Unemployment and inflation
What are some of the problems, difficulties, or hardships caused by unemployment?
The individual and social expenses of unemployment consist of the following: debt, being homeless, lack of finance, accommodation pressure, conflicts among the family members, crime, loss of self-esteem and trust, atrophy of skills, and ill-health. Economics, psychology, and social issues are as a result of unemployment. Lack of jobs has become a major issue affecting our daily lives, health status, the economy, and also our culture. The government should, therefore build more factories and also support the local industries to provide more opportunities and positions to respond to the increasing population’s need and the need of employment by our youths so that individuals may learn to be independent and also by providing jobs the level of the crime rates are likely to go down.
What are some of the problems, difficulties, or hardships caused by inflation?
Inflation is generally the rise and falling of the prices of commodities in the purchasing value of money. An example is the average cost of a cup of tea was a dime during the time that anyone alive can still remember. The price today has risen tremoundsly.
Money is only going to decline in value, so the best solution is shopping and stocking up on things that might not lose value in large quantities. This includes filling up gas tanks for the consumers, stuffing the freezer, buying shoes for the children in the expected or approximated size, and so on. In the case of companies, it means making capital investments that could be postponed under different circumstances.
If you had to make a choice today between a policy that would head off increases in inflation or increases in unemployment, which one would you choose?
I would choose to increase inflation If the jobless rate drops below the normal rate, the cost of inflation will rise until the unemployment rate returns to the normal stage or rate. Alternatively, the inflation rate will tend to decrease if the unemployment rate rises above the usual rate. The normal jobless rate is the level of unemployment that is compatible with justifiable economic growth. The level of an unemployment rate below the usual rate indicates that the economy is developing at a faster rate than its peak justifiable rate. Just in case the unemployment rate rises above the usual or the natural rate, then downward pressure is placed on the wages and the charges in general, resulting in lower inflation.