Question

3. Suppose as a society, we become more self-reliant, i.e. we “do most things on our own” (e.g. cooking, gardening, fixing our cars, etc.) instead of relying on paid professionals to perform these tasks for us. By itself this change would

Answer 1

Answer:

Create unemployment

Explanation:

Providing services to the public is a huge employment placement all over the world. It is estimated that it takes up to 75% of the labor market sector in some countries. If people became more self-reliant, these services would become desolate and people would lose their jobs. Unable to find similar working position, they would not pay taxes any longer and some may have to ask for some kind of governmental help. All this would put a burden on the state's finances, create inflation and diminish the GDP.