Thursday, April 18, 2013.
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This cartoon explains
a lot of what the last part of our macroeconomic class has been about; how
people are not necessarily just unemployed but those who are employed are often
under-employed for what they are qualified to do. This touches on the concept of
economics as a whole as it takes a look at the unemployment rate and the reason
for unemployment and how it can be explained. This also says something about our
economy as a whole because with the people who are more qualified taking the
jobs that require less qualification that is leaving fewer jobs available for
those who do not have the qualifications even for only that job.
There
are many reasons for unemployment. One thing to keep in mind is that as the
gross domestic product (GDP) goes up that unemployment goes down, however there
is generally about a six month lag. The GDP is affected by many things; some of
the main things that affect it include: the government expenditures and taxes as
well as consumption, exports and imports. In essence this means that unemployment
is much more complicated than people being lazy and not getting jobs. GDP is
also affected by the prices and quantities of items that are produced which is
generally much easier for people to see how that would be related. Consumption
is the largest factor on GDP and therefore unemployment.
GDP
is the output of the economy. The output it produced by the labor force. To
find the unemployment rate you divide the number of unemployed, which by definition
means that they do not have a job but are actively seeking one, and divide this
by the labor force, which consists of the unemployed and the employed. There
are also people who are unemployed but are not included in the unemployment rate
because they are no longer looking for a job for some reason. Another thing to
keep in mind when thinking about employment though it is not taken into
consideration is that there are people who are part-time employed for economic reasons
and those reasons can vary person to person.
In
all this cartoon shows how unemployment and employment can be different things
for different people, just because someone is employed doesn’t mean it is what
they are capable of and the same for someone who is unemployed it is not
necessarily their fault. This cartoon also illustrates how the economy’s state
can have a big effect on everyone because by the person with the better education
having to take the job that is below what they are capable of doing that is
leaving those jobs unavailable to those who cannot do things that require more
education.
http://www.econosseur.com/economic-jokes.html
Amber Cook
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ReplyDeleteGDP and Unemployment Response
ReplyDeleteBy: Chandler Scott
This cartoon is able to be related back to my article analysis of the article, “Higher Education: The Next Asset Bubble.” While the overwhelming feeling of college as a necessity has risen within our country, the amount of over-educated people in our country has risen. With the recession our country is currently in, jobs have become scarce. This, in turn, has made people who have graduated college accept jobs that they are over qualified for. However, because so many people are going to college to have a degree to say they are “qualified,” the careers that do need college graduates with degrees are getting taken faster because more and more people are becoming “qualified” for the same positions. So the people that do not have college degrees are left unemployed because the college graduates are have more credentials and usually will get the position first.
Reasons for unemployment vary greatly due to the country’s economic status. As gross domestic product rises, the unemployment rate falls. Unemployment, although involves the lazy people in the world, also involves a much more developed and complicated cycle. As described above, the people that are higher educated usually get the job first, but the job they get is not always one they are skilled for but rather they are over-qualified. GDP is affected by a product’s market, the prices and quantities of items that are manufactured. Consumption, being the largest factor of GDP, also is a major reason for the unemployment rate in the country’s economy.
This cartoon examines how the two different worlds of a college graduate with a degree combine with how a person who has not gone to college are able to get jobs in the same fields. Just because someone has a job and is employed by a person or company, it does not mean that they are using their degree to the fullest that they are capable. On the other hand, people who are unemployed may be unemployed for many reasons and it is not necessarily their fault. Our country is in a recession and therefore the job market is slim for people with degrees and even more so for people without. Also, by people who are educated taking jobs that are less than what they are capable of being hired for they are, in turn, taking jobs away from those people who do not have a college degree and cannot be hired for jobs that need a higher education to be qualified.
This vicious cycle occurs of college graduates with degrees not being hired for jobs they are qualified for because of all the other college graduates with degrees there are in the same field. So, these graduates go to jobs that they are overeducated for just to have some sort of income. This stunts the job market because now the people, who are unemployed, for one reason or another, cannot get jobs. This is because all of the people who are graduates with degrees become underemployed at careers that other people, possibly those without a degree, are capable of reaching.