This is the "Phillips Curve." Take a good look at it. Does unemployment serve Wall Street's best interests? Sure it does. Wall Street has the pick of the litter, so to speak, for a lot less money than it would have to pay if the unemployment rate was lower.
I have to ask myself, "Why exactly wouldn't the banks lend to improve employment rates?"
"They are always hiring in the Mail Room."
Now consider this when discussing "The Student Loan Bubble."
Phillips conjectured (click here) that the lower the unemployment rate, the tighter the labor market and, therefore, the faster firms must raise wages to attract scarce labor. At higher rates of unemployment, the pressure abated. Phillips’s “curve” represented the average relationship between unemployment and wage behavior over the business cycle. It showed the rate of wage inflation that would result if a particular level of unemployment persisted for some time....
I have to ask myself, "Why exactly wouldn't the banks lend to improve employment rates?""They are always hiring in the Mail Room."
Now consider this when discussing "The Student Loan Bubble."
Phillips conjectured (click here) that the lower the unemployment rate, the tighter the labor market and, therefore, the faster firms must raise wages to attract scarce labor. At higher rates of unemployment, the pressure abated. Phillips’s “curve” represented the average relationship between unemployment and wage behavior over the business cycle. It showed the rate of wage inflation that would result if a particular level of unemployment persisted for some time....
