Question

DISCUSSION QUESTIONS

1) Why do you think so many Americans are not included in the unemployment rate?

American are not included in the unemployment rate because

) What can be done to encourage these 'discouraged workers?'

) How would our economy operate if the BLS reported a more accurate unemployment rate of 15%?

Answer 1

1)

Why do you think so many Americans are not included in the unemployment rate?

Reasons for unemployment in the United States are -

1. Unemployment grants: These grants given by the government leave people unincentivised to look for jobs as they can still sustain themselves even without jobs just on the government allowance.
2. Discouraged workers: These are people who have been looking for jobs but haven't been able to get one, and hence, have stopped looking. These people are unemployed, but they will not be included in the unemployed if they haven't searched for jobs in the last six weeks.

2)

What can be done to encourage these discouraged workers?

To help the discouraged workers, the following steps can be taken -

• Skill development courses to help people get the skills necessary for the job market
• Job search portals
• Legitimate agencies that help these workers search jobs

3)

How would our economy operate if the BLS reported a more accurate unemployment rate of 15%?

If a higher unemployment rate is reported, then the government will undertake the apporpriate fiscal and monetary policy measures to increase aggregate demand and also allow for more workers to be employed -

• Redue tax to increase demand
• Have more government infrastructural projects to engage more labour
• Implement employment guarantee acts
• Reduce minimum wage and other mandatory employment benefits