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
There are different rules such as one must be laid off; each state has different standards that they follow. For a person that is not working to be considered under the labor force they would have to be looking for a job. The program was founded by the Social Security Act of 1935. Certain parts of the country have a need for farmers and others do not. Even thought things may be natural they can still be out of work. Unemployment insurance can make frictional unemployment even higher because it protects people when they lose their job. The labor force is a sum of both employed and unemployed people. Mankiw makes a statement that there will always be workers without jobs even when the economy is good. Although unemployment does help shape societies in the effect that if you don"tmt have money you do not spend it. Perhaps the government should revisit training the unemployed and the standards at which a person can collect money. There is a problem of unemployment reoccurring. In the past most people viewed being out of work as a personal problem rather than a social problem. If you do not spend then there is no need to hire more people to keep up with the demand. Having a job requires the economy"tms rate of growth, productivity and the unemployment rate to factor in. This act is called the Federal State Unemployment Compensation Program.