History and Social Science, Part 2
Question 1: What are some of the benefits of unemployment?
Answer 1: The major benefit of unemployment is that it has a cooling effect on the economy and tends to restrict general inflation. Many economists feel that given the scarcity of natural resources and the environmental pollution associated with rapid economic growth, it is not possible to continue increasing Gross Domestic Product year after year. Unemployment is a restraint to such growth.Welfare economists argue the burdens of slowing the economy should not fall on the poorest and least able to cope members of society. They believe improved technology and planned economic growth that considers environmental factors will allow modest, healthy growth with low unemployment.In any economy there are a certain number of the work force moving from job to job and seeking works they consider more appropriate to their skills. This common type of unemployment is termed frictional unemployment.
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Question 2: Why does unemployment occur only in capitalism?
Answer 2: Unemployment in a free market situation occurs only in capitalistic economic systems. In Fascism, Socialism, and Communism the factors of production, including labor, are under the direct control of the state. Historically, precapitalist societies such as feudalism formed the basis for the economy. In this case the serfs were all employed (if able) by dictate of the Lords. More primitive societies such as tribes view the entire group as part of one family, and take responsibility for insuring all are cared for adequately.Debate continues on the necessary and appropriate action of governments in curbing unemployment. Liberal and welfare economists often call for a more active role for government in increasing employment, while more conservative analyst feel government intervention exacerbates the problem by its interference. Laws forbidding strikes and layoffs are cited as inappropriate government action to solve unemployment.
Question 3: What are some types of unemployment?
Answer 3: There are several types of unemployment recognized by economists. Cyclical unemployment results in recessionary periods of the business cycle when aggregate demand falls. When there is a major change is structure or skill level of an industry unemployment may result. The advent of computers for word processing made typewriters virtually obsolete, causing those who make, sell, and repair typewriters to be unemployed. Changes in the market due to shifting demand for certain products affect the employees who produce those goods. If demand for typewriters falls, demand for labor involved with typewriter production and sale also drops. This is also an example of unemployment caused by technological advances. Another type of unemployment is seasonal unemployment where productive activity in an industry is limited to certain times of the year. Commercial harvesting of oysters is such a seasonal position.
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