Topics: Unemployment, Subprime mortgage crisis, Mortgage Pages: 3 (914 words) Published: October 14, 2010
It is debatable that the best things in life are free, but there is no question that the necessities to live a life in today’s society costs money. Having a job or career is no longer an option as much as it is a requirement to live in the society that is today and to be able to afford the basic needs of an individual such as shelter, food, and clothing. Unemployment rates are on the rise and unemployment is becoming a leading issue in America after the economic recession the country has been facing in recent years. Because employment is the standard means for earning a salary to afford the basic needs to live, job cuts have serious repercussions. There are different causes of unemployment, many effects on unemployed individuals and the individual’s family, and numerous statistics that show the rise of unemployment rates as well as the effects on our society as a whole.

There are two different types of unemployment: voluntary and involuntary. Voluntary unemployment is the result of an individual’s lack of desire to work or reluctance to lose government aid that is received from filing for unemployment. The main cause of voluntary employment is welfare payments. When an individual receives welfare payments through eligibility for unemployment, this sometimes actually reduces the individual’s willingness to work. Involuntary unemployment is the result of job cuts. There are many causes of involuntary unemployment, and many have no solution to be prevented. Inflation is one cause of involuntary unemployment. As prices of production increase, the prices of the goods increase. For example, because the state of America’s economy is in recession, the price of American-made goods is higher than goods produced in other countries with more stable economies. This causes a drop in American exports because American companies are unable to compete with foreign goods produced in more stable economies at a lesser cost. The American companies face decreased...
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