How Unemployment, Underemployment and Discouraged Workers Affect the GDP in an Economy?

How Unemployment, Underemployment and Discouraged Workers Affect the GDP in an Economy?

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How unemployment, underemployment and discouraged workers affect the GDP in an economy?
“We blacks were the first people embracing Obama, long before the people at expensive fundraisers were supporting him. We gave him his first love, 96 percent of blacks voted for him in 2008. Yet today, we are the number one in unemployment, with 16 percent of American blacks out of work.” (Jesse Jackson 2011) The economy in United States is more and more decreasing over the time. The unemployment is becoming a big issue since many years. When we talk about unemployment, we talk about the situation of an individual who is actively looking for a job during the four weeks. The underemployment refers to an employment situation that is insufficient in some important way for the worker, relative to a standard. Discouraged workers are a marginally attached workers who have not made specific effort to find a job within the past four weeks because of previous unsuccessful attempts to find a job. However, unemployment is often used as a measure of health of the economy which is GDP. By definition, the GDP (Gross Domestic Product) is the market value of all the final goods and services produced within a country in a given period of time period. How unemployment, underemployment and discouraged workers affect the GDP in an economy?
To begin with, there is a big relation between unemployment and GDP. Employment represents a necessary condition, not sufficient however, which guarantees a social stability. Conversely, a society in which a large part of the population is unemployed, is in the process of disintegration for a simple reason: the individual socially exists in the trading system only if he has an economic value, otherwise if his working capacit...


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... for the economy. Concerning the economy of the United States it is still alarming. Neal Asbury, writer from Money News stated that US can recover their economy by reducing their taxes and regulations to grow small businesses and then rise the employment rat. They need also to ensure banks are healthy and they can provide money to entrepreneurs and they also need to expand the global trade by lowering the barriers against the manufacturers. ( Asbury 2013)


Bibliography

 Esther, Ejim. “Relation between GDP and Unemployment.” Article. 2003-2014 Conjecture corporation. Edited by Kaci Lane Hindman. 06 March 2014.

 Neal Asbury. “Our Economic Security Depends on Job Creation.” Article. Breaking News from Newmax.com. 7:30AM.Thursday, 07 Nov 2013.

 Spiegel. “Jesse Jackson on Obama.” Freerepublic.com. Article. Edited by Gregor Peter Schmitz. 8/8/2011.



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