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Unemployment and a Hurting Economy

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Unemployment is the base for our hurting economy. Our country has been greatly affected by our unemployment and has experienced the toll of not having a stable working class. Plans to help unemployment have done little so far, but the upcoming propositions and presidential plans will change the outcome for the revival of the working class. Unemployment is an issue that the world is overcome by, it affects government and the economy but is in effect to help through recovery plans, economic growth, and tax and proposition revisions. The unemployment rate has rose on the state level over the years and is detrimental to many. Numerous states that years ago were considered a flourishing job market now are going through harder economic times. We see this in many states, for example “North Carolina has the fourth highest unemployment rate, which has stayed for 41 months"(Berman, ARI). The continued efforts The Department of Employment in North Carolina has done little to impact the social and financial damage the unemployment has caused. The efforts they have gone through include: loans to businesses to hire employees, community center job preparation classes, and a strong connection with the Federal Unemployment Department. In other states as well the same efforts have been made. In United States Politics, democrats agree lower taxes would lead to more employment, but only for the poor. The continuous tax of the wealthy has proved to affect the branches in employment as well. The states have leaned towards states taxes for wealthy, and tax cuts with other incentives for the poor. So far, tax cuts are not the most effective way to create new jobs. Groups have examined this, for example “According to a UMass/Amherst studyacross the board income tax cuts, are not the most cost effective. One billion dollars in cuts created 10,779 jobs, because only half the money ($505 million) workers received was spent”(Amadeo, Kimberly). The effectiveness of these steps was not ideal. The same group found it was more cost effective to “provide businesses payroll tax cuts” (Amadeo, Kimberly). The effectiveness of payroll tax cuts has shown to make 13,000 new jobs for one billion in payroll taxes. This has shown most effective in small businesses. Small businesses have proved to be a key driver in the job market. Small businesses are also responsible for 65% of all new jobs (Outlook). The states plans for more effective means of improving unemployment are meant to lower the number of people unemployed, while also encouraging those considered not unemployed, because they have given up looking, to go back on the

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