Fiscal Policy to Reduce US Unemployment: MS Norton's Bill Explained - Essay Sample

Introduction

MS Norton forwards a bill, quoted as the promoting of national service and reducing unemployment act, which explains the fiscal policy, and how it can be applied to eliminate unemployment. Unemployment is an issue that has raised concern in the US for several years. It still affects several individuals especially the younger generations, which struggles to make ends meet. There are several measures introduced by the government to make ends meet despite the other conditions that affect it. Advanced technology, for example, has led to the automation of services making it difficult for people to be employed as they are being replaced by machines This paper is an interview on a social worker on the impact of fiscal policy of the government on unemployment after the 1999 recession. It used primary and secondary sources to discuss the policies implemented on the social issue and its effects.

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The Fiscal Policy

According to the act by M.S Norton, several policies have been implemented by the government, industries and even social work organizations on the best way the issue of unemployment can be solved. The first policy was the compensation of the people either laid off by retrenchment or even unlawful removal from work service. Some workers had been laid off due to recession

Interview Results

An interview with Mr. John, a teacher at South Dakota receiving a salary of USD 42,700 annually, shows that the fiscal policy implemented caters for education, but has some racial implication on some communities of the colored citizens. He argues that they are still paid the least amount despite the government claiming to have cut the taxation, and spending more on the people and the development. He cites the government data on there are states that still have the highest number of workers being paid a very little salary as compared to the other states. There had been earlier complaining, that some companies have taken advantage of the policy to do excessive harvesting of resources from some regions.

According to the interview, there is a varied perception of the policy. Some people still prefer individual lending despite the fears of losses of businesses in case of a future recession. People still view that the goal of the policy especially on increasing aggregate demand, still weights them down, when they are added on the surpluses of the budget.

According to the act, The fiscal policy was designed to increase the GDP of a country, by spending more on the employees and their working departments, the companies, and the sectors extend their ability to hire manpower, hence employment creation. It has fulfilled the needs of at least 30% of the citizens, who have been absorbed by companies and government sectors. The Promoting National Service and Reducing Unemployment Act, issues an order on the need for the additional money in the fiscal budget of the year 2020, to be handled by, corporation to be made, and ensure that they are used appropriately in the delivery of relief to the workers and develop more job opportunities to the unemployed people.

Analysis Using the Secondary Sources

Kroft, K., & Notowidigdo, M. J. (2016). States that the fiscal policy has a goal of increasing capacity for companies to hire people in all the states, making it racial incentives, as industries, and organizations working in the regions perceived as dominated by colored people, are being funded too(Kroft&Notowwidigdo,2016). It, however, takes long before it can be implemented, making conflicts in its objectives to rise

The policy has two aims, either expansion or contraction of a project. The perception of the policy is that it can affect the workers and help them at the same time depending on the steps taken by the government. If there is a contraction use of the policy, the organizations will have less money after the submission of money through bonds. The banks will not be able to give out loans hence, the little capacity of organizations to hire people.

O'Leary, C. J. (2018)., argues that unemployment is the pillar of the security acts enacted in the year, 1935. He claims that the policy faces several barriers, that are likely to stop it from achieving social security in society. There is an increased redistribution of the GDP in the country, the system's inability to monitor the cyclical tax gap and finally the fixed expenditures in the budgets. There are no better alternatives that can be used other than in the policy, to effectively control the economy, ensure employment. It is part of major acts to reduce crime and social evils in the country(Leary,2018). The policy is still important as it is advocating for the increment of salaries and wages for workers, insurance of the workers and eligibility for retirement benefits. It is still progressive and aims at covering every employee in its mandate to help the residents.

References

Kroft, K., & Notowidigdo, M. J. (2016). Should unemployment insurance vary with the unemployment rate? Theory and evidence. The Review of Economic Studies, 83(3), 1092-1124. https://academic.oup.com/restud/article-abstract/83/3/1092/2461292

O'Leary, C. J. (2018). The Employment Service-Unemployment Insurance Partnership. Unemployment Insurance Reform: Fixing a Broken System. Kalamazoo, MI: WE Upjohn Institute for Employment Research, 65. https://www.jstor.org/stable/pdf/j.ctvh4zfsf.6.pdf

Text of H.R. 5618: Promoting National Service and Reducing Unemployment Act (Introduced version) - GovTrack.us. GovTrack.us. (2020). Retrieved 4 April 2020, from https://www.govtrack.us/congress/bills/116/hr5618/text.