The viscious circle of competitive unemployment

Abstract

Investigates the possible social causes of unemployment; focuses on how competition among employers can increase and perpetuate already high levels of unemployment. Starts from the premise that, despite divergent attitudes, most industrialized nations make some collective provision for the unemployed, with firms ultimately bearing the costs. Describes how, although a firm may reduce its labour force to save money, it is ultimately, albeit collectively, paying the costs of unemployment via taxes to the State ‐ the main effect is to redistribute the costs to other organizations; depicts a resulting downward spiral in the economy. Looks at the relationships between increased productivity and the costs to society. Concludes that competitive unemployment is a reality and suggests possible solutions.