Economic Growth and Workers Essay

What basically the article of Mehring would want to states into the in the public eye(predicate) would be the adverse effect of the scotch developing on the bear on grocery workers. It was states on his paper entitled Vital Signs A Not-So-Great 08 that grocery analysts predicts, as 2008 comes, the providence to be to a greater extent dependant on the employment level of the consumers. In this light, Mehring stressed that this would be impossible considering the current match of virtuoso of the primary sector in the thriftiness- lodgement.For the past years, house sectors has been performing so badly after the end of 2005 as the demand of consumers for living accommodations units declined dramatically giving the housing firm a hard defecate on their pecuniary capabilities. In this regard, members of the housing sectors were forced to lay-off some of their workers. Furthermore, the monetary sector of the economy has non been performing well making the convalescence of the housing sector to slow eat up.At the end of the day, it is the consumers, workers at the analogous time, which receives the entire burden since there is a big possibility for them to be fired from their jobs and/or to receive lower locks as the economy continuous to perform badly. From November final year up to the present, the number of loose people continuously keeps on rising. Even though there be a lot of jobs that has been created at the start of this year, around 70,000 jobs, those are windlessness not enough to compensate the job losses that occur in the grind market.Due to the fact that there workers receives lower incomes, logically, they can nevertheless consume less thus making the profit of the demarcationes to decline. It was place that sell stores experienced significant drop on their sales even during the holiday season. Due to this, their profitability and outlook in the economy started to become dependent on the performance of the white plague lev el of the consumer gathering.Since the profit of the producers are electronegatively light uponed by the lower consumption of the consumers, as well as due to the fact that there is a large pool of fired people available in the labor party market, there is a tolerance for businesses to offer lower wages to their employees, and the cycle of burden goes on. Although, export market keeps on lowering down the bad performance of the economy through convincing the investors that there is belt up hope for our economy for avert the negative effects of recession to the entire economy.Because of the alarming effects of the bad frugal performance of the region, the government has been identifying ways on how to increase the growth of the labor sector to improve the consumption levels of the consumers and thus improving the profitability of the business firms operating in the market especially those coming from the braid and housing sector. There are already around 350,000 job losses that occurred by the end of December 22 and the current level that we have is higher(prenominal) than with the average level of 2007.Meanwhile, most of the job growth falls under(a) the service sector and they are accounted for around 150,000 of the 192,000 jobs that are added in October last year (Mehring 4). Inside the service sector, it is the professional services, health care, leisure and entertainment that contributes for the improvement of the service sector. In order for the government to fully do by the trouble regarding unemployment, they must focus their policies and programs for the betterment of the financial sector, private as well as the providing measures on how to increase the growth tread of the labor market.In short, strippings ways on moving the economy away from the midst of recession and secure the concerned sectors of the economy for a sustainable economic growth. Critique and Insight Based from the article of Mehring, there is a clearly relationship o f economic growth and the labor sector which is comprises by the works class. Actually, Mehring presented in his paper how the cycle of recession and unemployment exists in our economy nowadays.Actually, it is a good thing that he mentioned it in his paper since it provides us of the reasons wherefore the government is actually bound of which party they would protect the most, is it the private or the consumer group which could also be classified as workers. The not-so-good- performance of our economy for the past two years has been imposing serious threats to major industries and one of this is the housing industry. Here is the logic, by the time the demand housing units declined by the end of 2005, members of the housing industry starts to experience lower profitability.Due to this scenario, this housing industry starts to become incapable of sustaining the current level wage order and what they ordain do is to either lay-off some workers and/or lowers down the wage rate that t hey pay for their workers in order to secure their profitability which finally further decaying the income and purchasing power of the consumers workers and the cycle continuous. There have been studies verbalism that in order for the economy to progress impressively, the government must ascend ways to maintain a lower unemployment rate.But what is happening in our case would be a different one considering the response of the consumer group and the market condition of major business sectors. Here, the government must not only focus on the unemployment rate but also considering the social welfare of the business firms in making actions to address the problem. There are multiplication wherein the government is too much engross in solving the unemployment rate but sacrificing the welfare of the businesses and at the end of the day the problem still remain and become worse.I think, it would be better for our government to find solutions to increase the rate of job growth that will n ot affect negatively the businesses in the economy like lowering down the restrictions of FDI into the country in order for the foreign investors to be encourage establishing their businesses here, thus, making creating more jobs. Moreover, the government could lower down the taxes of the taxes of the domestic companies in exchange of not laying-off of workers.An other possible solution that the government could implement would be to change magnitude the trade barriers of the government to give way for the multinational companies to set up their branches here in the country and thus creating more jobs to the economy. The reason wherefore I have been to much in particular of solving the problem regarding unemployment because when a person has a job he could earn an income and use it to his needs or simply as consumption.By the time consumption improves, then, businesses starts to perform better and so with the entire economy. In this scenario, we could see that economic growth and workers are really related to one another. Moreover, it is good that Mehring identified in his paper the connection of the financial sector in revitalising not only the growth of the business firms but also its importance on upgrading the financial capabilities of the consumers.Growth of businesses firms economic growth as well as upgrading of financial capabilities of consumers workers is made possible by the financial sector if they would lower down their interest rate from borrowing in order for the businesses and consumers to borrow property from them and used this money to increase their purchasing power and their budget for operation.Since in this scenario consumer will be having more money through borrowing, then, their consumption level will improved and so with the profitability of the business firms especially the housing and construction sectors which are currently in bad shape in hurt of demand and profitability. In this regard, it would be necessary to say that econ omic growth and workers are interrelated to one another, and the performance of one could affect the other through various economic factors such as consumption exercise and supply level.