 feel free to borrow for our banks in order to create businesses, thus creating jobs for others. We should consume what we produce, thereby pumping money into local businesses, which will in turn expand their businesses to the point of employing more Jamaicans. (Durueke, 2012)
Reflating Aggregate Demand
The government can also use macro-economic policies to increase the level of aggregate demand (tutor2u, n.d.). These policies might involve lower interest rates or lower direct taxes (tutor2u, n.d.). It might also encourage foreign investment into the economy from foreign multinational companies (tutor2u, n.d.). In the diagram below we see an increase in aggregate demand leading to an expansion of aggregate supply. Because of the increase in demand for output, the demand for labour at each wage rate will grow - leading to an increase in total employment (tutor2u, n.d.). http://www.tutor2u.net/economics/content/diagrams/unemployment10.gif
Not every increase in demand and production has to be met by using more labour (tutor2u, n.d.). Each year we expect to see a rise in labour productivity (more output per worker employed (tutor2u, n.d.)). And, businesses may decide to increase production by making greater use of capital inputs (machinery and technology) (limited)
Crime, including violent crime, is a serious problem in Jamaica, particularly in Kingston and Montego Bay, two of our major industries and work cities. This issue needs to be addressed because unemployment contributes greatly to crime. When crime is addressed it will lead to more foreign investment and the expansion of industries.
Benefits of Applying the Economics concepts above…..
With the creation of jobs there will be a reduction in crime and violence as fewer people will be idling, thus making investors considering Jamaica as a place to invest.
By facilitating the entry of skilled people into the productive sectors of an economy, and enabling the economy to sustain or increase productivity and competitiveness in the global market place.
Putting more into agriculture will facilitate more export of primary agriculture products to UK and North America, to a service economy in which tourism is now the principal earnings of foreign exchange.
While the government of Jamaica seeks to create avenues for the improvement of the economy by using strategies to reduce unemployment, we can reduce unemployment by creating work at home;
Repairing, sewing and altering clothes
Crafts such as- pottery, knitting, quilting, crocheting, making candles, soaps and even offer classes in these areas. Let’s work to turning these skills into bigger industries.
Teacher at home who are currently unemployed work out of home; offer music class and tutoring.
House wife with no skills can sell their home grown flowers and vegetables or offer room and board.
It is also ample time that the government considers charging the richer population more on taxes and the poorer population less on taxes. I completely agree with Karl Samuda when he stated that, “to solve the problem of unemployment we need to provide a society and a macroeconomic framework that will encourage people to invest in the country (jamaica gleaner, 2004). Only through investment and the creation of a new business will we find it necessary to provide jobs for all those who are unemployed (jamaica gleaner, 2004).
Jamaica is in serious economic problem where unemployment is concerned as employment is not limited to a person’s financial security, it also affects their emotional stability, psyche, family relation and eventually leading to crime and violence. Unemployment is not caused by one affecting factor but by a variety of reasons like educational qualification and relevant skills. Unemployment cannot be solved but can only be reduced which in a sense is not a bad thing, as the economy needs some amount of unemployment in order to strive. More emphasis should be place in educating people, teaching of skills and most importantly, the creating of jobs.
The objective of this research is to outline an economic issue in Jamaica, revi