Unemployment will drive someone to commit crimes as they are unable to afford their daily expenses. People who are unemployed tend to perform more on property crimes such as burglary than violence crime. The higher crime rate will cause local and foreign investors alike to think twice on investing their capital in the country and thus create recession in the national economy. The diagram below shows that the relationship between unemployment and crime rate in Malaysia. Furthermore, unemployment may affect one’s mental health indirectly.
Many youth are unemployed because they have just come from high school and they do not have enough work experience to get a job. Adults are more likely to be unemployed because of physical and mental health challenges. Adults also tend to be unemployed because of cyclical, structural and frictional unemployment. Unemployment also goes into hand with homelessness and panhandling, because there is not enough jobs people are ending up homeless and looking for other ways to get money. Why are youth more likely to be unemployed than adults, and is unemployment among youth becoming a social problem?
Introduction Unemployment is knows to bring many negative impact on subjective well-beings. High rates of unemployment not only caused negative effect on national economy but also greatly affect living standard of people, especially youths. Due to youth 's inexperience and lack of knowledge, many employers refuse to hire them as hiring youths only brings no benefits to employers. This is so as employers have to spend time, energy or even money to train youths before they can cope with their own job.
The most serious of the many effects of unemployment is the effect on the economy. “Higher unemployment will cause a fall in tax revenue because there is less people paying income tax. Also the government will have to spend more on unemployment and related benefits” (Pettinger). With a fall in tax revenue, the nation’s income as a whole is reduced, which decreases the amount of money in circulation, increasing the United State’s federal debt. Also, government pays for the welfare programs, so if there are more unemployed people, that means more money from government to support those
Many of them have argued that mobility, poverty, and heterogeneity undermine neighborhood connections and social links, which majorly contributes to the breakdown of informal social control resulting in the increase of crime rates inside society. The presence of informal social control can help to contain crime to some extent, but the absence of it results in the negative. Criminologists suggest that factors related to economic backgrounds have a key role to play in this matter. Studies have been conducted on several families in accordance with economic standards. The results shows very clearly that people belonging to poor economic backgrounds often lose their faith in the structure of the social system, and then they tend to involve in criminal activities for either having a good life in future days (only in the sense of good economic status) or to express their anger on the system by being an outlaw.
The concept that the National minimum wage needs to be elevated to $15 an hour hasn’t been completely considered because it would cause inflation for the economy; therefore, the lower class would still be functioning in poverty. A minimum wage job is low paying because it requires low skill; therefore the
If the minimum wage were to increase, consumers could see a rise in prices in their products. A majority of minimum wage workers are in a high competitive market, where the companies make smaller profit. In order for companies to
For example, in paragraph 19, he states ”One study finds that growth is more fragile and recessions are more frequent in countries with greater inequality. When families have less to spend, that means businesses have fewer customers, and households rack up greater mortgage and credit card debt…” This evidence supports the claim by illustrating that the American Dream is threatened because when families have less to spend, it creates a chain of events that end up affecting many people that work hard to achieve the American Dream. People then
The factors contributing to this higher repeated instability are several. Young workers usually have lower job protection. In addition, they are most likely to have gained less job-specific experience. Also, compensation pay tends to increase with tenure, making it less costly to fire a young worker (Pagy, 2007).
What causes a recession is inflation. Inflation is a general increase in prices and the fall in the value of money. Falling confidence in the consumer can be a major cause in leading to a recession. Also, manufacturing orders starting to slow down in the economy, this can lead to less money being produced throughout the economy resulting to a loss of jobs. Since this causes a high unemployment rate many of the people will get on a government welfare program to pay for their family and that is even more money being lost in the economy, making the nation fall into a deeper recession.
Unpaid internship has an impact on the economy in a negative way as it increases the youth unemployment numbers, it also causes a downfall in the wages for the economy and at the same time it contributes to slow economic growth (Langille, 2013). Langille (2013) further suggests that students or unpaid interns are made false promises of gaining the essential knowledge and experience from their time invested in the company for free and also the potential of having a full time employment at the organization, however it is not certain that they would be hired, hence the company is avoiding paying taxes to the government, which is another impact the overall economy is facing. Furthermore, it also impacts the economy in a way that the new graduates or the interns suffer from lack of security and alienation from the labour market (Langille,
Also, it might take time for employers of many low-skill workers to learn how to economize on their labor costs. They will over time since the incentives to do so are much larger and that would be bad news for the very low skill workers the higher minimum wage is designed to help. Whenever increasing the minimum wage is discussed, there is always a concern that doing so might hurt job growth or imperil businesses that employ low-wage workers business they have to pay their works more and that could be hard for some business or companies. The effect of increasing the minimum wage on employment is probably the most studied topic in labor economics because the government has to worry about inflation and prices going up and also the consensus of the literature is that moderate increases in the minimum wage have little to no effect on employment.
Side 2 argument 2. A study from the Federal Reserve Bank of Cleveland found that although low-income workers see wage increases when the minimum wage is raised, "Their hours and employment decline, and the combined effect of these changes is a decline in earned income.” They could be getting more money but then their employer might cut their hours.
Although there are many ways to look at minimum wage, such as the increase and decreases, and how it will affects today 's economy it has both negative and positive effects. I believe that the minimum wage has an overall negative impact because whenever the minimum wage is increased it only makes more people recede into poverty when it is supposed to do the reverse effect. Minimum wage was originally made for people just starting out or a pay for low-skilled employees. I believe that if people can 't afford the stuff they need because of a minimum wage, then they should work harder to either get a pay raise or move to a higher paying job. This would not only help our economy grow but help people out of debt and poverty.