Q:
How Does Unemployment Effect the Economy?
A:
Quick Answer
Effects of unemployment to the economy include recession, high government expenditure and wasted resources. High levels of unemployment not only affect unemployed people, but also the local and regional economies.
Continue ReadingFull Answer
Unemployed people contribute less to the economy because they are spending less. They do not participate in paying tax due to lack of jobs. Consequently, the government ends up borrowing money because of low revenues and high spending. Rise in employment rates also affects other areas, such as quality of health services and living standards. This affects the society in general. In an economy with high unemployment rates, the hours lost by the unemployed are usually unrecoverable.
Learn more about Social SciencesSources:
Related Questions
-
Q:
What Were the Contributions of John Maynard Keynes?
A: Economist John Maynard Keynes made many contributions to the field of macroeconomics including his inflation theory, stance against Say's Law, unemployment... Full Answer >Filed Under: -
Q:
How Did FDR Respond to the Great Depression?
A: Franklin D. Roosevelt responded to the Great Depression with a series of economic measures collectively known as "The New Deal," which were designed to hel... Full Answer >Filed Under: -
Q:
What Is the Difference Between a Recession and a Depression?
A: A recession is a period of time that lasts more than a few months where the economy gets significantly worse; a depression is defined as a severe recession... Full Answer >Filed Under: -
Q:
What Are Examples of Social Issues?
A: Racism, violence in schools, drug abuse, unemployment, hunger and unfair labor conditions are examples of social issues in the United States. Typically, so... Full Answer >Filed Under:
You May Also Like
-
Q:
What Are Some of the Ways That Ascribed Status Can Influence Achieved Status?
-
Q:
What Are Some Current Examples of Injustice?
-
Q:
How Do I Describe Myself in Three Words?
-
Q:
What Causes Some People to Think That Genders Are Not Equal?
-
Q:
What Activities Take Place Within the Quaternary Sector of an Economy?
-
Q:
What Are the Main Stages of Grieving?
