Unemployment

Unemployment
I write this memo to address the issue of unemployment. Although there have been reports suggesting that there has been a tremendous improvement in dealing with the problem of unemployment, it is worth noting that, even the lowest levels of unemployment are not acceptable. Unemployment is a macroeconomic element that touches on the existence of some labor force which is not getting to exercise the full potential in work because of the lack of opportunity. A person gets the description as unemployed when one is looking for a job and is available to work.
Unemployment usually declines with the economic prosperity, (Kleykamp & Jer-Yuh, 1158). Addressing the issue of economic advancement is a way of tackling the menace of unemployment along the other ailments that come with downfalls in the economy. Unemployment is a problem usually associated with economic recession. The more there is an inclination towards recessions in the economy, the more there continues to be expansions of unemployment. These facts are evident in consideration of the unemployment trends in the history of the United States economy. During 1990 and 1991 years, there was increased employment following the improvement of the economy, however, in 2007-2009, there was an increment in the unemployment following the recession.
There have been various efforts of addressing the unemployment from different perspectives, but there seems to have not been a permanent solution. There have been realizations that; the right way to tackle unemployment is to embrace tactics of job creation.

However, there have been different suggestions on the manner in which the government can create the employment opportunities. The concern over the unemployment as a macroeconomic issue emanate from the many evil that comes as a result of the unemployment. When there is the escalation of unemployment, the impact is not felt just by the victims of the problem. There is a broad impact in the whole country which cuts across all level of socio-economic class. For instance, with increased unemployment, there are increased possibilities of many people engaging in crime such as theft and prostitution. Such an engagement place the impact not only on the unemployed but every other citizen is at risk of experiencing the effect.
Views on solution
There is an uncontested agreement in the US administration that; Unemployment is a macroeconomic issue that requires the right addressing, (Kleykamp & Jer-Yuh, 1153). However, there have been differences in the suggestions for the ways of addressing the issue. The liberals and the conservatives have had opposing views on the solution. The liberals suggest the option of government spending while the conservatives are for the idea of lowering of taxations and imposing little regulations for investors.
Government spending can go a long way in addressing the menace of unemployment. When there is the release of adequate funds from the state towards the building of the economy, there is the creation of employment opportunities. For instance, the money from the government goes towards the production of jobs in the public sector where it would have been difficult to sustain such posts. Such release of federal funds also creates jobs through the different areas such building and repair of roads as well as other government tenders.
However, there are many constraints in the idea following the doubts in the possibilities of sustaining such focus of addressing the unemployment. Relying on the government funding for addressing unemployment might not be a sustainable model as there is bound to be much strain in the long run. There is also the high possibility of the negligence of other essential sectors when the focus of the government funding is only in the creation of employment. Government spending on the creation of jobs averts the problem of sending jobs abroad which many give consideration as a pullback effort in the addressing of the issue of unemployment.
Lower taxes and less regulation can go a long way in addressing the problem of unemployment. By legislating on lower taxation, there is the encouragement to the investors to invest much in the country. The investment goes a long way in creating jobs for the citizens in both direct and indirect ways. Reduction of taxation may appear like a cynical move by the government when it comes to investment. However, it is essential that there is a consideration of the long-term impact of the reduced taxation which leads to more investment than when the tax is high. By giving way to further investment, the government ends up gaining much more tax than it would have gotten in little-restricted investment, on top of increasing the opportunities for job creation.
Minimizing the regulations also go a long way in encouraging investors, who in turn create employment. Reducing the regulations enable secure engagement in economic activities. For instance, when there is scraping of the unnecessary steps in the process of registering a company, there is much motivation to the investors to engage in different enterprises depending on the nature of the investment. The operation of various companies by investment means increment in the job opportunities in the long run, unlike when there is limitation arising from strict regulations.
Theories
The solution touching on the increase of government funding to create employment as a solution to unemployment has its basis on the monetarism economics theory. This approach advocates for anchoring of economy on the supply of funds by the government and in central banking. There is a focus on maintaining price stability by the effort of the government in providing resources hence, ensuring economic stability for the creation of jobs. The engagement of the government in spending to ensure there is the creation of employment aligns to the mandate of providing the basic needs of every citizen.
The view concerning usage of few taxes and regulations has its basis on the underlying economic theory of classical economics. This approach advocates for the little interference of the government regarding funding for the economy to grow. When there are the right structures in a country, there ought to be the growth of the economy with little interference from the government. In such instances, there would be little or no need for the government to put in deliberate efforts of channeling out funds for the creation of jobs. Instead, there would be a high growth of economy allowing for the creation of jobs through investment which is not under threats of high taxation and additional processes in the registration of financial entities such as companies.
Classical economics theory holds that; economy grows well when everyone is allowed to participate in the economy growth in their manner as long as they comply with the law. On that note, there is an insistence that the law must get alignment in a way that allows for the easy participation of the different entities, which are out to ensure the growth of the economy without the interference from the government. The bottom line in the theory is the open competition which allows for healthy development of the economy, hence, creating job opportunities in indirect ways.
Own recommendation
In thorough regard of the suggestions for tackling unemployment in the country, it is essential that there is the adoption of the right remedy. It is vital that there is the approval of the proper legislation to ensure that there is the creation of jobs. Reducing taxation to the engagements leading to job creation through the growth of the economy would go great lengths in ensuring that there is curbing of the menace of unemployment. By reducing the taxation, there would be a high motivation of the investors hence; there would be a consideration for additional investment. Such moves create many chances for employment.
There also ought to be a reduction of the regulations necessary in the straight paths of economic undertakings. For instance, it should take the least number of hours for one to register their company. The motive is not in the idea of ensuring registration of many businesses, rather the catch is with the encouragement of the investors and the would-be investors. There is also a recommendation that there is borrowing from the view concerning government spending. However, the government spending should come with moderation to allow competitive growth in the market, while giving much attention to legislation to ensure a smooth running of investments to encourage investors.
Works Cited
Kleykamp, David, and Jer-Yuh Wan. “Unemployment and Participation Rates? Revisiting The US Data.” Applied Economics Letters 21.16 (2014): 1152-1155. Business Source Complete. Web. 10 Dec. 2016.