What a “healthy” or “normal” level of unemployment is to capitalist economists is neither healthy nor normal to those who are currently unemployed.
Quotes within the article:
1) “An unemployment rate of 5% to 6% is typical of a healthy economy.”
2) “Most economists also say that if the Federal Reserve sought to lower unemployment much further, the economy could overheat and ignite inflation.”
“if” (and that’s a big IF);
“could” (calls for speculation);
“ignite” (surely inflammatory speech);
“inflation” (depends on whose ox is gored)
3) “U.S. policy-makers are supposed to strive for “full employment” under the Employment Act of 1946. That law defined it (full employment) as an unemployment rate of 4%.”
(4% unemployment = full employment!)
4) “Today, most economists including Fed Chairman Ben Bernanke, define full employment as between 5% and 6%.”
(which redefines “full employment” once again!)
Although the article clearly states that the Employment Act of 1946 defines full employment as 4%, this can’t be verified online!
This entire article reiterates and substantiates the existence of The Twentieth Man as the cornerstone of the real U.S. economy.
From 1946 to the present – for 66 years, the Democrats and Republicans have conspired to maintain, to the detriment of the common people, a surplus of labor above 4%. Oddly, the rationale for this conspiracy is based on a mere theory; the theory of what terrible things might happen if they ever allowed full employment to occur; an event and circumstance that never actually happened before in the whole of U.S. history.