A government in this position can have a policy of full employment, knowing that until that point is reached, there will be under-used resources within that economy for which they are responsible, meaning that inflation will not be stimulated as a result so long as the resources put to use are those currently unemployed, whether they be people, physical assets, or intellectual property.
But Smurf tells us that vast numbers of people are unemployed. And even he’s noted that we’ve got inflation. So, errr?
What else is to be expected? You have the government paying people with newly minted money to be unemployed. Of course they will spend that money with no productivity on their part. That the toober and our government officials are surprised by this is the appalling part.
Is this a situation where he assumes that as long as a single person remains unemployed then there can be no inflation – because ‘not full employment’?
Does he disregard that you can get inflation at employment rates short of full and that as you get closer to full employment the rate of inflation might increase?
Agammamon, you could even give that threshold a catchy acronym like NAIRU. Which even I’ve heard of.
How do we put to work unemployed physical assets and intellectual property? Oh, right, steal them.