Tuesday, March 23, 2010

Employflation

After much thought (Yeah Right) I came up with this name. The classic definition of inflation is increase in the general level of prices. Since too much rise in the general level of prices can lead to inflation. Now my take on the inflation is too much unemployment coupled with too few jobs. The jobs are few and far between even the ones where you seek as the last resort like the minimum wage jobs. It is really becoming difficult to find a job when you are unemployed, even the unemployment insurance which used to cover only 26 weeks now stretches to almost 99 weeks. This is how chronic unemployment is leading to lost productivity. People are idle and have nothing to do but look for jobs which if they have been doing for a long time is a waste of the human resources.

If you are unable to find a suitable job within a certain period of time, then depression and despair sets in and you feel helpless and unproductive and kind of lost spirit. It is such kind of depression that is dangerous to society as the productive factors are wasted at home and the economy when the productive parts are idle.

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