Economic Growth and Workers Essay

What basically the article of Mehring would want to states into the humankind would be the adverse effect of the frugal maturement on the drudge food trade workers. It was states on his paper entitled Vital Signs A Not-So-Great 08 that market analysts predicts, as 2008 comes, the frugality to be to a greater extent parasitical on the manipulation level of the consumers. In this light, Mehring stressed that this would be impossible considering the current mode calculate of iodine of the primary sector in the sparing- lodging.For the past years, lodgment sectors has been perform so badly after the end of 2005 as the demand of consumers for lodgment units declined dramatically giving the housing firm a hard relate on their fiscal capabilities. In this regard, members of the housing sectors were forced to lay-off some of their workers. Furthermore, the monetary sector of the economy has non been performing well making the retrieval of the housing sector to slow discomf it.At the end of the day, it is the consumers, workers at the equal time, which receives the entire burden since there is a big possibility for them to be fired from their jobs and/or to receive lower rents as the economy continuous to perform badly. From November extend year up to the present, the number of dead people continuously keeps on rising. Even though there are a lot of jobs that has been created at the start of this year, around 70,000 jobs, those are static non enough to compensate the job losses that occur in the wear upon market.Due to the fact that there workers receives lower incomes, logically, they can totally consume less thus making the profit of the melodic linees to decline. It was set that sell stores experienced significant drop on their sales even during the pass season. Due to this, their profitability and outlook in the economy started to become dependent on the performance of the use of goods and services level of the consumer theme.Since t he profit of the producers are cast outly appropriateed by the lower consumption of the consumers, as well as due to the fact that there is a large pool of vacant people available in the prod market, there is a allowance for businesses to offer lower wages to their employees, and the cycle of burden goes on. Although, export market keeps on lowering down the bad performance of the economy with convincing the investors that there is til now hope for our economy for avert the negative effects of recession to the entire economy.Because of the alarming effects of the bad economical performance of the soil, the government has been identifying ways on how to increase the growth of the labor sector to improve the consumption levels of the consumers and thus improving the profitability of the business firms operating in the market especially those coming from the social structure and housing sector. There are already around 350,000 job losses that occurred by the end of December 2 2 and the current level that we have is high than with the average level of 2007.Meanwhile, most of the job growth falls at a lower place the service sector and they are accounted for around 150,000 of the 192,000 jobs that are added in October last year (Mehring 4). Inside the service sector, it is the professional services, health care, leisure and diversion that contributes for the improvement of the service sector. In order for the government to fully bid the fuss regarding unemployment, they must focus their policies and programs for the betterment of the financial sector, private as well as the providing measures on how to increase the growth footstep of the labor market.In short, acquires ways on moving the economy away from the thick of recession and secure the concerned sectors of the economy for a sustainable economic growth. Critique and Insight Based from the article of Mehring, there is a polish off relationship of economic growth and the labor sector which is c omprises by the operative class. Actually, Mehring presented in his paper how the cycle of recession and unemployment exists in our economy nowadays.Actually, it is a good thing that he mentioned it in his paper since it provides us of the reasons wherefore the government is actually bound of which party they would protect the most, is it the private or the consumer group which could also be classified as workers. The not-so-good- performance of our economy for the past two years has been imposing serious threats to major industries and one of this is the housing industry. Here is the logic, by the time the demand housing units declined by the end of 2005, members of the housing industry starts to experience lower profitability.Due to this scenario, this housing industry starts to become incapable of sustaining the current level wage rate and what they ordain do is to either lay-off some workers and/or lowers down the wage rate that they pay for their workers in order to secure t heir profitability which in conclusion further decaying the income and purchasing power of the consumers workers and the cycle continuous. There have been studies look that in order for the economy to progress impressively, the government must contract ways to maintain a lower unemployment rate.But what is happening in our case would be a different one considering the response of the consumer group and the market condition of major business sectors. Here, the government must not only focus on the unemployment rate but also considering the benefit of the business firms in making actions to address the problem. There are generation wherein the government is too much engross in solving the unemployment rate but sacrificing the welfare of the businesses and at the end of the day the problem still remain and become worse.I think, it would be better for our government to find solutions to increase the rate of job growth that will not affect negatively the businesses in the economy li ke lowering down the restrictions of FDI into the country in order for the foreign investors to be encourage establishing their businesses here, thus, making creating more jobs. Moreover, the government could lower down the taxes of the taxes of the domestic companies in exchange of not laying-off of workers.An separate possible solution that the government could implement would be to diminish the trade barriers of the government to give way for the multinational companies to set up their branches here in the country and thus creating more jobs to the economy. The reason wherefore I have been to much in particular of solving the problem regarding unemployment because when a person has a job he could earn an income and apply it to his needs or simply as consumption.By the time consumption improves, then, businesses starts to perform better and so with the entire economy. In this scenario, we could see that economic growth and workers are really related to one another. Moreover, it is good that Mehring identified in his paper the connection of the financial sector in regenerate not only the growth of the business firms but also its sizeableness on upgrading the financial capabilities of the consumers.Growth of businesses firms economic growth as well as upgrading of financial capabilities of consumers workers is made possible by the financial sector if they would lower down their interest rate from borrowing in order for the businesses and consumers to borrow coin from them and used this money to increase their purchasing power and their budget for operation.Since in this scenario consumer will be having more money through borrowing, then, their consumption level will improved and so with the profitability of the business firms especially the housing and construction sectors which are currently in bad shape in price of demand and profitability. In this regard, it would be necessary to say that economic growth and workers are interrelated to one another, a nd the performance of one could affect the other through various economic factors such as consumption class and supply level.