Europe's Unemployment Rate

[el freako]

Originally posted by Dracon II
Full employment with minimal inflation is possible... but it requires a great deal of political muscle and the ability to control Unions through corporatist structures. A difficult task, but it was achieved in Australia during the 1980's.

It was?

During the 1980's the lowest unemployment in Australia got was 5.8% in 1981, and two years later in 1983 it was 10% before falling to 6.2% in 1989.
However Australia certainly didn't have 'minimal inflation' - during those low points of unemployment in 1981 and 1989 inflation was 9.5% and 7.5% respectively.
In fact the lowest inflation rate reported by Australia during the 1980's was 4.6% in 1988.

Given all that data I fail to see how your statements connect to the real world.

(Source: IMF World Economic Outlook Database, April 2005)

[Dracon II]

right right right.... you got me.

I guess I'll just say that it could be possible to cap inflation and decrease unemployment by using keeping unions pacified and wages in line with economic indicators.

What I really should have said is they tried to achieve it in the 1980's.

*Dracon, filled with shame, disembowels himself with a wakazashi*

[Ned]

Originally posted by Dracon II


Are you opposing my point, or just making an observation about how Hitler achieved full employment?

If you're arguing against it, maybe you should say something more than just "Hitler did it".

I am supporting your point. Getting Unions to cooperate is essential. But it is also important to put the metal to the pedal using fiscal policy. Europe appears to lack the will to do one and the legal possibility to do the other given budget restrictions imposed by the Euro.

There are also all the structural issues in hiring and firing in Europe that employers have to deal with. Hiring would be a lot more efficient if firing were similarly efficient. The government should help with the social impact and not force that on employers.

[Kidlicious]

Originally posted by Ned
Hiring would be a lot more efficient if firing were similarly efficient. The government should help with the social impact and not force that on employers.

You mean by cutting the corporations taxes as well as not requiring them to be socially responsible in any other way?

[Ned]

Originally posted by Kidicious


You mean by cutting the corporations taxes as well as not requiring them to be socially responsible in any other way?

I am not totally familiar with all the restrictions on hiring and firing workers in Europe, but if the government were to assume more of the burdens themselves rather than placing these burdens on businesses, it would lead to greater employment and faster economic growth. This may actually lead to higher corporate taxes, not lower, in order to fund the social welfare costs.

What is also clear to the casual observer is that unions have far too much power in Europe.