Although businesses tend to grow at an exponential rate, unemployment and inflation are measured by the rate at which the economy grows. Although businesses grow faster, unemployment and inflation are measured by the rate at which the economy shrinks.
I’ve tried to use this relationship between the business cycle and unemployment and inflation to explain when the economy is doing well and when it’s doing poorly. While it’s not a perfect correlation, it’s pretty close to the mark. Most of my other posts on this topic have been about the business cycle. In particular, I’ve written a series of posts that explain the relationship between the business cycle and stock market bubbles.
Inflation and the business cycle are both measured by the rate at which the economy expands. Inflation is, well, inflation. It’s measured by the nominal amount of money that each person in the economy has.
The good news is that while the size of the economy is increasing, it is also increasing in value. This is good news for those companies that aren’t quite so cash-strapped, but bad news for those companies that are. The bad news is that because the inflation rate is increasing, and because it’s also increasing, so are the prices of things.
People who can pay more for some things are going to have to pay less for others. That means that companies with lots of money to burn will have lots of people with lots of money to burn and thus lots of jobs. This is good news for them, but bad news for people who only have a dollar or two to burn.
With a job, you don’t have to go to school and pay tuition, take tests, or buy books. You can just do it! Because people with jobs and families are typically more likely to buy things and do things that are going to increase their wealth. This means that businesses that are in trouble will be forced to cut back on expenses. If you’re a business owner, that means you should probably consider what your business is doing and maybe do something about it.
The recent recession has definitely changed all that. People who had a good business or a solid income were still a good deal better off than people who had no money and had to go to work. The recent recession has also changed all that because it has created a lot of new jobs. Even more than that, the recession has also created a lot of new wealth. If people can do the same things you do, they can go to school, buy books, take tests, and pay tuition.
While there’s no question that the recession has helped many people, it hasn’t done anyone any good. The fact is the recession hasn’t brought new jobs. It hasn’t brought new income. It hasn’t brought new wealth. The fact is that it hasn’t brought any of these things. It’s just left plenty of people with little to no money, low income, and no job.
Unemployment has also created new wealth. Its the kind of wealth that can be used to pay off debt and buy more stuff. While the economy is still in its infancy, the fact is that unemployment is creating a lot of new wealth. In fact, a recent study by the Federal Reserve Bank found that the number of people in the labor force that were looking for work jumped from 10.6 million to 11.2 million in 2009 and 2010.
While I do think it’s a big problem when there is a lot of people unemployed, I do feel that unemployment has created a lot of wealth. Many who are currently unemployed can and should work. While I’m not sure if it’s a good idea, I think it’s a great idea to offer job training to those who are looking for work.
