Unemployment

Is unemployment inherently bad for an economy? The answer to this question seems obvious--yes--but in economics no question can be answered so simply. There is an old saying in economics that has very few exceptions. It says that for every economic loser there is a winner, and for every economic winner there is a loser. The loser of unemployment is obvious. The people that don’t have jobs create a lot of social and economic …

…in a recession, then cyclical unemployment will take effect, and the results of high cyclical unemployment can be very harmful. When I did my research, I found that cyclical unemployment doesn’t have any beneficial qualities that outweigh the negative qualities. I no longer put as much faith in the idea that for every economic loser there is a winner. When people are unemployed because of a recession, it’s a scenario that hurts everyone.