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Curbing Unemployment
The policy makers in an economy assume a fundamental part in managing the
macroeconomic exercises with the proposition of keeping up the monetary stability.
Fundamentally, economic stability is essential for enhancing the social welfare of citizens, and
additionally the financial development. The current United States economic viewpoint is bad.
The normal American is not doing great despite there being a change in the market. The high
unemployment level is the major financial issues that the nation is as yet experiencing. At
present, inflation is not a primary risk to the United States. The GDP is level. The fiscal and
economic arrangements can help the policy makers in taking care of the present unemployment
issue confronting the nation. Specifically, the policymakers should consider actualizing both
expansionary fiscal and financial strategies since the current level of unemployment is repeating.
Concerning the expansionary financial policy, the policy makers ought to execute it through
taxation, transfer payments, and government purchases.
The current macroeconomic condition in the United States has kept on failing to meet
expectations after the 2007-9 recessions. The development of the real Gross domestic product
has been so slow it couldn't be possible to reduce the wide gap between the genuine GDP and its
pre-recession pattern (Meer and West). The rate at which work opportunities are increasing has
been so slow it would be impossible to make more employments relative to the populace, leaving

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the proportion of the employment to populace beneath the recession. Despite the fact that the
unemployment rate diminished in the later past, the drop has been ascribed to the numerous HR
leaving the workforce because of the feeble monetary recuperation. For as far back as a decade,
the rate of expansion has arrived at the midpoint of nearly the Governments 2 percent target.
Nonetheless, the measure of the real economy has not gotten any better in correlation with the
past two decades.

Yes, unemployment benefits should exist at all cost. Unemployment benefits have
reliably been referred to by business analysts as a standout amongst the best approaches at
impelling economic development. Benefits give the required support backing amid this time
when numerous Americans would some way or another be left not able to pay their rent or put
food on the table. Unemployment benefits have reliably been referred to by economists as a
standout amongst the best approaches at prodding financial growth. Consistently more than 2
million Americans get a normal emergency unemployment benefits check of about $300 cash
that is spent on rent or the home loans and utilities, and in addition to neighborhood grocery
stores, drug stores, service stations, and newspaper kiosks (Farber and Valletta). Unemployment
benefits are an imperative mechanism for keeping individuals from falling into poverty.
The present unemployment rate is still high and expanding the benefits will permit
unemployed individuals an opportunity to pay a greater amount of their everyday costs.
Americans are continuously finding themselves out of work for longer periods of time than was
the situation in past economic recessions. While the normal unemployed individual has been out
of work and looking for another occupation for 40 weeks, states just give unemployment benefits
to a maximum of 26 weeks (Farber and Valletta). Of course, near to a large portion of

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unemployed individuals come up short on state unemployment benefits before securing another
employment. Today the middle length of unemployment period is about 20 weeks and more than
40 percent of the unemployed have been out of employment for six months or more. With more
Americans observing that it takes a longer time to look for some employment than is permitted
by state unemployment programs, it would be shrewd for the executive to extend the benefits.
Increasing the minimum wage does make numerous positive and negative consequences
for the minimum pay workers and the economy. Increasing the lowest pay can be exceptionally
useful to the workers and the economy as a whole when the lowest pay permitted by law is not a
binding value floor as it has a tendency to energize spending that aides invigorate the economy
and advance financial development (Hanson and Eisenberg). It additionally encourages workers
to stay at their jobs and to put more effort into their work to result in a substantially more
profitable workforce. Be that as it may, expanding least wages can likewise be hurtful to the
unemployed if the cost floor is binding as it makes fewer opportunities for individuals to work,
growing unemployment, in the long run, furthermore increase the general value level of
merchandise and services. This is additionally my assessment on the minimum wage, as I accept
that making more occupations will prompt a general more productive economy than raising the
lowest pay permitted by law would.
The current unemployment state in the US can be sufficiently contained by applying both
expansionary monetary policy and expansionary fiscal policy or one of them. The expansionary
monetary approach can be utilized to solve the unemployment concerns through the national
bank considering reducing the interest rates. Low premium rates would make borrowing
economical and hence draw in the individuals to borrow money and invest. Expansionary money
related strategy would expand the supply of cash in the economy. Conversely, the expansionary

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fiscal policy can be started through the exchange charges, levy, and government expenditure. The
arrangement would expand the aggregate use and in this manner make more jobs in the economy.
Besides, the federal open market committee ought to expect to keep the inflation levels
consistently marginally over the 2%, they are presently keeping up. The 2% inflation level would
be instrumental in alleviating the unemployment when supplemented with the fiscal approach.
Specifically, the policymakers ought to execute the fiscal policy by reducing the levy, increasing
government expenditure, and transfer payments.

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Works Cited
Farber, Henry S and Robert G Valletta. Do extended unemployment benefits lengthen
unemployment spells? : evidence from recent cycles in the U.S. labor market. Cambridge:
National Bureau of Economic Research, 2013. pdf.
Hanson, Lindsey K and Timothy J Essenburg. The new faces of American poverty : a reference
guide to the great recession. California: Santa Barbara, , 2014. pdf.
Meer, Jonathan and Jeremy West. Effects of the minimum wage on employment dynamics.
Cambridge: National Bureau of Economic Research, 2013. pdf.
UNITED STATES DEPARTMENT OF LABOUR. Bureau of Labor Statistics: Labor Force
Statistics from the Current Population Survey. 4 March 2015. img. 6 May 2015.

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The following graph was obtained from United States department of labor.

Series Id:LNS14000000
Seasonally Adjusted
Series title:(Seas) Unemployment Rate
Labor force status: Unemployment rate
Type of data: Percent or rate
Age: 16 years and over