shintao
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- Aug 27, 2010
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- #21
1)It is a terrible thing in capitalism. It results in wages going up, and the business cycle having to deal with stagnating growth rates with downsizing, not to mention a rise in inflation. The only actual economic system where full employment is utilized is Marxism. I know, its horrible.
Read more: Answers.com - Why is full employment important to the economy
2)Full employment is not good for the economy as it may result in an inflationary period where workers have more disposable income and as a result would drive prices upwards. This would take a while to happen though. Also, a lot of central banks base their policies around controlling inflation (The ECB).
Read more: Answers.com - Why is full employment not a good thing for the economy
This is conventional wisdom, but it is pure unadulterated bullshit and class warfare.
So you also agree with the socialist 100% employment is a good thing scenario?