Article Presentation-debra Elliott

Debra Elliott

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Econ 2301-1001 November 3, 2008 Noneconomic Costs of Unemployment I.Summary

On October 6, 2008, everyone was appalled to read about a man in Los Angeles shooting and killing his wife, three children, mother-in-law, and then himself in an upscale home. The children were threes sons ages nineteen, twelve, and seven. The bodies were found after the wife failed to show up at a neighbor’s home to go to work. A handgun, which was purchased in September, was found near the father’s body. He left two suicide notes: one for the police and one for his friends and relatives. He also left a will. The most appalling thing about it was the reason for his actions. The man was unemployed and depressed over his financial problems. The man had a master’s of business administration in finance and formerly worked for PricewaterhouseCoopers and Sony Pictures, but had been unemployed for several months. It is not known what kind of financial problems they were suffering but it was known that they did not own their home. This event comes at a time where the economy is suffering as evident in an article published in The New York Times on October 4, 2008. This article describes September as the worst month in five years for unemployment. The American economy lost 159,000 jobs and only increased fears about the future. The article also describes the bailout of 700 billion dollars which was prompted by traumatic events of Wall Street. The bailout may restore some order to the financial system, but housing prices continue to fall. Millions suffer the weight of unmanageable debt as household wealth decreases. The number of Americans working part time because of their hours being cut or they could not find a full-time job increased to 337,000 in September, to 6.1 million. This is the highest number since 1993. The decrease in unemployment has affected many in different ways. II.Relation to Economic Concepts The man who committed homicide and suicide was enduring cyclical unemployment. As the economy begins to slip in a recession phase, the loss of jobs causes unemployment for those even with the kind of skills he had. The economy responded to insufficient demand for their goods and services which in turn left him unemployed and unsure about his future as a provider. What took place in this man’s life was an illustration of noneconomic costs.

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III.Reaction These articles are evidence that unemployment weighs heavily on people’s well-being. A man not being able to provide for the ones who depend on him pushed him over the edge. It is easy to see what would have pushed the man into depression. Thinking about the amount of hard work many do to try and secure the ability to provide for the ones they love, but then that not even being enough, can cause a downfall. Many suffer, but everyone reacts differently. For some a recession couldn’t come at a worse time. For example, someone with a growing family and no jobs that can provide for them can cause them to become anxious. The distress ripples out and effects so many. Like Doug Fleming who has been out of work since last fall, when he lost his job as a quality inspector for a home builder in Anderson, Ind. He has applied for nearly 800 jobs and received no offers. His wife has emphysema but has visited the doctor only once in last year because of his lack of health insurance. His daughter can’t even afford a ticket to her high school homecoming football game. The standard of living has seriously decreased. These circumstances are unfortunate but all around us.

References: Christina Hoag, Associated Press Writer. (2008) 6 Die in Family Murder-Suicide in Upscale LA Home. Los Angeles: The Associated Press Peter S. Goodman. (2008). 159,000 Jobs Lost in September, the Worst Month in Five Years. New York: The New York Times. McConnell, C.R., & Brue S. L. (2008). Macroeconomics (17th Ed.). New York: McGraw Hill/Irwin.