What is unemployment cost ? Unemployment is well as something bad , most
economist agree that high levels of unemployment are costly not only to a person
directly affected but also as the economy as a whole. Some economist are convincing
themselves that there is a certain level of unemployment that we can not erased.
Elevated unemployment imposes significant cost on someone, the society and the
county.
The cost of unemployment to the individual is not something we are not familiar
with. Someone that loses his job, will have immediate impact to his standard of living.
The individual may qualify for unemployment benefits, but again this will not cover half
of his expenses (Stephen S) . That mean the individual is consuming less than what he had
before.
The cost of unemployment in the society is somewhat not easy to demonstrate.
Rising unemployment is linked to social and economic deprivation(Stephen S). There is some
relationship between rising unemployment and rising crime , and worsening social
dislocation , Elevated crime make sense because lack of money turn people into
criminals to meet their needs.
Unemployment lead to higher payments from state and federal government. For
unemployment benefits for example food stamps and medicaid ,at the same time those
government are no longer collecting the same level of income tax as before , forcing the
government to borrow money and cut back on other spending.( Stephen S)
References
Simpson, Stephen. "The Cost Of Unemployment To The Economy." Investopedia. Http://www.investopedia.com/financial-edge/0811/ the-cost-of-unemployment-to-the-economy.aspx, n.d. Web. 18 Nov. 2013.
Tutor. "Economic Costs of Unemployment." Tutor2u. Http://tutor2u.net/economics/content/topics/unemp/costs_of_unemp.htm, n.d. Web.18 Nov. 2013.
References: Simpson, Stephen. "The Cost Of Unemployment To The Economy." Investopedia. Http://www.investopedia.com/financial-edge/0811/ the-cost-of-unemployment-to-the-economy.aspx, n.d. Web. 18 Nov. 2013. Tutor. "Economic Costs of Unemployment." Tutor2u. Http://tutor2u.net/economics/content/topics/unemp/costs_of_unemp.htm, n.d. Web.18 Nov. 2013.
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