Hire writer
Paper Types
Disciplines

Economy and Government, Essay Example

Pages: 1

Words: 554

Essay

A recent article reports that the current long term unemployment crisis in the U.S. is one of the worst in historical terms. About 40 percent of all people current unemployed have been without jobs for at least 27 weeks and reached as high as 45 percent during the recent great recession. The proportion of long-term unemployment as a percentage of total unemployment has been the highest in recent years since the end of WWII (The Huffington Post, 2013).

The chart in the graph paints an interesting picture since the end of WWII. The previous highest proportion of long term unemployment in the total unemployed labor force was about 25 percent during the 1980s and before that it was about 21 percent during the mid-1970s and late 1950s (The Huffington Post, 2013). It may not be unreasonable to assume that the unemployment situation is probably the worst since the Great Depression.

According to The Brookings Institution, long term unemployment may adversely affect the lifetime earnings of 4.7 million Americans and the joblessness would also negatively affect their children’s health. In addition, long term unemployment also significantly reduces the prospects of reentry into the job market. Unemployment for nine or more months results in 20 percent fewer interview opportunities for individuals applying for low or medium-skilled jobs. Being out of the job market for a significant period of time also reduces employment prospects due to decaying skills (The Huffington Post, 2013).

This article touches upon several concepts covered in the chapter seven which also covers unemployment. It is apparent from the article that most of the unemployed Americans are either “job loser” or “reentrant”. The chapter mentions that the overall average unemployment duration during the past 25 years has been 16 weeks which reminds us how different and dire is the situation in the labor market now.

It is also possible that the actual unemployment rate as well as long-term unemployment rate may be quite higher than the official estimates due to the “discouraged worker phenomenon”. It is also reasonable to assume that most of the unemployment is structural and cyclical because the job market outlook has been so bleak over the last few years that fewer people would choose voluntary unemployment.

As far as the government’s role in the economy is concerned, the U.S. Government should play more active role in boosting the employment rate through both capital spending as well as creating favorable conditions for employers to hire more and consumers to spend more. Even though the unemployment rate in the U.S. is still not at a desirable level, it is relatively much lower than many countries in Europe where the governments have played smaller part in stimulating their respective economies than the U.S. Government. Even the lessons of the Great Depression demonstrate government’s importance in boosting employment rate and recovering the economy. One of the reasons U.S. came out of the Great Depression were the policies of then President Franklin D. Roosevelt who chose a different path than his predecessor. President Roosevelt’s Administration increased government involvement in the economy (Miller Center, University of Virginia) to increase employment rate and provide support to struggling businesses.

Reference

Miller Center, University of Virginia. (n.d.). Franklin Delano Roosevelt: Domestic Affairs. Retrieved August 23, 2013, from http://millercenter.org/president/fdroosevelt/essays/biography/4

The Huffington Post. (2013, August 20). Long-Term Unemployment Crisis Is Historically Terrible (CHART). Retrieved August 23, 2013, from http://www.huffingtonpost.com/2013/08/20/great-recession-long-term-unemployment_n_3785410.html?utm_hp_ref=unemployment-extension

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

Marketing Mix-Cleaning Services, Essay Example

Marketing Management: The Kindle This paper gives an analysis of the four cardinal components of the marketing mix and looks at how these components can [...]

Pages: 1

Words: 937

Essay

Drivers and Human Psyche, Essay Example

Psyche is the human mind or soul. It is the human personality that influences the way he/she behaves and how he makes decisions, for example [...]

Pages: 1

Words: 387

Essay

Law and Morals, Essay Example

We are dealing with the case of Dudley and Stephens that became a precedent in 1884.  After years of debates about the issue of a [...]

Pages: 1

Words: 344

Essay

Educating the Herd, Essay Example

From earliest childhood, I can remember my parents telling me how lucky I was to go to school in America.  Recieving a private, catholic school [...]

Pages: 1

Words: 667

Essay

Discussions on Identified Ethical Principles, Essay Example

When is it acceptable to refuse an assignment? That nurses reserve a right to refuse an assignment is a well-known fact, but to make such [...]

Pages: 1

Words: 730

Essay

My Last Duchess, Essay Example

 “My Last Duchess” by Robert Browning Initially published in “Dramatic Lyrics” collection, poem “My Last Duchess” is a remarkable example of Robert Browning’s usage of [...]

Pages: 1

Words: 904

Essay

Marketing Mix-Cleaning Services, Essay Example

Marketing Management: The Kindle This paper gives an analysis of the four cardinal components of the marketing mix and looks at how these components can [...]

Pages: 1

Words: 937

Essay

Drivers and Human Psyche, Essay Example

Psyche is the human mind or soul. It is the human personality that influences the way he/she behaves and how he makes decisions, for example [...]

Pages: 1

Words: 387

Essay

Law and Morals, Essay Example

We are dealing with the case of Dudley and Stephens that became a precedent in 1884.  After years of debates about the issue of a [...]

Pages: 1

Words: 344

Essay

Educating the Herd, Essay Example

From earliest childhood, I can remember my parents telling me how lucky I was to go to school in America.  Recieving a private, catholic school [...]

Pages: 1

Words: 667

Essay

Discussions on Identified Ethical Principles, Essay Example

When is it acceptable to refuse an assignment? That nurses reserve a right to refuse an assignment is a well-known fact, but to make such [...]

Pages: 1

Words: 730

Essay

My Last Duchess, Essay Example

 “My Last Duchess” by Robert Browning Initially published in “Dramatic Lyrics” collection, poem “My Last Duchess” is a remarkable example of Robert Browning’s usage of [...]

Pages: 1

Words: 904

Essay