Nobody downloaded yet

Wealth disparity and effects of long-term Unemployment on the United States Economy - Essay Example

Comments (0) Cite this document
In the article on New York times “The Jobless Trap” by Paul Krugman dated April 21, 2013, The US employment situation is explored and the wealth disparity consequence this has on the economy is equally discussed. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Wealth disparity and effects of long-term Unemployment on the United States Economy
Read TextPreview

Extract of sample
"Wealth disparity and effects of long-term Unemployment on the United States Economy"

Download file to see previous pages It is important to undertake a critical analysis of unemployment in respect of the article to establish the effects this has on the entire economy of US and any other nation.This article explores the varuios employment related economic issues. It is also importasant to note that the author gives a vivid description of the consequences of unemploymdent and the indirect challenges it will pose on the wealth disparity among citizens. 1.0 Introduction Unemployment is a situation where a person is able and willing to perform tasks or work but is unable to find a job. However, there is no clear definition of long-term unemployment. economists define a period of six to twelve months as a long-term unemployment period. This is when an individual is unwillingly unemployed. Several factors lead to long-term unemployment; some of these factors are facilitated by economic changes such as economic recession, an individual not willing to work or dynamic technological changes (Hollander,2011,45). Previously, the United States’ labor market had short periods of unemployment for most workers who were jobless; they would be easily absorbed into the labor market. Even though jobless workers especially the elderly had a long unemployment period, the level of long-term was less comparing to other countries. The rise in the long-term unemployment and unemployment rates has severe human, social, and economic costs. Wealth disparity, also known as wealth gap or inequality, refers to state of uneven distribution of financial assets among citizens of the United States of America. Wealth includes automobiles, value of homes, savings, investments and businesses. Those who have a great deal of financial assets have primarily acquired them by appreciation of fiscal portfolios. Hence, financial wealth involves mutual funds, stocks, as well as other investments. Thus, there is a greater wealth inequality than basic net worth disparities (Lubik, 2010,20). Statistics show that the top ten percent possess eighty percent of all financial wealth and the bottom ninety percent only hold twenty percent of all financial assets.Employment plays a vital role in determining the amount of economic wealth hence the observed disparity. 2.0 Discussion Unemployment is risky to the country’s economy and to other countries worldwide as well, with some costs of unemployment being levied to the society such as exchequer cost due to unemployment and social cost. While the short term unemployment may or may not have implications on an individual, long term unemployment may have a demoralizing effect to an individual. Long-term unemployment causes negative effects to individuals. Some of the most common effects include financial difficulties, health related diseases, psychological problems, boredom, idleness, losing close friends and relatives and eventually depression. Severe long-term unemployment results are mostly seen in the disadvantaged in the society. The unemployed are wasted resources, and they also waste resources meant for humanity. It is a life full of unhappiness and sorrow as unemployed individuals live in suffering and poverty; economically, human labor is devalued. The social results from unemployment lead to rise of rebellious groups, riots, family breaks, divorce and some cases of death (Hollander,2011,45). The impact of the recession shows in the United States and many countries where long-term unemployment majorly impacts the male. During the recession, construction and manufacturing industries were affected by unemployment. In the United State wealth, ownership has been concentrated in the small minority population due to their well grounded employment status. The minority ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Wealth disparity and effects of long-term Unemployment on the United Essay”, n.d.)
Wealth disparity and effects of long-term Unemployment on the United Essay. Retrieved from
(Wealth Disparity and Effects of Long-Term Unemployment on the United Essay)
Wealth Disparity and Effects of Long-Term Unemployment on the United Essay.
“Wealth Disparity and Effects of Long-Term Unemployment on the United Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Unemployment in the United States
...of the entire country as the raising amount of people on Medicaid also results in higher tax rates and a greater burden on the country. In addition to these specific concerns, one recognizes that there are a great amount of general qualitative fallouts that have occurred because of unemployment. Employment constitutes one of the hallmarks of a healthy and structured lifestyle. It contributes to a sense of community and wellbeing. Continued and long-term unemployment rates have a negative effect on these community structures, as well as the mental health of the citizenry. These reasons are perhaps the most central to the pressing need to improve...
2 Pages(500 words)Essay
Major social consequences of long-term unemployment
...reaches long term unemployment they typically deplete their entire savings. They fall behind on all their credit accounts. This has a devastating long term effect on the person because an individual can lose hundreds of points off their credit score in a few months of time. It may have taken a person years of hard work to build up a solid credit score, but because of long term unemployment the credit score of a person can become a disaster. Homeowners faced particularly tough dilemmas. A family can lose hundreds of thousands of dollars in equity due to long...
3 Pages(750 words)Essay
Planning for Long Term Wealth Creation
...? S2 BEO3347 Planning for Long Term Wealth Creation ASSIGNMENT ID Number: Email Address: Telephone Number: Question Albert earns $60,000 per annum and Nancy earns $42,000 per annum. Albert and Nancy (both 45 and do not intend to retire for at least 10 years) believe they should use the equity in their home to invest. They have $125,000 in funds that they can borrow. They tell you that they have a car loan of $16,500 at 15.5% interest, credit cards totalling $11,000 (average interest rate of 17%) and a personal loan of $4,500 at 16%. a) What should they do first before they consider borrowing to invest? Before borrowing to invest in the stock market, Albert and Nancy should first build an investment plan that clearly documents... year for...
4 Pages(1000 words)Essay
Unemployment in The United States
...of scenario was experienced in 2011, according to Yates (1994), who reveals that more than 200 million individuals across the globe found themselves out of employment because of dwindling economies. In spite of the fact that the US is one of the most developed countries in the world with a relatively stable economy, it has a considerable rate of unemployment among its citizens (Yates, 1994). This issue has not always gone well with the US citizens and politicians who use it as a tool to fight their opponents during political campaigns. The objective of this paper is to explore the problem of unemployment in the United States. Despite...
4 Pages(1000 words)Research Paper
The long-term effects of unemployment on a person
...Long Term Effects of Unemployment on a Person Unemployment is the situation where people are without paying occupations and seeking to get into one (Motoko 9). They are available for work but unable to secure it. Unemployment rate portrays a measure of its prevalence in a country and is a criterion to determine the country’s growth, quantified as a percentage. Employment takes care of basic life requirements for most individuals. However, employment goes beyond just providing the ability for meeting tangible needs. It also satisfies creative urges, promotes self esteem and presents the way to achievement and self realization. On the...
4 Pages(1000 words)Essay
The long-term effects of unemployment on a person
...Unemployment is a condition that affects a large number of persons at some point in their life. The contributing factors are wide and varied. While it inevitable in some cases, for others it is an unexpected change of events. Long-term unemployment affects each person differently. This essay will focus on three effects of long-term unemployment. For the majority of persons the long-term effects are in the form of financial setbacks, strained family relationships and psychological effect. One of the immediate effects of long-term unemployment is felt in the person’s financial capabilities. Spending is reduced to buying basic items because of the uncertainty of getting a new job. Apart from cutting back on buying certain items... the...
2 Pages(500 words)Essay
Unemployment in the United States
...Saif Halabi Oct Engl. 302 AB3 Unemployment in the United s The United s has been in turmoil in terms of job creation since the recession of 2008-2009 hit America and the rest of the world. This article “Corona Rose. “Want job creation?” Small Business, the Road to Recovery. Retrieved on November 26, 2012 from” discusses the current unemployment dilemma in the United States and how small businesses can contribute to spur job creation in America. The author of the article critically examines the governmental figures in...
3 Pages(750 words)Essay
US long-term unemployment
...US Long-term Unemployment Economic recession is caused by a number of factors, most of which can be influenced by the implementation of economic policy. However, there are some instances when government involvement in economic facets causes the tendency towards a recession. It is important that government maintains the balance in these conflicting economic facets. I believe that there being a shortfall in inflation, monetary policy does not have the ability of hitting a given rate of inflation or level of price. The inflation shortfall is combined with a decline in employment, then monetary policy can be perceived to be dysfunctional (The Economist). Current macroeconomic concerns...
1 Pages(250 words)Essay
Unemployment in the United States
...industry. For instance, when the government has increased the minimum wage, employers caution themselves from spending extra by letting go of other workers and remaining with a small number. The oil industry is the major driving force of the global economy. Thus, the recent drop in oil prices has had a major economic effect in America among other countries around the world. Among those effects is the increase in unemployment, as several workers are laid-off. In March this year, 31 states in America cut jobs owing to the weak economic growth. This unsatisfactory growth has been due to the ongoing oil saga marked by a reduction in oil prices. Moreover,...
5 Pages(1250 words)Essay
Unemployment in the United States
...Unemployment in the United s Unemployment in the United s has been rising and this is mainly due economic stagnation and the rapid growth in population. Unemployment is a global issue that affects even the developed nations. The rapid rise in population that outstrips the available resources has been blamed for the unemployment issue in the United States. The government is trying to curb the unemployment through expansion of the economy and creation of more jobs. The problem of unemployment seems to intensify mainly due to the rise in population...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Wealth disparity and effects of long-term Unemployment on the United States Economy for FREE!
Contact Us