The federal government tries to keep both unemployment and inflation to a minimum.
Explain which should have a higher priority, keeping inflation at a low level or unemployment at a low level?
While both help balance each other, according to stlouisfed.org, the number one goal for the country should be to maintain a steady pricing system. Even though it is difficult to find stats to back up whether a slightly higher inflation level or a stable level are good for the economy. It is proven that unstable price levels can wreck the economy though. With a stable economy will come a stable job flow.
I agree and think that inflation should be a higher priority of the government. When inflation rises, it affects everyone, especially lower class people because everyone is required to pay more for good and services. Having a stable value of a dollar provides stability all around for both citizens and the government. Also, when inflation rises, it decreases America’s power in the global economy because our dollar would decrease in value compared to the value of other country’s currency. I think that inflation should be a higher priority than unemployment because unemployment should be a problem that the individual has to solve, not the government.
I disagree and would have to say unemployment is more important of a factor to focus on. This is because if people do not have jobs, they don't have money to spend and put back into the economy. So the rich get richer, and the poor get poorer, and the middle class will shrink because of a rising unemployment. Also unemployment persists through generations of families. If you mom and dad don't have a job and can't pay from college, then there's a large chance that you won't be able to go to college and the cycle repeats. This shows how important it is to focus on getting the American people up and working to support their own families and the national economy.
While both help balance each other, according to stlouisfed.org, the number one goal for the country should be to maintain a steady pricing system. Even though it is difficult to find stats to back up whether a slightly higher inflation level or a stable level are good for the economy. It is proven that unstable price levels can wreck the economy though. With a stable economy will come a stable job flow.
ReplyDeleteI agree and think that inflation should be a higher priority of the government. When inflation rises, it affects everyone, especially lower class people because everyone is required to pay more for good and services. Having a stable value of a dollar provides stability all around for both citizens and the government. Also, when inflation rises, it decreases America’s power in the global economy because our dollar would decrease in value compared to the value of other country’s currency. I think that inflation should be a higher priority than unemployment because unemployment should be a problem that the individual has to solve, not the government.
DeleteI disagree and would have to say unemployment is more important of a factor to focus on. This is because if people do not have jobs, they don't have money to spend and put back into the economy. So the rich get richer, and the poor get poorer, and the middle class will shrink because of a rising unemployment. Also unemployment persists through generations of families. If you mom and dad don't have a job and can't pay from college, then there's a large chance that you won't be able to go to college and the cycle repeats. This shows how important it is to focus on getting the American people up and working to support their own families and the national economy.
Delete