In Search of a General Model of Unemployment

By Kooros, Syrous K. | Advances in Competitiveness Research, Annual 2008 | Go to article overview

In Search of a General Model of Unemployment


Kooros, Syrous K., Advances in Competitiveness Research


EXECUTIVE SUMMARY

This study has identified macroeconomic variables with combined significant effects on unemployment movements, and explained the nature of these movements as an aid to policy makers and economists in the forecasting process. A step-wise multiple regression analysis indicated that variables of GDP, discount rate, budget deficit, inflation, and hourly wage contributed significantly to unemployment.

Key Word: Unemployment Theory

INTRODUCTION

All economies confront, at least, two major and opposing economic problems: economic expansion, whose persistence will lead to inflation, and economic contraction, leading to recession, high unemployment and economic stagnation. While some economists believe that inflation is the worst economic evil, (granted that inflation erodes the purchasing power, and creates uncertainly in investment decisions), however, unlike unemployment, inflation, (excluding hyper inflation) is not the impetus for sociopolitical problems, such as violent crimes, family disunity, indignation of human spirit, and political uprising. Inflation seems to be more under the public's control, but unemployment or recession is not. Unemployment is the cause of poverty and income dispersion, but inflation is not.

The Great American Depression of 1929-1934 left millions unemployed. Starvation, crime, and social deterioration followed in its wake and decimated much of our culture. At some points, unemployment has left families defenseless and at the mercy of the federal government's social programs. High unemployment during the early 80s swelled the welfare roles. Lack of jobs has caused deterioration of quality of life for many communities and the migration of families to different geographic areas. Likewise, it has both imparted the politicians and thus the course of our political culture (Kooros and Halpet, 2000, p.143).

During the inflationary cycle a dichotomous consumer behavior is observed: one, to restrain consumption expenditures in retaliation to inflation, with the hope that the future prices will plummet to a reasonable level. The other, is to accelerate speculative purchases to wedge against consistent future price hikes. High levels of unemployment have been observed frequently in the American economic scene, with ultimate hardship to the American labor force. Although political economic cycles refer to the use of economic stimuli by the government before elections, some economists, utilizing the historical data of economic cycles, are of the opinion that the great economic ills, including cyclical unemployment and other macroeconomic variable have been attributed to Republican presidencies, with the exception of President Carter's. His stagflation, and destruction of a strong democratic pro-western modern ban, (which also protected the Straights of Hurmoz for the safe passage of oil, which the United State now pays $ 49. 1 billion annually), again ill- advised by the British, replaced by the Moslem fanatics in 1979, are the hallmark of his presidency. The Republican presidency has also been accused of having weak national economic policies and international political policies, except in utilizing the U.S. strong military force especially against those countries that provide 50 percent of the 20 million daily barrels of oil, (MBPDs) for US oil consumption, i. e. 40 percent of the world oil production, for a nation which comprises of 5 percent of the world's population, (Badeaux and Kooros, 2005). The Republicans attribute the economic downturn as a carry over of the previous administration. If true, George Bush, St., antecedent to President Reagan, seems to refute this claim as during his presidency the economy experienced a recession. In general, during the Republican presidencies, the economy has faced high unemployment/recession; budget deficit; high interest rates, etc. (See Appendix A). …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

In Search of a General Model of Unemployment
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.