Countries where social welfare schemes are properly implemented by the governments don’t have high levels of unemployment. In fact when a country has a large number of homeless and unemployed people, it is a clear indication that something is wrong with the way it is governed. But can governments be held completely responsible for loss of jobs and homes? Let’s examine.

Both internal and external factors can have a significant effect on a nation’s economy. A good government should be able to control the internal conflicts that might be causing joblessness. However, no government in the world can effectively control external affairs. For example, a lot of people lost jobs due to the economic crisis in 2008. Although recession was mainly in the US, its effect was felt all over the globe. In fact, the US recession caused job loss in countries like India and China. It affected India’s booming outsourcing industry. And because it was an external factor, the governments in India or China couldn’t do anything to ease its ramifications.

Nonetheless, there are many things that governments can do to reduce the severity of these problems and protect their citizens.