Unemployment isn’t merely a statistic; it’s a complex issue that affects individuals, families, and entire economies. When people lack jobs, the distribution of wealth becomes skewed, hindering overall prosperity. But how can we address this challenge and foster wealth creation?
There is a conundrum between unemployment and inflation. Both erodes the distribution of wealth in the economy. Given the government focus is on reducing inflation, the causal effect is increasing unemployment. This is what the famous Phillips curve states.
Obviously, a wicked challenge here. Do we see the supply side inflation subsiding with time? If not, would we have prolonged high unemployment? Are we going to have a stagflation challenge next? Or time will tell, and we tolerate this without any action at all.