Reference no: EM132445110

The unemployment rate was reported to be around 7.7% in November 2012. Keep in mind that there are a number of discouraged workers and those whose benefits have lapsed. Those numbers are not generally included in the numbers reported by the BLS. This significantly changes the effective unemployment rate. A year ago the number of unemployed persons stood at 13.3 million and 12 million in November 2012. The government allowed the tax cuts that have been in place since the Bush administration to lapse for those earning $400,000 annually and couples earning $450,000. Will this tax increase on what is being identified as the wealthy affect the current rate of unemployment? If so how? If not, why? If your answer is no, what can be done to decrease the unemployment in the United States. Be sure to use the tools of economic analysis to support what you say. Also, who, in a capitalist system, is responsible for growth and what measures should be taken to ensure that growth? Should firms be expanding at this time? Why are firms not expanding? Be sure to support your thoughts with concrete evidence using the tools of economic analysis.