IssuesAffecting the Economy
IssuesAffecting the Economy
Theeconomy is a social discourse that emphasizes practices and materialexpressions that foster efficient production, utilization, andmanagement of scarce resources. As such, it is an area that affectsall aspects of human life. Issues facing the economy can either bemicroeconomic or macroeconomic in nature. Microeconomic issues arethose issues that affect specific sectors of the economy whilemacroeconomic issues influence the entire economy. This paperprovides an overview of a macroeconomic issue, examines the economicprinciples governing the situation, and stresses expectations fromthis class.
Anexample of an economic problem that faces the economy as a whole isunemployment. Unemployment is the rate/number of unemployed peoplewithin a given economic sphere. Unemployment is a major macroeconomicissue which should be addressed at the level of the economy as awhole since it denies competent individuals the chance to participatein productive areas of the economy. Although previously beingconfined mostly to the less developed countries, the issue ofunemployment has spread and is now a dominant issue in most developedcountries as well (Dwivedi, 2010). Therefore, unemployment as amacroeconomic issue does not just affect individual countries but isa significant global problem.
Aneconomic principle that governs the unemployment situation is theprinciple to the effect that governments can improve market outcomesthrough proper regulation. Governments have the capability to ensurethat the economy is well-equipped to provide adequate, full-time,high paying, and productive employment opportunities. The market canbalance itself and provide sufficient job opportunities. However,sometimes market failures occur making it necessary for governmentsto intervene and ensure that there is an efficient allocation ofresources within the economy. Cray, Nguyen, Pranka, Schildt, Sheu, &Whitcomb (2011) state that in case of market disruptions, allowingmarkets to self-correct would prolong the recovery process, and,therefore, government practitioners should stimulate labor demands tobalance short and long-term job creation objectives.
Iexpect to gain fundamental knowledge about the economy from thiscourse. I look forward to familiarizing myself with the numerousfactors that affect specific areas of the economy and the wholeeconomy and how these factors interact to determine not just thepresent economic state of the nation, but also its prospectivefuture. In addition, through this course, I will be able to acquireand apply skills and knowledge necessary to formulate economicpolicies, stimulate economic growth, and solve economic problems likeinflation, unemployment, poverty, and many more.
Cray,A., Nguyen, T., Pranka, C., Schildt, C., Sheu, J., & Whitcomb, E.R. (2011). JobCreation: A Review of Policies and Strategies.IRLE Institute for Research on Labor and Employment.
Dwivedi,D. N. (2010). Macroeconomics:Theory and Policy.New Delhi: Tata McGraw-Hill Education Pte Ltd