Factors Helping Reduce Unemployment In An Economy

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Factors Helping Reduce Unemployment In An Economy

Let us recall that wants of men are unlimited and resources in a country are scarce. Hence Economics is defined as the social science concerned with the problem of using or administering scarce resources (the means of production) so as to attain the greatest or maximum fulfillment of unlimited wants ( the goal of producing). Economics is concerned with doing the best with what is available. If our wants are virtually unlimited and our resources are scarce, we cannot conceivably satisfy all our human wants. The next best thing to do is to achieve the greatest possible satisfaction of our wants Economics is without doubt a science of efficiency-efficiency in these of scarce resources. Efficiency in this context means something akin to, but one identified with the term efficiency an used I engineering. A mechanical engineer tells us that a steam locomotive is only “60 percent efficient” because some 40 percent energy in its fuel is not transformed into useful power but is wasted through friction and heat loss. The maximum output of usable power is not derived form the input of fuel, Economic efficiency is also concerned within puts and outputs. Specifically it is concerned with the relationship between the units of scarce resources which are put into the process of production and the resulting output of some wanted product. Economic efficiency has to do with inputs of scarce resources and outputs of useful products. Full Employment and Full Production Economic efficiency is achieved when unemployment when he is involuntarily out of work. This is the man who is standing in a relief line or a bread line of waiting to pick up his unemployment compensation cheque in waiting to pick up his unemployment compensation cheque in some countries. This case of apparent unemployment .This worker obviously has no job connection. On the other hand, a worker may have a job but in a sense unemployed. For example, one who is harvesting wheat by hand or cutting a lawn with a pair of scissors is “partially unemployed”. For example, one who is harvesting wheat by hand or cutting a lawn with a pair of scissors I s “partially unemployed”. In this case, however, it is a matter of disguised unemployment or more simply underemployment. The worker has a job but simply is not being employed efficiently. The unemployed worker who has no job and the underemployed worker who has a job but is producing in a highly inefficient manner differ more in degree than in kind. Both entail the relatively inefficient use of resources. The point is this : there are two major aspects of economic efficiency. On the one hand, there is the full employment problem-the problem of providing jobs for all who are able and willing to work. On the other hand, there is the closely related full production or resource-allocation problem-the problem of using employed resources in the most efficient manner. These two facets of economic efficiency are of grate importance.

Eliminating unemployment:

Economic efficiency requires, first, that available resources are actually utilized in the production of goods and serves rather than allowed to remain idle. An unused locomotive is of zero efficiency. The same can be said for unemployed resources. Utilized resources, both human and property, obviously mean wastage and inefficiency. Unemployment is the height of economic inefficiency: when the society fails to put the available resources into the productivity process, it obviously realizes no output  all. All productivity process, it obviously realizes no output at all. All available resources ought to be fully employed. Each society has certain established customs and practices which determine what particular resources are available for employment. For example, legislation and custom provide that the children and the very aged shouldn’t be employed.Similarly; it is desirable to deep the land fallow periodically for the sake of more productivity when utilized. Furthermore, society wants to avoid complete utilization and rapid exhaustion of particularly scarce resources in order to conserve them as long as possible. In short, society wants to employ only those resurges that are available for employment and whose current employment is spending which determines the level at which resource are employed. If buyers are willing and able to spend in large amounts I satisfying their wants, entrepreneurs respond by employing large amounts of resources in producing goods of spending will mean unemployment.

Eliminating Underemployment:

The full employment of available resources is not sufficient for achieving economic efficiency. The society also seeks full production of goods and services not wanted by consumers. And the production of such goods must be carried out with the best available production techniques. Resources must be allocated among the various possible employments so that those products most wanted by society are produced in large amounts. And conversely, those not so highly desired are produced in smaller quantities or not at all. To allow resources to remain idle and to employ resources in the production of goods and services society does not want, differ only in degree. Employment of resources for the production of spats, buggy whips, and stagecoaches would obviously involve the ineffective use of resources. The useful or wanted production rustling from resources put into these lines of end savories very low. The resource put into these lines of endeavour is very low. The power generated by a steam locomotive is useful only when employed in the transportation of loads. The employment of resources is useful only to society when employment result in the production of goods and services consumers want. There is a second aspect to achieving full production-the question of getting the maximum amount of a wanted product. An economy might fully employ its resources toward the product of those goods most wanted by society. But it might at the same time be economically inefficient; because it fails to use the best production techniques available to produce it. A very simple example will make this clear. Other thing being equal, a given volume of resources will produce more wheat when crop rotation is employed as a technique of production. To plant the same acres to wheat, tear after tear, will wear out the soil and eventually result in a relatively smaller output. By employing the same about of land, capital, labour and  entrepreneurial resources and by practicing the technique of crop rotation, a larger amount of wheat can be realized. The first assumption regarding unemployment and underemployment as given earlier was that our economy is marked by full employment an full production. However, our conclusions would stand altered if idle resources were available or it employed resources were used inefficiently.