Mumbles about Inflation and Unemployment

Pin It Now! Since this blog is supposed to have random thoughts and not just food recipes or descriptions, I will try not to disappoint.  If you have been following the news at all, you know that no action is being done to help lower unemployment.  Mostly the justification is something along the lines of inflation prevention.  Now of course, if more people get jobs the consumption will rise, and if the consumption rises things will naturally become costlier.  But compared to the current situation that should be a GOOD thing, not something to avoid.  We are suffering from extraordinarily low productivity in the US right now and a bit of inflation targeting should encourage people to go out and spend and invest, and hence hire workers.  Now, of course we can do things on the fiscal end but we've all seen how difficult it is to get anything done on the fiscal end.  And actually the private sector probably wouldn't borrow much because people are afraid of the fiscal cliff come January 2013.  The only weapons we have left are on the monetary end.  Of course, if you are retired and no longer working, you naturally wouldn't want your savings to erode in value.  But the 8.2% unemployed surely don't see things that way.  I guess the dual mandate isn't so dual at all, but perhaps 1 1/2 one way and only 1/2 the other way.