Vocabulary

to overlap – частично совпадать

hardcore (unemployment) – потерявшие надежду найти работу

prevalence – преобладание

index – показатель

rigidity – строгость, суровость

ANSWER THE QUESTIONS

1. What types of unemployment does economics distinguish?

2. What are the explanations of unemployment causes?

39. Costs of unemployment

Unemployed individuals are unable to earn money to meet financial obligations. Failure to pay mortgage payments or to pay rent may lead to homelessness. Unemployment increases malnutrition, illness, mental stress, and loss of self-esteem, leading to depression.

According to a study published in Social Indicator Research, even those who tend to be optimistic find it difficult to look on the bright side of things when unemployed. Using interviews and data from German participants aged 16 to 94 – including individuals coping with the stresses of real life and not just a volunteering student population – the researchers determined that even optimists struggled with being unemployed.

An economy with high unemployment is not using all of the resources, e.g. labor, available to it. Since it is operating below its production possibility frontier, it could have higher output if the entire workforce were usefully employed. However, there is a tradeoff between economic efficiency and unemployment: if the frictionally unemployed accepted the first job they were offered, they would be likely to be operating at below their skill level, reducing the economy’s efficiency.

High levels of unemployment can be causes of civil disorder, in some cases leading to revolution, and particularly totalitarism. In 1933, the Weimar Republic fell and Adolph Hitler rose to power.

It all culminated in World War II and the deaths of millions and the destruction of much of the physical capital of Europe. All this is attributed to the poor economic conditions in Germany at the time, mainly a high unemployment rate of above 20% – see Great Depression in Central Europe for details.

Vocabulary

mortgage – ипотечная ссуда

malnutrition – недоедание

self-esteem – самоуважение

researchers – исследователи

civil disorder – гражданские беспорядки

QUESTIONS AND ASSIGNMENTS

1. What are the consequences of unemployment?

2. What can be caused by unemployment in the end?

3. Make up a short summary of the text.

40. Credo of the company “johnson and johnson”

We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs, everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customer’s orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.

We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good work and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use protecting the environment and natural resources.

Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovate programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.