For the U.S economy to grow the number of people who are not in the labor force and have given up should be reduced. Those who are not in the labor force are not looking for a job but are instead those in school or those who have already retired. The best approach of reducing the number of such people is by allocating more funds on unemployment benefits (Amadeo). This leads to the growth of the economy because the beneficiaries will spend the money given.
The rate of unemployment is used to measure the growth of the economy. If the rate of unemployment in a country is high, it means that the investment rate is low since people do not have funds to invest. When the unemployment rate is high, the government gets less revenue from income tax and instead has to spend on unemployment insurance benefits (Hudson). Unemployment benefits only the unemployed and not the state. One advantage is that such individuals will have more time with their family and will not have to commute to work.
Although the unemployment rate is decreasing, the majority of blacks and other minorities are still unemployed. One of the solutions to the problem is offering a tax credit to black and minority entrepreneurs who will help in boosting their businesses (Austin). Government intervention through subsidies, regulation, and taxation have an impact on the free market the interventions helps in creating equality among industry players as well helping organizations to develop in aspects such as technology (Economics).
Worker retraining is a program that is funded by the state with the aim of help individuals to refresh their skills and go back to the labor force (Selingo). For retraining to solve the problem of unemployment, there must be available jobs after retraining; otherwise, people will be retraining only to find out that there are no available jobs.
Amadeo, Kimberly. “Four Best Real World Ways to Create Jobs.” The Balance, 2018, https://www.thebalance.com/job-creation-ideas-4-ways-that-work-best-3305521.
Austin, Algernon. “How to Solve the Crisis in Black Unemployment.” Washington Monthly, 2016, https://washingtonmonthly.com/2016/07/01/how-to-solve-the-crisis-in-black-unemployment/.
Economics, Boundless. “Government Intervention and Disequilibrium | Boundless Economics.” Courses.Lumenlearning.Com, 2018, https://courses.lumenlearning.com/boundless-economics/chapter/government-intervention-and-disequilibrium/.
Hudson, Paul. “How Unemployment Rates Affect The Economy.” Elite Daily, 2013, https://www.elitedaily.com/news/business/how-unemployment-rates-affect-the-economy.
Selingo, Jeffrey. “The False Promises of Worker Retraining.” The Atlantic, 2018, https://www.theatlantic.com/education/archive/2018/01/the-false-promises-of-worker-retraining/549398/.