Unemployment + Economic Freedom

The neoclassical argument is that prices of goods and labor be determined by the market without any regulations. Economists who support this idea state that government intervention will lead to an increase in the unemployment rate, and this statement can generally be true. For instance, Hong Kong is the country that is has the top Economic Freedom, and they have a very low unemployment rate of 4.3%. On the contrary, Zimbabwe is the 178th Economically Free country, and its unemployment rate is 95%. From statistics like this, neoclassical economists argue that there should be no government intervention in markets.

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One Response to Unemployment + Economic Freedom

  1. Pingback: Portfolio Semester 2 | Kanako's Blog

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