Important Aspect Of Macro Economics.
Macroeconomics is one of the two important branches of economics. Microeconomics happens to be the other important branch. In Macro economics, national, regional or global level of economics is studied…
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The two papers selected for this essay are “Unemployment rises in every state” by “Conor Dougherty” which was published in Wall Street Journal in 2009, and “Who loses fro unemployment” by William Darity, Jr. and this paper was published in Journal of Economic issues in 1999. Both these articles talk about unemployment, and that is how these are related to study of macro economics. The purpose of this paper is to provide an insight over macro economic issues being discussed in these two articles. Analysis: Dougherty (2009) has discussed the existing situation of increased unemployment rates in the United States. As per the reports of Labor Department, recession of macroeconomic nature has hit all industries by now. Industries like housing and manufacturing have lost more jobs. West and Midwest of the United States has shown a steep decline in number of jobs being available in open market. In the northeastern states too, unemployment figures are growing steeply. As per the article, United States lost two million jobs from September 2008 to December 2008. The unemployment rate in 2008 December was 7.2% for the nation, but earlier on, the financial jobs were secure which are now losing ground like all other industries. Miami, Phoenix, Los Angeles and Las Vegas have experienced a decline in job opportunities available at an alarming rate. South Carolina and Indiana have seen a sharp rise in unemployment rate. Also, the states of Michigan and Rhode Island crossed 10% mark, which is the highest and the worst in the country. The paper in general is written in a way which is easily understandable for general readers. Dougherty (2009) has taken help from figures, facts and statistics to prove his point. He has clearly made his point that unemployment is on the rise in whole United States, and it is happening at an alarming rate. He is also given due importance to the policies current government of Mr. Barrack Obama is following. The paper is very much narrative in style. It has explained the existing situation and has pointed it out that it is a serious situation. Neither the causes nor the effects of this situation have been discussed in this paper. Looking at the population of America, it has grown steadily over past few decades. With a population growth rate of 0.963% (July 2011 estimate) a clear majority of American population is in the age where they need jobs. Source: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html The above mentioned graph shows that most of the U.S. population is in the age group of 15-64 thus a clear majority of American population is ready to work, but unemployment has become a serious problem for them. Rates of unemployment have increased steadily over past few years. This has its own impacts over American population. Source: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html The other paper under discussion here discusses the impacts of unemployment. Darity (1999) has opened his paper with a discussion about laborers who have highly irregular employment and he has discussed them from the point of view of Carl Marx as presented by him in 1967. Marx has discussed this population as surplus. The three categories of this unemployed surplus population include those who are able to work and who want to work and are actively seeking employment. The second category includes pauper children and orphans and then third category are those people who are not fit for
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Running Head: Macro Economics Macro Economics Writer’s Name Macro Economics Question 1 The determination of the level of GDP (Gross Domestic Product) in the short run is determined by the model developed by John Maynard Keynes. This model works on the basic premise that the level of production in the economy depends upon the level of aggregate demand.
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