Is it right?

[G2Rad]

Re-thinking a common truth

The "truth": When unemployment rises, inflation falls.

Is it right?


Those unemployed individuals act if they are taken out of the game.
They don't produce and they barely consume.

Its just like they've disappeared from the face of the Earth.

but

the amount of money in the system did not disappear with them

the amount of money in the system remains the same per less consumers ( and per less goods)

Therefore rising unemployment leads to rising inflation!

Thus the common truth is b/s

Comments?

[G2Rad]

on the second thought,

most of those now unemployed Americans never produced anything useful in this FIRE economy anyway

and they did not stop consuming thanks to unemployment benefits from the government

anyway,

forget it