Unemployment exists everywhere. Every
day, someone loses their job. Unemployment has been around for years within the
United States, but we have had our share of ups and downs. The government should
do more to lower the unemployment rate.
Glymour, & Avendano stated that research has linked job loss to poor
physical and mental health. They expect Job loss to have an impact on
unemployment benefits since job loss is linked to health. “Similarly, McLeod
et. al. found that unemployed US workers not receiving benefits are more likely
to report poor health than employed workers, but the health of unemployed
workers in receipt of benefits does not statistically differ from the health of
employed workers” (Cylus, Glymour, & Avendano, 2015, p. 317).
creation is key element in reducing the unemployment rate especially in
cyclical unemployment. The American government may intervene through monetary
policies and/or effecting changes in their fiscal policies (debt.org). The government may lower interest rates making
it cheaper to borrow capital from banks for individuals as a mean of
encouraging investment by banks, growth and expansion among entrepreneurs.
four sources of unemployment: frictional, seasonal, structural, and cyclical.
According to McEachern, frictional unemployment is unemployment that occurs
when job seekers and employers need time to find each other. For example, new
graduates searching for a job within their new career field. Seasonal
unemployment is “caused by seasonal changes in the demand for certain kinds of
labor” (McEachern, 2015, p. 110). Structural employment occurs when either the
unemployed doesn’t reside where the jobs are located or when the unemployed
person doesn’t qualify for a job due to lack of skills. “Cyclical unemployment
is unemployment that fluctuates with the business cycle, increasing during
recessions and decreasing expansions” (McEachern, 2015, p. 111).
is financially, emotionally and psychologically detrimental to a society. Jobs
define an individual’s position in the society and productive labor is a key
element contributing to living a happy life. Being jobless for too long can
lead to stress, relationship problems and other issues that could later lead to
a person committing suicide. Employment
also plays a key role in degrading communal identity and cultural well-being
within a society. Unemployment rates
within a population are key indicators of a nation’s economic stability,
political might, global power and the overall citizen satisfaction or
dissatisfaction with the leadership and the American government.
unemployment? “Unemployment is defined by the Bureau of Labor Statistics as
people who do not have a job, have actively looked-for work in the past four
weeks, and are currently available for work” (Amadeo, 2017). Unemployment goes as far back as the great depression
and as recent as the Great Recession that occurred from 2007-2012. But
unemployment is something that will always plague the nation as well as other
countries as well due to a variety of reasons most of which I’ll touch base on.
The stock market crash of 1929 started the greatest unemployment era in history
one that lasted for more than a full decade. A worldwide depression put more
than 13 million people out of work. October 29, 1929 will forever be known as Black
Tuesday a date that is symbolic with unemployment and what could have been
avoided according to some historians. In 3 years from 1929-1932 the GDP fell by
as much as 15 percent, to put that into perspective that’s 14 percent higher
than the GDP during the Great Recession. Unemployment was as high as 33 percent
in some countries, construction labor was a very heavy casualty along with farms
in rural areas that suffered as crop prices took a massive 60 percent deficit.
The U.S. economy was the main factor to the steady decline in most of the other
countries. Milton Friedman and Anna J. Schwartz explained that a banking crisis
of one-third of all banks vanished due to the monetary contraction of 35
percent. A belief on his behalf that could’ve been avoided and what turned out
to be a worldwide disaster could’ve been just an ordinary recession had the
Federal Reserve been more aggressive in their actions with how they decided to
handle the situation. In large part Friedman argued had they not allow large
public banks to fail one being the New York Bank of the United States. In his
opinion the purchase of government bonds for liquidity with the addition of an
increase of the quantity of currency that would have allowed smaller banks to
stand on their own after the demise of the larger banks which ultimately never
happened. One reason that never happened was due to the GOLD Standard a
standard in which fixed quantity of gold that is distinguished as an exchange.
The federal reserve act had a limit on how much credit could be issued by the
federal reserve itself, in addition to the New York Fed loaning 150 million in
gold to European Central Banks. In theory, this action led to the great
depression being much more of a disaster than it should’ve been and lasted to
1941 around the time of world war II. With the growing and rapid rise of
unemployment many Americans sought ways of providing for themselves as well as
their families by bootlegging which was very much illegal. With no income its
no wonder that the great depression and the height of bootlegging coincided
with one another.
Unemployment in the