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Showing posts from August, 2024

Illusion, Dishonesty and Deception: The Business of Government

There is much confusion around the relationship between rising prices and employment, and this is only exacerbated by the rhetoricians in government and elsewhere. This is the confused notion that rising prices and the labor market carry a positive relationship, that rising prices are generally positively correlated with lower unemployment. In economics, there is a drawn correlation between inflation and employment, illustrated by what is known as the Phillips curve. The graphic is used to argue that employment and inflation are positively correlated. The failure of this interpretation, however, is that the lower unemployment figures fail to capture the real improvement of the marginal productivity of labor and the overall standard of living enjoyed by those economic agents. It is the responsibility of any shrewd surveyor to distill all of the available data in order to determine the true qualitative relationship between those sets and what they actually mean. This is where the quality...