Education and Career Forum

In todays competitive world , nobody is sure that he/she will get a job according to his/her talent, skills and qualification. There is a big percentage of unemployed one's in our country . So the question is that what should our government must do in this context???

There are two primary categories of tools that may be used by a government to reduce unemployment. Monetary tools involve the availability and cost of money in the economy.

At the simplest level, it means printing more money. But in fact, the way a government increases or decreased the money supply is by lending and borrowing money on the open market in the way of bonds.

The government can lend the economy money at a very low interest rate. This makes money cheap to borrow, money flows into the economy and creates growth. If there is inflation, the government lends at a higher rate, making borrowing more expensive, and decreasing the money supply, contracting growth, and slowing inflation.

Fiscal policy is the other category. Government taxing and spending is fiscal policy. A government can slow an economy by increasing taxes, thus reducing the amount of disposable income of consumers, and redirect that money to specific projects.

Roosevelt's new deal changed the tax structure, and borrowed money, spending that money specifically on jobs projects to employ the maximum number of workers. Great infrastructure projects like the Hoover dam, and the Tennessee Valley Authority, were built in this way.

In United States politics, one of the great debates continues to be over fiscal policy, with Republicans arguing that lower taxes, and lower government spending, creates economic and job growth in the private sector. They also argue that the growth created by lower taxes creates more tax revenue in the long run due to the greater total spending.

Democrats agree that lower taxes lead to growth, but only to a point, and then there are diminishing returns. When taxes become too low, necessary government functions are impaired, as tax revenues decrease at a greater rate than increases in revenues created by growth.

The resulting decrease in government revenue creates a need for the government to borrow on the open market due to deficit spending, thus decreasing the money supply in the economy, and leading to slower growth.

My editorial comment is that both parties are right to a point. Taxes must be adjusted to meet the needs of the nation for revenue, and balanced against economic forces described above that may be in play at any given time. One cannot have a cookie cutter approach to all economic situations, such as always having extremely low, or very high taxes, or very limited, or more expansive government involvement in creating GNP.

Some other specific steps involve trade policy. Import and export taxes, as well as subsidies, can retain or increase jobs in certain industries, but lead to inefficiency and economic distortion leading to lower GNP, and, arguably, fewer total jobs.

An argument for such protectionism, as it is called, is that, for example, not everyone in the U.S. is smart enough to be a banker, lawyer, or doctor, and there needs to be a variety of jobs available to suit the variety of talents in the labor market.

Create more jobs for people that are unemployed.

what should government do to reduce jobless people?