Unemployment is a Deliberate Choice
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- Опубликовано: 16 окт 2024
- Unemployment is a Deliberate Choice. Not by the people who are unemployed, but by governments the world over. It is their intention that a significant portion of the community are always unemployed. This comes from a concept called the Non-Accelerating Inflation Rate of Unemployment, or NAIRU.
The idea is that if we don't keep a large pool of people unemployed at all times then inflation will increase. The problem is that NAIRU has never been shown to exist in the real world. As unemployment rates fall the constant warning of inflation gets louder, but even during times of record employment the inflation never materialises.
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Sources:Debunking the NAIRU myth by Matthew C Klein (2017) www.ft.com/con... Chair Jerome Powell's House testimony on the state of the economy - 07/10/2019 • Fed Chair Jerome Powel... Fed Chair Jerome Powell's Senate testimony on monetary policy - 07/11/2019 • Fed Chair Jerome Powel... (Very relevant section at 34:00)The Case for a Job Guarantee by Pavlina R. Tcherneva (2020) pavlina-tcherne... Should We Reject the Natural Rate Hypothesis? By Olivier Blanchard (2018) pubs.aeaweb.or... Full Employment In Australia (The 1945 Australian Government White Paper)www.billmitchel... What is full employment? An economist explains the latest jobs data by Jay Zagorsky (2018)theconversatio... Salemi, M.K. 1999, "Estimating the natural rate of unemployment and testing the natural rate hypothesis", Journal of Applied Econometrics, vol. 14, no. 1, pp. 1-25. Storm, S, & Naastepad, CWM 2012, Macroeconomics Beyond the NAIRU, Harvard University Press, Cambridge. Available from: ProQuest Ebook Central. [28 May 2021]. Servaas Storm & C. W. M. Naastepad (2007) It is high time to ditch the NAIRU, Journal of Post Keynesian Economics, 29:4, 531-554, DOI: 10.2753/PKE0160-3477290401Servaas Storm & C.W.M. Naastepad (2008) The NAIRU reconsidered: why labour market deregulation may raise unemployment, International Review of Applied Economics, 22:5, 527-544, DOI: 10.1080/02692170802287490Credits:Written by Andrew Johnson & Jackson WinterSpoken by Andrew JohnsonEdited by Jackson WinterIcons made by MD Badsha Meah, www.wishforge.games, Charlie, icon king1, Raj Dev, fengquan li, Free Preloaders, Gayrat Muminov, Muhammad Haq from www.freeicons.ioConfuse by evi1000, Watch by la-fabrique-créative, Retiree, Headache, Broken Window, Giving to the Poor, Fat Rich Man and Successful Businessman by Gan Khoon Lay, Speech by parkjisun, Fail by Adrien Coquet from the Noun ProjectAll other graphics created by Jackson WinterMusicWaking to Reality by Unicorn Heads1940's Slow Dance (Sting) by Doug Maxwell, Media Right Productions
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Well that's convenient. I just read an article about this and my first thought was "I'm expected to believe that letting citizens earn more is bad for the economy?". Glad to have some confirmation that I'm not insane for not listening to ABC's "experts"
Another banger. Basically the theory of the reserve army of labor capitalists and their state needs
oh no rapid growth of the wealth of the working class, what a nightmare!
i'd not heard this called NAIRU before, that was very interesting to learn.
it's always griped though that successive governments will yell about the need to 'create jobs' as a way to avoid having robust welfare, while being fully aware of the function of the unemployed in keeping wages down as an essential part of the capitalist machine.
I had someone, just yesterday, tell me that it was our large immigration policy keeping wages down. As if the immigrants were showing up and demanding to be paid less.
The employers will use any exploit they can find to not pay people more.
@@PEGSInstitute oh hell yeah! This THE narrative on r/australianleftpolitics.
Very left wing rt.
Fantastic video! There are certainly not enough Australian political/economics channels out there, thank you for explaining this is such a clear way with such simple but pleasant visuals.
I guess I fall into this category as a F/T carer, I get no financial help from any source and if I did apply would be forced to take the first job that came along.
The government needs to end this cruel punishment of people who aren't available or attractive to the private sector. We could so easily implement a federal job guarantee that would recognise your caring labour as work and pay you for it generously. It could only make the world a better place.
The best kind of clickbait
I think there is a major component being overlooked here... the role of employers. Companies benefit by keeping the employment highly volatile and competitive.
yeah I get all that - but as someone who has worked years in unemployment services so many people are just not capable of working, particularly in DES (disability) and so many of the long term unemployed have no skills, experience of qualifications, so employers just don't want to employ them - so they just get pushed around and around the system and kicked to the ground, I hated it
You could do an overview video on rethinking economics or something about how Econ intersects with psychology.
In Cologne, where I live, there was a cleaning service made entirely out of academics, never knew why but I guess it couldve been to outplay this and act as a job they pick to get the benefits they otherwise wouldnt have.
so, in other words, the reserve army of labor ≈ NAIRU, and they are sacrificing productivity in the real economy to get an advantage in the monetary economy?
do I have that right, or am I missing something?
How does the government make sure that employment remains unavailable?
Interest rates is their official method, but also, since the government is an employer, they do it by deliberately not employing people, even though they have the resources to do so.
Please make more videos!