Discussion board forum - Assignment Example

Demand and Supply Discuss benefits and costs of unemployment benefits to individuals and to the economy. Unemployment benefits embrace the employment insurance. The insurance project gets funds from the state-levied payroll tax on employers who pass the taxes to employees in form of reduced wages (Asmundson). This program gives benefits to full time workers who lose their jobs and extends it to 26weeks. When there is so low unemployment, payments into the fund are high compare to benefits paid off, hence trust fun grows.

During periods of high unemployment, the state depletes its trust fund since it pays out more benefits. Even after exhausting the trust fund, states can still borrow and continue paying the benefits. The federal government offer aids to workers in states with high unemployment rates through Emergency unemployment compensation (EUC) (Asmundson). Unemployment befits makes the unemployed relax instead of searching for jobs. Lengthening their job search period increases burden on those who are working.

This makes the employed lose morale, hence affects their productivity and the e onomic growth of the nation. The more workers stay out of their jobs, the more their skills become affected and their chances of remaining unemployed increases (Asmundson). This will eventually lead to a less skilled workforce hence affecting productivity of the nation. Currently, many states have depleted their insurance funds and are depending on the federal government for loans. In order to replenish their trust funds, the states will have to increase payroll takes hence increasing burden on the workers (Asmundson).

Also makes it difficult for employers to hire more employees. Consequently, it will affect the economy of the state.A company could produce and sell any product as long as there is a market for it." For any commodities that people are willing to buy, there are people who will be willing to produce and sell. The firms usually depend on macro forecasters to determine the economic conditions in order to identify the demands. The companies then determine what to produce, the quantities as well as the pricings.

Demand therefore drives the market since it regulates supply. In the case of Isaiah 44:15-17, the wood is in demand. The man needs to make an idol, which he worships. However, he also has other demands such as warming himself and baking bread for food. Because of the many demands, he uses the supply he gets to satisfy his needsCompanies that manufacture cigarettes know the effects it poses to the health of its users. They also know that cigarettes smokers also pose a threat to the passive smokers around them.

Despite the fact that they acknowledge smoking cause life-threatening conditions, they still manufacture and sell. They do this because the cigarette is on demand. Some of the smokers are addicted, some want to experiment and teenagers buying it want to look cool. This demand forces drives the manufactures. Despite efforts to increase tax on cigarettes, the taxes pass on to the consumers through increased prices and they still find ways to surpass it (Baker, 2013). The same applies to alcohol producing companies.

Alcohol has different uses and this increases the demand for it. It has demand from hospitals for its use as an antiseptic and ethanol is on demand from the alcoholics. With drives the producers to continue with the production is the growing demand from the population. Others need the alcohol for recreation, others are addicted, and others believe it is a remedy for stress. This has increased its supply despite the fact that it affects the central nervous system, as well as the respiratory tract and senses.

What needs addressing therefore is the demand for alcohol because even restricting the supply does not ease the problem (Hudson, 2012).ReferencesAsmundson, I. (2012). Supply and Demand: Why Markets Tick. International Monetary Funds. Retrieved from. Baker, S. (2013). Adjusting the Equilibrium Quantity to Equal the "Need.” University of South Carolina, Arnold School of Public Health, Dept. of Health Services Policy and Management. Retrieved from < http://hspm.sph.sc.edu/courses/econ/sd/SD3.

html> Hudson, S. (2012). Address the demand for alcohol, not the supply. The Centre for Independent Studies. Retrieved from http://www.cis.org.au/publications/ideasthecentre/article/4102-address-the-demand- for-alcohol-not-the-supply