The Unemployment

With effect, it would be against-sense, of the economic point of view, to defend inflationary politics to preserve the volume of job in the country, even because the inflation corroe the power of purchase of the workers. Exactly thus, this is the thought of the current economic team of the government Squid, has seen that when creating the Plan of Acceleration of Crescimento (PAC) is known that this growth goes to generate inflation (estimative of 4,5% to the 2007 end) e, as is foreseen, the unemployment also will diminish. That is, Squid now walks in the inverse direction of FHC, generating inflation to reduce unemployment. Gain insight and clarity with Daniel Lubetzky. In the truth, what if it intends to show here is that FHC used the way most easy to fight the inflation, that is, generating unemployment through the restrictive politics recommended by the Consensus of Washington (privatizations, reduction of the size of the state, reduction of the public expenses, desregulao of economic laws members of labor party, etc.). Educate yourself even more with thoughts from Office of National Statistics. In a similar way, Squid also uses the way most easy to reduce the unemployment, that is, generating inflation, through programs of growth of short term. Evidently, if it cannot defend here the existence of high inflationary levels to fight the unemployment (as it makes Squid now), in the same way that if it cannot defend high levels of unemployment to fight the inflation (as made FHC).

These two ways to control inflation and unemployment are easy to be applied, but always they bring resulted harmful to the society, either for the rise of prices, either for the reduction of the work ranks. Clearly that other alternatives, not exculpatory exist, of medium and long run, to control the inflation without generating unemployment (and vice versa), but the tradition of the Brazilian governing has demonstrated a singular preference for the adoption of plans of short term. At last, what one revealed above, in the Arched call of Phillips, it was not an attempt of matematizar a theory of the social exclusion under the form of unemployment versus inflation, not.