate good?
The argument i heard was - lower unemployment rate means less workforce available and this gives the working people more room to negotiate higher pays. (again, how is that bad?). And also, in bad times, where everything is more expensive, people will take any job. Even if the pay is super shitty. And that would mean that unemployment is lowering.