That’s why students have trouble paying them off. Unemployment and the collapse of household income in the recession only makes the borrowing problem worse. Working in employments that don 't require a school degree, which tend to pay lower wages than those requiring a higher education. “Unemployment and underemployment of school graduates has prompted an ascent in understudy credit defaults, the inability to respect the legitimate commitments of an advance” (Student Loans para. 4).
It affects the distribution of real income, people on fixed incomes suffer as the purchasing power of their incomes decrease as price levels rise. Secondly, purchasing power od households on fixed income decline, as inflation tends to result in more unequal distribution of income as those on lower incomes find their wages do not rise as quickly as those on higher incomes. In times of high inflation household tend to purchase real assets that retain their real value since their prices rise faster than the inflation rate. Finally, another negative impact is the income tax earners suffer from fiscal drag pay rises to combat inflation put them into higher marginal tax brackets. This means as employees’ nominal wages increase with inflation their real wage (purchasing power of nominal wages) may remain constant.
The unemployment rate is rising every day and the something needs to be done to stop this. 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.
According to the textbook Economics - The Macro Economy Today, “Many workers have sound financial or personal reasons for leaving one job in order to look for a different job.” During that time, when a person moves between jobs he or she may experience a time period without work. This time period is considered frictional unemployment. Another example of frictional unemployment occurs when a student finishes school and becomes part of the labor force. It might take several attempts to find the job that fits their needs. This brief time period is considered frictional unemployment.
Working Poor “When the poor or newly poor are asked to define poverty, however, they talk not only about what’s in the wallet but what’s in the mind or the heart” (Shipler 10). The United States of America is a place which has an enormous population filled with foreigners and immigrants. Many enter America to get a better job, a fresh start, and to live the American Dream. In the 21st century, the gap between the rich and the poor has greatly widened even though America’s economy is skyrocketing as the years go by. Poverty has been a major issue due to various occasions but people who are in the middle and high classes do not know the hardships these poor workers go through just so that they could have a chance to own valuables.
In order to make a profit off of a product a company must make more than they are spending. So when it comes to spending on wages companies cannot be paying them more than their income. If companies were forced to raise the minimum wage many of them would find themselves laying off workers, especially those of the lower skilled employees. As much as a 3% reduction of low skilled workers can be projected with an increase of 10% in the minimum wage (Negative Effects). An American Apparel store in Los Angeles had to lay off 500 workers because of the recent city increase to $15 an hour (Sherk).
Raising the minimum wage will ruin our economy. Look at the big picture, businesses and companies will struggle or close, poverty will increase, and the price of consumer goods will rise. There are a few things that let economists know how the economy is doing at the moment. They’re called economic indicators, and 2 of them are consumer confidence and unemployment rate. The more people that are unemployed, the less money being used to buy things which hurts the economy.
This harm and makes the country seek for items to keep the economy running easily. For every one of the Floridians who are pondering and every other person in America we are in question. I say this to assist you to comprehend and know about the economy and how it 's reducing and the nation can crumple just before your eyes. Besides, this decrease in unemployment influences specialists who need to supply their families and single guardians. In addition, organizations that can 't stay aware of the minimum wage permitted by law status are at risk.
The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States. In the last fifty years the world has gone under many changes but one that is really shocking is the escalating prices of colleges.
This data collection should allow this study to acquire an acceptable level of trustworthiness, even when taking into considerations some limitations that may occur. Section 1: Introduction Introduction Unemployment as an economic problem exists in each countries and it is often a measure of the health of the economy. It is known as waste of scarce economic resources and as a result it decreases the future growth potential of the country’s economy (Riley, 2005). It is essential to understand the factors which causes the unemployment and its relation and impacts to other economic issues. 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).