Introduction

Unemployment is a “key economic indicator” in the United States (Investopedia). For example, high unemployment can signal economic distress, while low unemployment can suggest the emergence of an overheating economy. Additionally, “when workers are unemployed, they, their families, and the country as a whole lose. Workers and their families lose wages, and the country loses the goods or services that could have been produced” (U.S. Bureau of Labor Statistics). For these reasons and the potential cascading effects in the market, the Department of Labor monitors the unemployment rate as part of routine economic analyses.

Across the four types of unemployment (frictional, cyclical, structural, and institutional) and their related causes, federal, state, and local governments routinely take new actions, implement new policies, and foster other solutions to ensure a robust economy. The Federal Reserve may raise or low interest rates, Congress may authorize new public works spending, the president may champion lower corporate tax rates in the next year’s budget, states may provide increased funding for community colleges, and local communities may develop new employee support programs, among an array of other measures. Of course, each action may pose unintended negative consequences; as such, any economic policy should be carefully considered before its implementation.

So what should be done? This deliberation presents thirteen video clips, two articles, and numerous education activities to guide students through a review of the debate over how the federal government should address unemployment. After a careful review of multiple perspectives, students will determine what should be done about unemployment and be presented with several optional extensions to take an active role in the debate.

Objectives and Outcomes

• Students will be able to describe key vocabulary terms and concepts associated with the debate surrounding what the federal government should do to address unemployment.
  
  
• Students will be able to identify and explain aspects of the debate regarding what the federal government should do to address unemployment, including those arguments related to monetary policy, fiscal policy, and education and training programs.
  
  
• Students will be able to evaluate arguments related to what the federal government should do to address unemployment and formulate an opinion on this question.