Analysts: 2012 Poverty Rate Basically Unchanged Time Magazine

http://nation.time.com/2013/09/17/analysts-2012-poverty-rate-basically-unchanged/

In 2012, 15% of Americans were living in poverty. In 2011, about one in every seven Americans were living in poverty (Statistically speaking, this is essentially equivalent to the 15% in 2012). Overall, for the last six years, the poverty rate has not improved. A large reason for the constant poverty rate is the unemployment issue the United States has been facing. The unemployment rate directly correlates with the poverty rate.

Also in 2012, Greece was suffering from an economic crisis. The percentage of people living in Greece who were near or under the poverty line was roughly 31% (http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_03/12/2012_472690). In addition to their unemployment rate at the time, which was 26.4% (http://www.foxbusiness.com/economy/2013/04/18/countries-with-highest-unemployment/), it is clear that unemployment strongly influences the poverty levels of countries. As this fact becomes more evident, we must ask ourselves if the real remedy for the number of people living in poverty is more aid through government systems (welfare, healthcare, etc.) or perhaps an easier and more cost effective solution, the creation of more jobs.

Although there are many implicit costs that would come along with creating more jobs for people, I still believe it could be, if done the correct way, more cost effective than throwing billions of dollars into government assistance programs. I also feel this way because I believe that every American capable of earning money should be doing so, rather than collecting benefits from the government without necessarily having to work. If more jobs are created and less money is budgeted for the assistance programs, people will have more of an incentive to get a job.

"The Great Shift": Americans Not Working NY Times

http://economix.blogs.nytimes.com/2013/08/27/explaining-the-labor-force-dropouts/

Displayed by the graphs shown on the website, the approximate unemployment rate is currently around 7%. Since 2009, the unemployment rate has steadily been decreasing. However, the labor force participation rate has also been decreasing quite rapidly over the last few years. Economists are worried especially because this shift is not only a result of the aging population. In fact, that has very little to do with the "great shift". Other contributing factors to this shift include the increasing amount of people on disability and the "skills gap" between the working generation and the younger generation.

In accordance with our most recent topic discussed in class, I believe that economic security possibly plays a role in the reasoning for these statistics and trends. Mentioned during discussion, someone had said that people are increasingly becoming too comfortable with the amount of security that our government offers; types of this security include welfare and disability programs. These programs give aid to people who need it and who "qualify" for it. Are the qualifications steadily becoming too "loose"? Or are people beginning to abuse the security given to them? And if this is the case, is it going to continue negatively affecting the labor force participation rate and the unemployment rate before something is done?