Unemployment in the United States
Uploaded by gstamatinos21 on Jun 03, 2015
Unemployment in the U.S.A has reached epidemic levels in recent years. Legislatures at all levels have raced to create solutions to this pressing crisis. From the federal government to local government, there have been many routes taken to curb the growing number of unemployed. High unemployment rates in the U.S.A effect all aspects of the economy, albeit some more severely than others. It gives consumers less capital to spend, which in turn will decrease the revenue being generated by business. When these businesses start feeling their profit margins tumble, they start cutting employees and the whole cycle repeats. The government approved an 800 hundred billion dollar stimulus plan just to turn around the economy a couple years back, yet that has had minimal effects. The reality is, almost 4 million open jobs require specific specialized skills, which is very hard on young people in particular. Black youths (between the ages of 16-24), suffer an unemployment rate of 25%. When you combine an un-skilled population, with a government who administers an astonishing lack of attention to businesses just starting up, and a major decrease in consumer spending, the result is a major spike in unemployment rates.
There is little to no incentive for a person or company to open up a new business. Here in the U.S.A, there are so many taxes that come along with being a new business that few people want to take up the endeavor. A dearth of new businesses starting up each year directly contributes to a decrease in the amount of people being employed. The government has focused way too much on existing companies and has focused on helping out these already surviving corporations. Unfortunately this robs businesses that have just started up the help they so desperately need. And it’s these new businesses that have the highest potential for growth. While it’s true that a third of all new business fail in the first 2 years, and half fail in the first 5, the rest are very likely to have rapid growth. This simple concept has seemingly failed to reach the minds of politicians across the U.S.A. A very telling stat is that in 1999 4.7 million jobs were created by startup businesses compared to 2.7 million new jobs created by startups in 2012 (Chau). Another crucial part of the economy not receiving nearly enough attention by the government is small businesses. As a matter...