The unemployed
collaborate unwittingly, in controlling inflation.
You could say that "Indifference is profitable" if he could
substantiate.
Could you say that "The need takes away bargaining power" if
he could substantiate.
An example of each case:
- If you buy or not to buy a certain item gives me the same,
(indifference), I will not be willing to make any effort just to have it. I
will get it only if it is very cheap or if I give it away.
- If I'm desperate for some object (need) maybe willing to pay more
expensive than it's worth.
For several centuries, economists have failed to reduce poverty but
working with her know when they suggest that to avoid inflation needs to be
unemployed workers.
How does this work?
If work is not easy to get unemployed people will drop their claims to
earn lots of money because, as I said above, "The need takes away
bargaining power".
Conversely, if the unemployment rate is very low, are entrepreneurs who
suffer from the need for workers and, therefore, will be the entrepreneurs who
suffer "The need removing them bargaining power". Since employers can
not occur if not make a profit, there will be an inflationary phenomenon
because the costs will be larger employers having to pay higher wages.
Indifference is equivalent to satiety and hunger equates need.
If employers offer jobs they coveted job for many unemployed will feel
like kings, but if they need workers and are not those same kings will feel
like beggars.
Hunger and satiety determine all the phenomena of the economy. The
governing body of this science is not the brain but the stomach.
(Este es el Artículo Nº 2.114)
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