The “Fuzzy” Math Sinking The U.S. Economy

Obama At Helm Big Government US Economy SC The Fuzzy Math Sinking the U.S. Economy

The spinmeisters in the pro-Obama media were in rare form last week. Somehow, they spun a tale that the current unemployment numbers are a win for America.

You see, the Labor Department says the economy gained 195,000 jobs in June. This beat economists’ expectations, the media trumpeted.

But that’s a really sorry excuse for a victory lap. And the media’s reaction shows just how far our expectations have fallen. Think about it… If the proportion of Americans who are working was the same as just 10 years ago, America would have nine million additional people employed right now.

And that’s not the worst of it. I want you to understand the magnitude of the ongoing deception. I’m going to give you some numbers, and I want you to stick with me. The Bureau of Labor Statistics (BLS) is perpetrating a gigantic sham, starting with the unemployment number of 7.5%.

DIY Statistics Paint the True Picture

I’ve long admired the work of John Williams, founder of the website Shadowstats.com. He calculates the unemployment rate using the historical methodology, including what are called “estimated long-term discouraged workers.” The U.S. Government, on the other hand, quit reporting these hardcore unemployed in 1994 to make itself look better.

According to Shadowstats.com, the real unemployment rate is 23.4%. These numbers honestly account for people who are long past the end of unemployment benefits, people who are so depressed by the Obama depression that they can’t stand to face rejection any longer.

Even more disturbing than the unemployment rate is the clear change in the way people are being employed. Consider that full-time employment plunged by 240,000 jobs in June. That means the number of Americans who want to work full-time but are forced into part-time jobs because of the horrible economy jumped 352,000. The total is now over eight million, which means the jobs that sustain a family are going, going… gone.

The full-time jobs are being replaced by low-wage, part-time jobs. 144 million Americans were employed last month, but only 116 million were employed full-time. Do the math… With an adult population of 245 million people and only 116 million full-time jobs, less than half of adult Americans are in a full-time job.

Why so many part-time jobs? They allow businesses to escape the Obamacare mandates. It’s a logical business decision to hire two servers, for example, at 20 hours a piece rather than one at 40 hours, if you have to pay for the latter’s Obamacare. This sea change in employment is a direct result of Washington mismanagement.

This is a national tragedy of historic proportions, yet all the media gives us is happy talk and Obama cheerleading.

A Lost Generation?

Even more discouraging is the plight facing young persons. The actual unemployment rate for 18-29 year olds, including those who have given up looking for work, is 16.1%.

The declining labor force participation rate has created an additional 1.7 million young people who are not counted as “unemployed” by the BLS because they “aren’t in the labor force,” meaning these young people have given up looking. I can understand their frustration – why look when there is a lack of quality jobs?

Finally, in addition to fewer jobs, the jobs we have don’t pay as well.  The real median income of Americans peaked in 2007 and has gone down every year since. Incomes haven’t grown, and prices are rising. We’re being smashed in the vice-grip of bad economic decisions made by Obama and Congress.

And though they created it, Washington isn’t going to solve this problem. You see, the solution is antithetical to their power structure. The solution is cutting the government’s control over the economy.

But good luck. The more power the government has, the more they can pressure interest groups to provide money and votes to keep them on top. We’ve got a self-reinforcing system that’s guaranteeing failure.

 

This article originally appeared at CapitolHillDaily.com and is reprinted here with permission. 

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