Types of Unemplyment; Views by Economic Schools;
THE FOLLOWING NOTES ARE THE BASIC CONCEPTS IN THE MAINSTREAM (CAPITALISTIC, NEO-CLASSICAL) ECONOMICS.
- People are voluntarily between jobs or leaving them
- Freedom and Vitality
- Due to the nature annual cycle of the seasons
- Due to the business cycle of booms and recessions
- Some types of jobs become obsolete due to the technological/social/political changes
Views by Schools
- Unemployment is a self-correcting problem.
- Labor market is like other market of products; supply, demand, and price (wage) will handle the problem automatically
- Unemployment is a surplus in the labor market
- Labor is not a free-market in reality
- Wages are flexible
- For full employment, the government intervention is required
- How to keep the unemployment rate stable
- Government Spending