you said here the end that if unemployment rate drops, firms will start to compete for workers by offering higher salaries and more benefits. Which would push prices up (inflation) Why is this the case? wouldn't if unemployment rate drops, supply of labor should increase resulting in lower wages and thus lower prices?
@motters2012 The unemployment rate is an indicator of what is happening in the labor market, not a causal factor -- unemployment falls when the ratio of those who are not working but are seeking work, over the total number in the labor force, falls. And the fewer people who are seeking work, the more likely you'll be trying to hire someone who already has a job.
Helped me alot on understanding the topic of Unemployment in macroeconomics. Gonna use your examples for my exams.
Oh & to mjmfoodiesucks, as an economics undergraduate student myself, i guess you just have to suck it up and accept the fact that economics isn't perfect. It's a subject built so much on assumptions that when u apply em into the real world, it indeed becomes messy. Just face it, if it isn't, the US wouldnt be this so messed up right now. Period.
I sorta stopped at the ending part of your video. You said that increased salaries and benefits equal higher prices, which equal inflation. But you might needa understand that inflation is caused by an increase in money supply, not by an increase in prices.
@Denon3333 dude, that's only one of the main major reasons for inflation. But overall, the definition of inflation is the rise in level of prices of goods and services caused by many factors. The reason for higher prices she posted above is just one of the many reasons. Pls check out your facts before criticizing her video.
@Denon3333 inflation can also be caused by imported inflation. Not just money supply. Anws, If workers demand higher wages, the cost of production (cop) of firms go up and who other to bear the cost of higher cop of the firms than the consumers ourselves in the form of higher prices of the finalised good, thus causing inflation. I hope that helps you see how increased salaries & benefits of workers eventually lead to inflation. :)
@mjmfoodiesucks Indeed I did, because the world isn't about black and white, or "I'm right and you're wrong." Economics is messy, and it's a lot about the grey areas, pros & cons, costs & benefits -- the answer is typically "it depends," not "my way or the highway."
Please stop filling these areas with your personal diatribe.
@mjmfoodie Economics is never "messy". As Ludwig Von Mises would say, economic laws make it possible to predict with "apodictic certainty". There are some specific questions that are in the grey area however economic theory is clear and sound. You are perpetuating leftist propaganda and teaching nonsense to naive students.
@ecnerwal999 You do know that inflation can be caused either on the demand side (this is where easy money comes in and causes trouble, like in Greece) OR the supply side (rising costs) of the macroeconomic market, right?
@mjmfoodie The definition of inflation is an expansion of the money supply. It is NOT a rise in overall prices. If we look at general prices they can only rise or fall in the short run. Certainly if there is a large disruption in the supply then prices will rise. And if people decide to buy a lot more with their savings or on credit then prices can rise. This is all temporary. In the long run prices should always fall. The only reason we see perpetual inflation is because of the central banks.
@mjmfoodie Throughout the 1800s we had constant deflation. Starting in 1913(the creation of the Federal Reserve) the U.S. started to see prices rise across the economy, year after year.
@tothemax01 GOLD STANDARD FTW. Yeah! I'm glad there are so many more people joining free market economics. We need to band together to fight the Keynesians.
Great video!
I love your whole macro economic series if videos.
oh & "mjmfoodiesucks" sucks
rennappu 2 weeks ago
@mjmfoodiesucks okay fuck you because I learned a lot from mjmfoodie. thanks mjmfoodie, really helped me with my economics class
act110mort048 3 weeks ago
a reason for some people for unemployment is the length of this video ;)
DAvonzoAllDay 4 months ago
you said here the end that if unemployment rate drops, firms will start to compete for workers by offering higher salaries and more benefits. Which would push prices up (inflation) Why is this the case? wouldn't if unemployment rate drops, supply of labor should increase resulting in lower wages and thus lower prices?
motters2012 6 months ago
@motters2012 The unemployment rate is an indicator of what is happening in the labor market, not a causal factor -- unemployment falls when the ratio of those who are not working but are seeking work, over the total number in the labor force, falls. And the fewer people who are seeking work, the more likely you'll be trying to hire someone who already has a job.
mjmfoodie 6 months ago
thanks for your insightful video!
Helped me alot on understanding the topic of Unemployment in macroeconomics. Gonna use your examples for my exams.
Oh & to mjmfoodiesucks, as an economics undergraduate student myself, i guess you just have to suck it up and accept the fact that economics isn't perfect. It's a subject built so much on assumptions that when u apply em into the real world, it indeed becomes messy. Just face it, if it isn't, the US wouldnt be this so messed up right now. Period.
hadibohari 1 year ago 2
I sorta stopped at the ending part of your video. You said that increased salaries and benefits equal higher prices, which equal inflation. But you might needa understand that inflation is caused by an increase in money supply, not by an increase in prices.
Denon3333 1 year ago
@Denon3333 dude, that's only one of the main major reasons for inflation. But overall, the definition of inflation is the rise in level of prices of goods and services caused by many factors. The reason for higher prices she posted above is just one of the many reasons. Pls check out your facts before criticizing her video.
yihaw149 1 year ago
@yihaw149 Yes, I noticed those parts. OK. Treat this as my apology comment.
Denon3333 1 year ago
@Denon3333 inflation can also be caused by imported inflation. Not just money supply. Anws, If workers demand higher wages, the cost of production (cop) of firms go up and who other to bear the cost of higher cop of the firms than the consumers ourselves in the form of higher prices of the finalised good, thus causing inflation. I hope that helps you see how increased salaries & benefits of workers eventually lead to inflation. :)
hadibohari 1 year ago
@mjmfoodiesucks Indeed I did, because the world isn't about black and white, or "I'm right and you're wrong." Economics is messy, and it's a lot about the grey areas, pros & cons, costs & benefits -- the answer is typically "it depends," not "my way or the highway."
Please stop filling these areas with your personal diatribe.
mjmfoodie 1 year ago 11
@mjmfoodie Economics is never "messy". As Ludwig Von Mises would say, economic laws make it possible to predict with "apodictic certainty". There are some specific questions that are in the grey area however economic theory is clear and sound. You are perpetuating leftist propaganda and teaching nonsense to naive students.
mjmfoodiesucks 1 year ago
@mjmfoodiesucks Uh-huh -- you keep telling yourself that.
mjmfoodie 1 year ago
@mjmfoodiesucks
honestly, mjmfoodie helped me pass first year economics. grow up
rationaldreams 1 year ago
@mjmfoodiesucks you're stupid!
JJTheBigDog 1 year ago
@ecnerwal999 You do know that inflation can be caused either on the demand side (this is where easy money comes in and causes trouble, like in Greece) OR the supply side (rising costs) of the macroeconomic market, right?
mjmfoodie 1 year ago
@mjmfoodie The definition of inflation is an expansion of the money supply. It is NOT a rise in overall prices. If we look at general prices they can only rise or fall in the short run. Certainly if there is a large disruption in the supply then prices will rise. And if people decide to buy a lot more with their savings or on credit then prices can rise. This is all temporary. In the long run prices should always fall. The only reason we see perpetual inflation is because of the central banks.
ecnerwal999 1 year ago
@mjmfoodie Throughout the 1800s we had constant deflation. Starting in 1913(the creation of the Federal Reserve) the U.S. started to see prices rise across the economy, year after year.
ecnerwal999 1 year ago
@ecnerwal999 Please check the early Depression years. I assure you, we had deflation.
mjmfoodie 1 year ago
@ecnerwal999 Gold standard all the way.
tothemax01 1 year ago
@tothemax01 GOLD STANDARD FTW. Yeah! I'm glad there are so many more people joining free market economics. We need to band together to fight the Keynesians.
ecnerwal999 1 year ago
U are just the best.....Thanks
ghg6541 1 year ago
Thank you! This is a great teaching tool.
Xyleno1 2 years ago 8