Economics

Refer to the instruction.
Choose 1 topic from the 3 below and submit a 1-page essay.

1. How should governments deal with the high market concentration of banks/financial services firms and the global risk of banks being “too big to fail”
2. What is worse: persistent unemployment of more than 10% or annual Inflation of 5%?
3. International trade has delivered enormous economic benefits to all countries. It has also been blamed for significant job migration / elimination. Should governments intervene in global trade to protect jobs?

Please refer the below course work: https://drive.google.com/drive/folders/1nFn9zqptiN5Q81muoyfmHII6QiBzuela
https://1drv.ms/u/s!AjaPv6kEZ6pPgxyAj2HTnMLgjxnW?e=tFQFes

Task to do once you take my order:
1. Confirm me you can access to the course work in above link
2. Confirm me which topic you have chosen once you pick
3. Confirm me which part of theory you have used from the course work (at least ONE theory) in order to show professor that we have learnt something in classes.
4. Use any diagram to further explain if needed

ANSWER

Persistent Unemployment

The economic world faces a lot of challenges mostly in matters unemployment and inflation. Unemployment can be defined as the situation where people are looking for employment but cannot find any. Inflation is when the demands exceed supply thus prices have to be raised. The correlation that exists between unemployment and inflation is inverse meaning increase in unemployment causes decrease in inflation (Enih & Seraj, 2021). This paper will be discussing why persistent unemployment by more than 10% is worse than inflation of 5%.

Persistent unemployment rate causes economic overload. Every human being requires basic needs. In order to access them they require money. If one is unemployed, they depend on their working family members for provision (Inanc, 2018). This results in an economic strain on the working because every penny they earn is spent. In terms of inflation the impacts on economy are disadvantageous in the short run but advantageous in the long run. Inflation causes people to work harder in order to maintain their current standards of living (Enih & Seraj, 2021) 2021). This being the case unemployment in an economy is worse than inflation.

Persistent unemployment leads to higher crime rates. When people cannot acquire money in the legal ways, they tend to shift into illegal methods like theft to acquire it. When the society has higher crime rate the working environment is affected. This is because the labor force feels unsafe while working. Comparing this to a society that has an inflation rate of 5%, the labor force will instead feel motivated to continue working harder so that to keep up with the increasing inflation rate.

Conclusion

The statement that a persistent unemployment rate of more than 10% is worse than inflation of 5% is justified due the negative impacts that unemployment causes. It has been noted that increase in unemployment rate causes a corresponding decrease in economic growth. While increase in inflation causes corresponding increase in economic growth.

References

Enih, C. F., & Seraj, M. (2021). A Study on the Effects of Inflation and Unemployment on Economic Growth, Case Study of Turkey. Global Journal of Scientific and Research Publications (GJSRP), 1(8), 10-15.

Inanc, H. (2018). Unemployment, temporary work, and subjective well-being: The gendered effect of spousal labor market insecurity. American Sociological Review, 83(3), 536-566.