The unemployment rate shows how well or how poorly the economy is doing; a rising number of unemployed people show a weak economy and a decreasingly number of unemployed people show a much stronger economy. Unemployment can have many downfalls; it can mess up people mentally. However, if the employment rate is increasing and the economy is growing, that could cause inflation. Inflation causes a rise in prices in the economy of different products and services. The higher the inflation, the harder it is to pay for living and buying everything you need to survive since every price goes up. As the U.S. Bureau of Labor Statistics stated as a “cascading effect that ripples through the economy.” If there is a way to lower the amount of people who are unemployed, there could be a way to keep the inflation down to a minimum.
Jeff Cox, Five States, Including Some Crucial to Trump, Just Hit All-Time Low Unemployment Rates. CNBC Local News published October 18, 2019 at 12:52pm . he says that the five states included; Alabama, California, Illinois, New Jersey and South Carolina. Some of these states could be crucial to the 2020 election. They fell to a 3.5% from a 3.7%, this is a 50-year low since the 1970s. If the economy continues to stay the way it is, it could cause Trump an easy win. Cox states “The lowest unemployment rate is Vermont with 2.2%... and Alaska with the highest at 6.2%”. As of now, no states have reported any payroll loss.
Clayton Park, Volusia, Flagler Jobless Rates Fall to New Post-Recession Lows. Daytona Beach News Journal published October 18, 2019 at 2:25pm. He says Volusia and Flagler county have the lowest economic downfall as of September. They had added jobs locally to help improve the amount of people who were unemployed. Volusia county’s rate went from a 3.4% to a 3.2%, an increase of 3,695 employed workers. Flagler county’s rate went from a 3.7% to a 3.4%, an increase of 1,226. Workers are moving to Florida to look for jobs, helping the labor force rise. They are actively trying to find jobs that can benefit both them and the city. During the Great Recession, Flagler had the highest unemployment rate in Florida (15.2%). Construction has been a huge hit recently because of everyone who moves down to Florida.
Harriet Torry, U.S. Inflation Cooled at the End of the Summer. The Wall Street Journal. Published October 10, 2019 at 11:21pm. Reports that prices were not changing because of a decrease in energy and the used vehicle prices help keep down the inflationary pressure. The core prices were to 0.1% from 0.3% in August. The tariffs on imports from china had kept the inflationary pressures under control. These help with the Federal Reserve to cut the rates. Jobs and inflation, as of right now, look positive for the economy but global improvements show threats.
Jeffry Bartash, Low Consumer Inflation Opens the Door for Fed to Cut Interest Rates Further. Market Watch Economic Report published October 10, 2019 at 3:20pm. He says that inflation was subdued by the drop-in prices for gasoline and used cars in September. According to the Bureau of Labor Statistics, people with social security will get a 1.6% raise in their cost of living. While the prices for gasoline dropped, the price for food, rent, health care and airplane tickets rose. But shortly fell again based on the increase of people buying used cars. Since inflation is under control, the FED will get ready to cut down the interest rates if the economy doesn’t improve.
I researched two topics; inflation and unemployment. The articles I chose for unemployment told me statistics about certain states. One was about Florida, Flagler county and Volusia county to be exact, the other one was about how some states can affect the 2020 election. In the textbook it states the definition of employed people and unemployed people. You are considered an employed person if you work and get paid for it, unemployed means you have no job but can work if you found a job. The articles based on unemployment doesn’t really contradict nor supported the textbook because the articles were based on statistics. The articles on inflation support the textbook because they both mention that inflation is the rise in prices. The articles talk about certain percentages of how the prices or the inflation either rose or fell. The textbook talks about certain years and the money put into the different assets. Both, the textbook and articles, talk about what causes inflation to go up. They both mention that inflation not only raises the cost of living but also makes it harder for businesses to transport goods because the cost is also raised.
Inflation and unemployment can cause many disturbances to our everyday lives. Unemployment can eventually lead to inflation. The more people that are unemployed, the worse the economy is doing. Which can raise the prices of our everyday necessities, overall causing inflation. Inflation can affect us now or in the future because it can either make the cost of living higher, affecting some people since not everyone can afford an expensive lifestyle. It could also have some positive effects. If people expect inflation, they can pay earlier and not have to pay the expensive prices later in the future. But if inflation is in the double digits, it can be really bad. Unemployment can affect people mentally, if a person loses their job that can make them think less of themselves and make them want to not work as hard. Some people will drain all their savings which can affect them in the future financially. In the future, unemployment can cause limitations to immigrants to come over here to the United States and find jobs. It can harm our trades among other countries. With less people working, it can cause less people to volunteer and can cause more crimes because people will tend to use that to alleviate their boredom.