|← Lower Division Individual Four||Production →|
Buy custom Macroeconomics essay
Unemployment is one of the largest topics covered in macroeconomics. It refers to the inability for individuals to access any form of employment. However, there are several forms of unemployment. They range from voluntary, frictional to structural unemployment. Unemployment has huge impact on a country’s economy. It affects the economy negatively as it is gradually slows down. Every country takes all the necessary measures so to reduce the impact of unemployment on the economy. Unemployment is largely associated with resultant inflation.
In the article ‘An Unfair Burden’ by the Editor published in the New York Times on 24th June, 2011, the issues of unemployment are examined. Particularly, the article seeks to analyze the burden borne by the poor due to the fact that they lack employment. The writer notes that the issue of unemployment had been rapidly rising in 2008 when President Obama took office. However, in the following year, 2009, the unemployment rates tended to fall.
The Obama regime is keen to avert the burden borne by the poor. It promises to enact the programs that cater for the needs of the low income earners. This has been greatly doubted by Republicans who are of the opinion that the Obama government will not keep its word. The writer is of the opinion that it is now time for the two opposing sides; Democrats and Republicans, to join hands and face the issues surrounding unemployment and poverty. He notes that this is a problem that has persisted since 1985.
Limited time Offer
The proposed programs include Medicaid. This is a program that seeks to help low income earners throughout the United States of America. This is due to the fact that it has been established that there are about 68 million low-income earners. The program seeks to cater for those individuals that may be below the poverty line due to unemployment. Specifically, this would solve one of the pressing issues in USA’s economy since it is already weak.
The policy adapted in regards to the unemployment benefits works against the reduction of poverty in USA. $56.5 billion was allocated by the Congress in 2010 as a renewal for the unemployment benefits that were expiring. However, this value amounted to a $25dollar drop per week from the previous benefits. This implies that the level of poverty is likely to go a notch higher. It also means that the burden borne by the poor is higher. There is also the speculation that some Republicans are proposing the withdrawal of the unemployment benefits. In their proposal, the funds would be directed to other uses. This denies the unemployed citizens their source of living. This is an illustration of how large the unfair burden would be placed on the poor if the proposal pulls through.
The program of food aid was also voted against by Republicans and ended up cutting down the amount allocated by $633 billion. This is an illustration of another unfair burden that would be laid on the poor. This is given the fact that an estimated 450,000 applicants will be cut out from the program next year.
Finally, the temporary assistance that is usually granted to needy families was also cut. The congress did not offer any extensions for the programs. This implies that the 2 million citizens who benefited from the program will not access the help next year.
From the above analysis, it is clear that the way forward that has been proposed by the Republicans is that the deficit in funds will be deduced from reducing the funds allocated to special programs. However, this only narrows down to increased taxes. Therefore, the burden is laid on the poor people just because they lack employment. These issues need to be addressed.
Custom Macroeconomics essay
Related Economics essays
- Production essay
- Competitiveness and Strategy essay
- Relationship between Investment in Technology and Growth essay
- Study Questions essay
- A New House - Economy essay
- Lower Division Individual Four essay
- Economic History of the USA from 1920 to 1963 essay
- Henry Ford and Capitalism essay
- The Recession in 2008 essay
- International Trade essay