How would unemployment compensation and income support programs (Welfare) affect the threat of unemployment? What impact would you expect these to have on labor intensity, the profit rate, and the level of unemployment?

Answer 1

The language here is surprisingly non-economic: The threat of unemployment.
In the days before income support, folks and their families starved if unemployed. If many were involved, the economy faltered, unemployment increased, profits fell, and fewer were at work and they generally were not productive.
I am still not certain of what "the threat of unemployment" means here.