this post was submitted on 21 Jun 2022
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Marxists spend a lot of time explaining how unemployment is central to the functioning of capitalism, but sometimes the ruling class just comes out and says it for us. (www.bloomberg.com)
submitted 2 years ago by [email protected] to c/[email protected]
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[–] [email protected] 9 points 2 years ago (1 children)

A reserve army of labour is required in order for people to accept jobs with unfavourable compensation. High unemployment makes people desperate to work ensuring that they can be exploited more easily.

[–] [email protected] 3 points 2 years ago (1 children)

This is the part I understand unfortunately. How does it eventually lead to inflation though?

[–] [email protected] 3 points 2 years ago

The inflation is largely an artifact of unbridled money printing and wage stagnation. It looks like they want to lower prices by paying people even less. This will only inflame the contradictions further and eventually lead to civil unrest.