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Determining Cause and Effect

Determining Causes and Effects Draft Version

Professor Barnett
ENG-115 English Composition

Determining Cause and Effect


The rise in unemployment can lead to a reduction in the supply adequate capacity of the
economy. If workers remain unemployed for any amount of sustained time, their skills may
diminish, therefore reducing the human capital. Long-term unemployment in high rates could
mean skills that workers possess, and those for which there is a need are unmatched. There is a
belief that unemployment in between the ages of 20- 29 has a significant effect on your standard
of living when you are in your 50's. These measures include increased health risks (particularly
for those experiencing long-term unemployment) (Richard, V, 1997).
The longer people are without work; then the chances of finding fresh employment go
down exponentially. If you lose your income involuntarily, that has an enormous impact on
finding new employment. Many people have significant unavoidable commitments that fall in
real living standards such as (mortgages, credit agreements, etc.). All things being equal to the
greater the amount of goods and services produced, the higher the labor cost required producing
those same products and services. Employment and economic growth go together. Taxation and
regulation that do not encourage the operation or increased production of business will reduce
the need for employed personnel. Entrepreneurs face rules that force allocation of resources
away from production. As an example, managers have to purchase OSHA or EPA mandated
equipment instead of the raw materials used for final production. The clerks were initially hired
to expedite sales, but the clerks are spending their time filling out required state government
forms. Some of the regulations and taxes primarily impact the small companies with less access
to capital markets.
When fewer small businesses start and when, more dominant firms curtail expansion,
jobs that otherwise might never exist. Regulations that deal with occupational licensing overlook
their impact on unemployment. Employment opportunities become limited if individuals need

Determining Cause and Effect


specific licenses to do certain tasks like use their personal vehicles as cabs, or move furniture, or
even sell sandwiches. Licensing boards control practitioners in the relevant occupations and
these professionals limit how many people enter each trade per year. The cost of licensing
individuals in each trade directly impacts the costs of goods and services provided. This process
is under direct assessment because it is important to understand if licensing inhibits or effects
employment. I've made it through the process to obtain a license for a business. It is not
comfortable. Several policy decisions are necessary like the location of the zones. In general,
fewer jobs related to them.
I also believe that there should be government programs to help provide jobs. Two of the
largest programs of CETA Program are the Neighborhood Youth Corps (NYC) and the
Manpower Development and Training Act (MDT). The NYC provides work experience, training,
counseling, and education for high school drop-outs and the MDT trains unemployed workers on
the job and within the classroom. A question that economist has not yet answered decisively is
whether or not the increased earnings of the participants represents success of these programs.
These programs might be judged or given less attention. Alternative uses for government training
programs resources and the number of jobs created include these figures. Another method of
reducing unemployment is to use the federal government as an employer of the last resort. It is
important to state that the jobs created by the government may overstate the amount of jobs
created in addition to what it costs the taxpayer for each job creation program.

In order to move the burden of financing jobs from the state/ local to the federal
taxpayers then federal grants my fund existing jobs. Employment in the public sector may also
discourage workers from applying for private sector work that need people the most. Goods and

Determining Cause and Effect


services may go unproduced because of taxes; therefore, labor and capital would be away from
the private sector. Finally, policymakers should bear in mind the difference between efficient use
of energy and reducing the Bureau of Labor Statistics' measured unemployment rate. If all
unemployed individuals are assigned to unproductive jobs, thus lowering measured
unemployment, would anyone be better off? Why not define recipients of unemployment
insurance and welfare payments as "employed"? Consumers are restricted to purchase costly
domestic products and certain foreign goods, even though, this policy does save jobs. The
discussion of economic growth, an extensive program of anti-unemployment policies that
combats the unemployment and provides incentives for employees and primary employers.
Individual policymakers will differ from each other. The value they place on the goals that can be
achieved by various policy options, they should be aware of the trade-offs in possible policy
decisions. The minimum wage may promote poverty since the opportunities for employment
diminished. Even though, the minimum wage appears to be and anti-poverty program because it
guarantees a level of earnings. (Red, R). Examining the overall results of policies emphasizes.
The point that a system should be judged by what it accomplishes rather than by what its
proponents intend or hope it will achieve. Unbelievably, it is productive to have some existence
of unemployment
When jobs and employers match well together, the economy works more smoothly. In
order to find employment that individuals are best-suited, they must increase the duration of
unemployment and search longer for jobs. When personnel quit or get fired, this is positive
because it severs people from jobs for which they are not suited. Finally, workers that are new
hires or rehires will need a moment to get into the groove beginning to work or circumnavigate a
new environment of working again.

Determining Cause and Effect



Determining Cause and Effect


Alexandria, Red; Washington Times

Stone, Jack and McCaw, Joe; Unemployment: The Shocking Truth of Its Causes, it has
Outrageous Consequences and What Can Be Done about It.
Vedder, Richard; Out of Work: Unemployment and Government in Twentieth-Century
U.S. Department of Labor, Bureau of Labor Statistics Employment and Earnings, Vol. 28,
No. 4, April 1981.