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t 2010) article discussing the same report indicated similar positive indicators and speculated on the nature of the connection between the economy and the unemployment figures. It attributed the lowered rates to both the general flux of the economy, and the most recent stimulus package. It states that, “All the well-known private economic research firms estimate that it’s had a huge impact. IHS Global Insight, for instance, says the economy has about 1.7 million more jobs today than it would have had without the stimulus.”
While one would conceivably believe this to be indicative of a recovering economy a number of researchers argue that the percentage change is not as beneficial as observers might believe. Cook (2010) discusses that overall the unemployment rate remains awful, “men (10 percent), teenagers (26.4 percent), African-Americans (16.5 percent), and Hispanics (12.6 percent).” Other negative indicators are that the number of people who have been unemployed for 27 weeks or more has actually increased with this report, and that the amount of people who have stopped looking for work has increased to over 1 million, from the 500,000 figure of last year. It is also estimated that for the economy to keep pace with population growth, and the unemployment numbers to at least remain stable, the country would have to produce more than 140,000 new jobs per month (Leonhardt 2010). Other researchers state that the findings also indicate that the recession is worse than was originally assumed. The New York Times (Leonhardt 2010) stated that the reports indicate the economy had 1.4 million fewer jobs last year than was originally reported.
An Economist (2010) article points out that even when the economy begins to recover certain job sectors may never see pre-recession employment figures. It argues that, “The past decade’s jobs in retail and in entertainment were largely supported by household borrowing. Not only is a new wave of borrowing unlikely to
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Thus, any economy should be given a lot of attention on its improvement and towards making life easier for citizens of a country. Dynamism of the national, regional and global economy often affect people’s livelihood through different changes that affect the ability of an economy to employ people (Erdem & Glyn 73).
These concepts, methods, processes and trends of the profession are described in sections 3.1 to 3.4 and the results of the literature review are concluded in section 3.5 3.1 DEFINITION OF THE CREDIT CRUNCH A credit crunch is defined by Bernanke and Lown (1991) as a decline in the supply of credit that is unusually large for a given phase of the business cycle.
This also led to the closing down of many major financial institutions that went completely bust. Liquidity was a major problem and still is in America. The bailout package did very little and the recent down gradation of the credit rating of American economy suggests the same.
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.
In this regard the paper presents an overview of the unemployment situation in the country and discusses the causes and effects of unemployment on the economic development of the country. Furthermore, the paper also describes some possible ways that can help the country in reducing the unemployment rate.
In regards to the British economy, they are certainly considered as being in this category. In order to come to a clearer and more knowledgeable understanding of the issue of the British economy and how supply and demand factors affect it, we must thoroughly address and investigate the key factors in regards to this subject.
Together, all sectors of the American economy produce almost $4000 million dollars worth of goods and services annually, and each year they turn out almost $190000 million more. Most Americans consider themselves members of the middle economic class, and relatively few are extremely wealthy or extremely poor.