NationStates Jolt Archive

My US history teacher informed my class today that a certain amount of unemployment is good for the economy (between 6 and 9%). She said that if there is too little unemployment, it is harder for the economy to grow and develop. I was wondering why, but she moved to another topic too quickly for me to ask. Does anyone here have any ideas?

The topic came up in the discussion of Hoover's speach about eradicating poverty in 1928(i think). I plan to ask my teacher about it next class.

(its my first thread!!! woot!!!!)
wow, a double thread for my first thread. Um... ignore this one?

She said that if there is too little unemployment, it is harder for the economy to grow and develop. I was wondering why, but she moved to another topic too quickly for me to ask. Does anyone here have any ideas?

At the most basic level it is hard to expand your business and take on new staff if you first have to lure them away from other paid employment.

At the most basic level it is hard to expand your business and take on new staff if you first have to lure them away from other paid employment.

But if people kept expanding their business this way, wouldn't unemployment slowly shrink?

And some unemployed people arn't looking for jobs, do they help the economy in any way?

And for your example, the new business owner would suffer, but wouldn't the common worker would benifit because of higher demand for their services?

I dont actually know, just thinking of arguements off the top of my head.