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Unemployment Issues in the U.S.
There many factors and issues that relate to the unemployment situation in the United States. This paper delves into the unemployment data over the past ten years, and examines the economic conditions that create large numbers of unemployed persons. The paper also looks at the various approaches to unemployment -- the Keynesian viewpoint and the classical viewpoint vis-a-vis unemployment -- and provides scholarly narratives on the subject.
Unemployment between the years 2003 and 2013
Department of Labor statistics are quite different from the data used by the Gallup organization -- due to the fact that the DOL apparently, in addition to phone interviews, uses data supplied by employers (which makes the percentages of unemployed persons lower) and the federal data is seasonally adjusted. According to the DOL, in December 2002, the unemployment was at 5.6%; in December 2003, the unemployment rate was 5.6% (Bureau of…
Blinder, Alan S. (2008). Keynesian Economics. Library of Economics and Liberty. Retrieved February 8, 2013, from http://www.econlib.org .
Jain, TR. (2003). Macroeconomics and Elementary Statistics. New Delhi, India: FK
Marlar, Jenny. (2012). U.S. Unadjusted Unemployment Shoots Back Up. Gallup. Retrieved February 8, 2013, from http://www.gallup.com .
Unemployment in the Labour Market Is Primarily Voluntary
talk about Keynesian theory, classical theory, new classical theory, new Keynesian theory,
neo-classical theory also mention the game theory, Marxian theory, natural rate of unemployment, and the rational expectations role. Please use graphs as well to explain
Unemployment is a particularly high topic in the news at the moment with the recession seemingly refusing to come to a stop and the number of people losing their jobs growing rather than declining. As with all issues, there is a remarkable amount of debate regarding the issues that stimulate this crescendo of unemployment. Classical economics and neoclassical economics both argue that classic market mechanisms such as that of Adam mith are reliable means of economic health and government intervention / interference stimulates unemployment. They oppose theories that argue for interventions imposed on the labor market from the outside, such as unionization, minimum wage laws,…
The Classical Theory. Cliff's Notes
< http://www.cliffsnotes.com/study_guide/The-Classical-Theory.topicArticleId-9789,articleId-9741.html >
Keynesian Economics The Concise Encyclopedia of Economics.
Game theory. Economics Online.
Unemployment in the ecent ecession: A Comparison of Cyclical and Marxian Theories
The recent (or ongoing) recession has affected the entire globe, though some countries have been harder hit than others. In the United States, unemployment hit higher levels than it has seen in quite some time -- more than doubling at the depth of the recession in 2010 from its pre-recession low (in the current decade) in 2006 and 2007 (USBLS, 2012). Understanding unemployment during a time when money is tight and business is slow might seem easy ("it's the economy, stupid!"), but there are actually many competing or alternate theories of unemployment. At times these theories come into direct conflict with each other, with different explanations offered for the same set of circumstances or trends, yet this does not necessarily mean that different theories or types of unemployment are mutually exclusive -- some are just applicable to specific…
Blaug, M. (2007). Economic Theory in Retrospect. New York: Cambridge University Press.
Schiller, B. (2006). Essential of Economics. New York: McGraw Hill.
USBLS. (2012). Labor Force Statistics from the Current Population Survey. Accessed 6 May 2012. http://data.bls.gov /pdq/SurveyOutputServlet' target='_blank' REL='NOFOLLOW'>
Purpose of unemployment insurance
Unemployment insurance is schemes under which people that have the capacity to be employed and are out of employment because of reasons that they can control or simply not their fault. It is meant for people that are available for work and they continue to seek paying jobs actively.
In order for one to get the unemployment compensation they should meet unemployment eligibility requirements for what they were earning or the time they worked at an established over one year.
On the other hand there are circumstances that might disqualify a person from getting the unemployment benefits, these include when one quits without a good cause, when they are fired due to misconduct, if they have resigned due to some illnesses, if they are involved in some labor dispute and so on (Oregon State Bar, 2013).
Unemployment insurance ensures that people falling in the…
Fletcher, A, M. & Hedgpeth, D, (2010). Are Unemployment Benefits no Longer Temporary. New York Times. Retrieved March 24, 2013 from http://www.washingtonpost.com/wp-dyn/content/article/2010/03/08/AR2010030804927.html?sid=ST2010030900022
Oregon State Bar. (2013). Unemployment Insurance Compensation. Retrieved march 14, 2013 from http://www.oregonstatebar.org/public/legalinfo/1099_UnemploymentComp.htm
According to the Office of National Statistics, the unemployment rate in the UK currently sits at 8%, the highest figure since 1994. The unemployment rate has been in a range between 7.5% and 8.0% since early 2010. The current trends show that youth unemployment is at its highest level since 1992 and that there is no end in sight for the unemployment problem in the UK (Office for National Statistics, 2011). These figures do not include those who are considered inactive -- not actively seeking work. Their numbers have increased as well, to 23.3% of the working age population.
Office for National Statistics
This paper will analyze the current unemployment problem. It is understood that the current problem is related to the recent recession, as the unemployment rate spiked during and after the recession phase. Some of the causes will analyzed, and the paper will then conclude with…
About.com. (2011). What are the three types of unemployment? About.com. Retrieved March 22, 2011 from http://economics.about.com/od/typesofunemployment/p/three_types_of_unemployment.htm
BBC. (2009). UK in recession as economy slides. British Broadcasting Corporation. Retrieved March 22, 2011 from http://news.bbc.co.uk/2/hi/business/7846266.stm
Bloomberg. (2011). UK government bonds. Bloomberg. Retrieved March 25, 2011 from http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/
Buckle, E. & Fraher, J. (2011). Osborne cuts 2011 UK economic growth outlook to 1.7% in budget. Bloomberg. Retrieved March 25, 2011 from http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/23/bloomberg1376-LIICUO07SXKX01-7C1I79CD9KLQQ1NK5H5G41BO2J.DTL
The strong economy of the late 1990s has helped improve the weaknesses in the labor market (ernstein and Houston, 2000). As unemployment rates dropped, crime rates responded as predicted by economic theory. One recent study revealed that the decline in unemployment resulted in a 30% decrease in crime rates from 1992 to 1997. In addition, a review of unemployment, wages, and crime rates by region shows unemployment and crimes rates falling together.
According to ernstein and Houston (2000): "As long as crime persists, strong crime prevention measures will be necessary. That is why labor markets, especially low-wage labor markets, can make a difference. To lift the economic prospects of all low-wage workers is not only a worthy economic and social goal; it is one that will pay off in the long run by offering potential criminals a legitimate alternative to crime."
As a result of the U.S. chronic unemployment issue,…
Allegretto, Sylvia. Stettner, Andy. (March 4, 2004). Educated, experienced, and out of work. Economic Policy Institute Issue Brief #198.
Bernstein, Jared. Houston, Ellen. (July, 2000). What we can learn from the low-wage labor market. Economic Policy Institute Journal.
Cotis, Jean. (October, 2005). Economic Survey of the United States. Organisation for Economic Cooperation and Development.
Mathers, S. (1998). The health consequences of unemployment:the evidence. American Medical Journal168: 178-82.
62. Over the last 12 months, wages rose 3.7%, meaning paychecks are probably trailing inflation, said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group." It can be assumed that this will lead to decreased spending by consumers.
The fact that wage rate increase is not staying up with the level of inflation along with the slow down in new jobs may have an additional effect on the lack of consumer spending and sluggish markets when it is coupled with the increasing price of gasoline. "Oil price, which hit a record high of more than $75 a barrel in late April, are now hovering above $71 a barrel. Gasoline prices have topped $3 a gallon in some areas" (Aversa).
The rate of unemployment also has a substantial relationship with the gross domestic product. Because people are anticipated to spend less money on goods in the near future, businesses…
Associated Press. U.S. Economy Loses Steam. CBS NEWS.com. June 2, 2006. http://www.cbsnews.com/stories/2006/05/05/business/main1591439.shtml
Aversa, Jeannine. Job Growth Slows; Unemployment Rate Drops. Forbes.com. June 2, http://www.forbes.com/feeds/ap/2006/06/02/ap2790533.html
With the clear decline of crime-related activities in New York City, it can be easily inferred that unemployment rate started to decline also. This is based in the regression analysis from a different study that shows that as the trend in property crime rates goes down (from 1979 to 1997), the unemployment rate goes down with it.
Trends in Adjusted Property Crimes
Standardized Wages and Unemployment ate
Source: Gould, Weinberg, and Mustard, 2002
With high unemployment rate, it would mean that a lot of people are stressed. They will be stressed to find for possible means to earn a living that will help provide foods in the table and pay for the basic needs of the family. If there will be no employment opportunities, then a unemployed person will resort to using other means such as robbery or stealing, hold-ups and the likes. More so, some unemployed people will…
Bureau of Labor Statistics. http://www.bls.gov /lau/lacilg05.htm
Durose, Matthew and Langan, Patrick. 21 October 2004. "The Remarkable Drop in Crime in New York City." Bureau of Justice Statistics. U.S. Department of Justice.
Morgan Quitno Press. "12th Annual America's Safest and Most Dangerous Cities. www.morganquitno.com
The New York Beacon. 22 December 2004. "New York City crime rate hits historic low." Smith Haj Group.
It showed that financial hardship which is as a result of plant closing was the main factor in negative effect on family life, Broman, Hamilton, & Hoffman, (1990). Individuals who experienced loss of jobs were more likely to face financial hardship. It argued that financial hardship was the strongest intervening variable within the relationship between unemployment and family stress and conflict.
As financial hardship level rise, so does tension and conflict level rise between family members. In order for human services to alleviate the negative effects of unemployment they may be required to concentrate on maintenance of the income all through the period of unemployment. This problem of unemployment which results to stress and conflict in the family can also be minimized through ignoring unemployment compensation and concentrating on public works.
However, public works are not enough, since a new super highway within Oklahoma cannot provide work to the unemployed…
Broman, C.L., Hamilton, V.L., & Hoffman, W.S. (1990). Unemployment and its effects on families: Evidence from a plant closing study. American Journal of Community Psychology, 18, 643-659. Retrieved November 24, 2011 from http://quod.lib.umich.edu/m/mfr/4919087.0002.207?rgn=main;view=fulltext
Elder, G.H., Jr., & Caspi, A. (1988). Recent research on the psychological effects of unemployment. Journal of Social Issues, 44(4), 25-45.
Grayson, P.J. (1985). The closure of a factory and its impact on health. International Journal of Health Services, 15, 69-93.
Hakim, C. (1982). The social consequences of high unemployment. Journal of Social Policy, 2, 433-467.
Sometimes, unemployment precipitates a change in career for practical purposes or even the complete abandonment career goals when the need to earn a paycheck outweighs the need to develop along-term profession. Whereas older workers have already established a career to which they could return, when young people change careers early in life, that choice tends to dictate the course of their professional lives much more profoundly.
There are also negative consequences associated with unemployment among young people that pertain to personal health, happiness, and longevity. High rates of unemployment among young people is responsible for their continued dependence on parents and family long after they would otherwise have begun establishing independent lives of their own. In addition to the disruption of life for parents, this contributes to low self-esteem and lower levels of confidence among young workers even after they do eventually find employment. Young people who experience unemployment are…
Unemployment is a troubling problem that affects every area of the economic sector. In times of economic turmoil, unemployment rates typically increase for workers from all industries, influenced by a number of economic indicators, including consumer confidence, inflation, government spending, and economic growth.
As economic conditions decline, businesses of all types are affected, and as a result, they must cut costs, often in the form of job cuts. Unemployment results in a number of economic and emotional consequences for those affected. The following discussion will distinguish between two types of unemployment and its various causes as well as the influence of the events of September 11 and afterward that have resulted in higher rates of unemployment across the United States.
Causes of Unemployment
In the fourth quarter of 2002, unemployment rates soared to 6%, the highest jobless rate since 1995 (Cooper 25). Despite promising indicators that an improvement will be…
Cooper, J., & Madigan, K. "A 'jobless recovery?' Not this time." Business Week 20 May 2002: 29-30.
Cooper, J., & Madigan, K. "Why cutting unemployment will be one tough job." Business
Week 23 Dec 2002: 25-26.
Mandel, M., Thornton, E., Anderson Forest, S., Park, A., Elgin, B., & Haddad, C.
Unemployment is considered to be a lagging indicator, but even so it would seem that the unemployment rate should be dropping faster than it is, now that economic recovery is underway. The current unemployment rate in the United States is 7.3%, up from 7.2% the month previous but otherwise at the lowest level since late 2008. This level is much higher than the pre-recession norm of 5% or lower
Whether unemployment is lagging too much or not is a question that cannot be answered without a benchmark. We know that the stock market is a proxy for economic activity, but as a leading indicator it is quite removed from the unemployment rate. Furthermore, many U.S. companies do a lot of business internationally. The success of Starbucks in China will move the stock but has nothing to do with U.S. unemployment. So GDP tends to be one of the best benchmarks…
Linda Levine, "Economic Growth and the Unemployment Rate," Congressional Research Service, January 7, 2013, accessed December 3, 2013, ?
BEA, "National Income and Product Accounts," Bureau of Economic Analysis, November 7, 2013, accessed, ? http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm "newTurabian" ?
When food and energy -- two especially volatile and important price categories -- are removed from the picture however, prices actually rose two tenths of one percent in March. This is another sign that things are far more complicated than they seem.
ccording to the most recent news release from the Bureau of Labor Statistics, 299,388 worker lost their jobs in 2,933 mass layoff events (where fifty or more employees were let go from a single employer). This is one hundred and sixty four more mass layoff events than occurred in February, and the number of individual claims that has come as the result of these layoffs has increased by 3,911 -- this is not the number of claims, but the additional number of claims made in March as compared to February. This is also over one thousand more layoff events than occurred in the same month last year, corresponding…
Adding to all of this complex (and admittedly oversimplified) interaction is the factor of inflation. One common measure of inflation is the Consumer Price Index, which actually dropped by one tenth of one percent in March when compared to February. Prices dropped slightly in February also, and through most of the last quarter of 2008, but rose significantly in December and January. When food and energy -- two especially volatile and important price categories -- are removed from the picture however, prices actually rose two tenths of one percent in March. This is another sign that things are far more complicated than they seem.
According to the most recent news release from the Bureau of Labor Statistics, 299,388 worker lost their jobs in 2,933 mass layoff events (where fifty or more employees were let go from a single employer). This is one hundred and sixty four more mass layoff events than occurred in February, and the number of individual claims that has come as the result of these layoffs has increased by 3,911 -- this is not the number of claims, but the additional number of claims made in March as compared to February. This is also over one thousand more layoff events than occurred in the same month last year, corresponding to 137,891 more associated unemployment claims. The total unemployment rate of eight-and-a-half percent compares to a five percent rate for March of last year.
Not everyone who isn't working is unemployed; the working definition of unemployment is someone who is of age and skill to be employed, and who wishes and needs to be employed (i.e. does not have a spouse/parent/child/other supporting them), but who cannot find a job. Inflation is basically the rise in the cost of goods. Generally, some inflation is a good thing -- people make more money, which means they are paid more to produce things, which means the prices of these things go up, which means people need to make more....it is a normal part of the cycle. When things get out of whack, however, inflation can rise too quickly. The government could try -- and is, in fact -- to use macroeconomic policy to address these issues. Keeping the cost of energy lower could increase business, but a lot more change is needed to turn things around and create more jobs, and this might have to take place on a micro level.
Unemployment rate in the United States has fluctuated between nine and ten percent for well over two years now ("Labor Force Statistics"). That rate is more than double what it was a mere ten years ago, putting millions more Americans on the unemployment compensation rolls. More alarming than the numbers is the general feeling of pessimism that has enveloped the country as the population wonders when the economy might turn around. To most of the unemployed there appears to be no end in sight. Many of these unemployed are not even receiving any unemployment compensation from the government. At the end of March 2011, only 5.8 million of the estimated 13.2 million unemployed were collecting unemployment insurance (Hagenbaugh).
Of course these statistics were key components of the 2008 election won by Barack Obama. All candidates realized the importance of the economy in the election and each drew up a plan…
"Labor Force Statistics from the Current Population Survey." Bureau of Labor Statistics. U.S.
Department of Labor, 10 Nov. 2011. Web.
Hagenbaugh, Barbara. "Many of the Jobless Get No Unemployment Benefits." USA Today.
9 April 2009. Web. 10 Nov. 2011.
The problem to be solved was not a shortage of goods, but rather a shortage of spending.
Some has dismissed these principles largely on the basis that governments cannot run deficits indefinitely or because in doing so they are sacrificing growth in later years, resulting in a trade-off that negates today's benefits with tomorrow's debt repayments. I do not inherently agree with such arguments, because the time value of money suggests that future repayments are perhaps not as onerous as they may seem today. Moreover, if we are to have anything of a welfare state, then deficit spending to create private sector employment will have a positive affect on GDP.
Juxtaposed against Johnson's portrayal of the Soviet economic model, it would stand that Johnson takes his views about creating employment in Manchester and Salford more from the idea that public employment can be sustained indefinitely, for the benefit of all.…
This is what has led to so many foreigners working in the country already. The foreign workers are therefore a symptom of a greater problem. This problem is not macroeconomic failure -- the Saudi economy is robust and creates jobs -- but is simply does not recognize that macroeconomic principles alone will not address the issue of unemployment among Saudi nationals.
Consider the case of China as corollary. In both countries, there has been an increase in aggregate demand, and this has created more employment opportunities. An increase in aggregate demand leads to more jobs, and often better jobs than would have existed before. Often, the new jobs created are in low-wage sectors, either in manufacturing or the service industry. hile Saudi Arabia has tried to create new jobs at the high end of the market, there is a natural multiplier effect. Each new high-wage job creates multiple new low-wage…
Sullivan, K. (2012). In Saudi Arabia, unemployment and booming population drive growing poverty. Washington Post. Retrieved May 1, 2013 from http://articles.washingtonpost.com/2012-12-03/world/35623000_1_saudi-arabia-poverty-rate-royals
Knickmeyer, E. (2011). Idle kingdom. Foreign Policy. Retrieved May 1, 2013 from http://www.foreignpolicy.com/articles/2011/07/19/all_play_no_work?page=0,0
CIA World Factbook. (2013). Saudi Arabia. Central Intelligence Agency. Retrieved May 1, 2013 from https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html
Al-Mulhim, a. (2013). Saudi youth, the issue of unemployment and work ethic. Arab News Retrieved May 1, 2013 from http://www.arabnews.com/columns/saudi-youth-issue-unemployment-and-work-ethic
The President can dismiss much of the deficit criticism not by explaining the economics of the issue, since most voters do not have sufficient background in economics to understand such arguments, but rather by pointing to cuts in government spending elsewhere that will offset such increased spending.
The President needs to make the case to the American people that not only is the job recovery underway already, but that by restoring funding for teachers, firefighters and police, the recovery can be accelerated. He needs to use those specific vocations to ensure that the increased spending is understood as not being earmarked to bureaucratic waste. Further, such jobs create the conditions for future economic growth by maintaining America's leadership in education and infrastructure. Reiterating America's commitment to the principles of the free market is another element of the strategy the President should utilize, as business wants to hear it, and this…
BLS.gov. (2012). Labor force statistics from the current population survey. Bureau of Labor Statistics. Retrieved October 17, 2012 from http://data.bls.gov /timeseries/LNS14' target='_blank' REL='NOFOLLOW'>
Unemployment and Young orkers
One of the hardest-hit groups during the recent economic crisis in America was that of young college graduates. Lacking experience and possessing high rates of student debt, many struggled to find a foothold in the new economy and were forced to take jobs that did not require a college degree. More college graduates than every have been forced to live at home with their parents rather than 'striking it out' on their own. There has also been criticism of the American education system for fostering a skill mismatch between the types of skills taught to students in the classroom (particularly in the social sciences and the liberal arts) and the types of occupations actually needed by employers. Although student debt is not a problem in Europe to the same extent because of the highly-subsidized higher education system, there are similar concerns about the future of younger…
Adams, Dan. "Mass. focuses on skills needed for today's jobs." The Boston Globe. 25 Jun 2012.
[27 Feb 2013] http://www.bostonglobe.com/business/2012/06/25/Massachusetts-launches-broad-effort-study-workforce-aging-population-concern/K1z7lhcC7Xan2DEL53RDFI/story.html
Mirabella, Lorraine. "Life after college: high unemployment and depressed wages."
The Baltimore Sun. 12 May 2012. [27 Feb 2013]
Not only that this endeavor seems difficult to achieve, it is even a paradox.
Costs within the medical field cannot be estimated and clearly budgeted as people get sick outside pre-established budgets and statistics. New viruses emerge, the most recent example being the A1H1 virus, responsible for the swine flu. New means of dealing with such a situation are imposed and extraordinary costs could easily be incurred. Then, there is the growing need to research and find cures for the amounting types of cancers and other seemingly incurable diseases. All in all, despite the business, political and economic ideas and concepts formally and apparently logically explained, such as operational efficiency, fact remains that the real applicability of the new Medicare reform seems reduced.
Finally, there is the belief that a success in reorganizing the health care sector could lead to future support and triumph with the creation of more jobs…
October 31, 2009, Notable and Quotable -- Robert Reich on Obama Care and the Importance of Getting the nation Back to Work, the Wall Street Journal
Unemployment in Korea
Unemployment is a difficult subject, both for the individual within a given country or region, as well as for the prosperity of the country or region as a whole. The impact of the Korean unemployment problem has been especially difficult. However, with help from the orld Bank, the country has made some significant steps toward improvement.
hile it is true that Korean economic growth has been positive, especially in the last four decades (BG, 2004), there can be little doubt that its relative prosperity has set a dramatic background against which present-day Korean women in specific can count their economic woes.
Although according to a study conducted by Pacific Bridge in 2002 concluded that "the unemployment rate is under 3%, the figure is thought to be the natural rate of unemployment in Korea (Gross, Tran, 2002)," and that "the low unemployment rate suggests…
Gross, Ames. Tran, Caroline. (2002). Korea Returns as an Economic Force. Global Perspectives, Retrieved on August 13, 2004, from, http://www.pacificbridge.com/pdf/pub_korea_2002_econ.pdf
Moon, Chan-joo. (1998). Female Employees Hit Hardest by Company Restructuring. Korea Herald. 1 July. Retrieved on August 13, 2004, from, http://www.hartford-hwp.com/archives/55a/340.html
WBG. World Bank Group. (2004). Unemployment in Korea. Retrieved on August 13, 2004, from, http://www.worldbank.org/eapsocial/countries/korea/employ1.htm
unemployment and tax reform on our social structure including theoretical framework on functionalism, social conflict and symbolic framework and so on and so forth. The orks Cited eight sources in MLA format.
Unemployment has long been the cause of ruin of the American society as well as the global social structure. Persistence in unemployment and the related tax reforms have done much harm than have benefited the mankind on this face of earth. There have been several effects of unemployment and tax reforms on our social structure. The passages below of our research paper will look into not only these effects but will also include theoretical framework on functionalism and social conflict. Before we begin our discussion on the effects of unemployment on the social structure as well as on the effects of tax reforms, it is essential that the readers have a look at the precise yet comprehensive…
Social Structure." Encyclopedia Britannica. 2003. Encyclopedia Britannica Premium Service. Retrieved 10 Jul, 2003 at http://www.britannica.com/eb/article?eu=117544 .
Functionalism, Conflict Theory and Symbolic Interactionism. Retrieved 10 Jul, 2003 at http://www.*****/free_essays/4/sociology/functionalism-confict-theory-and-symbolic-interaction.shtml
Social and psychological effects of unemployment. Retrieved July 10, 2003 at http://www.e-resaneh.com/English/Social/Social%20and%20Psychological%20Effects%20of%20Unemployment.html
Saunders P. Direct and indirect effects of unemployment. Paper presented at the Australian National University in the F.H. Gruen Lecture Series on Welfare and the Labor Market: The New Frontier for Reform.
Unemployment and its Effect on Aggregate Supply and Demand:
The Obama administration is looking for ways to create jobs and stimulate growth after temporarily setting aside the debt limit. The need for job creation and stimulating economic growth originates from the high unemployment that the country experiences. This high unemployment rate is an actual reflection of the serious shortfall of aggregate demand in the United States. The U.S. unemployment rate is high essentially because the country's economy is generating below its capacity. Actually, while the U.S. economy has made some gains from time to time, its real GDP is estimated at 6% below its trend path or capacity.
There are various reasons attributed to the high unemployment rate including its consideration as a consequence or outcome of the collapse of demand rather than a distinct, instantaneous problem. Some of the reasons attributed to the unemployment problem in the United States…
Bartlett, B. (2011, August 16). It's the Aggregate Demand, Stupid. The New York Times. Retrieved March 1, 2013, from http://economix.blogs.nytimes.com/2011/08/16/its-the-aggregate-demand-stupid/
Blinder, A.S. (2008). Keynesian Economics. Retrieved March 1, 2013, from http://www.econlib.org /library/Enc/KeynesianEconomics.html' target='_blank' REL='NOFOLLOW'>
C much faster, could become a good timed cheaper investment in our infrastructure
These actions that encourage growth by decreasing unemployment could be a trigger for increased inflation, added to the already considerable amounts of government spending required by the bailouts and the stimulus package. This could actually translate into inflation levels to spiral out of control during next year if the economy will recover without controlling the spending. Viewed from this point-of-view, I would add to my first recommendations another one: the government should find a way of developing the actions above with as little as possible spending from its side… it might be by involving more the private sector through tax cuts or other motivators, that would still reduce its tax income, but will not increase that much the public spending.
24-7PressRelease, "Job Crisis In The U.S. As The Unemployment Rises To 10.1%. U.S. Leaders Warn of…
24-7PressRelease, "Job Crisis In The U.S. As The Unemployment Rises To 10.1%. U.S. Leaders Warn of More Gloom To Come With Record High Mass Layoffs September 2009," Bournemouth, England, November 2, 2009, retrieved online on November 7, 2009, from http://www.earthtimes.org/articles/show/job-crisis-in-the-us,1024036.shtml
Barr, Colin, "Stop the 'jobless recovery' madness!," CNN Money -- Fortune, New York, November 6, 2009, retrieved online on November 7, 2009 from http://money.cnn.com/2009/11/06/news/economy/jobless.recovery.fortune/index.htm
Isidore, Chris, "Economy finally back in gear," New York, October 29, 2009, retrieved online on November 6, 2009 from http://money.cnn.com/2009/10/29/news/economy/gdp/index.htm
Isidore, Chris, "Unemployment hits 10.2%," CNN Money, New York, November 6, 2009, retrieved online on November 7, 2009 from http://money.cnn.com/2009/11/06/news/economy/jobs_october/index.htm
An unemployment insurance essay write a well-developed essay (1-2 pages) describing how unemployment insurance programs operate in the United States, and some of the arguments for and against such programs.
How Unemployment Insurance Works
Unemployment insurance is a program that exists in the United States at the federal and state levels combined and it allows people to have a bit of a safety net when they lose their job, especially if the job loss is unexpected. Indeed, people that quit on their own terms do not get money after leaving a job. However, people that are fired or laid off generally get at leats a few months of insurance. In times of higher economic strain such as the Great Recession, the length of the allowable benefits is often extended. While most people would not argue that unemployment insurance is not needed, there are many that say the…
Unemployment: A Social Problem?
There are few problems that nations face more perplexing than that of unemployment. The condition of being unemployed is in some ways natural to a capitalist system, as businesses try to succeed while spending as few resources as possible, and a flexible workforce means most people are willing and happy to change jobs several times throughout their lives. The problems of unemployment then often only go noticed during periods of economic slowdown, when the number of out of work individuals rises far beyond the ability of private business to give these individuals jobs. Unemployment is a significant social problem caused by poor economic conditions, and as such, unemployment should not simply be characterized as an individual's inability to find meaningful work, but also a nation's inability to provide meaningful employment to the entirety of its workforce.
A highly developed economy requires a busy and proactive society…
Block, F. (1981). Policy analysis. Retrieved from http://www.cato.org/pubs/pas/pa004.html
Paul., & Moser (2009). Psychological effects of unemployment and underemployment. Retrieved from http://www.apa.org/about/gr/issues/socioeconomic/unemployment.aspx
The effects of unemployment: The effects on society. (2011). Retrieved from http://www.blacksacademy.net/content/3312.html
Riley, G. (2006, September). Tutor2u. Retrieved from http://tutor2u.net/economics/revision-notes/a2-macro-unemployment.html
Unemployment is not a monolithic phenomenon, and unemployed people are not a homogenous group. There are numerous causes and explanations for why any one person is unemployed. Structural unemployment, frictional unemployment, and seasonal unemployment are some of the most common types.
Marcelle is experiencing cyclical unemployment, which is tied to macroeconomic forces beyond her control. As Marcelle puts it, the firm closed because the market contracted. Sluggish economic growth or basic supply and demand factors can lead to companies needing to downsize their workforces, rendering otherwise loyal and able workers redundant. When the entire economy is sluggish, workers like Marcelle will have a difficult time finding a job in the same or even in another industry. The entire economy is tightened up, restricting access to jobs and creating a large pool of unemployed laborers. Of course, part of the problem in Marcelle's case and with others like her is corporate…
Moffatt, M. (n.d.). What are the three types of unemployment? About.com. Retrieved online: http://economics.about.com/od/typesofunemployment/p/three_types_of_unemployment.htm
State of California Employment Development Department (2014). Eligibility. Retrieved online: http://www.edd.ca.gov/unemployment/eligibility.htm
Unemployment Lynn MA Case Proposal
In the U.S. unemployment has hit record highs. Unemployment of large segments of the working population, with rates as high as 9.5% in the general working population and 18% among young people affect everyone as these individuals are stagnating and struggling to provide for themselves and their families. (Fried, Revell, Rosato, Yahalom, Poppick, & Swiatek 76) The current recession has created consumer restraint as more and more people face and fear unemployment as well as concerns about financial security in general. This has resulted in U.S. unemployment rates based on both lower demand for products and services and corporate hiring conservation. ("Economic Policy" 15-16) In the state of Massachusetts the unemployment rate remains slightly lower than the national average at 7.3% as of October 2011, yet the problem is still one in need of address, and the unemployment rate in the Boston area including Lynn…
Anderson, Eric. "Avoiding a fall in 2012." Times Union (Albany, NY) 27 Nov. 2011:B2.
"Economic Policy." Country Report. United States 5 (2011): 15-16.
Foroohar, Rana. "The Truth About The Poverty Crisis." Time 178.12 (2011): 24.
Fried, Carla, Revell, Janice, Rosato, Donna, Yahalom, Tali, Poppick, Susie, & Swiatek, Greg. "Jobs." Money, 40.11, (2011):76.
ecently Nancy Pelosi, Speaker of the United States House of epresentatives was quoted as saying that unemployment benefits are the leading stimulus to an economy in need of a quick fix. Her reasoning was that the unemployed immediately spent those benefits, therefore generating economic activity. Financial experts were quick to point out that such reasoning would mean that every citizen should just go on unemployment then, because such action would generate so much economic activity that the recent recession would be a distant memory in a very short period of time.
The question that this paper will seek to answer is whether extending unemployment benefits is a boon to the economy as stated by Nancy Pelosi, or does the extension of those benefits only add to the deficit, thereby ensuring that unemployment continues to be a huge problem and a drag on the economy.
The answer to that…
Downing, N. (2009) Riding out the storm, State Legislatures, Vol. 35, Issue 8, pp. 22 -- 24
Hansen, G. (1988). Layoffs, plant closings, and worker displacement in America. Journal of Social Issues, 44(4), 153-171
Obama, B.H. (2010) Remarks on legislation extending unemployment insurance benefits, Daily Compilation of Presidential Documents, 7/19/2010, pp. 1-2
Unemployment in America
Policy makers in the United States continuously seek the silver bullet(s) -- plural solutions because there is clear recognition that the issue is multifaceted -- that will achieve healthy levels of employment in the nation. Certainly there some paths to increasing employment in the country are less expensive than others, and proposed solutions range across a wide array of complexity and practicality. Invariably, today, education becomes a focal point for discussions and debates about how to increase employment in any nation. This is due largely to the potential promise that solutions based in education can act as levers that are sufficiently effective to induce change.
Solutions to unemployment must be developed through the perfection of the alignment between the education young American receive -- in both secondary (high school) and post-secondary (college / university) educational systems -- and the actual labor market.
In his article…
Friedman, T.L. (2010, November 23). U.S.G. And P.T.A. The Opinion Pages. The New York Times. Retrieved http://www.nytimes.com/2010/11/24/opinion/24friedman.html?_r=1& ;
Hacker, A. (2012, February 28). Is Algebra Necessary? The Sunday Review. The New York Times. Retrieved http://www.nytimes.com/2012/07/29/opinion/sunday/is-algebra-necessary.html
academic research on this topic, present a causal argument, identify key variables, operationalize these variables, identify between 2 and 3 research hypotheses, specify and justify the relevant research method to test the given hypotheses, address possible obstacles or problems this research might confront and how to overcome these, and a correctly formatted and relevant 10 source bibliography.
Youth unemployment in Armenia.
Youth unemployment rates in Armenia are at an all-time high, but what is leading to its increase? Unemployment rates in countries are defined by individuals who are currently jobless but are seeking active employment within the last four weeks (Bureau of Labor Statistics, 2009). It is particularly interesting to see such a high youth unemployment rate because statistics show that the general unemployment rate within adults in Armenia has decreased from 7.1% in 2007 to 5.9% in 2011 (Index Mundi, 2012) yet unemployment amongst the youth contuse unabated and…
West BankWorldBank. Org. (2010)WorldBank. Org. (2010)
(CIA (2012) World Factbook Snapshot of Global Youth Challenges https://www.cia.gov/news-information/featured-story-archive/2012-featured-story-archive/snapshot-of-global-youth-challenges.html )
The lack of construction jobs means that people do not have enough money to buy other items, and this hurts other businesses, who must also lay off their workers. Unemployment, although it is entrenched in the construction industry, has been spiraling out of control in all sectors, in Oregon. "Thousands more of the unemployed will exhaust their jobless benefits in coming months…This region, and others like it around the state and nation, face the prospect of growing hunger and homelessness this winter as our neighbors run out of benefits and lose their ability to provide food and shelter for their families" wrote ead in the Oregonian (ead 2010).
"Nationally in terms of monetary policy, the Federal eserve appears ready to act…quantitative easing" or steps to increase the money supply seem likely in the near future (ead 2010). When the Fed wishes to expand the money supply, it expands its purchase…
Hauser, Christine. (2010, July 21). Home construction decline. The New York Times. Retrieved November 13, 2010 at http://www.nytimes.com/2010/07/21/business/economy/21econ.html
Hooson, Paul. (2009, April 15). Oregon's unemployment rate soars to the worst in the nation.
Wiz Bang blue. Retrieved November 13, 2010 at http://wizbangblue.com/2009/04/15/oregons-unemployment-soars-to-the-worst-in-the-nation.php
Manning, Jeff. (2001, October 19). Intel announcement promises thousands of jobs in Hillsboro.
In order to understand this idea about inventories, it is necessary to understand that if the prices were to change and not be rigid, then it would be the prices and not the inventories that would guide companies in their decisions about production. For example, if prices were increasing, a company would know that their product is popular and that they should increase the production of it. And if the prices were decreasing, the company would know that their product is not selling well and that they should probably reduce its production. In an economy though where the prices are fixed, companies need another way of deciding whether they should increase or decrease production. This is where Keynes came to the conclusion that the key is to observe the changes in the inventories in order to drive production (hat Causes a Recession to be a Recession, n.d.).
Harrison, Edward. "Chart of the Day: Unemployment as a Recession Indicator." 2008. Credit
Writedowns. 7 April 2009
Reddy, Sudeep. "Jobless Rate Hits 8.5%." The Wall street Journal. April 2009
It is measured as the annual percentage increase in prices and the most often quoted figure is the annual change. The prices inflation usually measures are retail prices. Unemployment is one of many factors that impact inflation. Typically, unemployment and inflation are opposites except in instances of stagflation where these two variables rise together. If unemployment goes too high, inflation goes down, because high unemployment drives wages downwards. Price decreases follow because goods are being produced so economically that prices can fall and producers can still make a profit. This generally happens after major productivity enhancements as Nussbaum points out in his article.
Unfortunately, factors other than productivity such as higher energy and commodity costs are having a significant impact on inflation (Kirchhoff and Hansen, 2004). The median forecast is for the consumer price index to rise three percent in the twelve months ending in September 2004 and 3.1% in…
Inflation - explanation. Retrieved October 17, 2004 from Web site: http://www.bized.ac.uk/virtual/economy/policy/outcomes/inflation/inflex.htm
Kirchhoff, S. And Hansen, B. (2004, August 22). Economists dial back growth forecasts. USA Today.
Retrieved October 17, 2004 from Web site: http://www.usatoday.com/money/economy/2004-08-22-econ-survey_x.htm
Nussbaum, B. (2004, March 22). Where are the jobs? Business Week. Retrieved October 17, 2004 from Web site: http://www.businessweek.com/magazine/content/04_12/b3875601.htm
Marie Jahoda said that employment is a social institution with objective consequences that occur for all effected by it, overriding individual differences in feelings, thoughts, motivation and purpose (Fryer, 1995). Some of these, like earning a living, are intended or manifest. Others are unintended or latent.
According to Jahoda (Fryer, 1995): " employment makes the following categories of experience inevitable: it imposes a time structure on the waking day; it compels contacts and shared experiences with others outside the nuclear family; it demonstrates that there are goals and purposes which are beyond the scope of an individual but require a collectivity; it imposes status and social identity through the division of labour in modern employment; it enforces activity..."
For many people, the stress of being unemployed is devastating (Woolston, 2002). A recent study of more than 500,000 people in Great ritain revealed that people who said they were unemployed in…
Fryer, D. (September, 1995). Unemployment: A Mental Health issue. The Jobs Letter No.24.
Warr, PB. (1983). Self-esteem and unemployment among young workers. Le Travail Human. pg 46,355-366.
Wikipedia. (2004). Unemployment. Retrieved from the Internet at http://encyclopedia.laborlawtalk.com/Unemployment.
Woolston, Chris. (2002). Why Unemployment Is Bad for Your Health. The Principal Financial Group.
While it is true that jobs generated by 'clean up' needs can compensate for the loss of jobs, the Bureau's figures and the Social Security administration's figures still count workers held on payrolls. These workers are counted as employed, even if they cannot do their jobs, and may have relocated to another area of the country as a result of the storm -- and are likely to have their position terminated soon.
This is a tumultuous time for unemployment data, as Katrina's effects upon the economy are still uncertain, and have yet to 'play themselves out,' particularly given the massive relocation of human resources that occurred after the storm.
Bureau of Labor and Statistics (2005) retrieved on September 15, 2005 from http://www.bls.gov/news.release/ecopro.nr0.htm
Congressional Budget Office (2005) retrieved on September 16, 2005 from http://www.cbo.gov/showdoc.cfmindex=1824& sequence=0
The Social Security Administration (2005) retrieved on September 15, 2005 from http://www.ssa.gov/OACT/T/T05/V_economic.html#wp163836
Bureau of Labor and Statistics (2005) retrieved on September 15, 2005 from http://www.bls.gov /news.release/ecopro.nr0.htm
Congressional Budget Office (2005) retrieved on September 16, 2005 from http://www.cbo.gov/showdoc.cfmindex=1824& ; sequence=0
The Social Security Administration (2005) retrieved on September 15, 2005 from http://www.ssa.gov/OACT/TR/TR05/V_economic.html#wp163836
Unemployment (2005). Wikipedia; The free encyclopedia.
Causes of Unemployment and of Crime
The primary causes of the national unemployment rate and of a number of statistics that are involved with the rate of crime in the United States can be attributed to federal initiatives -- or the lack of such nationally-based measures -- that play a significant influence on these two highly valued concerns of American citizens. This statement certainly holds true for the national unemployment rate, which has consistently been above 8% for the past 29 months (and which is the longest streak of this sort since the Great Depression in the 1930s) (Associated Press, 2011). Due to what has widely been attributed to a global recession, the United States economy has been attempting to rise from a state of perceivable low status (in which its currency, the dollar, has been continually devalued, particularly in comparison to other international currency, such as the Euro). The…
Associated Press. (2011). "National Unemployment Rate Climbs to 9.2%." Retrieved from http://www.nj.com/news/index.ssf/2011/07/national_unemployment_rate_cli.htmlW
Haq, H. (2010). "U.S. Crime Rate is Down: Six Key Reasons." The Christian Science Monitor. Retrieved from http://www.csmonitor.com/USA/2010/0524/U.S.-crime-rate-is-down-six-key-reasons
The likely effects of increasing productivity on equilibrium GDP will be an increase in the sum total of the Gross Domestic Product. Improving technology and subsequently reducing output costs as a result is likely to decrease the risk of inflation in the short run, just as during the 1970s, increasing the input costs of oil resulted in increased inflation. However, if the economy continues to overheat, as producers produce more goods, employ more workers, and workers spend more of their salaries on more and more goods, inflation may be a concern in the long-term. This is especially true, given the currently high levels of unemployment, which means many people are unemployed and many workers have not gotten raises recently, thus they may spend a great deal if prices go down in the short run and their…
Reaching out to Address the Needs of NEET (Not in Employment, Education or Training) Adolescents
This paper will provide an overview of the phenomenon of youth unemployment and measures to address it. Coping with the needs of NEET (Not in Employment, Education, or Training) adolescents requires the use of a variety of interventions, spanning from more effective solutions to address truancy; social support for disaffected youths and their parents; and creating a more effective job preparation curriculum within the educational system.
Categories of NEET adolescents
Truancy and NEET
Programs to Address the NEET Problem
This paper will provide an overview of the problem of disaffected and unemployed youth and the various programs and methods that have arisen to address this issue. Recent economic instability has increased the number of young people not in employment, education or training (NEET), despite longstanding attempts to rectify this problem within the United…
Beggs, J. 2015. Types of unemployment. Available from:
[4 Jan 2016]
Boffey, D. 2015. Youth unemployment rate is worst for 20 years, compared with overall figure.
Work and Unemployment
Sociology of the Workplace
What does work mean? How do we define work? Does unpaid labor = work?
Now imagine you have just won the lottery (millions!) and financially do not need to collect a pay check. Describe your decision to either continue to work or not work and what work means to you.
In some ways, it could be said that 'work' is primarily defined by its compulsory nature. People work because they must earn a paycheck. Someone with a trust fund does not have to work. He or she might volunteer to work for a charity or elect to play golf for many hours a day, 'working' hard at these endeavors. But this is usually not defined as 'work' because these are not paid positions. The dividing line between work and a hobby is usually cast in monetary terms -- someone…
Jeffrey, Terrence (2011). Unemployment actually 10.2%. CS News. Retrieved:
Unemployment across the United States. (2009). Econompic Data. Retrieved:
The concept of the business cycle is that the rate of growth in an economy will shift over time, but in a more or less repeatable pattern. The structure of the pattern is, roughly, that economies will grow quickly, then a turning point will occur and the economy will turn into recession. After a trough, the business cycle will begin anew with a fresh period of growth.
For most Western economies, characterized by rising populations, intensive resource exploitation and continuous technological improvements, are on a long-run growth trend in their GDP. The business cycle should be identifiable outside of that trend. The degree of influence between business cycles and the trend is subject to debate. For example, in the United States the recession of 2008-2009 is believed by some to have permanently set the country's growth trajectory below where the previous trendline was -- so the business cycle will have…
Poverty & Unemployment
Poverty and unemployment are unquestionably two of the primary scourges that afflict the United States as well as other countries around the world. There are strong ways in which they correlate but they do run the gamut from recessions, offshoring of jobs, industry and employment shifts in the country and so forth. This brief report will explore the links that exist, what is being done about them, what is working and what is not. Even though a sliver of the population will always be unemployed and/or impoverished, it is no less painful to notice and watch when it happens.
The first point to be made about both poverty and unemployment is that there is always going to be at least some of both in the United States. However, the hope is that it is always temporary rather than ongoing and perpetual. Even so, there is a reason…
CBS. (2013). 80% of U.S. adults face near-poverty, unemployment, survey finds. Cbsnews.com. Retrieved 28 July 2016, from http://www.cbsnews.com/news/80-percent-of-us-adults-face-near-poverty-unemployment-survey-finds/
Clemens, J. & Wither, M. (2014). The Minimum Wage and the Great Recession: Evidence of Effects on the Employment and Income Trajectories of Low-Skilled Workers. http://dx.doi.org/10.3386/w20724
Investopedia. (2016). Full Employment Definition -- Investopedia. Investopedia. Retrieved 28 July 2016, from http://www.investopedia.com/terms/f/fullemployment.asp
Le Tellier, A. (2013). The human side of poverty: Why poor people make bad decisions. latimes.com. Retrieved 28 July 2016, from http://www.latimes.com/opinion/opinion-la/la-ol-why-poor-people-make-bad-decisions-20131125-story.html
Suitability for International Business Positions
In today's global society, the need for effective and suitable people in international business positions is greater than ever before, with instantaneous communication with countries around the world now the standard and with shipping and transportation between these countries now measured in days or even hours instead of weeks and months. The increasing confluence of different cultures and the increasing pace of business lead to the definition of certain qualities that individuals in international business positions must hold if they are to be truly suitable for these jobs. One of these qualities is the ability to communicate with very diverse groups of people and individuals that hold different values and beliefs in a direct, comfortable, and effective manner. People who have the ability to see things from different perspectives and to not only tolerate but to truly see the benefits of the beliefs and values…
The government estimates that quality improvements in light trucks have an estimated retail value of $361.76 (Robb and Schroeder, 2006). Improvements included many high demand items such as tire monitoring systems, better air bags, improved power trains, reduced emissions, and a number of other changed to standard option packages (Robb and Schroeder, 2006). The Bureau of labor Statistics reports that similar changes have been made to passenger cars, totaling $139.96 for the average 2007 model (Foster, 2006).
Drops in prices, combined with rising costs means that many other manufacturers like Ford will have to do some drastic restructuring. Ford's lay offs will add to national unemployment levels in the future. Ford has a solid plan for recovery, although it may not be fast enough for many analysts. Ford estimates that it will be in the black again by the end of 2009 (Gharib, 2006). The immediate future does not bode…
AmosWeb. (2006). State of the ECONOMY. Retrieved December 9, 2006 at http://www.amosweb.com/cgi-bin/awb_nav.pl?s=awb&c=stp .
Foster, T. (2006). News. Bureau of Labor Statistics. November 14, 2006. Retrieved December 9, 2006 at http://www.bls.gov /ppiNOVEMBER 14, 2006.
Gharib, S. (2006). NBR Complete Transcripts: 09-15-2006. Retrieved December 9, 2006 at http://www.pbs.org/nbr/site/onair/transcripts/060915f/.
Peters, J. (2006). Prices Fell Sharply In October. November 15, 2006. New York Times. Section C, Page 1, Column 6. Retrieved December 9, 2006 at http://select.nytimes.com/gst/abstract.html?res=F50B17F83C5A0C768DDDA80994DE404482&n=Top%2fReference%2fTimes%20Topics%2fSubjects%2fU%2fUtility%20Vehicles%20and%20Other%20Light%20Trucks
Of the three types of unemployment that exist, both structural and cyclical unemployment are likely to be major problems for Chevron. Cyclical unemployment and its effects on the auto manufacturing industry can perhaps be understood in the simplest and most direct manner; when a recession hits and GDP growth is slow (or even negative), unemployment rates rise -- there are less consumer dollars to support the continuing growth of products and services being offered. In the energy industry, recessions tend mean a slow down in business and consumer activities and thus a decrease in the demand for energy. This also leads to a decrease in the demand for energy technologies, though perhaps not as directly. Structural unemployment occurs when there is simply a decrease in demand for employees in a given industry. This has also occurred for Chevron to some degree, as technological advancements and the automation of many…
Nuke Waste Site
The author of this report has been ask to consider the test case of an Indian reservation in Northern Colorado that is considering taking on a nuclear disposal site from a corporation in the name of giving jobs to some of their men and women. This is certainly not irrelevant given that nearly two thirds of the people on the reservation are unemployed. Many of the tribal members are on board with the plan due to the jobs it would bring while many others are against it due to the potential short- and long-term effects the presence of the site would have. The author of this report has been asked to consider and discuss the social, safety, economical and environmental aspects of the possibility at hand and whether accepting the plan of the corporation is prudent. While the acceptance of this waste plant would be a good…
EPA. (2016). Hazardous Waste Trasportation -- Wastes -- U.S. EPA. Www3.epa.gov. Retrieved 6 February 2016, from http://www3.epa.gov/epawaste/hazard/transportation/
Tann, S., & Yanow, J. (2007). TRIADD: THE RISK FOR ALCOHOL ABUSE, DEPRESSION, AND DIABETES MULTIMORBIDITY IN THE AMERICAN INDIAN AND ALASKA NATIVE POPULATION. American Indian & Alaska Native Mental Health Research (Online), 14(1), 1. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3040496/
Personal Bankruptcy Filings Rates (All Counties)
Total Housing Permits
Unemployment rate: one would expect the correlation coefficient between the unemployment rate and the demand for bank loans to be negative. This would show an inverse relationship whereby an increase in the unemployment rate will lead to a decrease in the demand for bank loans. The economic explanation for this would be that as the unemployment rate rises, aggregate income decreases and fewer individuals are able to afford a bank loan.
bankruptcy rate: on the same logical path, bankruptcy rate and demand for bank loans will move in different directions: as the bankruptcy rate increases, the demand for bank loans decreases, because more people have declared bankruptcy and no longer have the necessary income to apply and obtain bank loans. Thus, demand for bank loans will fall.
c. growth rate in housing permits: one would expect the correlation coefficient…
U.S. ECONOMIC PEFOMANCES IN THE PAST 5 YEAS
U.S Economic Performance in the past 5 years
Major indicator of healthy state of an economy is the real Gross Domestic Product (GDP) growth rate. The GDP growth rate reveals the performances of an economy. United States is one of the richest country in the world and "has the largest gross domestic product (GDP) in the world." (Jabir, 2009 P. 3171). The country total GDP in 2010 was $14.5 trillion. (World Bank, 2012). Since 2006, the U.S. GDP has continued to fluctuate. Between 2006 and 2007, the U.S. enjoyed the growth in the GDP. In 2006, the country recorded 2.70% point of annual rate in the GDP, and in 2007, the country GDP slightly declined to 1.9%. While the U.S. demonstrated health growth rate between 2006 and 2007, the country recorded negative growth in the GDP between 2008 and 2009. In 2008,…
Bureau of Economic Analysis (2011). Contributions to Percent Change in Real Gross Domestic Product. USA.
Congress Budget Office (2012). The Budget and Economic Outlook: Fiscal Years 2012-2022. Congress of the United States.
Congressional Budget Office (2011).Budget and Economic Outlook: Fiscal Years 2010-2021. Government Printing Office. USA.
Economic Intelligent Unit (2011). Country Report, United States of America. The Economist Intelligence Unit Limited.
The Limitations of the National Income Accounts in How They Represent Our Standard of Living
The national income accounts have been the center piece in all matters concerning economics across the globe. These rules are a primary source of reference in determining the economic status of a given nation. It is the most preferred indicator of the rate of improvement and making comparison across nations. However, it is not the perfect indicator for the economic state due to its limitations that give a false image of the highlighted economy (McEachern, 448).
To start with, the national income accounts do not include other financial details such as the non-market productions in a given country. These include activities such as preparations in various productions. For instance, in preparing food in a restaurant, one does not include the energy used by the person preparing the food before taking it for sale.…
Gwartney, James D., Stroup, Richard L., Sobel, Russell S., & Macpherson, David A. Economics: Private and Public Choice. New York: Cengage Learning, 2008
McEachern, William A. Economics: A Contemporary Introduction. New York: Cengage Learning, 2011.
Tucker, Irvin B. Macroeconomics for Today. New York: Cengage Learning, 2010.
Louis Uchitelle the Disposable American team Jahoda, Lazersfeld Ziesel Marienthal show extensive effects experience unemployment depriving individuals incomes, inevitable material hardships demands, practical coping strategies.
The sociological experience of unemployment:
Unemployment as a psychological state in Great Britain and America
In America, one's ability to be productive and to do work often becomes synonymous with one's identity: the value one commands in the labor market becomes analogous to the value one has as a human being. The emphasis in America upon productive employment as a definer of self-worth can be seen in the contrast between the British unemployment experience as detailed by Jahoda, Lazarsfeld and Ziesel (2002) and Uchitelle (2006). In the British community of Marienthal with high levels of unemployment, although the unemployed husband's wives are upset at the privation their households must undergo, many of the men seem unperturbed. They use up their spare time becoming involved with…
Jahoda, M. Lazarsfeld, P. & Ziesel, H. Marienthal: The sociography of an unemployed community. Transaction Publishers, 2002.
Uchitelle, L. The disposable American. New York: Knopf, 2006.
economic and financial crisis (2008-2009), the Federal Reserve took exceptional measures in order to combat the effects of the crisis on the American economy. These measures translated into an expansionary policy that included pumping money in the economy and purchasing assets that were in trouble. Through its expansionary work, the government was able to balance some of the effects of the crisis.
The question that seems to be on everybody's mind (and lips) today is where does it all end? One thing everyone can agree on is that this type of expansionary policy cannot last forever. The United States economy functions as a free market economy where the laws of supply and demand govern the realities of the market. A continuous and permanent intervention of the Federal Reserve is neither possible, nor healthy. What nobody can agree on, however, is when the expansionary approach should stop: now, in the near…
1. Krugman, Paul. The Conscience of a Liberal. The New York Times. November 2013. On the Internet at http://krugman.blogs.nytimes.com/2013/11/25/nowhere-near-the-exit/ . Last retrieved on December 13, 2013
2. Mankiw, Gregory. In Fed Policy, the Exit Music May Be Hard to Hear. The New York Times. November 2013. On the Internet at http://www.nytimes.com/2013/11/24/business/in-fed-policy-the-exit-music-may-be-hard-to-hear.html?_r=0 . Last retrieved on December 13, 2013
3. Spicer, Jonathan, Lange, Jason. Fed officials signal next policy battle: rate guidance. Global Post. On the Internet at http://www.globalpost.com/dispatch/news/thomson-reuters/131121/fed-officials-signal-next-policy-battle-rate-guidance . Last retrieved on December 13, 2013
4. Expansionary Policy. Investopedia. On the Internet at http://www.investopedia.com/terms/e/expansionary_policy.asp . Last retrieved on December 13, 2013
Economics - Country Analysis
Country Overview and Current Events (News)
Ethiopia, traditionally known as Abyssinia, is a landlocked Sub-Saharan country located at the Horn of Africa in East Africa, bordering Somalia, Kenya, Eritrea, Djibouti, Sudan, and the newly-created South Sudan. It covers approximately 1,126,829km2 of land; about the size of the state of Texas, and was, until the split of Sudan, the second-largest country in Africa. Being landlocked, Ethiopia largely relies on the port of Djibouti, to which it is connected by both rail and road. Economic elements such as this, together with the country's history, population, geography and economic performance have been explored in the subsequent sections of this text.
Population: the U.S. Census Bureau, in June 2013, estimated Ethiopia's population to be 93,877,025; a figure that makes the country the second-most populous in Africa, after Nigeria (orld Bank, Index Mundi). Ethiopia's population has been on a steady increase…
AFDB. "Inflation Dynamics in Selected East African Countries: Ethiopia, Kenya, Tanzania and Uganda." AFDB Brief, 2012. Web. 18 March 2014 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/07022012Inflatin%20East%20Africa%20-%20ENG%20-%20Internal.pdf
This article analyses the trend in Ethiopia's inflation rates vis-a-vis those of other countries in the Sub-Saharan region and was a valuable source of regional statistics, which formed the main basis for comparison.
Broussar, Nzinga, and Tekleselassie Tsegay. "Youth Unemployment: Ethiopia; Country Study." International Growth Center, 2012. Web. 18 March 2014 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/07022012Inflation%20East%20Africa%20-%20ENG%20-%20Internal.pdf
This article analyzes the trend in Ethiopia's employment patterns. It reinforced my arguments that unemployment is more prevalent in urban Ethiopia, and that the country's informal sector contributes more to GDP than the formal sector.
Evaluating the current state of the United States economy
Although many are of the opinion that the recession that the globe was forced into in 2008 is finally uplifting and signs of economic revival can be witnessed. The resulting high levels of debt and unemployment from the recession had dragged many countries, especially the United States in to a state of economic turmoil. In order to reverse the effect of such factors, the United States government has implemented strategic monetary and fiscal policies. These policies attempt to rejuvenate the economic position of the country by not only controlling the supply and demand via tax cuts but also through re-setting the interest rate level in accordance to the low level of disposable income available to the unemployed / lowly employed citizens of the United States can acquire loans to allow easy spending and repayment of the loan as well.…
CBO. (2012). Report: Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2011 Through December 2011. Washington D.C.: Congressional Budget Office.
FED. (2013, June). FED Federal Funds Rate, American central bank's interest rate. Retrieved from Global-rates.com: http://www.global-rates.com/interest-rates/central-banks/central-bank-america/fed-interest-rate.aspx
Labor, U.D. (2013, June). Databases, Tables & Calculators by Subject. Retrieved from Bureau of Labor Statistics: http://data.bls.gov /pdq/SurveyOutputServlet' target='_blank' REL='NOFOLLOW'>
A negative consequence, however, would be increased volatility in the value of the dollar. Imports would become more expensive as well, increasing inflation and potentially compelling the restructuring of the economy. Increased currency risk -- transaction and translation -- would also create difficulties for U.S. companies operating abroad. I do not support such a proposal. Attempts to jury-rig a global currency are as impractical as enforcing Esperanto as a global language. Such a currency would be inherently unstable, as the Euro example has shown us. The constituent communities would be committed to enforcing controls on each other in order to maintain the integrity of the currency. If at some point the currency of another economy overtakes that of the U.S., it will be because that economy is stronger, larger and more stable -- fundamental market forces -- rather than as the result of a political decision.
3. a) The Fed…
Google.com. (2010). Unemployment rate. U.S. Bureau of Labor Statistics. Retrieved April 23, 2010 from http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&tdim=true&dl=en&hl=en&q=U.S.+unemployment+rate
U.S. Current Macroeconomic Situation:
Similar to the rest of the world, the macroeconomic conditions in the United States are currently fragile. This is mainly because the rate of unemployment is high though is slowly declining, the currency valuation is fluctuating up and down, and the European financial unrest has continued to have significant impacts on the nation's economy. These conditions are coupled by a slow increase in manufacturing and upward trend of the stock markets. As a result of these macroeconomic conditions, there are huge speculations that the United States Federal eserve will enforce more stimulus plans in attempts to boost the stalled recovery of the economy.
Macroeconomic Outlook for 2012:
The backbone of America's economic recovery since the end of recent recession has been private consumption. The U.S. economy accelerated in the fourth quarter of 2011 and continued its slow recovery in the first quarter of this year after…
Morris, K. (2010, October 7). Current Macroeconomic Situation. Retrieved October 18, 2012,
"U.S. Quarterly Macroeconomic Review -- Q1 2012." (2012, April 19). Macroeconomic
Quarterly. Retrieved October 18, 2012, from http://cebviews.com/uploads/2012/05/U.S.-Quarterly-Report-Q2_2012-FINAL.pdf
Fiscal and Monetary Policy and Economic Fluctuations
The global economy was relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the American economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession at the beginning of 2008, which eventually turned into a severe credit crisis across the world approximately one year later. While only a few countries escaped the economic recession, virtually no country could avoid the severe bear markets in stock (Norris, 2012). Some countries like the United States experienced changes in gross domestic product and stock markets. Since it has the best record of the main developed countries, the United States was severely affected by the recession. As the economic downturn came to end, America started the process of recovery from the effects of the recession. This…
Davidson, P. (2013, September 11). Economy is Still Bruised Five Years After Crisis. USA
Today. Retrieved November 24, 2013, from http://www.usatoday.com/story/money/business/2013/09/10/economy-2008-financial-crisis-lehman/2789841/
Klimasinska, K. & Chandra, S. (2013, August 27). America Resilient Five Years After Great
Recession. Bloomberg. Retrieved November 24, 2013, from http://www.bloomberg.com/news/2013-08-27/america-resilient-five-years-after-great-recession.html
What "current macroeconomic situation" U.S. (e.g. U.S. economy concerned unemployment, inflation, recession,)? What fiscal policies monetary policies time? Key concepts include paper -- data trends unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools terms class.
What is the current macroeconomic situation in the U.S.
The United States is no longer mired in a full-blown recession as it was in 2008, but the process of economic recovery has been long, slow, and onerous. At present, unemployment is hovering around 7.9%. This reflects a slight increase from the last quarter. The U.S. seems to be in a precarious position, neither in full-blown recessionary mode but not entirely recovered. Of particular concern is the fact that "the increase [in unemployment] was much sharper for millennials, up from 11.5% the month before and 10.9% in November 2012" (Kingkade 2013). Young people were particularly hard-hit by the recession.…
Cassidy, John. (2012). Reagan, Bush, and Obama: We are still all Keynesians. The New Yorker.
Davidson, Paul. (2012). Fed ties interest rates to 6.5% unemployment. USA Today. Retrieved:
Even students who return to graduate school to improve their qualifications after failing to find work might qualify as discouraged workers. This recession, which has affected the young and white-collar sectors more than recessions of the recent past, has created a larger proportion of individuals adopting such strategies. These workers using socially acceptable means to deal with unemployment but are still incurring debt while they are not making enough to support themselves, or are incurring more debt due to student loans that they will have to pay back eventually. The Bureau of Labor Statistics estimates that if all discouraged workers were counted, the unemployment rate would have been nearly 11% in August 2009 (Luo 2009). Depression, depending on the inadequate income of a spouse, and focusing on raising children or school than dealing with piles of rejection letters are all cited as reasons that workers simply give up (Luo 2009).…
Luo, Michael. (2009, September 7). Out of work and too down to search on. The New York
Times. Retrieved January 20, 2010 at http://www.nytimes.com/2009/09/07/us/07worker.html
Schenk, Robert. (2008, July). Weaknesses of the unemployment rate. Cyber economics.
Retrieved January 20, 2010 at http://ingrimayne.com/econ/Measuring/Unemployment2.html
Macroeconomic Situation in the U.S.: Corrective Fiscal and Monetary Policy
December 2007 marked the onset of the Great recession, which ended in mid-2009 but left the U.S. economy struggling through the damage wrought by its severity. Federal policy has gone a long way in the prevention of an occurrence of another recession, but growth remains too sluggish and inadequate for the full-health restoration of the economy. Vigorous and sustained fiscal and monetary support is needed if the economy is to recover and achieve the pre-depression employment level.
Save for the temporary hiring of census officials, the overall economy recorded a drastic fall in employment levels during the last half of 2009. In December 2012, the unemployment rate was reported at 8.1% - approximately 3.5 percentage points above the average rate in 2007, at the end of which the Great ecession struck (Bureau of Labor Statistics, 2014). This rate further exceeds…
Bureau of Labor Statistics. (2014). Labor Force Statistics from the Current Population Survey. Bureau of Labor Force Statistics. Retrieved from http://data.bls.gov /timeseries/LNS14' target='_blank' REL='NOFOLLOW'>
The May 2007 economy presented a rosy picture: the lowest unemployment rate of the Bush Administration 4.4% (Bureau of Labor Statistics.gov. 2012. PP. 1), the peak of housing values, strong GDP growth of 3.6% (Trading Economics.com. 2012. PP. 1), a stable inflation rate of 2.2% (Trading Economics.com. 2012. PP. 1), and a normalized non-emergency FED Funds of 5.25% (Moneycafe.com. 2012. PP. 1). Yet, the collapse was imminent as the "Great Recession" began in the fourth quarter of 2007, decimating the economy and bringing the global financial system to a grinding halt. Now five years later the economy is regaining its footing in a ponderous yet upward trajectory which began in the second quarter of 2009. An espy of May 2012 presents a dramatically different story than of 2007: unemployment stands at 8.1% (Bureau of Labor Statistics.gov. 2012. PP. 1), housing values have plummeted; "Americans overall have lost almost…
One of the noteworthy aspects of the U.S. economy is that consumer spending
"accounts for 70% of economic activity" (Crutsinger, M. May 15, 2012. PP. 1). Business is on a never ending quest to create products, services, and pricing which will maximize revenue and increase profit. Price discrimination and segmentation are common in the marketplace (airline tickets as one of a plethora of examples); consumers may respond through indifference or anger towards the company, but are in the preponderance of economic activities likely to choose based on: perceived value, availability, rewards, or pricing options. Business can choose to discount products or services to entice certain groups: new customers, income sensitive customers, or competitor's customers.
The crux of the question on discounts for certain customers rather than others is really one of questioning the role government in the process. The government already chooses certain customers for assistance based on income, unemployment, opportunity, or other criterion. Food stamps have become plentiful over the last five years, a sign of a soft economy and one of an expanded government role. The qualifications are income-based which has struck many taxpayers as unfair because they are subsidizing a segment of the population. So too with unemployment benefits which in some cases have been
employer, Acme Inc., a medium sized industrial company, has conducted a trengths, Weaknesses, Opportunities, and Threats (WOT) Analysis and has determined the strategic goals and objectives for the organization. One of the opportunities identified from the WOT was the current economy and the high unemployment rate. In addition, a strategic goal was established as a result of the WOT for Acme Inc. To maintain status quo on recruiting and focus specifically on retention (keeping Acme's best employees).
imulation: As the HRM for Acme Inc. And based upon the situation, describe how you would develop a "Compensation Plan" for this organization. Discuss how your plan would align and be effective with the above mentioned strategic goal. In addition, discuss how you would control the costs associated with your compensation and benefits plan.
In the form of an abstract, clearly state the issue or problem.
a. Express the problem in multiple ways…
Martocchio, J.J. (2011). Employee benefits: A primer for human resource professionals. New York, NY: McGraw-Hill/Irwin.
Rugaber, C (2010) Job competition toughest since recession began. USA Today. http://usatoday30.usatoday.com/money/topstories/2009-10-09-2283852466_x.htm