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    What effects did or would that have on the society? Richard, London, UK Achieving optimal employment capacity if that's an acceptable equivalent of per cent might be expected to occur only during times of war, where civilian populations are needed to work flat out to support the war effort.

    Otherwise, capitalism prefers a labour surplus made up of a tamed and anxious reserve workforce that is unencumbered with personal expectations, has few genuine, legal rights, and with just about adequate levels of education. Such labour market "flexibility" ensures the all important business outcome of driving costs and employer obligations down to whatever bare minimum firms are allowed to get away with. By this definition, no. Excluding them, there are pregnant women who are not working, plus those who are disabled in some way.

    So by this definition, no. Excluding them, there are those who simply do not wish to work, and are not looking. By this definition, maybe. There are structural macroeconomic issues at work, too. The "natural unemployment rate" in the U. Employers there are more reluctant than in the U.


    The more regulation there is, the higher the natural unemployment rate. So maybe your question is this: I would say "Yes," but would have had to have been beforebefore all the social support systems and the minimum wage were set up. If you wanted to work, you could. If you didn't want to, that was fine too, as starving was an option. But of course, no one kept statistics like that back then, so it would be hard to confirm. They are the ones that are distant, or have very little contact with the money economy.

    In these societies there are generalists hunters, fishers, gatherers, farmers etc. Such societies like the Amazonian native cultures generally work when left alone and given decent health services like the rest of us. From my experience they are people who tend to be rather more content, thoughtful and intelligent than the rest of us. Generally, as unemployment rates fall, workers are in a better position to demand wage rises.

    However rising incomes without a corresponding rise in productivity will cause inflation. Mardy, Canberra, Australia There's a theory that government macroeconomic policy leads to a trade-off between unemployment and inflation the Philips curve. A refinement of this is that idea that at a certain level of unemployment 'NAIRU'inflation will remain steady but that a lower level can only be sustained by forever inflating the economy.

    The state offers no unemployment benefits, and no records of unemployment are kept. There were several reasons for this: Paul, Ashiya, Japan One effect would be that employers wouldn't be able to select the best person for the job; since the number of applicants would more or less match the number of vacancies, you would have to take on whoever applied.

    Over time, lots of people would end up in jobs for which they were unsuited or incapable, with negative effects on efficiency and productivity.

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    One wise old industrial psychologist who was active in the 's when there was nearly full employment told me that the only selection test worth using then was the Mirror Test. Amongst the results were, firstly, the constant finger pointing of the West at the size of the Red Army - which was actually due to National Service, and young men doing really scary things such as painting coal red! Secondly, a hugely bureacratic machine - such as two chaps being needed to check your passport as you arrived at the airport.

    Thirdly, such wonderful practices as you would find getting into a theatre or tourist attraction - first you queued for a ticket, then you queued to have your ticket torn in half, then you queued to have the remaining half taken away from you, and finally you queued so that some guy could demand to know why you had no ticket! Seriously, it led to a lackadaisical, ramshackle approach to everything - the attitude was, "We're getting paid anyway, so who cares if we do a good job!

    The surplus of productive activities done by these workaholics makes up for the non-contributions by the unemployed so that society as a whole functions normally.

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    If everyone was in employment wouldn't supermarkets be empty during most of the day? Jon, Manchester England If you eliminated the minimum wage, then everyone could get employed who wanted to be. True, many jobs would be low paying, but I don't buy the argument that these workers who are being paid below minimum wage would be exploited.

    This is because they chose under their situation to take this below minimum wage job, and so preferred this job to the absence of such. So they are happier with the job than otherwise.

    That is certainly not any reasonable definition of exploitation. I myself work for below minimum wage, and have worked other jobs for this compensation level, and don't feel exploited at all.

    The market should determine wages, not the government. When the government gets involved in the economy, it's generally bad news. The reason is simple: Generally speaking, such decisions are better made by a person or group who has access to a higher level of relevant information regarding the matter. In a government controlled economy, such decisions are made by a small number of bureaucrats many miles from where the demand and supply information is thus are often ignorant of these factswhereas in a free market economy the maximal number of participants who are right there on the ground where the supply and demand information exists are participating.

    Generally more people participating in a decisions renders a better one because there's more knowledge and data to draw from, and a free market maximizes the number of participants, who oftentimes know important details that the bureaucrat would miss. That's why the old Soviet command economy failed and the comparatively freer markets of the west survived. If this country eliminated the Federal Reserve's power to create money it is a private bank and the US Congress is supposed to have this powerand went back to a gold standard currency, this would eliminate a lot of the economic problems in the US.

    I believe that much unemployment is due to structural inequalities like this. It's just ludicrous that a private bank has the power of money creation, and that the money is backed by a tax obligation of the American people.

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