Did you know that unemployment is at 5% and the natural rate is 6%?

[kick-ass-bob]

So no one is having trouble finding jobs. Oh, Wal-Mart jobs? Well those are good jobs. Just learn to live on less and you'll be fine.

PS - The WMDs are in Syria. They were just able to erase all evidence that they were in Iraq before we got there.
.
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No, this is not from 2 years ago, it is from 2 DAYS ago.

:eyes:

[Dogmudgeon]

1. It's all CLINTON'S fault!

--p!

[kick-ass-bob]

3. He did mention Clinton somehow - but I was already blocking it all out.

Either that, or he hit me with his Dumb-Ray.

[aden_nak]

4. "Bill Clinton's penis is taking all the high paying jobs." - Sean Hannity*

*Not actually a quote from Sean Hannity.

[Zuni]

2. But Hillary will put us into Gulags

[Squeech]

5. When I was a kid

the natural rate of unemployment was 3%.

Thank you, dear leader George Big Brother Bush, for raising the chocolate ration! Yee-ha!

[kick-ass-bob]

6. That natural rate thing was killed several years ago.

Even 'I' disproved it - at least at the 6% level.

[papau]

8. As late as 2003, folks talked about a natural rate of UE between 4 and 5 %

The Phillips curve as done in the UK and as done in the US by Samuelson is said to have less validity after 1970 in terms of the trade off between the unemployment rate and the inflation rate, but a 4% "natural rate" is the rate that I am familiar with.

http://www.sussex.ac.uk/Units/economics/macro1/ch8.ppt.

© 2003 Prentice Hall Business Publishing Macroeconomics, 3/e Olivier Blanchard

8 C H A P T E R

The Natural Rate of Unemployment and
the Phillips Curve

© 2003 Prentice Hall Business Publishing Macroeconomics, 3/e Olivier Blanchard


The Natural Rate of Unemployment
and the Phillips Curve



"Since the 1960s, the U.S. inflation rate has been positive. Inflation has also become more persistent: A high inflation rate this year is more likely to be followed by a high inflation rate next year.


Friedman and Phelps questioned the trade-off between unemployment and inflation. They argued that the unemployment rate could not be sustained below a certain level, a level they called the “natural rate of unemployment.”

The natural rate of unemployment is the unemployment rate such that the actual inflation rate is equal to the expected inflation rate.
The U.S. natural rate of unemployment has decreased to a level between 4% and 5% today.

Given the very high rate of unemployment during the Great Depression, we would have expected a large rate of deflation, but deflation was limited.

The reason for this may be that the Phillips curve relation may disappear or at least become weaker when the economy is close to zero inflation."

[Mr.Green93]

7. Bill Clinton had 3.8 percent unemployment and dollar gas

for eight wonderful years. Please bring back a Democratic administration.

[kick-ass-bob]

9. Can we get a list of gas prices, inflation rates, and unemployment

rates for the past several presidents?

I'd like to see the comparisons.

[warrens]

10. Apples and oranges

The "natural" unemployment rate, those switching jobs or on hiatus and so on, is about 3 percent or so, and it isn't counted in the unemployment rate. Same with "discouraged" workers, the unemployed who have given up looking for work. And that figure is through the roof compared to the Clinton years.

[MissMillie]

11. The unemployment rate doesn't include

those who have stopped collecting because they have been unemployed past the lenght of their benefits.