Shows how far economic expectations have deteriorated when this kind of a whopping output gap is considered to be an unquestioned success and the envy of the euro zone, as well as most of the world.
Taxation creates unemployment (people seeking paid work), by design, as a simple point of logic.
So what sense does it make for a government to create more unemployed than it wants to hire to provision itself, and then let all those people remain unemployed?
Seems they would either hire the rest of the unemployed their tax created, or lower the tax. But that’s just me…
German Unemployment Unexpectedly Rises for Second Month
By Stefan Riecher and Alessandro Speciale
July 1 (Bloomberg) — German unemployment unexpectedly increased for a second month amid signs of a slowdown in Europe’s largest economy.
The number of people out of work rose a seasonally adjusted 9,000 to 2.916 million in June, the Nuremberg-based Federal Labor Agency said today. Economists forecast a decline of 10,000, according to the median of 24 estimates in a Bloomberg News survey. The adjusted jobless rate was unchanged at 6.7 percent, the lowest level in more than two decades.