Joblessness and persistent unemployment continues to drive the poverty rate higher. The economic damage extends to the broader workforce and the country in general, through lost wages, income and wealth, as well as higher poverty. The national unemployment rate is currently 9.1%, and it has been at or above 8.8% for the past 28 months. The underemployment rate has remained between 15.7% and 17.4% since the spring of 2009, and it currently stands at 16.1% (Mishel). Because of the current state the economy is in, it has been difficult for people to earn a decent paycheck or even sometimes find a job to support their families.
Recession & Unemployment in America America, as a whole, has been under an economic recession for over four years. The government is spending much more money than they are making. The government can always make more money. Many American families cannot see the light at the end of the tunnel. Prices are rising while the family income is not.
Hartley and Mowry reported that the recession showed a sharp decline in the type of jobs that someone without a college degree or high school diploma would hold; construction, hospitality, manufacturing, and service (1). Had those workers in the industries that do not require diplomas or degrees been ready to either attain a college degree, or perhaps put to use an existing one, they would have been able to find work quicker, and begin contributing to the economy faster. The recession has made businesses much more picky
The federal government attempted to fix the economic problems through costly economic stimulus packages, which only resulted in further national debt. So one would have to ask if the fiscal policy the government is currently using is working. Many economist say America is suffering from debt deflation. Americans are trying to pay down debt by spending less, but this is causing their debt problems to worsen. Economists believe that government spending should rise temporarily so the drop in private spending can repair itself.
But, it took years for us to create the mess America is now seeing with these theories in place. We keep making the rich richer, and the poor poorer. America has seen many recessions, while there are no cuts in pay with wealthy upper class America. The cuts hurt most to those who receive them, the
But many Americans are not educated enough, especially economically, to know the difference. If the prices of goods were to stay the same raising the minimum wage from $7.25 an hour to $8.50 an hour, it would inject an amazing $9.5 billion extra spending power into the economy, but with the current inflation rates prices would begin to rise. In order for store owners to pay their workers nine dollars an hour they would have to raise the prices on almost everything in the store. This would make the consumers spend a lot more of their weekly income. This is one of the many examples inflation.
Many Americans were nervous, and still are, every recession has recovered. The 2010 recovery, however, is not as strong as others have been. This is partially due to the recession still alive in housing. In 2003, home prices declined although the cost did not. The value of taxes on items also decreased.
Overproduction in America became a big problem due to technological and industrial advancements which left producers with too much supply, and not enough demand from consumers. Due to advancements in technology, production was at an all one high in America. Farmers were able to use new techniques, but began producing product too fast for it to be purchased. This overproduction left producers with too much product and a need to offload, so prices were driven down. As prices were driven down to the lowest point to create sales, this caused problems for the economy.
General Economic Decline At one level the Tories had been successful in their management of the economy. There had been no return to mass unemployment. Although living standards increased, Britain was no longer the world power they used to be. Self-ownership of homes had risen and so did the ownership of fridges and TV’s. Yet in comparative terms Britain was slipping behind the rest of Europe and was well on its way to becoming the sick man of Europe.Britain’s share of world trade fell, causing turmoil in the economy.
As more and more families continue to fall below the official poverty line (which in 2005 was an estimated $19,971) the government feels a greater sense of urgency to fix this problem. With the inflation of everything, especially gas prices, it is getting harder and harder for families like the Flintstones to keep up with the Jetsons. The last that could be decided as a social issue has to do with my second social issue which is the economy. Sine the Bush administration has taken over the white house, the economy has not been very good in america. With most of all the U.S. funds going towards a worthless war in Iraq, americans have been feeling the heat of our poor economy.