Unemployment right now is at 41 which is actually one of the

Unemployment right now is at 4.1% which is actually one of the lowest its been in years. What do you think is the reasoning behind this? What is your opinion of the underground economy? Anthropology

Solution

The job gains were across the board. Restaurants reopened after the storms, adding 89,000 jobs after losing roughly the same amount in September. Business services gained 50,000 positions. Health care firms hired 22,000 employees.Manufacturing kept growing. Economists attribute those gains to the renewed strength of the global economy and a weak U.S. dollar, which makes American exports more affordable for foreigners to buy. Manufacturing firms rely heavily on shipping and selling abroad. The Stock markets have increased as well which means more money in the economy and since the economy is strengthening slowly therefore more job opportunities are being provided. Even as the unemployment rate has fallen, and other economic indicators, like home prices and the stock market, have been healthy, wages have barely budged. Because people are operating in the black market, they can not use the legal system. Contracts have to be negotiated on a higher trust basis, because you can not go to court to settle debt. That is one advantage the USA has is rule of Law. Many people from third world countries hold assets there because the contracts and ownership there will be honored. A black market meets a need ( like drugs) that the white market can not, and many of these things are socially beneficial. For example an illegal shop may provide a vital need of goods for the community, and employment for the owner. The underground economy involves economic transactions not calculated by government statistics and ignoring government policy and laws. An elevate of the underground economy occurs when citizens are condemning government\'s policies through their economic behavior. Thus the efforts to edge the underground economy are considered a manifestation of totalitarianism. However there are although positive effects of the underground economy. The earning generated by the underground economy is quickly spent in the formal sector contributing to refreshment of the economy.