¶ … Economics
Productivity and Unemployment
Given that improved technology will likely result in lower input costs and higher rates of productivity, this will enable companies to lower their prices and consumers to buy more goods and services at the same prices. Thus, the senator's proposal is likely to garner him more, rather than fewer votes in the general electorate. The national supply curve will shift to the right, as resources are employed more efficiently, with the same input costs and consumer demand will increase because of lower prices. Although lower input costs means a lesser need for labor and reduced jobs within an immediate industry, greater demand overall in the economy can also mean a need for more workers. The definition of full employment, according to economists is that cyclical unemployment is zero. The lower costs of production may actually bring current totals closer to that number as the economy is already operating below full employment. This means that the proposal may also be helpful to the senator's relationship with labor unions as well in general, depending on the industry.
The likely effects of increasing productivity on equilibrium GDP will be an increase in the sum total of the Gross Domestic Product. Improving technology and subsequently reducing output costs as a result is likely to decrease the risk of inflation in the short run, just as during the 1970s, increasing the input costs of oil resulted in increased inflation. However, if the economy continues to overheat, as producers produce more goods, employ more workers, and workers spend more of their salaries on more and more goods, inflation may be a concern in the long-term. This is especially true, given the currently high levels of unemployment, which means many people are unemployed and many workers have not gotten raises recently, thus they may spend a great deal if prices go down in the short run and their income increases.
Unemployment Issues in the U.S. There many factors and issues that relate to the unemployment situation in the United States. This paper delves into the unemployment data over the past ten years, and examines the economic conditions that create large numbers of unemployed persons. The paper also looks at the various approaches to unemployment -- the Keynesian viewpoint and the classical viewpoint vis-a-vis unemployment -- and provides scholarly narratives on the
Unemployment UK According to the Office of National Statistics, the unemployment rate in the UK currently sits at 8%, the highest figure since 1994. The unemployment rate has been in a range between 7.5% and 8.0% since early 2010. The current trends show that youth unemployment is at its highest level since 1992 and that there is no end in sight for the unemployment problem in the UK (Office for National
Bernie Sanders's economic platform is based on the concept of income inequality. As a socialist liberal, his main thesis is that the U.S. economy is producing wealth, but, at the same time, a large income inequality. His platform explores an interesting dichotomy, namely the fact that, despite the continuous increase in economic productivity over the years and despite the tremendous advances in technology, which should theoretically balance a reducing of
Economics: Application of Concepts An Analysis of the Economic Situation in the U.S. In the last five years, we have seen the U.S. economy expand but at a pace that is seen as being relatively moderate. In conducting an analysis of the current economic situation in the U.S., I will largely limit myself to inflation, interest rates, and unemployment. Although the current economic situation is better than it was five years ago, there
When food and energy -- two especially volatile and important price categories -- are removed from the picture however, prices actually rose two tenths of one percent in March. This is another sign that things are far more complicated than they seem. According to the most recent news release from the Bureau of Labor Statistics, 299,388 worker lost their jobs in 2,933 mass layoff events (where fifty or more employees
Capital (% of GNI per capita) Source: The World Bank (2009) The following table shows the procedures time and costs involved in construction of a warehouse, obtaining the licenses and permits necessary and completion of the required notifications and inspections as well as obtaining utility connections. Procedures and Costs Involved in Warehouse Construction Indicator Peru Region OECD Procedures (number) Duration (days) Cost (% of income per capita) Source: The World Bank (2009) Peru is stated to rank 149 among other countries
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