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Running Head: LASA 2: ANALYZING A SOCIAL POLICY M5_A1 1

ANALYZING A SOCIAL POLICY. 3

LASA 2: Analyzing a Social Policy

Lorraine Dupleasis

Ethics and Social Justice

January 7, 2016

The social problem addressed by the policy

The “Unemployment Benefit” is a type of government insurance policy that grants individual, financial benefits in the case he/she is out of work or unemployed. The policy is aimed at alleviating poverty by ensuring that individuals who cannot find jobs/work can provide themselves with basic needs. The policy is mainly aimed at offering financial incentives to those who will remain unemployed in the long term.

The history of unemployment has mainly been as a result of constant recessions as well as slow economic growth. When the economy is in a recession, the unemployment rate is usually high. The unemployment rate is calculated as a percentage by dividing the number of individuals who are unemployed by those who are currently in the labor force. The counties’ unemployment rate has reached the rate of 10% in the last 110 years. In 1895, 1930-1942, 1949, in 1884, as well as in the year 2009. The following is a brief history as well as the causes of high US unemployment in the past 60 years. Post-world war II recession: Here, President Dwilight D. took no action at first but later used aggressive actions such as signing the Federal Aid Highway Act while John F. Kennedy expanded on the provision of social security. The Arab oil embargo of the 1980’s also affected the economy. Inflation rose while growth stagnated. The result was a sharp rise in the US unemployment rate. Also in the 1980s’, inflation remained high for some years, the federal reserve tried to come up with policies that would squeeze inflation out of the economy. This was the same period where inflation was at highs of 10.80% under the Reagans’ administration.

The country went through another recession in the 1990s’ under the Clintons administration. The unemployment rate went back up. Measures such as the enforcement of low energy prices were introduced. Two recessions also occurred, two of which were under the Bush

Administration. The first one was caused by the September 11 attacks, while the other was a resent one which was caused by high oil price as well as high bond prices. High unemployment rates were recorded during the two periods. Bush came up with tax cuts to solve unemployment problems of the first recession in the 21st century while Obama came up with an economic stimulus package so as to stimulate growth and reduce unemployment for the second recession in the 21st century.

The main causes of unemployment in the county’s history were due to, recessions. Recessions were as a result of reduced economic activity in the economy as well as a reduction in consumer spending. During these periods, businesses recorded low profits and carried out redundancy measures on their work force so as to reduce operational costs. Another cause of high unemployment is outsourcing. Outsourcing is whereby businesses opt to have their services or products produced in foreign countries such as India, China as well as Mexico, so as to cut operational or production costs. Reduced investments in the economy are also another factor that can cause the countries unemployment rate to rise sharply. When there are low investments, low rate of hiring is recorded and thus low investments will thus contribute to high unemployment rate. (William A. 2011).

The policy objectives, value premises, expectation, and target populations

The unemployment benefits policy is meant to ensure that individuals in the country who are unemployed are able to cater for basic needs such as food, shelter, clothing, housing as well as medication during their period of unemployment. The policy is also aimed at ensuring that dependencies such as children of the unemployed are also catered for, financially.

The values that underline the policy objectives is poverty eradication where individuals under this scheme will be able to afford basic needs as well as provision of financial incentives during the periods at which the individual is unemployed. Policy makers expect that the policy will guarantee those that are in employment financial incentives in the case they become unemployed in future. Policy makers also expect that poverty amongst the unemployed is reduced as well (Christopher S., 2012).

The target population of this policy is the unemployed (job losers); most of them are the youth. Statistics indicate that 5.2 million people are receiving unemployment benefits in the United States. While the indirect targets of this policy are the dependents of the individuals that are unemployed. (Christopher S., 2012)

Effects of the policy

The policy is meant to safeguard job seekers with financial incentives that will guarantee them basic needs as well as to prevent them from falling into the poverty trap. The unintended effects of the policy is that the funds given end up stimulating economic growth due to a rise in consumer spending thus stimulating business activity and economic growth as well as encouraging businesses to hire.

The short term effects of such a policy is that it will seek to protect those who are temporarily unemployed or those that have abandoned a job in order to seek for another, while the long term effects of such as policy is that it seeks to protect those that take long to get or acquire a job.

Implications of the Policy

Before this policy was implemented, there was a sharp increase in the poverty levels as well as a reduction in the disposable incomes of people who lost their jobs. After this policy was implemented, the finances of people who lost their jobs remained stable while spending on basic needs such as food and house rent was maintained. The policy also ensured that the government reaches its pledge as stated in the constitution that every individual has the right to basic needs as well as good standards of living. The status of people receiving the benefits however does not change (Davis F. Rick B, 2009).

Alternative Policies

The government can introduce a policy that ensures venerable individuals that may stand to lose their job at any particular time have savings account. Such a policy would ensure that they will acquire money from their savings account once they are unemployed.

Another policy that can alleviate the problem of poverty and suffering amongst people who have lost their jobs is coming up with an economic stimulus program when the rate of unemployment is high. Such a program would ensure that the money supply in the economy is increased, thus stimulating growth and economic activity which will enable businesses to hire.

The government can come up with tax cuts for businesses that hire more while discouraging businesses from outsourcing such as coming up with tax policies that impose higher taxes on businesses that outsource.

The firs policy will ensure financial security to the unemployed, the second policy would ensure that businesses hire while the third policy would ensure that there is business investments.

References

Christopher S. Rugaberap (2012) US jobless aid applications fall to 5-year low Retrieved from

http://news.msn.com/us/us-jobless-aid-applications-fall-to-5-year-low

William A. McEachern (2011) Economics: A Contemporary Introduction Cengage Learning

Ernst G. Frankel (2006) Challenging American Leadership: Impact of National Quality on Risk of Losing Leadership Springer

W. Davis Folsom, Rick Boulware (2009) Encyclopedia of American Business Infobase Publishing