IS THE UNEMPLOYMENT RATE ABOUT TO COLLAPSE? “I am starting to lend more personal credence to the theory that a combination of strong growth, fat corporate profits, and already tight labor market might push the unemployment rate to lows we have not seen since the 1960s.” That would be nice.
posted at 03:47 PM by Glenn Reynolds instapundit.com/graphics/permalink.gif
I disagree. A rate that falls below the “natural” rate of unemployment, whatever that may be, will lead to inflation. I think it’s fair to guess that the lowest rate since the 1960s would probably be below this threshold.
Oh, no! Not economics again! It always gives me a headache.
Here’s Milton Freedman on tht topic
MILTON FRIEDMAN AND THE NATURAL RATE OF UNEMPLOYMENT
AN INTERESTING LOOK AT the state of the economy.
posted at 07:17 PM by Glenn Reynolds instapundit.com/graphics/permalink.gif
Speaking of unemployment I ran across this the other day. Its a real hoot.
Actually, the unemployment rate is 23%.
Wow, that’s a bizarre rant. I was actually pretty impressed by the fact that I agreed with nearly all of the top half of the page. It really started going over the deep end in the second half, though.