By Anush Garg:
The United States of America is a trillion dollar economy and after the hunt started for the most wanted Osama Bin Laden for 10 long years, the economy on the graph got unbalanced and crashed. It took the government ten years to end the war against Iraq and Al-Qaeda and to assassinate Osama Bin Laden, till then it was too late to stabilize the key ingredients (economy) of most powerful nation and the biggest economy of the World. As a result of the war, recession stroke, and an assortment of professional employees were left unemployed. Basically, unemployment rate is a calculation of the frequency of unemployment and it is calculated as a percentage by dividing the number of unemployed persons by all persons currently in the labour force.
Standard of Living and Crime:
When a person gets unemployed, the direct and harsh impact is on his standard of living; even the families of the unemployed get affected. The largest and strongest economy was going through a very dark period from past 10 years, where the already employed work force was kicked out by their several years’ old employers because of the steep fall in the monetary control of various Banks and Privately owned companies. It is a known fact that when there will be an uncontrolled fiscal deficit within the management of companies and banks, who employ a large number of Americans, they will naturally reduce a number of employees which are least wanted. Constantly when the rate of unemployment starts to rise, immediately, the rate of crime does rise to its peak.
The unemployment costs directly to the country, it leads to higher payments from state and federal government for unemployment benefits in the developed countries. Due to ever growing fiscal deficit the governments are forced to borrow funds from other nations and sources, which indirectly affect the borrower country’s people. The government needs to remain debtless and it starts to tax the income more as compared to previous taxation e.g. VAT in UK was increased to 20% from 17.5% a year ago. This again leads to higher commodity prices, which are unaffordable by the commoners.
Now, as United States is a ‘land of opportunities’, which also has a strong economy and is the centre of the trade round the world, it indirectly attracts immigrants towards its own economy. A survey brings in light a huge number of immigrants in the US; in 1970 there were 9.6 million immigrants and it grew to 38 million people in 2007. Approximately, 14 million immigrants entered the borders in 2010 from Mexico, India, and China.
As per a leading newspaper in the United States, the unemployment rate slid to 7.8%, falling below 8% for the first time since President Barack Obama’s inauguration. The rate has fallen half a percentage point since July, when it was 8.3%. This has been welcomed by the industry and financial markets have responded favourably.
Also, the aforementioned growth came to the economy, immediately from a gush in the number of people who were taking up part time jobs as the full time slots were quickly filled or weren’t available. Still, the Obama administration managed a gradual growth of the job market, adding 150,000 jobs a month, on average.
America has always been a land of opportunities and will gradually continue the pace to remain the strongest economy in the world. However, it must be bourne in mind that anyone or any organization that works or deals with USA, or even uses USD as financial currency in business, will have to bear an aftershock whenever there is a financial turmoil in the USA which is almost certainly followed by increased unemployment. The recipient countries around the world are all but North Korea and Myanmar. These two countries have no dealings with USA or its partners. Though now Myanmar is opening up after great efforts by Aung San Suu Kyi. It can therefore be concluded that economy/unemployment of USA has a direct or indirect effect on the rest of the world.