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Current macroeconomic concerns include whether the economy is in a sustained recovery, rapidly reducing unemployment, speeding a return to normal output and employment growth, and addressing government’s long-term debt problem.
Harvard Professor Robert Barro holds that unemployment is not the cause of the prevailing high levels of unemployment insurance benefits, instead, unemployment is the result of long-term unemployment. This argument is highly questionable owing to the fact that lest that 40% of the unemployment in all states barely qualify to receive any given socioeconomic benefits. His argument is fundamentally flawed owing to the fact that the current level of unemployment far surpasses the level of employment that prevailed between 1981 and 9182.
The stand taken by Paul Krugman is quite interesting and reveals the inner workings of unemployment. He believes that employers, who are predominantly oligarchs, play a huge role in the high levels of long-term unemployment. He believe that employers are more willing to employ and individual who is already employed as opposed to individuals who are looking for employment. This, in his opinion, creates a situation that leads to certain individuals experiencing for a long time, ending up heavily relying on social benefits that are offered by this state through unemployment
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People from childhood are being slowly prepared for eventually becoming a part of the workforce. Upon graduation from high school many adults elect to go to college to learn new traits and skills that will prepare them for a career.
Social consequences of long term unemployment Employment whether self or formal, is very important in the general wellbeing of an individual. This affects both the social life as well as the country’s economic stability. An individual is able to access quality services and able to afford the best life and luxuries that accompany high purchasing power.
This can be better observed with reference to the statistical data represented below: Interest Rates Fig.1: US Interest Rates 2007-2012 (US Department of the Treasury, 2012) It can be observed from the above diagram representing the interest rates fluctuations in the United States that since 2007 the economy has been witnessing steep decline in its financial investment market.
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.
US Unemployment Problem
Over the years, unemployment problem has been an issue not only in the United States economy but also in the entire world. According to the united state bureau of labour statistics, para1, unemployment involves all those people without jobs but have actively looking for a job for the past four months without a success.
Name: Instructor: Course: Date: Wealth disparity and effects of long-term Unemployment on the United States Economy Summary of the news article 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.
Classical economics or neoclassical economics focus on rigidities in the labor market caused by the operating laws such as minimum wage act, taxes, and other regulations that restrict employers to hire more workers in the job. There are many who accept unemployed status voluntarily because of unsatisfactory employment available.
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
Long-term unemployment has been identified as one of the causes of poor mental health. This situation may be extreme, hence leading to economic and social effects on the unemployed person. Some women often develop mild mental health problems while others experience acute mental health issues when they are faced with challenges such as unemployment.
Despite the large amount of resources that most governments are using to educate and train young people, majority of them especially in the developing countries continue to face high long term unemployment. Unemployment is defined as the
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