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Two Reasons for High Unemployment

Posted in February 17th, 2012
Published in blogging

The Congressional Budget Office has noted in a recent report that the United States has experienced its longest period of high unemployment since the Great Depression of 1929-1930s. There are two big reasons for this. The first is that the federal government has been subsidizing the unemployed for longer and longer periods of time. With increased, longer-lasting unemployment benefits, some people have an incentive to stay unemployed for longer periods of time. Obviously, if the government pays people not to work, they will not work. If you are looking for work or affordable professional services like domestic violence charge Moab Utah, see our website now. The second reason is the high minimum wage rate, which pushes many young people and minorities out of the workplace. The point of taking a lower-paying job is to build work skills and show to an employer that you are able to be depdendent, consistent, and hard-working, even if your skills at the time you are first employed are not worth a lot in extra revenue to the business. But with higher minimum wage rates, people with lower skills are prevented from getting any jobs, and are forced to remain unemployed. Any minimum wage is inherently arbitrary, and anyone who is unable to provide value to an employer higher than the minimum wage will be left unemployed. Thus, is it any wonder more people are remaining unemployed for long, or turning to more direct ways to make money like Online sportsbook, daytrading, and other occupations where they can work independently?

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