The Effects of Long-Term Unemployment on the U.S. Economy
Unemployment is an extremely serious and scary issue due to the effect it has on our current state of economy. As a student and a future graduate, I am extremely concerned with this subject. If the job-market situation does not change for better, unemployment can represent a serious issue for all students, recent graduates, and current unemployed workers. And can have a significant effect on socioeconomic conditions and therefore, economy itself.
When we look back at the history of the United States, we can see that there was only one short period of time when unemployment was virtually non-existent. As we were taught in this class, the only period when unemployment almost did not exist was during World War II. In order to support the war efforts, the United States government created jobs for anyone who wanted to work. That means that only one time in United States history the economy functioned on the line of the Production Possibility Frontier.
In the earlier chapters of this course, we were introduced to basic principles of economics and to the Production Possibility Frontier. The Production Possibility Frontier is a graphical representation of various combinations of the amounts of two commodities that could be produced using the same factors of production. When the point lies on the curve line of Production Possibility Frontier that means that a company or economy is functioning with maximum efficiency; meaning that with available factors of production the productivity output is at its highest point. Everything on the inside of the Production Possibility Frontier line means that a company, or economy is not using all available resources for production; on the other hand, everything on the outside of the Production Possibility Frontier line is un-obtainable. In order to achieve that level of production, factors of production need to change. That refers to improvement in technology, labor force,...
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