The Circular Flow Model Accompanied by Reverse Flows Essay

The U-3 is the best known, and the most commonly used unemployment statistics from the Bureau of Labor Statistics (BLS). It calculates the U.S. unemployment rate by taking the total number of unemployed persons and dividing that figure by the total number of persons in the civilian labor force. The civilian labor force is composed of all persons above the age of sixteen, who are not serving in the military, who have employment (or who are actively seeking employment). What the BLS leaves out in the U-3 is the body of people whom they call discouraged workers. They are those who used to be included in the civilian labor force, but lost their jobs and ceased their search for new employment. The federal government’s calculation that includes our nation’s discouraged workers in the unemployment rate forms what is called the U-6. Also calculated in the U-6 are people who are working at part-time jobs but desire full-time work. Using both the U-6 and the U-3 is a far more substantial means of acknowledging our true unemployment rate.

“Making it in America”, by Adam Davidson, illustrates how technology and machinery are interchanging humans in the workforce. Machines are taking over factories and leaving more employees out of work. Davidson also points out that the wage-gap is considerably increasing between un-educated and educated laborers. Corporations and companies all over the world, including the Americans, Europeans, and Chinese, are purchasing machines over hiring workers to save money.

500 total -400 working = 100 not working. 100/500= 1/5 = 20% unemployment rate of people 16 or over.

Over the past twenty years, America has seen a substantial amount of change and development amongst many technological industries. Old ideas have been revolutionized. Technology has been continuously upgraded time and time again. Americans slowly have to do less and less because new inventions are constantly increasing their abilities to do more for us. Cars are getting faster, phones are getting smarter and before we know it, 2-dementional televisions will be a thing of the past. Despite everything that is growing around us there are still few things that have stayed the same; for example, the average American income for 99

1. the market where business sell goods and services to households and the government is called

Unemployment refers to the numbers of people not working and can be measured by the claimant count and labour force survey. There are different types of unemployment and each of them requires different policies to overcome them.

The technological revolution spanned many decades, but for the scope of this paper will be limited to the 1990s through the early 2000s. Prior to the 1990s, the U.S. technology market was dominated by foreign products. Conversely, several blue-collar industries, including the furniture industry, were thriving on U.S. made goods. The foreign technology market dominance shifted in the 1990s. The creation of several U.S. technology and dot-com companies swayed the technology market to the U.S., but this shift did not benefit the blue-collar industries.

According to Hernaes (2017), technology in the United States has been growing. With the growth of technology, more “blue-collar” jobs are being replaced. Inequality is increasing because the jobs being replaced are lower wage jobs. The reason for inequality is that those in the lower class, and even the middle class are losing their jobs. Those in the upper class mostly retain their jobs because their labor requires more skilled labor. The income gap increases because the wealthy can allocate their spendings on other resources, or cheaper resources that will replace labor. The loss of these jobs would cause the poor to become poorer, and the rich become richer. The supply of labor demanded would decrease, resulting in fewer workers. The growth of technology began as a “slow train since the 1980s.” Technology has been growing “exponential[ly]” ever since (Jones, 1998).

As of March, 2013 the U.S. National Unemployment rate was 7.6%. A total of 11.7 million people were reported as unemployed by the Bureau of Labor Statistics. This rate is improved from the height of the recent recession, where the statistic floated around 9%, but it is still not the usual 3-4% figure we are used to seeing in regular market conditions. (bls.gov, US, 2013)

Macroeconomics is the study of the behavior of an economy at the aggregate level. Macroeconomics considers the industrial sector, the services sector or the farm sector, but not specific parts of any of these sectors. The factor studies might include inflation, unemployment, and industrial production, often with the focus the effect of government policy on these factors.

Many people consider America to be the leader of the technological world; however, that has not always been the case. Before America became the industrial dynamo that is today, there were multiple other countries that it had to compete against such as China, England, Japan, and Germany. While each of these countries prospered at some point throughout their technological history, America was able to learn ways to adapt in order to compete against each and every one of them. The Industrial Revolution has contributed to America in a number of ways. It has contributed to the economy and the working conditions of laborers (Saunders, 1919) (“The Industrial”, 1966). On the other hand, the industrialization of America can also be associated with some negative setbacks (Volti, 2014).

The United States is a service economy. The growth of power within the American service sector in the 20th century corresponded with the long term decline of employment in agriculture and manufacturing. In the late 19th century, the capacity of the American labor force involved with agriculture started to decline and more of the Americans found employment in the manufacturing and service sectors. In the earlier part of the 20th century, manufacturing became the largest sector of employment. As new technology comes along, they are no longer needed in the workplace. All of the new machines are replacing them so quickly, and it's becoming more difficult for them to find new employment. The main issue is that many of these workers don't have many

“In June 2012, approximately 155,163,00 people were in the labor force (those actively employed or seeking employment). With a total U.S. working-age population of approximately 243 million individuals, the labor force participation rate currently stands at 63.8 percent. Out of those 155 million individuals in the labor force, 142,415,00 are currently employed, with unemployment hovering around 8.2 percent”.

The economic elements of the 1970’s to late twentieth-century consist of an oscillating economy in the United States. America took Depression-like hits such as “during the financial crisis of the mid-1970’s, [when] the economy suffered from both high unemployment and inflation that kept prices rising” (Keene, 849). Inflation led to multiple companies’ prices getting higher such as gas and steel as well as led to extreme foreign competition in which foreign-made products were becoming the popular choice to higher American-made products. When looking at the big picture though, the economy wasn’t all that bad. “In the 1970’s, the American economy began to take a shift from a manufacturing-based economy to one dominated by high-tech jobs in fields

Unemployment is currently measured in the United States by counting those who "do not have a job, have actively looked for work in the prior four weeks, and are currently available for work" (Leonhardt). This means that a great deal of people are not counted as unemployed because they are discouraged and have not looked for work in the past four weeks. Or, the person was injured in some way and they are "not currently" available for work. This does not mean that the people in either of these groups do not actually wish to find work, but it does mean that they are not counted because of an archaic system that has been used by