Unemployment and Inflation
The argument of the Feldsteins has me wondering at the expertise of some economists. They say that reducing the 6.2% unemployment rate will increase inflation and they advocate not taking any steps to reduce it. Nonsense!
First, this rate does not include those who have dropped out of the job market; second, those who are under-employed; third, those whose wages are substantially less than in previous jobs. Our factory capacity remains at about 80%, and the Feldsteins are worried.
More nonsense is the idea that raising the minimum wage will create more unemployment. Won’t the higher wages put more money into circulation, thereby increasing our economy and jobs? Wasn’t that the Reagan Administration’s reason for cutting taxes? Most important, after all the pros and cons, a $3.35 an hour wage is downright shameful.
LEN ZIRALDO
Canoga Park
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