| During the 1930s, the Great Depression plagued | | | | It all goes back to the production possibilities model that |
| Americans with a 25% jobless society. At that time, | | | | is often spoken about by economists. Typically, it will |
| nearly one-third of the U.S production capacity was | | | | graphically create a curve that displays the different |
| sitting idle. Since then, Americans have faced a number | | | | combinations of goods and services that our society |
| of smaller hits to the economy; the most recent in 2001 | | | | can produce in a fully employed economy. In other |
| (not including 2008!). In that year alone, unemployment | | | | words, if everybody has a job, how much can we |
| increased by about 2 million workers. | | | | potentially do, as a whole, to improve the quality of life |
| Why is unemployment so devastating to an | | | | in a nation by providing more goods and services. |
| economy? | | | | And, again, from an economic standpoint- the more |
| Certainly the U.S. isn't the only country that faces | | | | goods and services produced, the lower the cost to |
| these hardships. Since 1995 there have been several | | | | us! |
| larger nations that have faced difficult times of | | | | Unemployment kills an economy because of the |
| increased unemployment, including Japan, Argentina, | | | | missed opportunity of more output! And that output will |
| South Korea, Mexico, and Germany. Unemployment | | | | make more goods and services available to the |
| for economies is a global issue! We should all be | | | | average American, which as a whole will bring down |
| concerned. | | | | the cost of those goods and services! |
| Have you even wondered as you've listened to | | | | Does unemployment effect the employed? |
| political debates or new reports why a huge loss in | | | | Absolutely! Be concerned and be aware of who you |
| jobs is such a big deal to a nation? | | | | put in office for this reason; we want individuals who |
| The quick answer might be that you people suffer in | | | | know and understand economics because that will |
| financial hardship, or that the economy just plain won't | | | | directly impact our lives. |
| be as strong. But why? | | | | |