The General Theory of Unemployment, Interest, and Money

The more Americans employed means we as a nation are experiencing economic growth. However, if there is a high unemployment rate this interprets that more Americans are struggling in our economy. There are several types and reason for high unemployment. Though America’s unemployment rate was 5.6%, as of December 2014, every state’s unemployment rate varies for different reasons. America’s unemployment rate has a direct negative impact on our entire nation’s economy and affects individual firms, organizations, and people.

In order to discuss the statement in the title, I will first talk about J. M. Keynes and give some general information regarding his life and career. Following I will discuss about Keynes criticism of Say’s Law starting with Aggregate Demand and how consumption together with investment are in relation to income. Afterwards I will highlight the role of investment and what the policy implications are. For the final part of this essay I will conclude with some evidence to support the claims made.

In the article, “The Case For Free Money: Why Don’t We Have Universal Basic Income,” James Surowiecki presents the benefits of a universal basic income and why it is appealing to workers and politicians. After an experiment, known as “Mincome,” implanted universal basic income in Dauphin during the 1970s, evidence clearly shows that the Canadian town received remarkable advantages, such as lowered dropout rates and hospitalization rates. The idea of universal basic income is not new, however, it is regaining popularity. Contrary to popular belief, some from both the Democratic and Republican parties support assured basic income, Surowiecki claims. The current push for universal basic income is emboldened by the rising concern of advancing

Additional strict guidelines will require a background check in order to ensure that the individual has no outstanding warrants. Like welfare, it is important that we supervise that government funds are going towards individuals who are really in need of assistance while remaining productive in order to not longer require governmental assistance. Another strict guideline would be that individuals requesting for a Universal Basic Income must be registered voters in an effort to help boost voter turnout. Individuals requesting for a Universal Basic Income will also need to show proof of unemployment that will lead to a drastic search or adaptation. For example, skilled workers with a specific skill set will have a more difficult time looking for jobs.

The unemployment rate measures the percentage of people who do not have a job. Right now the unemployment rate is 5.7% that is a .04 increase from June unemployment rate of 5.3%. The 5.3 % unemployment was due to the economy adding 223,000 jobs that were considered the lowest in seven years. As long as hiring continues at these levels, the inflation rate remains low, and real GDP steady the course a boost in consumer spending and increases in profit margins should continue for businesses through 2015. Given this macroeconomic progress, I will continue to move forward with using an average percentage of unemployment rates in my forecast that will keep it negative with a minor increase over the next couple of years. As usual, an analysis of the

In 2014, 14.8 percent of Americans lived in poverty (“Hunger”). This is a significant number that cannot be ignored. With this said, it is not surprising due to America’s economy, government, and selfish citizens. As a result, these 46.7 million struggling individuals are mentally unstable, kept from improving their social status, and stuck in an uncomfortable living situation. Until the causes are addressed, the effects will continue.

According to the forefather of economics, John M Keynes, the supply of labour depends on the wages

Rates for the City for Census Tract 85 in the Bankhead Community are different by a large. The area is densely African American; however, there is no unemployment rate for White Americans in the area. Table IV shows how the 0.0% unemployment rate is consistent from year to year for White Americans (US Census Bureau, 2009, 2012, 2013 and 2014). On the other hand, African Americans had an unemployment rate of 15.6% in 2009 that continued to increase to 24.5% in 2012, and 35.0% in 2013 (US Census Bureau, 2009, 2012 and 2013). The unemployment rate in 2014 decreased by 1% for African Americans with 34.0% (US Census Bureau, 2014).

Throughout the video, Keynes and the Great Depression, the idea that investment and consumption can be declining simultaneously was highlighted immensely. This means that the total private demand for consumption goods and investment goods, might be insufficient to sustain a economy that reflects full employment. Keynes brought into question the idea that full employment could not be achieved through the sufficient lowering of wages. This is due to the idea that economies are composed of aggregate quantities of output, which are a result of aggregate streams of expenditure, essentially people are not spending enough money causing unemployment. Although, Keynes presents the idea that it is possible to reach full employment, if public demand from

Unemployment has been around for a very long time. Unemployment happens when a person has been actively looking for a job but they are having a hard time finding a job. It can be also caused when someone is laid off, fired or quits. Looking at this year’s unemployment rate it has shown that unemployment has declined. “For teens unemployment rate has declined to 16.2 percent in July. The rates for adult men is 4.8 percent, adult women is 4.9 percent, whites is 4.6 percent, blacks is 9.1 percent, Asians is 4.0 percent, and Hispanics is 6.8 percent it showed little or no change” (Unites States Unemployment Rate, 2015).The article that is going to be focused on is “The Role of Fiscal Policy Lessons from Stabilization Efforts in

In this game we play with two standard packs of 52 playing cards. The object of the game is to beat the dealer. Make your bet, sit back and wait and see what the dealer brings you.

Discuss outlining Keynes’s analysis of the stock market and identifying the related policy conclusions he reaches.

The second macroeconomics variables we choose is unemployment rate. Based on the materials shown above, among 2004 to 2008 years, the unemployment rate decrease which means the many people get the job during these years. Unemployment rate can be resulted when the employees leave their job to find a better one. Another reason causes the unemployment is the unemployed persons lack the skills or experience to obtain a job. Moreover, the youth who just graduated need longer time for seeking a suitable job that fits their new skills and qualifications. These show the in short-period of unemployment situation. Among these years, the local economy in good condition which had founded many companies such as utilities companies, financials companies, industrials that create many job opportunities. The foreign direct investment increase also creates the job opportunities in Australia. The high level of Australia exports of goods and services within these years results the good economy condition in Australia, the unemployment rate decline each year.

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* McConnell, C., Brue, S., & Flynn, S. (2012). Macroeconomics: Principles, Problems and Policies, Nineteenth Edition. McGraw-Hill Companies, Inc.