Homework Question on Impact of Unemployment on the Macro Economy
- As we prepare to discuss the topic of unemployment and the impact that it has on the macroeconomy, I would like you to read this article from the September 14, 2013 edition of the Wall Street Journal (“Wanted: Jobs for the New ‘Lost’ Generation”) and thinks about how the current levels of unemployment faced by young adults and recent college graduates will have an effect on the overall economy.
- In doing so, please answer the following questions;
- Why is underemployment a major problem in the United States?
- Is a college degree necessary to compete in today’s workforce? Explain.
- Here is the link of the article: http://online.wsj.com/news/articles/SB10001424127887323893004579057063223739696 Goodluck and lemme know if you need anything
Homework Answer on Impact of Unemployment on the Macro Economy
Unemployment refers to a situation where there are more people who are willing and able to work but are not lucky enough to secure themselves jobs. It has some negative impacts, such as increased poverty that leads to overdependence on those that are working by those who do not work. This is return leads to low living standards of citizens, which is accompanied by low per capita incomes.
When severe insecurity befalls a country, potential investors shy away from investing in the country and this leads to low economic growth. On the other hand, citizens are not able to find a favorable environment to do their businesses leading to low economic growth as well. In regard to the article from the September 14, 2013 edition of the Wall Street Journal, “Wanted: Jobs for the New ‘Lost’ Generation”, underemployment is a major problem in the USA.
The problem has been there in the country because of the economic stress that hit the country due to the great depression of 1990. This left the country hard hit in the financial sector, which had the country experience a crippling recession even after the period. For more than five years, the country’s financial sector was left bare in the hands of the depression and later the World War II and this swallowed the lives of the Americans irrespective of their age and background.