Topics: Economics, Great Depression, United States public debt Pages: 1 (306 words) Published: May 21, 2013
Unemployment refers to the number of people in an economy who are willing and able to work, but are unable to get a job. Some effects on the economy are that individuals need to satisfy their needs before their wants, therefore decreasing their standard of living. Businesses will have to cut prices in order to sell their products. By cutting prices this leads to sometimes negative profits. If this happens to a business constantly the business will go out of business which will lead to an increase in unemployment. This might result in a deflation; a deflation will discourage spending, which could lead to a depression. Also your debt stays the same however less is earn, it will be harder to pay off the debts. The government will have a decrease in tax revenue which leads to an increase in the budget deficit. Other effects that unemployment has on our society are that South Africans as people have no money to purchase their needs this results in poverty which is the cause of many social problems consisting of dishonesty, gambling, bribery, theft therefore this a results in the social security of this country being jeopardised. Job creation is a central priority of the government, Minister of Finance Pravin Gordhan said in the Budget Speech 2012. An additional R4.8 billion over the 2012 MTEF period for the expanded public works programme, bringing it to a total R77.8 billion. However the government needs to invest more money into education, investment to create more job opportunities, and the fostering economic growth. Tourism is a important job creator because of the many opportunities for semi-skilled labour, and because South Africans are inherently friendly and hospitable. We need to increase the number of entrepreneurs in South Africa, once there are more businesses there will be more jobs.
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