Unemployment Rate in the United States
The Resolution to Raising the Unemployment Rate in the United States
There are a lot of things in life that are not guaranteed or secure, therefore people should live their life to the best of their ability. Everyone wants the feeling of job security, but the reality is there is none. The rising unemployment rate amongst the United States citizens has been a major problem for a few years now that is greatly affecting our economy. The problem of the rise in the unemployment rate in the U.S can be solved by big business’ creating more jobs in their companies, banks approving more business loans for small businesses, and the government giving out stimulus packages to the people to help boost the economy. This is a problem that must be solved if the United States wants to move forward in a better economy.
The spike in unemployment has pushed some private sectors to create more positions within their company, but it still isn’t enough to improve this difficult time the U.S. is facing. Irwin and Montgomery (2010) reported “private employers added only 83,000 jobs in June, the government said Friday, too few to keep up with growth in the working-age population” (p. 1). The employment rate is not getting better, but it is dropping at a slow gradual rate. Americans have practically given up on joining the labor force altogether, which has made the unemployment rate fall to 9.7 from a 9.5 percent (Irwin & Montgomery, p. 1). The government has set out plans to help the economy, but there hasn’t been much improvement. In fact it seems that it is weakening versus getting stronger. According to Irwin and Montgomery (2010), “the net gain of 100,000 jobs is in the same ballpark as the number of new jobs needed every month just to keep up with growth in the labor force, but it is not enough to reduce the unemployment rate” (p. 1). This shows that the government is trying to create and develop a solution to the problem; it just doesn’t seem to be progressing as it should.
The government is getting more into debt instead solving the problem. Senate Minority Leader Mitch McConnell states in response to the latest job reports that, “the two things that are growing fastest in this Democrat economy are the size of the federal government and the crushing burden of the national debt” (as cited in Irwin & Montgomery, 2010, p. 2). Debt can always be a hard thing to get out of for anyone so anyone can imagine the amount of debt the government is in. The stock market has fallen over time and put that together with government deficit it is a frustrating situation. There are some policies that could improve the employment situation, but would raise the deficit however the deficit won't come down until the jobless rate decreases (Irwin & Montgomery, 2010, p.1). It seems that there are many factors playing a part in our bad economy. The government has to figure out the proper steps to take to get the Americans the help needed.
An idea that some people have to help the economy is small business loans for entrepreneurs with small business ideas. The banks are not approving loans like they were before the economy went bad. This is mainly due to them being afraid of losing money because people cannot afford their mortgages, car loans, or personal loans like they use to. Currency is not flowing like it was before the turn of economy. Small businesses make up two thirds of America’s new jobs and they also depend on bank loans, which have fallen off 17 percent since last year (Foroohar, p.1). Jobs need to be created in order to stimulate the economy. Consumers cannot spend money if they are not making any money. Moberg (2010) reported, “University of Massachusetts economist Robert Pollin proposes creating 18 million new jobs by 2012 with public investment…