1. To what extent is unemployment rate an accurate measure of the standard of living?
EQ 4-3

2. What is the proper role of government in dealing with unemployment?
EQ 4-8

3. To what extent can the statement, “nothing without cost” be applied to government policies dealing with unemployment?
EQ 4-10

4. Unemployment rate
The unemployment rate is used to measure the overall health of the economy.
In general a high unemployment rate indicates an unhealthy economy.
The BLS will conduct a random survey to determine the unemployment rate.
The are 3 classifications of people in the country.
Employed- members of the labor force who have jobs.
Unemployed- members of the labor force who don’t have jobs but are looking for work
Not in the labor force- those who are eligible to be in the labor force but don’t have jobs and are not looking for jobs.
This includes:
those who have stopped looking
full time students,
disabled
retired
those prevented by family responsibilities.

5. Unemployment rate does not take into consideration two important groups of people:
1. Discouraged workers or in other words those who have given up looking for work. Some say that if we counted these people in the unemployment calculations the our real unemployment rate is 17%.
2. Involuntary part-time workers are not counted as part of the unemployment rate. These are the people who would like full time jobs but can only get part-time hours. They are partially employed.

7. U.S. Unemployment rate October 2008 Adult population (234.4 million)TC
Based on the data below and using the equation provided calculate the unemployment rate for October 208
U.S. Unemployment rate October 2008
Employed (145.3 million)
Unemployed (9.5 million)
Not in labor force (79.6 million)
Adult population (234.4 million)
Unemployment rate = ______________________ x 100 =
9.5 million
6.1%
154.8 million

11. Our employment rate is about 3.0% higher
Economic cost of Unemployment
Lost of potential output.
Loss of income by workers
The unemployed do not contribute to taxes and in fact usually collect unemployment insurance
If the number of unemployed becomes too large, money from other programs must be shifted to unemployment programs or taxes are raised on those who have jobs.
June 2013 unemployment is 7.6%
Our employment rate is about 3.0% higher
Cyclical unemployment is what we need to concern ourselves with.
But employment for the sake of employment and not for production could cause a problem.
Production (GDP) and unemployment have an inverse relationship.

13. Here is my job plan in 2008
Hire all unemployed people
The government pay each person $0,000 to dig holes and fill them back in.
2008, there were 9.5 million unemployed – the total cost of my job plan would be $570 billion.
The stimulus package in 2009 was $803.1 Billion.
My plan is 70% of the cost and brings unemployment down to zero. The extra 30% could be used to pay for capital or discouraged workers
Would you vote for my plan? Why or Why not?
Don’t fall into the TRAP!!!!!!!

14. President Obama on Jobs
Romney on Jobs

15. If you break it down there are three main interpretations of the government’s role in terms of job creation.
They can “find” you a job.
They can create jobs
They can pass laws that create an environment for the free market to create jobs.

16. Directions:
Your responsibility is to create a “Jobs plan” you must choose 3 of the 17 options provided.
First, review the 17 options provided and their short descriptions. If you need more information you may ask the teacher or access the internet via your Iphone.
Next, assess all 17 option using the words- Top, OK, or Undesirable. These words are intended to give you the opportunity to quickly assess the options without splitting hairs. Some debate and discussion between group members will be in order. You are entitled to your personal ideas but the group must make a decision.
When ranking you should consider the (costs and benefits) but you do not need to write these ideas down on the paper.
Now, choose your top 3 options. For the three options please fill out the benefits and the costs.
Finally, each member of the group needs to write a short paragraph that describes their plan and the associated costs and benefits.
Will go up to the board and put a check next to each option that they selected.

17. To pass the option a super majority of the group must agree.
(4/5)
Note: this cannot prevent the assignment from being completed.
Other factors to consider. . .
Can the policy be accomplished by the free market. If so, then why isn’t it occurring?
Also
Is the policy an example of the government finding jobs? Creating jobs? Or creating an environment for the free market to create jobs?

18. Rank Solution Description + -
Government vote to extend payments to those unemployed
Extend unemployment benefits
People take home more money and give less to the government
Cut income tax
Cut payroll tax
For employer
Employers pay less taxes on what the salaries of their employees
Increase the G spending in GDP to boost aggregate demand
Increase government spending
Increase money supply
More money for people and government to borrow
Fund education, skills development, and technology
Loans to people to increase education and the skills of the workforce

19. Rank Solution Description + -
Fund Reduced pay programs
Encourage businesses to cut hours of employees and to hire more people. Reimburse the employees for their lose wages
The government can programs to produce goods and services as opposed to hiring private firms
Develop government work programs
To create jobs
Cut the number of available workers, leaving more work for citizens already living in the United States
Restrict legal immigration
Cut the tax on people who make money on their stocks. Intended to promote more investment and encourage growth of businesses.
Reduce capital gains tax
Tax credit for employers who hire long-term unemployed workers
Cur taxes or provide a subsidy to employers who hire workers for long term positions as opposed to temporary jobs
Intended to incentivize companies to hire teenagers
Subsidies to companies that hire unemployed youth

20. Rank Solution Description + -
Create laws to prohibit employers from discriminating against the unemployed
Increase laws, investigations, and penalties for those who discriminate against those who are unemployed
Don’t do anything allow the free market to operate
Let markets operate freely and they will allocate resources to their most useful place. This includes labor.
Create policy that promotes GDP growth
Remove restrictions and regulations that prevent firms from producing. An increase in production will lead to an increase in the need for labor.
Bailouts
Provide failing firms with bailouts in order to prevent closings and in order to protect jobs.
Insourcing
Subsidize firms that keep jobs in our nation and taxes companies that outsource the jobs
Other ideas

21. To what extent is unemployment rate an accurate measure of the standard of living?
EQ 4-3

22. What is the proper role of government in dealing with unemployment?
EQ 4-8

23. To what extent can the statement, “nothing without cost” be applied to government policies dealing with unemployment?
EQ 4-10