Wednesday, April 4, 2012

Solutions to Unemployment

Monetary Policy: When the Federal Bank takes out money from its reserve to support unemployed people by offering less taxes on borrowed money making it easy for them to start businesses and create more job opportunities.

Fiscal Policy: This is when the government encourages more spending and cuts taxes to encourage people to stimulate the economy and get more money pumped in and in a process, make the economy in need for more people to work.

Government Spending: The government will have to step up to spend huge sums of money on the economy if things are going to slowly and desperation comes at hand. This will create more job opportunities for the people by them having a capital base to work off and governmental jobs will be provided by public firms and sectors.

A real life example of the government taking full charge of unemployment can be seen in this article:
http://www.washingtontimes.com/news/2009/sep/27/solutions-what-should-be-done-reduce-unemployment/

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