Fiscal Policy and Unemployement Problem in Bangladesh

This paper will focus on two chief(prenominal) concepts- unemployment and fiscal indemnity and the effect of fiscal policy on unemployment. The paper begins with an overview of the theories related to both concepts. Then the unemployment situation in Bangladesh is examined followed by application of theories to assess impact of fiscal policy on unemployment. Lastly, various remedies shake off been proposed regarding unemployment problem. CHAPTER 1: UNEMPLOYMENT Unemployment As delineate by the International Labor Organization (ILO), lazy Workers ar those who ar currently not working entirely are willing and able to work for pay, currently on tap(predicate) to work, and sport actively searched for work. Causes of Unemployment Unemployment is caused by various factors. Following are some(a) of the causes of unemployment: Savings-Investment Gap: Investment is an instrument of growth which is derived from economic systems. But in low income countries most of the income is s pent on consumption and and so very little is saved. As a result, investment is relatively lower. For example, in Bangladesh domestic savings SD is lower than investment I. [S= SD+ R+EA, Where S= Saving, SD= Domestic Saving, EA= External Assistance] Hence, desired growth of saving cannot be attained as investment is lower than the keep down required.

Vicious cycle of poverty: In a infatuated country, due to lower savings, investment is lower which leads to low save growth that leads to low income, which eventually again leads to low savings. It is the uncivilized cycle of poverty and the reason why such a c ountry cannot cultivate growth through inves! tment. Mismatch in Skills: If people are trained to possess adroitnesss inconsistent with the adroitness requirement of the nation, than a mismatch in education ensues resulting in unemployment. Imperfect knowledge: When there is rigidity or obstructionist in the economy, workers may be misinformed and may not make water knowledge about the areas where work is available. Also people  favor to active where health and...If you want to get a broad essay, score it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay