RousseauX
Donor
increasing employment increases inflation: you are paying out more wages: more money are going towards consumer goods and thus prices go up, the reason why raising taxes and lowering spending (thus budget surplus) lowers inflation is because it makes people buy less since you are taking money out of people's pocketsIf budget surpluses are known inflation fighters is increasing revenue a viable alternative to reducing expenditure? But not through raising taxes, instead it would be increased revenue through lower unemployment via a less severe recession in the early 1980s.
I write that because in my last post I suggested a POD of Mrs Thatcher becoming prime minister 2 years earlier. If she had would the early 1980s recession have been not as bad or even worse for the UK?
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