I’m working on a macro economics discussion question and need an explanation and answer to help me learn.
I want to write in your own words about What effect does the payment of government unemployment benefits have on the unemployment rate? On the severity of recessions? Do you think that people should be allowed to receive unemployment benefits for 99 weeks?
An extremely good one-paragraph would be a minimum of eight full lines. Do not use any outside resources. I have uploaded the PowerPoint slides as resources for you to use.
Also, I want you to write a short response to two posts.
Unemployment remains an ongoing problem for many countries around the world. Many countries have tried to solve this problem by giving monetary benefits to unemployed people. Over the past few decades, this has become a common practice in several developed countries. These programs are designed to help the unemployed find new jobs and reduce the number of people reliant on government benefits. However, these programs aren’t perfect and can have some negative effects. The main reason why unemployment benefits are given to unemployed workers is so that employers don’t get pushy with employees. Employers unwilling to take a chance on a jobless person will be much more willing to hire someone with a regular job. This is because an unemployed person is likely to claim that any job is better than no job. Furthermore, it’s unlikely an employer will feel pressured to as low a wage as possible when hiring an unemployed person. These benefits mean that a government can get extra work done for little cost. However, this isn’t a perfect solution; it can be difficult for workers receiving unemployment benefits to find suitable new jobs.
When the government makes unemployment payments to unemployed people, the unemployment rate rises. As so many people will try to get the payment of government unemployment benefits. Although this was very helpful for so many people who lost their jobs, especially in difficult circumstances such as the Coronavirus crisis in 2020. But that affects the economy badly. There was a recession at that time. The government’s payment helped so many people to live. Although this payment helped these people to survive it did encourage so many of them to stay unemployed for a longer time. I think there should be limits on the payment of government unemployment benefits. The 99 weeks, which is equal to 693 days, is very high to receive unemployment benefits. When people stayed unemployed for a long time it becomes more difficult for them to find a job. Also, when unemployment is very high there will be fewer people paying taxes. That means the government will get less money to spend. Therefore when more people go to work, the economy will grow healthier and faster. So unemployment benefits are good for the economy if they are limited in amount and time.