Macroeconomics: The Impact Of Unemployment

Macroeconomics

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Macroeconomics The basic thesis that the article describes in comprehension is the impact that unemployment has on businesses. Bruce Bartlett, the author, explains that businesses can rake in huge profits from their businesses during unemployment seasons because of the reduced operational costs that businesses usually incur. However, the businesses experience challenges when seeking to increase their output because the unemployed people lack the purchasing power to buy their products or services. Unemployment cripples many people economically and hinders them from purchasing different products or services that they would afford when employed. Bartlett explains that business owners are usually

Mike Moffatt articulates in his informative article that the United States enacted an unemployment program that benefits individuals without work through paying them insurance perks. The insurance program targets unemployed individuals that have their work contracts terminated because of unidentified reasons. They receive half of their wages in a specified duration from the Federal government. However, the unemployed often regard the payment as only meager because they have hefty bills to foot with the sliced payments. In effect, the government is compelled to extend the period that the individuals should receive their payments for as well as increasing the insurance perks (Moffatt, 2015). The overall impact, therefore, becomes an in increase in taxes because the individuals require colossal funds. The American citizenry suddenly suffers from the program because of the forces that are in play to the benefit of the unemployed. The employers usually benefit hugely from such situations because the Federal government subtly supports unemployment since it provides money for unemployed people instead of creating jobs. Job creation is the surest means to eradicating unemployment and controlling the private business owners who are usually against any policies geared to eliminate unemployment (Moffatt, 2015). For this reason, the unemployment insurance is imperative in the short-run because it helps the unemployed individuals to financially sustain their lives but it subtly provides strong support for unemployment to continue