Homework Question on Macroeconomics
- Write one page on how unemployment benefits affect the economy and the role of government.
- Consider tax revenues, distribution, redistribution, productivity, and economic growth.
- Please be concise and demonstrate your understanding of these concepts.
Homework Answer on Macroeconomics
The article U.S. Businesses add 200,000 jobs, ADP Survey shows published in “The New York Times” on September 2015 suggests that Americans have increased their spending behaviors. The report indicates that job placements increased by 200, 000 in the month of September and 180,000 in the preceding year. Another observation made in the report is that American residents are spending more on luxurious goods such as homes and cars.
“The entire labor market shows an upward trend, with domestic strength offsetting foreign weakness,” the report states. Therefore, there are two main ideas that can be derived from this report; increased employment and increase in spending power. Employment creates positive effects on the economy since labor is a factor of production (Atinkson 78). Increased labor absorption indicates that the region has the capabilityof bringing more national output.
The region will gain with a better balance of trade and it will be able to sustain its residents. Similarly, the government will benefit from increased tax revenue because it has an array of taxation inputs from income and products. This shows that the government will reduce borrowing that burdens the nation with debts that adversely affects the economy. Although this survey covered the private sector only, the government predicts a 206,000 jobs increase in the public sector. The unemployment rate has remained at 5.1% for the second consecutive month. This means that the government can concentrate on development as the public basics will be sorted via their personal income; that is, health, food, housing among others.