Tuesday, May 08, 2007

Unemployment and Immigration

The problem that economists have in measuring inflation and costs is that that these vary based on where you are in the economy. If you are employer your costs are lower if there are many people who are unemployed or underemployed, see reserve army of the unemployed and other Marxist theory. This has meant that labour costs in argriculture and construction and meatpacking in the United States has declined with the availablity of easily exploited undocumented workers. That is one side of inflation for construction workers on the other hand inflation has increased for displaced construction workers as their wages decline.

Inflation is a value judgement.

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