What steps have governments taken to solve the problem of employment Essay

What steps have governments taken to solve the problem of employment since 1980 and how effective were they - Essay Example loyers are willing to offer and what workers are willing to accept explains why United Kingdom unemployment is so much higher than in the United States, where taxes and benefits are considerably lower. The interaction between the welfare state and a changed economic environment, Krugman argued, can also explain why unemployment has increased so much in United Kingdom. The change he emphasized was declining demand for low, skilled workers in industrial nations. Such a change would tend to increase income inequality by depressing the wages of low-skilled workers. But large disparities in incomes are what the United Kingdom welfare state was designed to prevent. The collision of market forces pushing toward greater income inequality with government policies that prevented such inequality has resulted in growing unemployment in United Kingdom, especially among low-skilled workers. In analyzing the reasons for declining demand for these workers, Krugman expressed skepticism about the importance of increased competition from newly industrializing nations. Although intuitively plausible, this explanation has been found to have little empirical support according to Krugman. Instead, he at tributed the declining demand for low-skilled workers to technological change that devalues the market value of manual labor. The same forces raising unemployment in United Kingdom, Krugman claimed, have caused rising poverty and income inequality in the United States. With less generous social service benefits, low-skilled workers in the United States have seen their real incomes decline. Krugman did not see any painless way out of the tradeoff between more poverty and more joblessness. Transforming low-skilled workers into high-skilled workers through improved education and training might seem the obvious solution. But raising education levels can be done only gradually, and government training programs are not particularly effective. Some modest improvement in United Kingdom might

'Loser Pays' Rules Make A Comeback Article Example | Topics and Well Written Essays - 1000 words

'Loser Pays' Rules Make A Comeback - Article Example Under the current system, lawsuits have proven to be outrageously expensive for corporations. These lawsuits have generated up to $73 billion being paid by corporations, out of which a staggering amount of $17 billion has made its way into the pockets of plaintiff attorneys. Out of the latter, the plaintiffs fail to claim the amount that rightfully belongs to their corporation. The implemented taxes that should serve to protect shareholders instead cause more harm due to added litigation charges. Lawsuits are initiated because of a third party harming the corporations. These lawsuits add to the damage and do little to control the initial problems. Because there are no added costs involved, shareholders have been relentlessly filing lawsuits against the third parties that harm corporations. In such an event, the authorities have decided to implement a loser-pays rule. According to this rule, the party which loses in the trial has to pay the costs incurred by the winner as well. Since the trial never really subjects the parties to any costs whatsoever, through this rule, the shareholders will have to take precautions before going ahead with the lawsuit. This is because the probability of winning a trial is not definite for all cases. Therefore, shareholders are risking higher costs when initiating a lawsuit. If they lose, they will have to ‘compensate’ for the resulting costs incurred by the winning party. The loser-pays rule is very different from the American Rule applied in the United States. Under the latter, the long-term shareholders bear the costs of added litigation which are not obvious at the time of the trial. This rule is not new to economies as it has been the basis of shareholder lawsuits in the United Kingdom. If this rule is implemented it would alter the business model currently being followed by introducing actual financial risk. However, this rule needs to be implemented at the