If a nation is forced to choose between an economic policy that results in high levels of inflation?
unemployment, or social inequality, which of these would be most dysfunctional and/or harmful for society? Why?
Public Comments
- It all depends on the amount and the degree of inflation, unemployment, and social inequality. All three can be equally harmful when the inflation is very high, or the unemployment is very high, or the social inequality is very high. Because all three can prevent people from fulfilling their basic needs. Which usually leads to breakdown of law and order within society.
- High Inflation is the worst of them all. Unemployment can be solved with policy changes. But if your currency is worthless, you can make all the policies decisions you like with no effect. Social inequality is resolved with education. And you cannot educate the masses if your money is worthless. So I'd recommend that Inflation always be the number one priority to keep in check. All things are secondary.
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