Unemployment In USA - Essay Example

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Unemployment is an ever present problem all over the world, and the USA has not been left behind. Most of the discussions regarding unearthing solutions to this problem resolves on the pivotal role of speedy economic growth, as well as cuts in real wages…
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Unemployment in USA Unemployment is an ever present problem all over the world, and the USA has not been left behind. Most of the discussions regarding unearthing solutions to this problem resolves on the pivotal role of speedy economic growth, as well as cuts in real wages. Speedy economic growth is a way of generating additional jobs (Ryan 11). Conversely, cuts in real wages happen to be a reaction to the perception that owing to their demands for advanced wages, some groupings of workers have charged themselves out of a job. As a result, how much growth, together with how large a fall within real wages is necessary for reducing the extents of the unemployment problem remain subjects for debate (Richard & Lowell 20). A revamp of the National Labor Relations Act found in the United States is one way that has the capability of preventing unions from releasing the monopolistic wages while fringing benefit premiums, which heighten business costs thereby leading to unemployment (Richard & Lowell 24). Unfortunately, such proposals are in most cases extremely difficult when it comes to their implementation. Another simulation revolves around suggestive of convenient wage cuts as long as the unemployment target does not get set too low, advice that is not particularly encouraging. Most researchers are of the opinion that the levels of economic growth necessary for making a significant distinction to the unemployment problem are improbable to be sustained by many economies (Ryan 28). Most countries with the USA being one of them are capable of undertaking other approaches in aiding the reduction of their unemployment levels (Richard & Lowell 31). First, the approaches of information accumulation and dissemination concerning existing jobs and workers might be improved. According to Ryan (34) the Swedish model is the most appropriate approach since job centers have a national, integrated database of job openings, employers, as well as available employees. This database is capable of reducing the time spent by a normal worker while going through the unemployment roll thereby reducing the unemployment rate. Secondly, unemployment agencies have to tighten their job search along with job acceptance requirements. Thirdly, there could be upgrading of education and training offered to young people, with enormous concentration on vocational skills. Lastly, countries must make sure that their welfare schemes do not impart disincentives to work (Ryan 47). Unemployment programs targeting various groupings of jobless persons also have a role to play within the issue of unemployment. There unemployment programs intended for reducing cyclical, structural, frictional and seasonal unemployment within the United States (Richard & Lowell 45). The objectives of some of these programs are changing people to matching existing jobs whereas others are responsible for creating jobs and matching existing worker skills. Therefore, changing focus after a while and the short duration of most programs lead to the difficulty in evaluation. Most programs seem to be doing little more than rearranging the line of unemployed individuals though clearly they have the potential of fulfilling an equity function within the labor market. According to Richard and Lowell (49) labor market programs are capable of being a cost-effective way of managing the group of unemployment. Most of the politicians advocate for green jobs as a way of creating new jobs within environmentally acceptable industries like wind and solar power. Unfortunately, the latest elixir builds on the unstable platform of job creation by means of taxation, spending, as well as regulation (Ryan 55). Therefore, the only way that the government is capable of fostering sustained job increase is through removal of tax and regulatory impediment to job creation within the private sector. Although there certainly are a number of jobs generated by latest government spending compliance along with government regulation, the main focus must be the quantity of net latest jobs. Unfortunately, most frequently the result of massive government systems is net job loss (Richard & Lowell 54). Apparently, this is due to the costs of regulation avert businesses from hiring other employees they would have employed while government expending “crowds out” within economic terms business spending by means of hiking taxes or massive borrowing, which increases interest rates for the private sector (Ryan 59). Considering that most of the jobs created through these schemes meet politicians’ wants instead of market requirements, they often are unsustainable with lack of continuing concoction of federal money. Luckily, there is a lot the government is capable of doing in removing its own obstacles to job creation within the energy industry, as well as the economy at large. It is capable of cutting taxes and encouraging investment or at the mighty least not raising them (Richard & Lowell 61). On the other hand, lawmakers need to contemplate deregulatory measures such as the “No Cost Stimulus” bill that got introduced by Louisiana Republican’s Sen. David Vitter. This legislation is capable of creating an estimated 3 million additional jobs through opening closed sections of the Outer Continental Shelf for oil together with gas exploration, as well as streamlining the certifying of nuclear power plants. Apparently, this is also capable of creating royalty revenues for the authority that the bill refers to a new trust fund capable of promoting renewable energy (Ryan 70). Work Cited: Richard K. Vedder, Lowell E. Gallaway. Out of Work: Unemployment and Government in Twentieth-Century America. Ohio : New York University Press, 1997. Ryan, Mary Meghan. Handbook of U.S. Labor Statistics 2011: Employment, Earnings, Prices, Productivity, and Other Labor Data. New York: Bernan Press, 2011. Read More
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