The Accelerator Break

Unemployment obliterates the future because when you're unemployed, you cannot plan for the future. The Phillips curve comes from a 1950s observation that a government can either have high growth with high inflation, but they can't have highrowth with low inflation. So there's a trade off between growth and inflation. And again, it comes from the fact that the higher level of growth, the higher the demand for labor, the lower the level of unemployment.