ShmoopTube

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Finance a la shmoop what is above full employment equilibrium? question wouldn't

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full employment mean that everyone who wants a job is employed wouldn't that be

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full employment well no it's a government statistics so full isn't [Government worker in office]

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really full it's you know full-ish and full is probably impossible anyway

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because there will always be college students part-time uber drivers [Students graduating and uber driver appears]

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derelicts and you know actors so when economists talk about full employment

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they mean that everyone who is actively seeking work is generally finding work

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but it recognizes that a lot of people have either given up the hunt and are

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happy living on the equivalent of replacement value of you know 48 grand a [Woman at the desk of a cafe]

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year of welfare or they're you know off the grid

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well the equilibrium notion is the hard part to conceive here when "almost

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every single living being" is employed it likely means that the

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economy is on fire in the in the good way tons of demand for stuff tons of

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shortages of labor and supplies and it also probably means that we have roaring

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inflation which is generally bad there is a balance of employed and unemployed [employed and unemployed workers on a scale]

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which makes for a stable set of parameters that keep the people employed

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who want to be employed and it keeps inflation at small numbers such that old

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people who generally retire on bonds aren't forced to live inhuman lives in

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their station wagons parked on the side of the road because roaring inflation at

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6% has made their 2 percent a year bond investment returns destroy most of the

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buying power of their life savings belt historically economists have generally

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targeted 95 percent as the full employment equilibrium number or 5

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percent as the unemployment rate they're shooting for in other words at that

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level there is low or just very modest inflation and the employment seeking [Man discussing employment equilibrium]

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masses have generally found what they've been looking for you know like bono

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turns out he was just looking for his car keys.... go figure..[Bono singing into microphone]

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