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Voluntary or Involuntary Unemployment - Coursework Example

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The paper “Voluntary or Involuntary Unemployment” seeks to evaluate a period of time that a person capable of working spends without employment, and generally does not refer to those removed from the labor force, such as at-home spouses. It can occur for a variety of reasons in capitalist economies…
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Voluntary or Involuntary Unemployment
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Download file to see previous pages Under these circumstances, employers provide jobs as dictated by the market. Jobs for farmer workers may be limited by weather or crop disease, and jobs in manufacturing may be limited by demand for a product. As economies become increasingly global, interactions between national markets and global demand may cause an increase or decrease of available jobs. As such capitalist societies have some inherent amount of unemployment that occurs when not enough jobs are available to go around, leaving some unemployed because of a lack of jobs (Yates, 2003, p.63). Because of this, some level of unemployment is expected in a normally functioning capitalist economy and is not considered to reach crisis levels until unemployment reaches twenty to thirty percent of the total population (Yates 2003, p.67). Unemployment is a trend that is fundamental to capitalist societies but does not occur in all societies. In the traditional neoclassical theory of economics, it is stated that all individuals in a society have complete freedom to make their own economic choices, and as such the ultimate cause of unemployment is the worker’s choice not to gain employment (Yates, 2003, p.63).  This means that those who are unemployed, are unemployed because they prefer leisure to employment, and not because of any outside factors.  This theory stresses that each individual element of society, in this case, the worker, exercises complete freedom from outside influence.  The theory was developed under the strong influence of value theory and distribution theory.  This neoclassical vision involves select economic “agents”, which represent companies, households, and firms, that are all attempting to optimize themselves.   ...Download file to see next pagesRead More
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