Task 4:
This article relates to multiple topics of economics such as unemployment, circular flow and. inequality related to wages. First, it talks about unemployment rates dropping and employers adding jobs. In October of 2009 the unemployment rate was ten point two percent and in April of this year it dropped to five point four percent, this is almost half. The unemployment rate drop is due to the adding of jobs by employers. In April there were two hundred and twenty three thousand jobs added, this was in addition to the eighty five thousand jobs that were added one month earlier. The average wage income is about fifty two thousand dollars and has been at a stand still for about twenty five years and although job positions are opening up and unemployment is going down, this does not mean that the income people are making from these jobs is enough. This relates to the circular flow. circular flow is the relationship between businesses and households. The businesses provide jobs and goods and services for people in the household and in return the household buys from the business or provides workers for them. Prices continue to increase and people have to deal with paying these expenses, they are spending money yet do not have the same amount of money coming in. This is where we begin to see inequality when it comes to wages. The middle class’ wages are for the most part at a standstill, while people who make more money have seen their income increase by at least forty percent. The man mentioned in this article, De’Juan DJ Jackson works at Walgreens and makes ten fifty an hour yet has the expenses of two children. He is also at a disadvantage because he is African American and their median household income is about thirty four thousand dollars which is about twenty four thousand dollars less than the average median income. He also is actively looking for a better paying job.
http://america.aljazeera.com/watch/shows/ajam-presents-hard-earned/articles/2015/5/8/income-stagnation-sours-positive-jobs-report.html
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