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Commentary Topic from greenfaucet

Higher Rates of Unemployment Correlate to Higher Rates of Inflation

It absolutely amazes me how sanguine the Fed, Treasury and Administration are about the prospects for subdued inflation. What they and many economists like to point to as the source of their optimism is the high rate of unemployment, which is currently 9.4%. But the truth is that inflation actually causes higher rates of unemployment, while it is false to believe that inflation can be prevented by a labor slack in the economy. To prove this point, I would like you to observe the following two charts: