Originally posted by @lundos
I think deliberately is the wrong word. It's just the way it is.

Otherwise I agree. Society should help people who are unemployed for various reasons.

If it is not deliberate why does the FRS always raise interest rates before wages can rise for the underclass? Isn't it the interest rate hikes that cause the recessions?
You don't buy into that bunk that low unemployment causes recessions, do you?

Originally posted by @wajoma
wait what, it's wolfgang saying society is keeping people unemployed, and since the unemployed are part of society, they are keeping themselves unemployed and they need to look after the unemployed (themselves).

That doesn't make any sense.

Originally posted by @metal-brain
If it is not deliberate why does the FRS always raise interest rates before wages can rise for the underclass? Isn't it the interest rate hikes that cause the recessions?
You don't buy into that bunk that low unemployment causes recessions, do you?

To battle inflation. Inflation can lead to a recession (indirectly). However, there are examples of cases where trying to combat inflation have lead to recession.

Therefore too low unemployment can lead to a recession if nothing is done. At least in theory.

Stability aka steady growth should be a buzz word in every talk regarding economics from our policy makers in developed countries.

Originally posted by @lundos
Rosengren and the FED are more or less asking Trump and the White House to stop their expansive financial politics. That's what this is about. They already know where blame game will end up when the economy goes the other way.

The last part of the article:
"Or it may just involve an acknowledgement that in an era of low interest rates, “we should probabl ...[text shortened]... ole responsibility for economic stabilization,” Rosengren wrote. “There are practical limits.” "

So Trump needs to end the higher wages and expanding economy?

Unbelievable.

Originally posted by @whodey
So Trump needs to end the higher wages and expanding economy?

Unbelievable.

No, he needs to slow it down (and reduce debt).

Stop setting up strawmen.

Originally posted by @lundos
To battle inflation. Inflation can lead to a recession (indirectly). However, there are examples of cases where trying to combat inflation have lead to recession.

Therefore too low unemployment can lead to a recession if nothing is done. At least in theory.

Stability aka steady growth should be a buzz word in every talk regarding economics from our policy makers in developed countries.

Inflation is caused by increasing the money supply. That is controlled by the FRS. What you are essentially saying is that the FRS has to raise interest rates to fight the inflation that the FRS caused itself.

Minimum wage is too low when adjusted to inflation. The very notion that wages increasing will lead to inflation is absurd. You are reading theories that are economic propaganda in reality. Elitists who like wealth to trickle up are behind these flawed theories. They are behind the economic propaganda you have been taught.

Originally posted by @metal-brain
Inflation is caused by increasing the money supply. That is controlled by the FRS. What you are essentially saying is that the FRS has to raise interest rates to fight the inflation that the FRS caused itself.

Minimum wage is too low when adjusted to inflation. The very notion that wages increasing will lead to inflation is absurd. You are reading th ...[text shortened]... are behind these flawed theories. They are behind the economic propaganda you have been taught.

I do 'love' it when a random dude on the internet calls one side of the last 60 years of economic discussion for propaganda. Especially since he - obviously - have no clue about what is taught at the universities.

Originally posted by @lundos
I do 'love' it when a random dude on the internet calls one side of the last 60 years of economic discussion for propaganda. Especially since he - obviously - have no clue about what is taught at the universities.

Inflation is precisely an over supply of currency. And you know what else it is. It's a tax on everyone that holds a dollar. If for example there's a million dollars in an economy and the goobermint prints another million in an instant, everything would double in price, not instantly, prices would take time to adjust, but with no more wealth in the economy things would cost twice as much currency. Goobermints try to play the game, keep inflation rolling because it's a rort, but don't let it get out of control. Nothing to do with wages, wages react to a lot of things, one of them is inflation, or the devaluing of currency.

Originally posted by @lundos
I do 'love' it when a random dude on the internet calls one side of the last 60 years of economic discussion for propaganda. Especially since he - obviously - have no clue about what is taught at the universities.

What university did you go to? I'm not saying universities spread all that propaganda, they don't always and they don't deny increasing the money supply causes inflation. It is what they say to the public that is mostly propaganda. Universities do teach that zero inflation rate is bad though. That is propaganda. It is only bad to a counterfeiter, not an honest person. They will say crap like "we will slide into deflation" and nonsense like that. This country is controlled by those that control the central bank (FRS) and the world reserve currency (US Dollar). Try telling them to stop taxing most of the world with inflation. It would be like telling Al Capone to stop bootlegging.

https://www.economicshelp.org/blog/111/inflation/money-supply-inflation/

When the FRS bailed out the banks it was no surprise to any economist that it would cause inflation and it did.

https://www.cnbc.com/id/45674390

They should have let the banks fail and increased the money supply to pay for infrastructure repairs and projects. The banks didn't even lend out money after they were bailed out so the money supply was going to contract anyway. Increasing the money supply prevented that, but it was spent to bail out the crooks who caused it. It could have been used to pay for things we needed.

Originally posted by @metal-brain
What university did you go to? I'm not saying universities spread all that propaganda, they don't always and they don't deny increasing the money supply causes inflation. It is what they say to the public that is mostly propaganda. Universities do teach that zero inflation rate is bad though. That is propaganda. It is only bad to a counterfeiter, not an ...[text shortened]... spent to bail out the crooks who caused it. It could have been used to pay for things we needed.

Can you cite some things said by "universities" to the public that is "mostly propaganda"?

Originally posted by @wajoma
Inflation is precisely an over supply of currency. And you know what else it is. It's a tax on everyone that holds a dollar. If for example there's a million dollars in an economy and the goobermint prints another million in an instant, everything would double in price, not instantly, prices would take time to adjust, but with no more wealth in the econom ...[text shortened]... h wages, wages react to a lot of things, one of them is inflation, or the devaluing of currency.

Exactly. Any university teaches that velocity is too small to make any meaningful difference. Inflation is created, not an accident. It also hurts the poor more than the wealthy. Wealthy people hold stocks and other asset value largely immune from inflation.

Originally posted by @kazetnagorra
Can you cite some things said by "universities" to the public that is "mostly propaganda"?

I didn't say universities say anything to the public. I meant the FRS chairman. They spread propaganda.

https://www.cnbc.com/id/45674390

Originally posted by @metal-brain
I didn't say universities say anything to the public. I meant the FRS chairman. They spread propaganda.

https://www.cnbc.com/id/45674390

You literally said universities spread propaganda.

Originally posted by @shavixmir
Low unemployment makes the producing classes more demanding. They refuse to work for lesser wages, so want more pay,
Because unemployment is low, the parasitical classes have to cough up, lowering their own mass profits and the profits of their share holders.

So, unemployment is used to make sure the working classes don't get too uppity.

In the U.S., due to the the destruction of labor unions, wages are not increasing despite low unemployment, high productivity and soaring upper management wages. Our primary and secondary education system does a poor teaching civics and economics. With a POTUS who claims FOX news, the National Enquirer and Breitbart News are to be trusted, we are in deep denial of what is causing a very distorted distribution of wealth. Unfortunately, when the U.S. economy takes a big dive, the rest of the world will suffer as well.

Originally posted by @shavixmir
The rich need the poor to be scared of losing their jobs; to keep wages down.

If people wanted more money and could quit whenever they liked and easily find a new job, the boss will have to increase wages.

Ergo: unemployment is a tool to control the masses.

This is why labor unions are so important. They protect wages and working conditions. The U.S. has destroyed unions in order to keep wages and company overhead as low as possible with zero concern for the financial or physical welfare of workers. Pensions are pretty much gone and the conservatives do not like the concept of Social Security or government sponsored health care. With low wages, expensive health care and no secure retirement, it is very difficult for U.S. citizens to have a decent standard of living and future financial security not to mention health care. The only way this will change is if people vote out the SOB's.