Low unemployment and high inflation - how is that possible

[Telugodura456]

If everyone is employed then production must be high. If production is high then prices cannot be high because in industrial production the marginal cost of extra unit is very low.

What is the menaing of this ? are there lot of jobs which are useless and not productive ?

[futureofandhra]

1 minute ago, Telugodura456 said:

If everyone is employed then production must be high. If production is high then prices cannot be high because in industrial production the marginal cost of extra unit is very low.

What is the menaing of this ? are there lot of jobs which are useless and not productive ?

everything is not manufactured here

world is globalized

supplychain  issues fuel issues 

 

[DesiPokiri]

2 minutes ago, Telugodura456 said:

If everyone is employed then production must be high. If production is high then prices cannot be high because in industrial production the marginal cost of extra unit is very low.

What is the menaing of this ? are there lot of jobs which are useless and not productive ?

Anni grama volunteer jobs e , but current bill is coming as much as grama volunteer salary

[Gcp]

 

IMO, we started seeing signals last year. 

Certain sectors in all countries are dependent on handful of ASEAN countries. shipping inflation was the first. Containers became expensive.. reason.. finite number, massive demand from all over.. companies were willing to pay extra than wait..

When economy opened up, ppl felt richer than before due to stimulus, free money, low interest rates in almost all countries at the same time. Too much money infused in short span.

Eg. Unprecedented Real estate boom created demand for relevant goods and ppl r ok to pay because getting money from bank is cheap.

Ukraine war is the next blow..