t by examining the trends of countries in which growth level has slowed, unemployment has risen, yet at the same time inflation is also rising. Friedman's explanation seems simple enough as well. Slow growth and higher unemployment are not cures to inflation, but only side effects of the cure. For example, a producer is going about, producing his product when he notices that he's selling a lot more for the same price as usual. So he orders more from his manufacturer, who orders more from the workers. If this increase in demand is coming from newly created money though, other products are increasing demand as well. This puts a greater demand on labor to work harder and longer, so they think for more money. But when they get their money, they discover that the price of things they must buy has gone up. Therefore it takes a bigger percentage of their paychecks to buy their necessities, so they didn’t make any more money at all. This results in the companies raising their prices higher and higher to make up for the money they've lost and eventually results in a vicious downward spiral of inflation. And then this is going to make employment and prices go way up. This is how he proves the common theory wrong, and you can't argue with facts like that.In the free market system that Milton Friedman saw workers are protected either by unions, the government, other employees or no one at all. Unions bring workers of a common trade together so that they can make sure they are getting the proper safe and comfortable work conditions. As well as getting paid for what they think they should be paid for their profession. This can be very beneficial to a work force by either keeping down the number of jobs available, or the number of people available for a class of job; both by enforcing a higher wage rate. Of course unions can also be harmful to the workers. This is because anytime one group of workers is benefiting from the increased wages or oth...
