ES2550 Week 1 Analysis 1

Event 1: The government passes a law allowing states to pay unlimited unemployment benefits to all unemployed workers for an unlimited amount of time. The opportunity cost for unemployment would be hard working Americans having to pay more taxes. The cost to the individual is an impact in their lives and their standard of living. The cost to the society is the harm to the economy. If the government was to pass a law where people could receive unemployment and not ever have to worry about it running out would be bad! This would leave the person asking themselves why do I need to get a job when I am receiving free money? The working Americans who would eventually have to pay for all this unemployment would feel the need to quit too and just rely on unemployment. This would be a horrible idea. That law would send America spiraling downhill. Productivity would be low because no one would want to work. Fairness would not be in the world so why would it be in the workplace.
Event 2: The federal government increases the restrictions on the immigration of skilled workers The opportunity cost for increasing restrictions would allow the immigrants to become more skilled in their line of work. The cost to the individual would be cutting down the jobs that they can do which would mean less work and less pay. The cost to the society would be that they cant find skilled workers that meet all the qualifications. The incentive for workers would be cut because the firm or business can no longer provide what they used to. Productivity for these workers would be hard to find unless they comply with all retrictions. Fairness for these workers would not be their since it doesn’t apply to all Americans.