Unemployment: Special Economic Zones Essay

1823 words - 8 pages

Jobless citizens of America have collected more than half a trillion dollars in unemployment benefits over the past five years. (Luhby) Unemployment affects everyone, even if they themselves are employed. (Bolden-Barrett) The unemployment rate of the United States is 6.3%. Pennsylvania had an unemployment rate of 7.5% in 2013. (Taborda) Unemployment affects taxes, wages, the economy, crime rates, and businesses. As a result of all the areas affected by unemployment, it is now a top priority of the US government. (Riffkin) Even so, implementing special economic zones in the United States will help lower unemployment rates. (Allix)
When a working person is laid off, or if a person lost their job for reasons out of their control, they receive unemployment compensation. These benefits are usually 40%-50% of what the now unemployed person made. They receive these benefits to help meet their basic needs of life while searching for a new job. Compensation for unemployment lasts about 26 weeks on average. Unemployment is paid for by taxes. (“Pennsylvania Unemployment Benefits”)
$520 billion dollars is the cost of unemployment insurance programs, according to Congressional budget reports. Unemployment systems cost the taxpayers. In November of 2009, the Federal Government allowed the unemployed to receive benefits for 99 weeks. (Luhby) Due to this large amount of money used for unemployment benefits, businesses, especially small business, are affected profoundly. This raises the federal and state taxes that a business has to pay, and stops the businesses from expanding. As the businesses have to start making money cuts to uphold their establishments, layoffs and lower wages are results. People who are out of work, or make low wages start to spend less and less. Less spending affects the community’s economy, and then slowly starts to influence our nation’s economy. (Bolden-Barrett) In October 1929, the stock market crashed. The United States economy was profoundly affected. This causes a rapid increase in the crime rate. The unemployed felt the need to use crime as a means of survival. (“Social and Cultural Effects of the Depression”)
Most recently, the government has tried to help the unemployment rate by extending benefits for unemployment that expired on December 28, 2013. This new program is called Emergency Unemployment Compensation (EUC). For most people, this is benefits paid for by the federal government that last about an extra 14 weeks, on top of their normal unemployment benefits. (Doyle) In Pennsylvania, there is a maximum of 43-63 weeks of unemployment compensation available. However, with the added extensions, this will cost taxpayers and businesses. Allowing these extensions can cause the unemployed to gain hopeless, which may make people take advantage of the extension system. (“Maximum Duration of Unemployment by State”)
The government uses the fiscal and monetary policies to lower unemployment. The fiscal policy is used by the...

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