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A society is better off when the standard of living for the average person is higher. When there are more chickens bred for food we as a society can eat better. When there are more high definition flat TVs produced everyone can own one and hence live a happier life. Therefore we need every citizen to contribute his share to society in order to produce more goods that raise our standard of living. In an absolutly efficient society everyone would work to produce goods so everyone can enjoy those goods that are produced in order to have a high standard of living. When people are unemployed they burden society. They use the goods that other people create but they contribute nothing themselves. This clearly is inefficient.

One good thing however is that as unemployment rises inflation falls and goods are cheaper for those people still possessing jobs. Our government tries to balance inflation and unemployment rates using both fiscal and monetary policy, but I think that is beyond the scope of your question.

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13y ago

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