I have learned a lot about how money plays a huge part in the world today. It’s when there is not money that creates a problem for me. I have been through my husband being laid off two times within the last three years. The reason I chose this topic is because I am aware of all it entails. In chapter 20 Mankiw explains what unemployment does to a society, how it is calculated and how I relate to it.
My definition of unemployment is a person that is able to work but is unable to find work. The other part of the definition is people that are capable of working but just are to lazy to get a job. Unemployment not only means no money coming in but also has a very emotional side to it. My husband felt like less of a man when he was out of work. He did sulk for a bit and then actively starting looking for work. The pool of workers that are unemployed show how well a nation’s resources are used and calculated.
Mankiw take on the unemployment situation is “Unemployment is the most significant of the determinants of today’s standard of living.” I’m not sure if I agree with that statement or not. People have different standards of living, I could eat out once a week when I’m employed but if I’m not then I would not eat out at all. Even when my husband and I were both working we still cut corners just so we can put some money away. Although unemployment does help shape societies in the effect that if you don’t have money you do not spend it. If you do not spend then there is no need to hire more people to keep up with the demand. The demand is gone. It is a continues circle.
Another factor is that not everyone has the same basic skills. For example my husband was qualified in every area for a good paying job but is not good with a computer so he did not get the job. Employers are not willing to take the time and train people. Employers want the college grads so that they can pay them en...