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Economics is the subject that deals with every walk of life in fact the subject and implications of economics have now become an integral part of our daily life. Economic is indeed a broad subject as it has numerous things to deal on. The most authentic definition of economics has been presented by Adam Smith, called the “Father of Economics” (FOE) that Economics is the study of wealth and it deals with consuming and earning money.
There are two types of economic which predominantly are microeconomics and macroeconomics. Micro as clear by the name deals with the economics of individuals while the economics deals with the entire economy is referred as macroeconomics. There are number of concepts come under the ambit of economics like Gross Domestic Product (GDP), Monetary Policy and Unemployment Rate. All of these things have a real dominance on the economy of a country as a whole (Mary & Joseph, 2009).
Among all of these things mentioned above, unemployment works like gangrene and can be very dangerous for an economy’s long run. This assignment is all about unemployment and its affects on a particular region. The region which has been selected for this particular assignment is Logon Square situated near California, United States.
Unemployment is one of the major concepts come under the umbrella of economics and it is the thing which has a real effect on the economy of a country as a whole. Before going in the details of the unemployment in Logon Square, it is desirable to mention something about unemployment.
The theoretical meaning of unemployment is the people who don’t have any job on their name. Economists and policy makers have to highlight this thing particularly for the long run growth of the country. Unemployment rate is the rate which shows how much people out of total population are unemployed. Let’s say a country has a population of 100 people and the unemployment rate of that country is 6%, it means that 6 people out of 100 people. Unemployment rate of the countries heavily increased after the current economic downturn. Countries which have been referred as developed countries have a high unemployment rate especially during the current economic crisis. The region which has been taken into consideration for this assignment is Logon Square.
Basically Logon Square is a community based area located in the near northwest side of the city of Chicago, United States. The area has been divided into three different areas which are Milwaukee Avenue, Logan Boulevard and Kedzie Boulevard. All the area of Logon Square is very well known due to its historical context because it was named by General John Logan after the 1st World War.
The United States (US) is one of those countries which affected a lot due to the severity of the current economic downturn. The entire economy of US has been based on financial institutions and according to estimation the country lost a momentum of average 80 banks per month during the current economic downturn. Citi Group was the largest affected bank of the US which slashed around 10,000 jobs from worldwide. Chicago is one of the important states of the United States that participated nearly 25% of the total GDP of the country. The economy of Chicago has been based on technology and at the time of economic crisis the unemployment rate in Chicago touch a level of 9.1%. Regions neighbored Chicago includes Logon Square as well. Logon Square is a small region situated near Chicago and the region relied on Chicago heavily.
Logon Square has a small economy based on tourism because the country has a great historical context. The unemployment peaked very high during the current economic downturn because of its neighbor Chicago. The buying power of the region decreased drastically in the session and pushed a large number of people below the poverty line. According to estimation, Chicago lost 72,000 jobs average in 2 years and missed 1.4 trillion $ of revenue target. Logon Square which is neighboring Chicago and relying heavily on the economy of Chicago envisaged a real bad time because high inflation and unemployment surrounds it.
Unemployment in Logon Square took a horrible form as the rate of crime and miserably increased heavily because the people didn’t have any thing to do. According to statistical measures, snatching and robberies rate increased by 56% in the region due to high unemployment rate. The problem became common and widespread in a wink of an eye.
The economy of Chicago has a real dominance in the economy of United States (US) because the largest exchange of the world, Chicago Mercantile Exchange (CME) is located in this region and it requires special care to keep the momentum of the economy up to a certain level. The government of the United States of America (USA) took numerous actions to overcome on the issue as earliest as can and fortunately the country become able to overcome all the issues perfectly. United States is still in a problematic situation because of its indulgence in different sort of wars both cold and hot wars. The officials of Chicago and Logon Square have to thing more strategically to overcome this issue completely.