This is a great little article explaining the relationship between unemployment, interest rates, wages and inflation.

Cheltenham & Gloucester Against Cuts

    Any worker who`s ever complained to their boss and been told “if you don`t want to work here there are plenty who do” will understand why Karl Marx described the role of the unemployed (and underemployed) under capitalism as “the reserve army of labour”.
      The press and politicians take every opportunity to divide and rule the working class by casting suspicion on those who are unemployed, but those in work know that the very threat of unemployment helps the bosses to impose their will on us. When unemployment rises, the threat is greater, and employers become bold enough to force pay cuts on workers.
     Mainstream economists have a more academic approach and study the labour “market” in great detail, but just like the bosses they recognise the importance of unemployment under capitalism. In the late 1960s influential US economist Milton Friedman came up with the term “the…

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