Effects of Losing a Job Essay

Effects of Losing a Job Essay.

Having a job is one of the reasons for a person to be stabilized, especially when you are having or planning for a family. When one has a job, you make money that can sustain your needs or wants and provide everything the person and whole family’s desire. But what if all of a sudden, lose the job? What would be the effects of losing one’s job to you and to the family? The effects of losing a job can affect the whole family a lot.

The most immediate and devastating impacts of job loss are loss of normal income, grief and deep anxiety, inability to pay rent, and academic trouble for the children.

The most immediate and devastating impact of job loss on the family is normally income. Although television shows that profile people with significant savings to draw from when they become unemployed, most families have no emergency savings to use if they become jobless. This means that not only are luxuries out of the question for the family, but often even simple things like food become luxuries that the family simply cannot pay for it.

As a result, many families turn to food storerooms or state assistance programs just so that they can eat. It is this struggle for the simple essentials in life that leads to added worries.

Losing job can experience a sense of grief and deep anxiety. This is because in some cases they feel betrayed, cast aside and lost a piece of being, especially if they have been employed in the same position for a long period of time. Grief and anxiety can cause a person to change emotionally, which in turn can cause the family members of the individual to also become consumed with nervousness. The caused by the anxiety can lead to the end of a marriage or changes in the relationships between people in your place. Some families, however, are capable of working through the job loss and becoming stronger as a family. Depending on how those people communicate with one another during the period of unemployment.

Life is about living paycheck to wages, and once the paycheck is no longer active, the person and his family often cannot afford to pay the rent or mortgage. This may mean that the family ends up losing a home to foreclosure. They are expelled by their landlord for incapability on paying their rent. Unfortunately, since the family cannot afford to pay the rent or mortgage, the family most likely cannot afford to move into another residence. Many families end up homeless, while others may have the selection of moving in with relatives or friends, if they are fortunate. Moving also influences the education of children.

When a family is relocated from their home, the children are often required to change schools. The children will commonly begin to falter in their academic endeavors because changing schools, especially in the middle of a school year, has big a negative influence on children. This is because children are forced to give up their close ties to friends. They must enter to unfamiliar learning society where they know no one and the educational environment that they have become comfortable to completely changes.

When a person loss a job, the person will not only lose their self-being, but also every member of the whole family will be influence and be affected. Losing one’s job can impact of the whole family’s normal income, grief and deep anxiety, inability to pay rent, and academic trouble for the children. As a result that may lead to tension on the relationship to the family and in marriage. The person will not feel comfortable to one’s stabilized because of joblessness.

Effects of Losing a Job Essay

The Works Progress Administration Essay

The Works Progress Administration Essay.

The American government, and therefore its taxpaying citizens, get nothing out of the welfare system. When government financial support came into existence during the 1930’s, this was not the case. Roosevelt, in an attempt to curb the effects of the depression, created the New Deal. The New Deal was a series of economic programs enacted in the United States between 1933 and 1936. They involved presidential executive orders or laws passed by Congress during the first term of President Franklin D. Roosevelt. The programs were in response to the Great Depression, and focused on what historians call the “3 R’s”: Relief, Recovery, and Reform.

That is, Relief for the unemployed and poor; recovery of the economy to normal levels; and reform of the financial system to prevent a repeat depression.

Of all of Roosevelt’s New Deal programs, the Works Progress Administration (WPA) is the most famous, because it affected so many people’s lives. Roosevelt’s vision of a work-relief program employed more than 8.

5 million people. For an average salary of $41.57 a month, WPA employees built bridges, roads, public buildings, public parks and airports.

Under the direction of Harry Hopkins, an enthusiastic ex-social worker who had come from modest means, the WPA would spend more than $11 million in employment relief before it was canceled in 1943. The work relief program was more expensive than direct relief payments, but worth the added cost, Hopkins believed. “Give a man a dole,”(a dole is modern day equivalent to the word “handout”) he observed, “and you save his body and destroy his spirit. Give him a job and you save both body and spirit”.

The WPA employed far many more men than women, with only 13.5% of WPA employees being women in the peak year of 1938. Although the decision had been made early on to pay women the same wages as men, in practice they were consigned to the lower-paying activities of sewing, bookbinding, caring for the elderly, school lunch programs, nursery school, and recreational work. Ellen Woodward, director of the women’s programs at the WPA, successfully pushed for women’s inclusion in the Professional Projects Division. In this division, professional women were treated more equally to men, especially in the federal art, music, theater, and writers’ projects.

When federal support of artists was questioned, Hopkins answered, “Hell! They’ve got to eat just like other people.” The WPA supported tens of thousands of artists, by funding creation of 2,566 murals and 17,744 pieces of sculpture that decorate public buildings nationwide. The federal art, theater, music, and writing programs, while not changing American culture as much as their adherents had hoped, did bring more art to more Americans than ever before or since. The WPA program in the arts led to the creation of the National Foundation for the Arts and the National Endowment for the Humanities.

The WPA paid low wages and it was not able to employ everyone — some five million were left to seek assistance from state relief programs, which provided families with $10 per week. However, it went a long way toward bolstering the self-esteem of workers. This sort of government aid not only helped the people, but it also helped repair crumbling infrastructure and create new facilities, highways, and projects that bettered the livelihood of the American people.

By March, 1936, the WPA rolls had reached a total of more than 3,400,000 persons; after initial cuts in June 1939, it averaged 2,300,000 monthly; and by June 30, 1943, when it was officially terminated, the WPA had employed more than 8,500,000 different persons on 1,410,000 individual projects, and had spent about $11 billion. During its 8 year history, the WPA built 651,087 miles of highways, roads, and streets; and constructed, repaired, or improved 124,031 bridges, 125,110 public buildings, 8,192 parks, and 853 airport landing fields.

Conveniently in our modern era, America meets the two requirements that would suit a reinstatement of a program like the WPA perfectly; a large percentage of the population that is in need of aid and a widespread crumbling of transportation infrastructure. The current welfare system is to pay out sustenance money to people who can’t or refuse to make it themselves. The people live off the monthly payments, which provides little motivation to go out and find work, only to be paid slightly more than welfare is giving you for nothing. The government gets very little for their money. If a new WPA program were to be set up, it would allow those wh are healthy enough to work, a job, to earn their living.

This program would work for many reasons. Our transportation infrastructure is crumbling, and the Department of Transportation estimates that it may take 1 trillion dollars to fully repair it. This government funded work force could easily learn to pave roads and pour cement; some of them may even know the trade already. Although this system would cost more than simply paying out welfare, the government would save money due to the fact that they would no longer need to hire professional contractors to perform tasks that anybody can learn in two hours. Meanwhile, this new giant work force would be repairing a large portion of the infrastructure. This is not just a short term solution. Due to the person being required to labor for their money, it would motivate people to be actively searching for a better, easier job. This motivation would stimulate the workforce, which would lead to harder workers and better innovators.

If this work program does work, as it did back in the great depression, the work force will eventually find work and create jobs. Our infrastructure would be modern and well maintained, which would create a path that would allow economic growth. In theory, if this program does work, the partakers of this program would grow increasingly smaller as the economy improves. The WPA helped the United States get out of the great depression, and it would help the United States get out of our current recession, and back on the path of success.

The Works Progress Administration Essay

Business Cycle Essay

Business Cycle Essay.

Four Phases of Business Cycle Business Cycle (or Trade Cycle) is divided into the following four phases :- 1. Prosperity Phase : Expansion or Boom or Upswing of economy. 2. Recession Phase : from prosperity to recession (upper turning point). 3. Depression Phase : Contraction or Downswing of economy. 4. Recovery Phase : from depression to prosperity (lower turning Point). The four phases of business cycles are shown in the following diagram The business cycle starts from a trough (lower point) and passes through a recovery phase followed by a period of expansion (upper turning point) and prosperity.

After the peak point is reached there is a declining phase of recession followed by a depression. Again the business cycle continues similarly with ups and downs. Explanation of Four Phases of Business Cycle The four phases of a business cycle are briefly explained as follows :- 1 . Prosperity Phase When there Is an expansion of output, Income, employment, prices and profits, there Is also a rise In the standard of living.

This period Is termed as Prosperity phase. The features of prosperity are 1. High level of output and trade. 2. High level of effective demand. 3. High level of income and employment. Rising interest rates. 5. Inflation. 6. Large expansion of bank credit. 7. Overall business optimism. 8. A high level of MEC (Marginal efficiency of capital) and Investment. Due to full employment of resources, the level of production Is Maximum and there Is a rise In GNP (Gross National Product). Due toa high level of economic activity, It causes a rise In prices and profits. There Is an upswing In the economic activity and economy reaches its Peak. This is also called as a Boom Period. 2. Recession Phase The turning point from prosperity to depression is termed as Recession Phase.

During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits. The businessmen lose confidence and become pessimistic (Negative). It reduces investment. The banks and the people try to get greater liquidity, so credit also contracts. Expansion of business stops, stock market falls. Orders are cancelled and people start losing their Jobs. The increase In unemployment causes a sharp decline in Income and aggregate demand.

Generally, recession lasts for a short period. 3. Depression Phase When there Is a continuous decrease of output, Income, employment, prices and profits, there is a fall in the standard of living and depression sets in. The features of 1. Fall in volume of output and trade. 2. Fall in income and rise in unemployment. 3. Decline in consumption and demand. 4. Fall in interest rate. 5. Deflation. 6. Contraction of bank credit. 7. Overall business pessimism. 8. Fall in MEC (Marginal efficiency of capital) and investment. In depression, there is under-utilization of resources and fall in GNP (Gross National Product).

The aggregate conomic activity is at the lowest, causing a decline in prices and profits until the economy reaches its Trough (low point). 4. Recovery Phase The turning point from depression to expansion is termed as Recovery or Revival Phase. During the period of revival or recovery, there are expansions and rise in economic activities. When demand starts rising, production increases and this causes an increase in investment. There is a steady rise in output, income, employment, prices and profits. The businessmen gain confidence and become optimistic (Positive). This increases investments.

The stimulation of investment brings about the evival or recovery of the economy. The banks expand credit, business expansion takes place and stock markets are activated. There is an increase in employment, production, income and aggregate demand, prices and profits start rising, and business expands. Revival slowly emerges into prosperity, and the business cycle is repeated. Thus we see that, during the expansionary or prosperity phase, there is inflation and during the contraction or depression phase, there is a deflation. Knife Edge Instability Roy Harrod is credited with getting twentieth-century economists thinking about economic growth.

Harrod built on Keynes’s theory of income determination. The Harrod-Domar model (named for Harrod and Evsey Domar, who worked on the concept independently) is explained in Towards a Dynamic Economics, though Harrod’s first version of the idea was published in “An Essay in Dynamic Theory. ” Harrod introduced the concepts of warranted growth, natural growth, and actual growth. The warranted growth rate is the growth rate at which all saving is absorbed into investment. If, for example, people save 10 percent of their income, and the economy’s ratio of capital to output is four, the economy’s warranted growth rate is . percent (ten divided by four). This is the growth rate at which the ratio of capital to output would stay constant at four. The natural growth rate is the rate required to maintain full employment. If the labor force grows at 2 percent per year, then to maintain full employment, the economy’s annual growth rate must be 2 percent (assuming no growth in productivity). Harrod’s model identified two kinds of problems that could arise with growth rates. The first was that actual growth was determined by the rate of saving and that natural growth was determined by the growth of the labor force.

There was no necessary reason for actual growth to equal natural growth, and therefore the economy had no inherent tendency to reach full employment. This problem resulted from Harrod’s assumptions that the wage rate is fixed and that the economy must use labor and capital in the same proportions. But although they disagree about how quickly. And virtually all mainstream economists agree that the ratio of labor and capital that businesses want to use depends on wage rates and on the price of capital. Therefore, one of the main problems implied by Harrod’s model does not appear to be much of a problem after all.

The second problem implied by Harrod’s model was unstable growth. If companies adjusted investment according to what they expected about future demand, and the anticipated demand was forthcoming, warranted growth would equal actual growth. But if actual demand exceeded anticipated demand, they would have underinvested and would respond by investing further. This investment, however, would itself cause growth to rise, requiring even further investment. Result: explosive growth. The same story can be told in reverse if actual demand should fall short of anticipated demand.

The result then would be a deceleration of growth. This property of Harrod’s growth model became known as Harrod’s knife-edge. Here again, though, this uncomfortable conclusion was the result of two unrealistic assumptions made by Harrod: (1) companies naively base their investment plans only on anticipated output, and (2) investment is instantaneous. In spite of these limitations, Harrod did get economists to start thinking about the causes of growth as carefully as they had thought about other issues, and that is his greatest contribution to the field.

Business Cycle Essay