Inflation, Inflation,Inflation....

Zero Inflation or stable price level policy norm goes back to classical economics and has inspired many governmental policies over last decades
In this economic situation price stability goes hand in hand with total spending or aggregate demand measured in dollar terms .Producers usually like this because puts them in a comfort zone of avoiding shortages or excess inventories in the products they produce.
This stability in aggregate demand avoids fluctuations in the real market and thus this idea works in a stationary economy only and advantages of this policy only in a stationary economy would be as follows
• This claims to stop unfair transfer of wealth from creditors and borrowers (when prices fall creditors profit and when they rise debtors profit and stability in prices halts these movements)
• This will allow the price –system to do its job by minimum of money price changes by purging any need for general price changes to compensate changes in the supply of or demand for money.
• Uncertainty in markets
Issues with Zero inflation
• Suggested salary increases are not quantifiable
• Investments halt or slowdown
• Would work in a stationary economy which is not practical

Real Unemployment

In service based economy , the real capacity of what we produce is service based , industrial utilization is good for industrial manufacturing based economy . The best measure for utilization in service based economy is employment and therefore unemployment in this
Unemployment statistics
• • US population = around 300 million
• • Adult population ( 16 yr older + old folks) = 240 million
• • Labor force (working force) = 150 million
• • Number of unemployed(no job and have looked for 4 weeks) = 14 million
• • % Unemployed Present ((number of unemployed/total labor force)) = 9.1 %
• • Long term unemployed (27 weeks and over)= 6 million
• • % Long term unemployed = 49.2 % of Unemployed
• • % Unemployed Jan 08 = 5 %
• • Marginally attached workers (want to work have looked in past 12 months are not counted as unemployed)
• Discouraged workers is subset of marginally attached workers ( not actively looking for more than 5 weeks) and thinks there are no jobs available
US Total Unemployment Rate - Including Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons =16%

http://metricmash.com/unemployment.aspx?code=LNS13327709

Unemployment ,

Situation :Teenage unemployment rate increased from 13.2% in 2000 to 28 % in 2011 . For much of the past 60 years, the proportion of 16-to-19-year-olds who held jobs — either part or full time — was around 40%. In fact, in 2000 it was a relatively high 45%. In all, nearly 7.3 million teens were getting a regular paycheck..
Facts:Older workers are not exiting the workforce and in some situations are getting back in the workforce after a decade of hiatus The retail and construction sectors, which are usually key employers of young workers, have been among the hardest hit.
Potential outcome The only plus of this grim circumstances is teenage students are staying back in school in fact the school enrollment rate for 16-to-19-year-olds has risen to 83%, up from 78% in the mid-1990s which in turn can lead us to believe that we might have an increase in skilled labor force n coming years