On Monday, September 19, 2011 at 11:39:58 (-0400) Doug Henwood writes: > >On Sep 19, 2011, at 11:27 AM, Bill Lear wrote: > >> So, how does high unemployment lead to financial instability? Do you >> mean that low GDP growth (from high unemployment) increases financial >> instability? > >People can't service debts if they're losing jobs, and businesses can't if >revenues are slowing.
Ah, so it seems this should be stated as changes in unemployment, and changes in GDP expose problems? It's not high unemployment per se that causes these problems is it? I see your point, regardless. It would seem that the budgetary position of the government would be improved in a high- growth/employment economy. On the other hand, I can see the logic of finance wanting its needs to be serviced first, reserving shares of national budgets and incomes for its purposes. And, if it's true that you are correct, wouldn't interest rates reflect these concerns? But they are extremely low now. Bill _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
