Assume that you are the president of the US, and you have the tools necessary to create higher levels of employment among workers in the US.

  1. Assume that you are the president of the US, and you have the tools necessary to create higher levels of employment among workers in the US.  Identify two methods you might use to decrease the unemployment level in the US.
  2. Many members of Congress want you to initiate programs that would eliminate unemployment altogether (0% unemployment rate). Explain why you either would or would not initiate programs to eliminate all unemployment.
  3. Assume that you have a job working as a buyer for a major department store. Your salary is $100,000 per year as well as another $15,000 in benefits. The economy slips into a recession and you are laid off. After looking for a similar position with similar pay for several months you finally take a job waiting tables in a local restaurant making $36,000 per year including tips. Obviously this is not the job you wanted but must settle for just to pay basic bills. Once you take this job should you be counted as part of the employed labor force? Explain why or why not taking into account the’ discouraged worker’ phenomenon.
  4. Identify at least 3 changes in the last decade that have caused structural unemployment.
  5. The federal and some state governments have recently increased minimum wage requirements. Why might this actually increase unemployment and leave workers worse off?
  6. Assume that you are a member of a labor union which has just bargained with your employer to raise everyone’s wages by 10% and provide full health coverage. What potential harm could this do to the workforce? 
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