Although some European countries such as France, Italy, and Spain are considered developed and rich economies,...

Although some European countries such as France, Italy, and Spain are considered developed and rich economies, their unemployment rates have been higher in recent decades than in the United States. What could be behind this? Having a lower unemployment rate necessarily means that the population of this country are in a better condition? Do you think you are better off for living in the U.S. today as the unemployment rate here is historically at lower rates? Provide arguments for your position.

Solutions

Expert Solution

Most of the EU countries face a high unemployment rate for more than 30 years. Unemployment took place in the late 1970 and early 1980 and most of the countries get affected by this. The current unemployment is very high that is 8%. Most of the unemployment rises because of cross country differences. For example, Ireland and Netherland faced low unemployment as compared to Spain and Italy. And most important the duration of unemployment is longer and which also increases the rate of unemployment.

Low unemployment is always a sign of a good economy in any country.But a very low rate may bring the inflation or decreased productivity in the country.But unemployment rate directly affects the disposable income and purchasing power.Low unployement also means that jobs are surplus as per the demand and company or industry has to pay high wages for the fulfillment of the vacancy.

Yes, History of USA was one time bad in terms of unemployement.But in today's era USA has the strongest economy plus a low rate of unemployement.In USA unemployment is 50 year low because of aging, new start ups, better job match,other factors.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Consider two countries, Spain and Italy, where the only two factors of production are capital and...

Consider two countries, Spain and Italy, where the only two factors of production are capital and labor. Spain has 100 units of capital and 400 units of labor and Italy has 200 units of capital and 100 units of labor. Both countries produce two goods, cheese and suits. The labor share in total production costs is 75% for cheese but only 25% for suits. (2 points for each part) A. Which country is labor abundant? Explain. ( very helpful if...

Some economists say the lack of well-developed financial markets explains why the economies of developing countries...

Some economists say the lack of well-developed financial markets explains why the economies of developing countries grow rather slowly. True or false? Explain your response with a suitable framework, with emphasis on allocative efficiency and marginal productivity of capital.

How do ethical practices differ in the United States, and in European countries such as France...

How do ethical practices differ in the United States, and in European countries such as France and Germany? What implications does your answer have for U.S. multinationals operating in Europe?

Why are some countries rich with high per capita income and some countries poor with Low...

Why are some countries rich with high per capita income and some countries poor with Low per capita income?

Trade barriers are used by developed and developing countries as a mechanism to protect their economies....

Trade barriers are used by developed and developing countries as a mechanism to protect their economies. Explain at least two types of trade barriers that apply to developed and developing countries? What are some of the advantages and disadvantages of trade barriers? Which of the barriers you mentioned are more effective for developing and developed countries and why? (100 words minimum)

Some countries, for example the United Kingdom and Italy, have recently decided to include some illegal...

Some countries, for example the United Kingdom and Italy, have recently decided to include some illegal activities, such as drugs and prostitution, and their calculations of GDP. Other countries do not do this. How would this change impact of the other countries GDP? Do you think such activities should be included? (consider how the legalization of recreational marijuana impacted the economy.)

Why are some countries rich and other countries poor? Address both proximate and ultimate causes.

Although illegal to issue in the United States, a few European countries still allow bearer bonds...

Although illegal to issue in the United States, a few European countries still allow bearer bonds to be sold, including Luxembourg, and they can also be found in some Central American and South American countries. Describe the differences between bearer and registered bonds? Why might an investor want to own bearer bonds?

Many less developed countries today often resemble or are compared to the economies of ancient times...

Many less developed countries today often resemble or are compared to the economies of ancient times or the Middle Ages, in particular with respect to their high levels of poverty or stagnation. Discuss an example of a country or compare two different countries, and explain some of the key social, political, and economic forces that can serve to promote the modernization of a country. What forces do you think may be necessary to bring a new “industrial revolution” to less...

Why are some countries poor and others are rich? assignment asks you to look for your...

Why are some countries poor and others are rich? assignment asks you to look for your own answer that is not purely based on economics. Of course, in a 3-paragraph essay, However, take a leap: Please identify one historical and/or political factor that you think might explain the differences between people's lives in Denmark and people's lives in Bolivia. One of these countries is rich and the other is poor. Why? What factor has been responsible?

Subjects