Unemployment
The first table by the US Bureau of Labor Statistics, which offers statistics on unemployment based on sex and age, does not present any surprising information. The unemployment rate in the table is nearly equal for men and women of similar age (U. S. Bureau of Labor Statistics, 2023a). However, taking a look at the second table reveals astonishing figures. The unemployment rate among the Black population is twice as high as among the White population: 6.0 and 3.0, respectively (U. S. Bureau of Labor Statistics, 2023b).
Furthermore, I was surprised to find out that the unemployment rate for the Asian population is lower than that for Whites: 2.2 versus 3.0. This fact may be explained by the willingness of the Asian population to engage in work that Whites do not want to do. As for Blacks’ high unemployment rate, it could be explained by their low access to education and, hence, a lack of skills required for many positions in the job market.
Possible explanations for the variations in unemployment over time include the overall economy and changes in the labor market. The economic changes involve production and demand, whereas labor market fluctuations include the availability of jobs (Mateer & Coppock, 2021). Unemployed people are those above 16, non-institutionalized, not in the military, and seeking a job (Mjmfoodie, 2009c).
Unemployment also varies depending on educational attainment and access to resources, which are lower in the minority population groups (Mjmfoodie, 2009d). Out of all racial groups inhabiting the USA, African Americans tend to be discriminated against more than others, which leads to a high unemployment rate. However, the disparity between males’ and females’ unemployment rates has shifted over time, signifying a positive evolution toward gender equality.
Inflation
Along with unemployment, other crucial aspects are undermining the economy. Low economic growth and unstable prices are among these issues (Mjmfoodie, 2009a). Inflation, a rapid, unstable, and unpredictable price increase, is detrimental to the economy (Mateer & Coppock, 2021). If one’s income rises more slowly than the prices, one cannot keep up with the prices and, therefore, cannot sustain a living (Mjmfoodie, 2009b). High inflation rates lead to the destruction of wealth across the country’s economy.
Disadvantages of Inflation
I can find only some validity to the argument that inflation is good for business and bad for individuals. Indeed, when businesses receive higher prices, it suits them since they increase their profit. However, when individuals are forced to pay higher prices, they start reconsidering whether they need those products or services in the first place. As a result, people may not purchase something they would have bought before the inflation rate increased. Thus, businesses cannot rely on increasing their gain using inflation since there will be no opportunity for individuals to pay the higher prices that businesses might enjoy.
Another crucial disadvantage of inflation is higher unemployment, since businesses may be unable to keep all their employees due to the increasing costs of goods and services that everyone, including businesses, must pay. Inflation brings about such problems as the waste of shoe-leather costs, money illusion (wrong interpretation of price changes), higher menu costs (costs of changing prices), and uncertainties in future price levels (Mateer & Coppock, 2021). Therefore, while businesses may receive some benefits from inflation, both individuals and businesses suffer from inflation to a great extent.
References
Mateer, D., & Coppock, L. (2021). Principles of macroeconomics: COVID-19 update (3rd ed.). W. W. Norton & Company.
Mjmfoodie. (2009a). (Macro) Episode 16: Inflation & price indexes [Video]. YouTube. Web.
Mjmfoodie. (2009b). (Macro) Episode 17: Real income [Video]. YouTube. Web.
Mjmfoodie. (2009c). (Macro) Episode 18: Unemployment [Video]. YouTube. Web.
Mjmfoodie. (2009d). (Macro) Episode 19: Types of unemployment [Video]. YouTube. Web.
U. S. Bureau of Labor Statistics. (2023a). Table A-1. Employment status of the civilian population by sex and age. Web.
U. S. Bureau of Labor Statistics. (2023b). Table A-2. Employment status of the civilian population by race, sex, and age. Web.