Why Is Unemployment A Economic Problem?


6 Answers

Ember  Lynn Profile
Ember Lynn answered
Wow crime no offense...that's not correct. When people don't have a job they don't buy things and when they don't buy things businesses don't do so well and when businesses don't do well they have to in turn lay off more people which starts the process all over again. Also, people can't afford to pay bills so other companies aren't making money there as well. It's like one big circle. Then when businesses aren't doing so well they have less money to pour into our economy and our government can't tax as much leading to a shortage of gold toilet seats they can buy...that one was a joke. But you see where I am coming from. If people do not have money the businesses don't have money and if the businesses and people don't have money the government doesn't have money. That's the easiest way to look at it.
Anonymous Profile
Anonymous answered
The main impact unemployment has on society and the economy is the productive power that it withholds - i.e. Any person who is unemployed could be doing something productive and thus contributing to the economy as a whole.
Because crime generally comes from the loss of employment which unfortunately marks the society for greater crimes taking place. When unemployment is on the rise in any State, Country and/or Locale it generally places families in a hardship situation that causes them to seek other methods of survival that are normally not their usual way(s) of life. Therefore, unfortunately crime normally takes place, which causes the Economy to suffer because so many people, consumers, businesses, environments will suffer due to the high rise in crime that normally comes from long-term unemployment.
Anonymous Profile
Anonymous answered
The only impact unemployment can make in any economy is to drag the country down
Tariq Habib Profile
Tariq Habib answered
When the unemployment rate goes up, the economy is in effect throwing away the goods and services that the unemployed workers could have produced. During recessions, it is as if vast quantities of automobiles, clothing, and other commodities were simply dumped into the ocean.

How much waste results from high unemployment? What is the opportunity cost of recession? A survey provides a calculation of how far output fell short of potential gross domestic product during the major periods of high unemployment over the last half-century. The largest economic loss occurred during the Great Depression, but the oil and inflation crises of the 1970s and 1980s also generated more than a trillion dollars of lost output. The last decade has been one of unprecedented stability in the United States, with very small business cycle losses.

The economic losses during periods of high unemployment are the greatest documented wastes in a modern economy. There are many times larger than the estimated inefficiencies from microeconomic waste due to monopoly or than the waste induced by tariffs and quotas. I think this answer will satisfy your question.

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