Writing Assignment

776 words - 4 pages

Yiuchi Wu
Section:
Li, Li
Economists and policy makers often consider unemployment rates as an excellent measurement of the economic health. I agree that the unemployment rate is a good indicator of the economy but I also believe we should not only focus on the traditional indicators because it doesn’t provide all the information of the economy. Instead we should consider looking into other indicators such as the inflation rate to have a complete story of our society.
First of all, I believe traditional indicators such as the unemployment does an accurate job on predicting the health of the economy. Unemployment rate is the percentage of the total number of people who are unemployed in the ...view middle of the document...

Next, even though unemployment rate indicates a reasonable measurement of the economic health, but it doesn’t tell the whole story of the society. According to an article from Financial Times, the article pointed out that there is an issue in the way the unemployment rate is calculated, “…those who have quit searching are not counted. The number of such "discouraged workers" has climbed higher than normal, so unemployment looks lower than it really is” (Financial Times). The author has made an excellent point here, by discontinue seeking for a job; the discouraged workers are no longer being categorized under the unemployed or labor force. In another words, this will cause the unemployment rate to decrease which will result in making the economy appear to be healthier. However, this is nothing but a false image, because in reality discouraged workers still exists and harms the health of the economy.
Last but not least, we must consider other indicators like the inflation rate; which is the gradual increase in price level of goods and services over time. I believe this is a key point that economists and policy makers must consider because the rate of inflation can change the consumer’s willingness to spend...

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