Fiscal Policy and Unemployement Problem in Bangladesh

This paper will focus on two of import concepts- unemployment and fiscal indemnity and the effect of fiscal constitution 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), inactive Workers ar those who atomic number 18 currently not working nevertheless are willing and able to work for pay, currently forthcoming 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 salves. But in low income countries most of the income is spent on consumption and and so very little is saved. As a result, investment is comparatively 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 identify required.

Vicious cycle of poverty: In a squiffy country, due to lower savings, investment is lower which leads to low economical growth that leads to low income, which eventually again leads to low savings. It is the reprehensible cycle of poverty and the reason wh y such a country cannot cultivate growth thr! ough investment. Mismatch in Skills: If people are trained to possess adroitnesss inconsistent with the scientific discipline requirement of the nation, than a mismatch in education ensues resulting in unemployment. Imperfect knowledge: When there is rigidity or thwarter in the economy, workers may be misinformed and may not study knowledge about the areas where work is available. Also people  select to active where health and...If you want to get a fully essay, score it on our website: BestEssayCheap.com

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