Yesterday, I spoke with 3 different customer service reps that actually hung up on me when I inquired about a questionable charges on my new checking account. After being on hold for at least 20 ...
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*****-BabeInTotalCnt...
Why would low unemployment be good for the economy?
Means more people are working and contributing their income to retailers, government (by way of taxes) and other purchases.
Fordman
That is not always true. Take a look at the stock market when the unemployment figures are announced. If the unemployment is low, it means that companies are having a hard time getting the help they want. There is a shortage of qualified skilled people to do the work. It also means that companies expenses are higher and more of the profits are going to labor. They have to pay higher wages to obtain and keep good people.
I know this sounds crazy, but if you think about it you'll see it's true.
glennroid
The more people working, the more people spending money. The less people getting unemployment insurance, the more money the government has to waste on other things.
jdkilp
It's not good for the unemployment rate to be very high or very low. For the US economy, we seem to work best when the rate is about 2-4%. Too low and wages are driven up. When wages go up, the cost of good and services go up, and people in the lower income brackets suffer. When unemployment is too high, the government starts subsidizing those who are unemployed and taxes go up.
LovIngMe
Tax money can go else where
TK
Well, the more people that work the more taxes the government gets to fund public projects and general public good. If people didn't work.....well, just look at Africa.
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