How Many Really Suffer as a Result of Labor Market

question 23

Multiple Choice

How many really suffer as a result of labor market problems? This is one of the most critical yet contentious social policy questions. In many ways, our social statistics exaggerate the degree of hardship. Unemployment does not have the same dire consequences today as it did in the 1930's when most of the unemployed were primary bread-winners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programs for those failing in the labor market. Increasing affluence, the rise of families with more than one wage earner, the growing predominance of secondary earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness. Earnings and income data also overstate the dimensions of hard-ship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families. Most of those counted by the poverty statistics are elderly or handicapped or have family responsibilities which keep them out of the labor force, so the poverty statistics are by no means an accurate indicator of labor market pathologies. Yet there are also many ways our social statistics underestimate the degree of labour-market-related hardship. The unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty. Low wages and repeated or prolonged unemployment frequently interact to undermine the capacity for self-support. Since the number experiencing job-lessness at some time during the year is several times the number unemployed in any month, those who suffers a result of forced idleness can equal or exceed average annual unemployment, even though only a minority of the jobless in any month really suffer. For every person counted in the month unemployment tallies, there is another working part-time because of the inability to find full-time work, or else outside the labor force but wanting a job. Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor, so that the dramatic expansion of cash and in kind transfers does not necessarily mean that those failing in the labor market are adequately protected. As a result of such contradictory evidence, it is uncertain whether those suffering seriously as a result of labor market problems number in the hundreds of thousands or the tens of millions, and hence, whether high levels of joblessness can be tolerated or must be countered by job creation and economic stimulus. There is only one area of agreement in this debate-that the existing poverty, employment, and earnings statistics are inadequate for one of their primary applications, measuring the consequences of labor market problems. Which of the following proposals best responds to the issues raised by the author?

• A) Innovative programs using multiple approaches should be set up to reduce the level of unemployment.
• B) A compromise should be found between the positions of those who view joblessness as an evil greater than economic control and those who hold the opposite view.
• C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering.
• D) Consideration showed be given to the ways in which statistics can act as partial causes of the phenomena that they purport to measure.
• E) The labor force should be restructured so that it corresponds to the range of job vacancies.

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Definitions:

Cellular Respiration

Cellular respiration is the process by which cells generate ATP, the energy currency, by breaking down glucose and other food molecules in the presence of oxygen.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

ATP

Stands for adenosine triphosphate, a molecule that carries energy within cells for metabolism.

Feedback Inhibition

A regulatory mechanism in which the end product of a metabolic pathway inhibits an upstream process, thus controlling the rate of the pathway.