Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Economy and Government, Essay Example

Pages: 2

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

Email and Voicemail Monitoring, Essay Example

When it comes to email and voicemail monitoring, it is important to consider the implications of these actions on behalf of both the employee as [...]

Pages: 1

Words: 340

Essay

Description of Place: A Forest, Essay Example

The logic behind the significance of specific locations to individuals inevitably varies. Some places may hold pertinence since they are the sites of important personal [...]

Pages: 1

Words: 315

Essay

Quality Management System, Essay Example

Customer needs and expectations are the products any customer attaches to a company and knows that he or she will get it when need arises. [...]

Pages: 1

Words: 337

Essay

What Does It Take To Be a Good Parent Assignment, Essay Example

The issue of what does it take to be a good parent is contentious, insofar as the thematic remains susceptible to subjective interpretations. One may [...]

Pages: 1

Words: 330

Essay

Human Rights Violations and the Legal System, Essay Example

The Universal Declaration of Human Rights (hereinafter: UDHR), advanced by the United Nations General Assembly in 1947, was a watershed moment, insofar as with this [...]

Pages: 4

Words: 1122

Essay

The Critical Consulting Firm, Essay Example

Week 5 Issues The CanGo operation provides interesting insights into, unfortunately, how to conduct employee relations poorly. This is obviously not the company’s intent; on [...]

Pages: 5

Words: 1287

Essay

Email and Voicemail Monitoring, Essay Example

When it comes to email and voicemail monitoring, it is important to consider the implications of these actions on behalf of both the employee as [...]

Pages: 1

Words: 340

Essay

Description of Place: A Forest, Essay Example

The logic behind the significance of specific locations to individuals inevitably varies. Some places may hold pertinence since they are the sites of important personal [...]

Pages: 1

Words: 315

Essay

Quality Management System, Essay Example

Customer needs and expectations are the products any customer attaches to a company and knows that he or she will get it when need arises. [...]

Pages: 1

Words: 337

Essay

What Does It Take To Be a Good Parent Assignment, Essay Example

The issue of what does it take to be a good parent is contentious, insofar as the thematic remains susceptible to subjective interpretations. One may [...]

Pages: 1

Words: 330

Essay

Human Rights Violations and the Legal System, Essay Example

The Universal Declaration of Human Rights (hereinafter: UDHR), advanced by the United Nations General Assembly in 1947, was a watershed moment, insofar as with this [...]

Pages: 4

Words: 1122

Essay

The Critical Consulting Firm, Essay Example

Week 5 Issues The CanGo operation provides interesting insights into, unfortunately, how to conduct employee relations poorly. This is obviously not the company’s intent; on [...]

Pages: 5

Words: 1287

Essay

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!