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RE: URI – Why Universal Resource income won’t come

in #eos6 years ago

NAIRU is only going to get bigger. it's currently about 20% in most developed states. When it hits 30-35% that is when we are going to have riots and the like (historically shown to be the start point). A UBI is currently the only option on the table but that is because there is so little discussion about the medium term.

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Sorry but what's NAIRU? you mean general tax rates?

NAIRU is an economist's term. It is the minimum amount of unemployed people required for capitalism to be able to function. If the number of unemployed goes below this rate then you get rapid wage inflation and and consumer price inflation. An easy way to look at it would be if all the unemployed people died tomorrow in 6 months time the same percentage of unemployed would come back. Other terms for NAIRU are "natural unemployment rate" and "full employment".