Effects Of Unemployment In The 1930s

1538 Words 7 Pages
In America during the 1930s, unemployment was an issue that caused many debates over how to deal with it and the same is true now. A common proposal to manage unemployment is to provide insurance for the unemployed, which would support those who are unable to work, such as seasonal workers, and improve the economy during economic depression. However, providing insurance for the unemployed would actually increase the unemployment rate and harm the economy. Instead, the American government should continue its welfare system, giving out support as needed, those of retiring age should retire, and individual businesses should create a reserve fund that unemployed workers could draw from for their paycheck when they are unable to work. Today, nearly …show more content…
First, benefits are usually given out because the unemployed deserve them, which is by no means wrong, but it does not work in the long run. Unemployment benefits must be given out as a matter of need, or the program will become far too expensive. Secondly, the cost of supplying unemployment insurance, especially if it is given as a right, is too much for an economy to handle. Everyone would have to pay; therefore, prices increase, and the same issue arises. Those without a steady income are unable to purchase the necessities to live. Some may argue that supplying the unemployed with purchasing power would improve their standard of living and the economy, and while it may improve the standard of living, supplying the unemployed with purchasing power providing by the public does nothing for the economy. By providing for the unemployed in this manner, prices increase so business can maintain a profit, and the unemployed face the same problem again. Another argument for unemployment insurance is that it would support those unable to work, but this faces the same issue as the last argument. By increasing the range of people supported, the price to provide the service increases, which increases prices so businesses can maintain a profit. Finally, to remedy these issues, businesses should instead look at replacing their elderly workers with young ones and creating a reserve fund to pay their employees when the employee is unable to

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