There was a period of inflation in the 70s brought on by (according to people like Milton friedman) countries exceeding the natural rate of unemployment.
Did you know that?
Its actually curious and is an open secret if you will.
Unemployment is by design!
The federal reserve for the USA and the bank of England for us operate under a dual mandate.
That is to control employement and inflation.
The model they use claims that if an economy is over employed it will cause inflation to spike
So they aim to maintain 4 percent (I think that’s the figure currently) of the population in unemployment.
Thats 2715440 people in the UK and 13200000 people in the US are deliberately by design kept unemployed to control inflation.
Its called the NAIRU non-accelerating inflation rate of unemployment.
There’s a cool graph published by OBR (office for budget responsibility) that’s shows how the actual rate of unemployment has been driven down to the predicted (because you cant measure until you get there) NAIRU.
Subjective insights 