>This is simply because if there was 0% unemployment, it would be impossible for businesses to hire anyone without poaching from another business. According to the law of supply and demand this would result in wages rising rapidly and without bound, much as the price of bread does during a famine, until it was impossible for businesses to make any profit.
You can tell from ideas like this that Engels never had to work a day in his life. Not everyone is going to instantly switch jobs when they hear about a slightly better one. And I thought capitalists were the ones that supposedly treats humans as mindless automatons.
If you're going to assume spherical cows like that, all businesses would already make 0 profits due to competition. In a hypothetical capitalist world with 0 unemployment, employers wouldn't poach anyone unless if they think that it would be a profitable decision. We'd have higher inflation, but that's not really the end of the world if everyone is employed. More importantly, our economy would stagnate due to not having any slack, but that's the to occur in any non-capitalism system that has 0 unemployment.
You can tell from ideas like this that Engels never had to work a day in his life. Not everyone is going to instantly switch jobs when they hear about a slightly better one. And I thought capitalists were the ones that supposedly treats humans as mindless automatons.
If you're going to assume spherical cows like that, all businesses would already make 0 profits due to competition. In a hypothetical capitalist world with 0 unemployment, employers wouldn't poach anyone unless if they think that it would be a profitable decision. We'd have higher inflation, but that's not really the end of the world if everyone is employed. More importantly, our economy would stagnate due to not having any slack, but that's the to occur in any non-capitalism system that has 0 unemployment.