Macroeconomics is the part of economics that explores the behavior and decision making of the economy as a whole, to where microeconomics focuses more on the behavior of the individuals and firms in order to understand the decision making process of the individuals and the firms. Macroeconomics deals with aggregate measures of the economy such as, national income and unemployment rates. Unemployment is one of the largest concerns in economics and can lead to many problems such as, a decline in the economy, poverty, depression, and in many cases will result in crime. Unemployment is when an individual who is of a working age is unable to get a job but would like to be fully employed. According to the website bls.gov, “People are classified as
The following paragraphs will discuss the pros and cons surrounding both sides of this topic and the reasoning that births each one. Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).
College is something that students strive for now even with the cost, so by decreasing the cost it would logically lesson the want to go. Though it may not have this affect on all students, it would most likely affect those that already have little to no motivation to continue their education. A third obstacle would be the staff. If you were to cut down on staff their would be less jobs and a higher unemployment rate. These employees would reject the layoffs because to put it simply, it is a loss of a job that can not easily be replaced.
New jobs will be created, existing roles will be redefined, and workers will have the opportunity to switch careers. The challenge, in particular to this generation, is managing the transition." Income inequality is likely to grow, possibly leading to political instability; and the individuals who need to retrain for new careers won 't be the young, but middle-aged professionals" (Vincent). Automaton is a blessing but a potential threat to our lives economically, it will be good for business owners and manufacturers but what about the commonwealth? This concerns me because I wonder how long it will take till all is affected, till life as we know it isn 't so humane, just technological.
Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in
For firms, inflation causes cost or production to income since workers’ demand pay rises, as well as making it difficult to firms to plan for future. Inflation is an increase in general price levels and has undesirable impacts on households and firms which means the government is justified to use policies to maintain price
Issues and Concerns of Unemployment in Malaysia For decades, unemployment is seen as a negative issue that affects a country all over the world including Malaysia. One person may become unemployed as long as he or she is involved in the labour market. If the unemployment issue is not solved, it will give rise to a series of social and economic problems in a country. The first impact of unemployment will cause an arise of criminal activities. Unemployment will drive someone to commit crimes as they are unable to afford their daily expenses.
For instance, of the causes are considered the extreme unemployment benefits, excessive minimum wage and hiring cost, too high real wages level, the disparity between the unemployed labour and job offers on the market in terms of skills and many others reasons (Bell, 2000). At the same time unemployment impacts the economy and the society. Economy experiences decreased spending power of the families and extra expenditure on unemployment benefits, the society meets changes in the mental health, crimes and violence, standard of living and others. There were many studies conducted on dependencies and mechanisms of unemployment. Unemployment can explained by many factors as well as inflation.
Traditional financial matters, New established financial aspects, and the Austrian School of financial matters contend that market instruments are solid method for determining unemployment. These hypotheses contend against interventions forced on the work market all things considered, for example, unionization, bureaucratic work rules, the lowest pay permitted by law laws, charges, and different regulations that they case dishearten the employing of laborers. Notwithstanding these far reaching hypotheses of unemployment, there are a couple of orders of unemployment that are utilized to all the more definitely model the impacts of unemployment inside of the monetary framework. The principle sorts of unemployment incorporate auxiliary unemployment which concentrates on basic issues in the economy and inefficiencies
The suggested remedy is to reform the education system and increase focus on technical education and vocational training, matching them to the needs of the job market (Coenjaerts et al. 2009). To some extent lack of labour market information is a constraint in searching for job. The CBS