What are the main causes of UNEMPLOYMENT? | Yahoo Answers
There are four main causes of unemployment
Keynesian economics emphasizes the role of demand in an economy. According to Keynes, the main cause of unemployment is low consumer demand for goods and services. Excessive consumer demand for products and services creates inflation. Therefore, the government is responsible for managing the total demand for goods and services, known as aggregate demand, by adjusting its spending and taxes.
WHAT ARE THE MAIN CAUSES OF UNEMPLOYMENT? | Yahoo Answers
The main cause of unemployment is disarmingly simple. There is always a lotof work to do; for example, right now there is a lot of work to dodeveloping alternative energy and helping the world give up itsdependence on fossil fuels. And there are many other gigantictasks awaiting our attention - the elimination of poverty is an obvious example. Aslong as the wealth gap is far too big, the problemcan be reduced to one of taxation. Our governments are not taxing therich enough, so they don't have the money to pay people to do urgentwork such as saving the planet for our children. You don't need aneconomics degree to understand that, nor do you need an economicsdegree to see that the problem could easily be solved by introducing ofincreasing wealth taxes. Right now, the money that shouldbe in circulation so that it can be used to pay employees has insteadgot stuck in the assets of the rich, a large proportion of which hasbeen parked in hedge funds and tax havens, doing nothing.
Unemployment is the one constant throughout history. Despite changing technology, the underlying principles of why unemployment occurs remain the same. It’s also what continues to this day. The three main causes of unemployment are economic conditions, new technology, and increasing populations.To a classical or neoclassical economist, their searches for the main causes of unemployment prefer to focus more strictly on outside forces which act on the labor market, identifying unionization, minimum wage laws, taxes, and other regulatory measures as factors that will discourage workers from being hired. This is known as classical unemployment.The main cause of unemployment in many countries is competition in the labor market, as there are few employment opportunities. This leads to a situation where for every available opportunity, there are more than one qualified individuals. This means that when one gets employment, others will lack employment. Currently increased technology shifts production from labor intensive to capital intensive. When these machines replace workers, they lack employment hence contributes to unemployment.In a 1982 poll, 51% believed lack of jobs was the main cause of unemployment, only 21% believed it was lack of skills, and 26% that people just didn’t want to work. In 2010, an even greater proportion of the public believed there were no jobs available for the unemployed. Seventy-nine percent of the public said the main cause of unemployment was a lack of jobs, only 12% thought it was people lacking skills, and just 7% that people just don’t want to work.