Causes And Effects Of Unemployment

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In 1964 President Lyndon B Johnson signed and passed the “Economic opportunity act” which placed the “War of poverty “in effect in his state of the union message. The EOA act was cultivated to give free educational opportunities, provide job training and, loans to small business to create jobs for the unemployed. There was endless amount of programs and community action agency available for assistance. In the light of terminating not only the cause of poverty but the consequences. Poverty can cause a bad effect to the economy, it can lower job rates, raise income taxes and also allow the government to spend more instead of saving. Poverty now after five decades from this act being passed has still shown no improvement.“ between 2000 and 2012, …show more content…

Unemployment measures the relative distribution of economic wellbeing in an economy. More over the percentage is added to the poverty percentage. The unemployment rate can fluctuate from low to high, you can mainly see the employment rate higher in large cities due to changes in the work force. The demand for more workers are decreasing because employers want to pay less in benefits and on employee taxes. These rates play a dominating role because it determines the health of consumption. When larger cities cannot provide job opportunities and is laying off workers it can cause a serious transition is spending. During the 2008 rescission (roughly 8.7 million jobs were shed from February 2008 to February 2010, and GDP contracted by 5.1%, making the Great Recession the worst since the Great Depression. Unemployment rose from 4.7% in November 2007 to peak at 10% in October of 209)http://en.wikpedia.org/wiki/great_recession_in_the_united_states. Low income families are affected by this mainly because they were not being able to afford the cost of living anymore. In addition to that the middle class lowed there amount of spending and started saving more. This is a major drawback for the economy. The less money a particular class of people have the more they depend on the government for …show more content…

Poverty is a never ending war. “Fifty years later we are losing that war ” (http://www.wsj.com/articles/SB10001424052702303345104579282760272285556). “Poverty” has been a major issue throughout America. America has had to come up with multiple strategies in order to fight against poverty within the 50 states. Due to poverty there has been an uproar of crimes, abuse of drugs, broken homes and deteriorating physical environments. All of which accrued over a long period of time “from the mid-1960s-2015”. Poverty is a sensitive topic that requires answers that not many people “including politicians” may have and because of it more problems are

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