When Americans are laid off of their jobs their spending power is taken away from them.
Spending is decreased drastically by the unemployed. Some are able to save than spend their money, which in turn affects the economy for a period of time. The unemployed has to deal with an increase of taxes. Some of the unemployed are insecure about their own work. This may affect their spending power of the working people as well and they too may start to spend less than before thus affecting the economy and the society in a negative manner.
A lot of times people live from paycheck to paycheck, so when income is lost they are immediately in debt. Political analyst such as Suzie Orman and Dave Ramsey suggests an individual should have least 6-8 months of funds saved just in case a person becomes unemployed. However, this is unrealistic when a person is working for a fast food restaurant unless they have a rent subsidy. The individual only makes minimum wage and they are paid every two weeks. The check towards the end of month pays the rent. The check around the middle of the month pays for the utilities, so that doesn’t leave much money to save. A lot of times people become unemployed due to not fault of their own. Then other People are due to poor work