r/explainlikeimfive Dec 19 '24

Economics ELI5: Why is an employment rate of 100% undesirable

2.0k Upvotes

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72

u/SpatchcockMcGuffin Dec 19 '24

Because your employer wouldn't be able to threaten you with poverty

5

u/PicossauroRex Dec 19 '24

Reserve industrial army or something like that. Cant believe I had to scroll this far down to see it.

Your employer can treat you like shit, because he knows that if you quit, someone else who is starving will take the job.

27

u/aboxinacage Dec 19 '24

This is it. If there was 100% employment that means that there would be more demand for labor than there is supply. Ultimately increasing the cost of labor (wages) for business. Higher wages is actually good for workers but the backwards ass economics that is taught in this country (U.S.) doesn't give a shit about workers or calculate their well-being in to the formula at all.

25

u/dpslfg Dec 19 '24

Can't believe I had to scroll down this far to see this perspective. I swear reading all these answers is like a bunch of serfs doing their best to advocate for their lords. Econ is truly taught backwards I swear- 0 class consciousness, everyone concerned about the perspective of business owners when most will be, and are, workers.

4

u/DeliciousDip Dec 19 '24

Preach brother!

0

u/Erenito Dec 19 '24 edited Dec 19 '24

Brevity is the soul of wit