The Acme Company based in USA laid off its employees in Anytown because its corporate officials claimed that they were unable to operate the old equipment of the firm with unionized workers. After the closure of the company, the employees were left without jobs although 80% of the population directly or indirectly depended on the factory. The amount the workers of the company were earning was sufficient for their families to afford the basic needs and live comfortably. Therefore, during that time, the families belonged to the middle class category. Within the middle class, the families could be further classified as working class as most of them were employed in the factory. However, after the company had closed the families had no other employment opportunities in Anytown area and therefore they are classified as lower class people. Furthermore, after the closing of the factory, the families will experience a downward social mobility. Due to the layoff of the company workers, their families will suffer from loss of income for the next two to five years.
Assuming that the workers received unemployment benefits and savings, the factory workers would still be considered poor. The reason is that they will use all the money to cater for their basic needs including shelter and food. 80% of the areas population directly or indirectly depended on the factory. Therefore, the workers have no choice than to utilize the money until they get another job, which they might be unable to get because there are no jobs in the area. Furthermore, the workers will become poor after using all their unemployment benefits and savings because there are no jobs in the area.
Additionally, the unemployment benefits and savings are insufficient for Anytown families to maintain their daily expenses. On the other hand, when the factory announced that they were closing the housing prices dropped. Thus, they could not sell their houses for them to move to other areas in search of jobs. The workers of the factory are likely to fall into poverty after they have used up their unemployment benefits and savings because there are no jobs in the area thus they may not find other employment opportunities.
A social problem refers any issue that directly or indirectly affects individuals or the entire society. In the case of Acme factory, the workers and their families face various social problems because of the new social and economic conditions. The kinds of social problems faced by the Acme Factory employees and their family include economic issues that are in the form of unemployment and poverty. These people do not have other employment opportunities in the area, and this is evident because 80% of the individuals depend on the firm. These people can also suffer from the cultural problems due to the change in the social class.
The cultural type of social issue includes juvenile delinquency and divorce. Additionally, the factory workers and their families can also face psychological problems like neurological disease and other diseases. The people of Anytown may also suffer from biological problems like infectious diseases. The reason is that they will not even have the sufficient money to pay for the medical services. Although these people would have migrated to other areas, they are unable to sell their houses since the pricing of the houses dropped when the factory announced that they were moving to another area.
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