A civilized country in normal development cannot tolerate widespread economic illiteracy.
The growth of wealth does not necessarily guarantee an increase in happiness and material comforts, nor does it mean that happiness will increase as a result. Poverty is the opposite. Poverty has always been a source of turmoil throughout human history. The disparity between rich and poor countries is a misfortune for poor countries and unsettling for rich countries.
In global economic activities, mankind has been facing four major problems: unemployment, inflation, disparity between the rich and the poor, and economic depression, which come randomly with the "economic crisis". Poor countries have been plagued by these problems for generations, and rich countries are equally worried about being attacked by these four problems. The crisis of a regime, the change of a country's economic system, is often caused by the inability to solve these problems in a timely manner. This problem not only brings poverty to people's lives, but even to the misfortune of their families. At the same time, it has an impact on social stability and political stability. Therefore, how to solve or alleviate these difficult problems as much as possible has become a major issue that the people and leaders of any country must be concerned about. Among these four major problems, "unemployment" and "inflation" have a particularly far-reaching or prominent impact on the lives of ordinary people.
What is unemployment?
"Unemployed" refers to a situation in which a person is currently unemployed, but has the will and ability to work at the labour market wage level.
The causes of unemployment are mainly reflected in two aspects: personal intrinsic factors and non-personal external factors. An individual's unemployment may come from the following aspects:
1. Lack of professional training and skills (academic qualifications)
2. Pickiness about the place of work or treatment
3. Being too old or too young
4. Gender inappropriateness, some jobs are only suitable for men or women
5. Other factors: such as health, lack of connections, willingness to work, etc.
These are the reasons why an individual's intrinsic factors may cause unemployment. Non-self-specific external factors depend on the health of the macroeconomy. If the economy is in a downturn, it will be difficult to find a job, even if you have various professional skills or training. If you have a job, you may also be in danger of being fired at any time.
According to the principles of macroeconomics, "unemployment" is an important phenomenon in "economic fluctuations".
Business fluctuations are fluctuations in economic activity, usually measured by changes in the unemployment rate and real GDP. Generally, it goes through four stages: boom, recession, depression and recovery.
What is Inflation?
Inflation refers to the phenomenon of (skyrocketing) rise in general prices, that is, there are quite a number of types of commodity prices rising, so that the average level of general prices rises, so that while prices are rising, the prices of some commodities may still fall.
The factors that determine the degree of inflation are usually reflected in the two indexes that are commonly used in prices.
1. Consumer price index (consumer price index) or living cost index (living cost index), its goods refer to the goods consumed by consumers on a daily basis, and the index reflects the changes in the daily life burden of consumers.
2. Wholesale price index (wholesale index) or producer price index (producer price index) The commodity is the raw materials and semi-finished products in the wholesale transaction, and the index reflects the change in the production cost burden of the manufacturer.
The consequences of inflation are not uniform, with some people benefiting and others suffering. Inflation hurts people with fixed salaries the most, not just pensioners, white-collar workers, blue-collar workers, civil servants, military personnel, or other people receiving government benefits. People who hold assets in cash (regular bank savings) are also victims of inflation. Only those whose incomes are rising faster than the rate of price increases, or whose assets are accelerating faster than the rate of price increases, are the beneficiaries of inflation. That is, the victims of rising prices (inflation) are those who receive a fixed income and hold assets in cash. The beneficiaries of rising prices (inflation) are those whose incomes have risen more than they have increased, and those who hold real assets (real assat) whose value has increased more than prices. Since price inflation has changed this form of income distribution, it has been considered unfair by some economists.
The impact of inflation on people's lives is mainly manifested in the following aspects:
A. Many people may postpone their retirement, and those who have already retired feel that life is difficult;
B. More housewives have to enter the labour market even if their children are not of school age;
C. Interest rates continue to rise, making it difficult to buy a house, shopping, etc., and the interest rate burden increases;
D. Ordinary people dare not put their money in the bank to save and increase speculation in land (real estate);
E. Affect the export (export) of products;
F. People who rely on wages feel that prices and taxes exceed the adjustment of their wages;
G. Increase people's fears about life, unemployment, and their future.
Soaring prices are like air, permeating everywhere and pervasively.