What Is Full Employment

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Date Submitted: 09/27/2011 03:59 PM

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What is Full Employment?

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The United States is fortunate to have such a diverse set of people, skills, industries, and educational opportunities. With such an opportunistic environment it gives way to many employment opportunities. However, the ebb and flow of economics, along with supply and demand, give way to the rise and fall of unemployment rates. There are many disagreements within the economic world on whether full employment is an asset or a detriment to the society. In a perfect world, the goal would be to have full employment, and everyone gets a shot at working and bettering their lives. However, we live in a society and a business environment controlled by many factors. With economic regulation, government involvement, banking and money supply, recessions and boom times, the employment rate varies. Some economists believe that full employment is the best option, while others disagree on the basis that it will create problems within the capitalist nature of our country. With the battle lines drawn, arguments for and against full employment are in full swing, and economists have chosen sides. Within this paper, our goal is to present the facts on both sides regarding the arguments for and against full employment along with the policies that are needed to achieve this target, and the benefits of both sides.

What is Full Employment?

Full employment is defined as a condition in which all persons willing and able to work, no matter what their race, gender, or national origin would be guaranteed a job. It is the highest possible expectation of employment, usually no higher than 4%, since a full employment rate of 0% would be almost impossible to achieve. This rate allows for frictional unemployment-the notion that a small share of the workforce is seeking jobs and will soon find them (Berenstein & Baker, 2002). In the mid 1990s, the...