Discussion Board reply - Assignment Example

Discussion Reply Unemployment is Beneficial to the Economy The American economy stands to gain from unemployment, as people seek for gainful employment they receive compensation which also aids the economy. When individuals receive the unemployment compensation they rarely save it since they have lost a steady income instead they pump it back to the economy through purchase of goods and services, payment of rent or mortgage and payment of other general costs and expenses (Auerbach & Feenberg, 2000).

Without the benefits, the unemployed household spends 22% less of total food consumption. Though some criticism has emerged due to its associated costs especially to the insurance industry, where it cost the American populous roughly $520 billion over a period of five years. In biblical reference, we are required to help the poor, orphans and widows thus the government helps the church through donations, and the church helps the poor. While it is evident that costs may be towards unemployment compensation, it is hard to ignore the benefits, the economy stands to gain.

A company can produce and sell any product as long as the product market existsAssociation of demand and supply determines if a company can produce goods for a market that are willing and can afford to buy the product. If demand or market of good exists then a company can produce and sell the product (Asmundson, 2013). The company will be willing to produce and sell the product if the profit margins are right for the business. If the costs exceed the profit margin then, the product is not viable for the business since the product will not be marketable.

If the company can produce and sell a product to which a market exists and the possibility of profit making then the firm should produce and sell the product.ReferenceAsmundson I., (2013), International Monetary Fund: Supply and Demand, Why markets tick. Retrieved from http://www.imf.org/external/pubs/ft/fandd/basics/suppdem.htm.Feenberg, D. & Auerbach, A., (2000), The significance of federal taxes as automatic stabilizers. Journal of Economic Perspectives.