What causes unemployment?

[HisMajestyBOB]

Bureau of Labor Statistics graph of US unemployment rate

So unemployment is a pretty big issue these days, but there seems to be some debate about what causes it. GOP hopeful Herman Cain claims that the unemployed are simply lazy, stating "if you don't have a job and you are not rich, blame yourself!", while crazy canuck claims that the unemployed feel "entitled". I think it'd be interesting for Languishites to discuss why people are unemployed. I know some here have been unemployed in the past, or are currently unemployed, so maybe they can say whether it was because they were lazy, or felt entitled and refused jobs beneath them (which are always plentiful!), or maybe it was their fault in another way.

And why did unemployment suddenly spike? Was there a laziness epidemic?

[crazy canuck]

Since you mischaracterized my argument I will assume you did an equally bad job summarizing the other arguments.

[Fate]

Right now the primary causes of unemployment in America are Barack Hussein Obama and Harry Mason Reid.

Below: here are the party adjusted figures that the administration refuses to release.



Solution?

[Eddie Teach]

Well, I for one got really lazy in early 08, so maybe Cain is right. 

[Ideologue]

The underlying cause is the disappearance of living wage jobs for average humans.  Until this is recognized, and dealt with in a mature fashion, we're only seeing the tip of the iceberg.  Since politicians bafflingly want to hang on to a 1950s-style conception of the value and necessity of human labor--40 hour work weeks, the absence of a negative income tax, the unshakeable belief that nearly everyone is actually capable of meaningfully contributing to the economy, etc--I predict 30-40% unemployment by 2020.

[Martinus]

I am not sure if this thread is meant as a troll or as a legitimate question.

In case it's the latter...

There is always a group of people in the society who are unable to work (e.g. due to mental disabilities). I would posit that a percentage of such people in the society remains more or less a constant.

Then there is a second group of people who lose their jobs for reasons outside of their control, but would be willing to work.

There is, then, a third group of people who are able to work but, depending on the incentives and disincentives offered by the unemployment system, may decide it pays off not to work.

The game is to make sure the first group can survive (more or less indefinitely), the second group is given necessary temporary support so it does not slide into lower class, while making sure the third group is incentivized to work.

In times of economic downturn, I believe the first two goals trump the third.

[MadImmortalMan]

Lack of necessity causes unemployment. And all other types of inaction too.

[HVC]

Since you mischaracterized my argument I will assume you did an equally bad job summarizing the other arguments.

indeed. CC doesn't think the unemployed feel entitled... Just unemployed youth

[crazy canuck]

Since you mischaracterized my argument I will assume you did an equally bad job summarizing the other arguments.

indeed. CC doesn't think the unemployed feel entitled... Just unemployed youth

To be clear I think that the portion of society who actually get into universities and obtain a university degree (and dont kid yourself - if you do get to that position you are in a priviledged position) and then complain that such a degree doesnt automatically deliver a great job are a bunch with an overly developed sense of entitlement.

[Valmy]

To be clear I think that the portion of society who actually get into universities and obtain a university degree (and dont kid yourself - if you do get to that position you are in a priviledged position) and then complain that such a degree doesnt automatically deliver a great job are a bunch of with an overly developed sense of entitlement.

Well I think they have been going through life being told if they go down such and such assembly line everything will be great and then when they discover now they have to be creative and think for themselves it can be a shock.

Having said that I do feel for the people who were sold on getting a very specialized and expensive degree (like a Law degree) and then discovered there is actually very little demand for it.

[Tamas]

One of these days we will have to realize that barring any major scientific breakthrough creating new industries or anything, full employment is a pipe dream. There is simply no need for this much unskilled work, and this is is also getting into the skilled part of the workforce, especially since globalization means an Indian will go and do a UK skilled job, or a Hungarian will do the IT job two Germans were too lazy to do properly.

What to do about it? I have no idea. Sooner or later we will solve it via a big war, or an epidemic as usual, I just hope it will happen after my time.

[crazy canuck]

Well I think they have been going through life being told if they go down such and such assembly line everything will be great and then when they discover now they have to be creative and think for themselves it can be a shock.

Having said that I do feel for the people who were sold on getting a very specialized and expensive degree (like a Law degree) and then discovered there is actually very little demand for it.

If they were "sold" on it and didnt have the intelligence that their highly paid education assumes to look around to see its a competitive world out there they have no sympathy from me.  It has been a truism of law schools since at least the time I graduated that if you are not in the top X% - and we can quibble about what the X is - you are going to have a hard time of it.

[Martinus]

Since you mischaracterized my argument I will assume you did an equally bad job summarizing the other arguments.

indeed. CC doesn't think the unemployed feel entitled... Just unemployed youth

To be clear I think that the portion of society who actually get into universities and obtain a university degree (and dont kid yourself - if you do get to that position you are in a priviledged position) and then complain that such a degree doesnt automatically deliver a great job are a bunch with an overly developed sense of entitlement.

In normal economy you would be right, but in this recession time, that's retarded beyond belief. A lot of employers, even those who did not go under during the crisis, simply stopped hiring (they saw it as preferable to firing people). This means there is now a huge group of young, educated people who simply cannot find jobs - and blaming them for that is just stupid. What's worse, some companies appear to view these people as a "lost generation" and prefer to hire now people fresh out of school than those who were unemployed for 2 years or so.

You are a classic example of someone who holds to his views, despite circumstances having changed dramatically. I.e. you are a close-minded idiot.

[Valmy]

If they were "sold" on it and didnt have the intelligence that their highly paid education assumes to look around to see its a competitive world out there they have no sympathy from me.

Well their lives are pretty much ruined with thousands of dollars of debt they cannot default on.  That sorta sucks.

[crazy canuck]

You must be quite blind to have such views, considering the current economy state.

I realize that you have told us many times that Poland is backward.  But trust me when I say that every else in the world having an education is better than not.