The Real Unemployment Rate is Worse Than ReportedFebruary 27, 2013
There are lies, big lies, and then there are statistics. Perhaps worst of all, there are government statistics. Trusting the government to be honest about the economy is like trusting the fox to be honest about guarding the hen house — it’s a recipe for eventual disaster.
When Obama took office, the unemployment rate was 7.8%. When Obama took his oath the second time, it was 7.8%… still. So did we have roughly the same labor market during both times? Heck no.
Millions upon millions have lost full-time work and have been pushed down to part-time work — this inflates the numbers of employment while drastically hiding those who are suffering.
There are 3 reasons we shouldn’t trust federal unemployment estimates:
- Conflict of interest. The people reporting statistics have an interest in making them look rosy. Considering nearly all statistics can be misleading — especially economic statistics — that immediately makes all positive news suspect.
- They stop counting. The unemployment rate doesn’t count students, people forced into early retirement, or people who have run out of unemployment insurance. In other words, a huge portion of the unemployed are ignored. The real rate is nearly double what’s reported. If the “official” rate was believed, it would only be a little harder to find a job — most people know it’s several times harder at least, and wages are even more difficult to acquire.
- Not all jobs are equal. A job created by government isn’t the same as a job that actually provides a service the economy has a demand for. Some government jobs are understandable — military, police, etc — but many are created that achieve nothing – bureaucrats, regulators, etc.
So how can we determine if the economy is getting worse? Read below.
The “Real” Economy: More People Can’t Afford Food.
To see how many people have seen substantial cuts in their income to the point of not being pushed into poverty, just look to food stamps as a percentage of the population. Over the last three years, the number has essentially skyrocketed. In 2011, unemployment dropped by .5%.
But the main reason for the drop is that so many people have taken early retirements or have been pushed to part-time work — not that they’ve actually gotten back on their feet.
The “recovery” is always a delusion. It is false hope for individuals who want to believe things will get better.
Meanwhile, use of food stamps is essentially skyrocketing. For the first time in the history of the United States, over 15% of Americans are on food stamps. That means Obama’s solution to “fixing” the economy is essentially increasing spending by creating a dependent class of people.
This isn’t just up compared to Bush. Food stamps are drastically higher for 2011 than for 2010. That means even after Obama’s first two years, food stamp usage is still increasing while unemployment is supposedly “decreasing”.
And no, this number won’t drop in just a few years. Since food stamps were created as a program, their use has gotten larger essentially every year. This means an important part of the economy will come to rely on welfare as an important part of their income.
How many people rely on a check from the federal government? According to Investors Business Daily, roughly 49% of home get benefits. This is a huge political move — essentially nobody who gets a check is going to vote against the guy who’s giving them checks in the mail.
Meanwhile, the national debt is skyrocketing. Our national debt is now bigger than the US economy as a whole.
Meanwhile, the senate hasn’t passed a budget since Obama acquired office. We’re literally spending money so fast, we don’t even have a budget any longer.
This insanity can’t continue. Over the next 5 or so years, we’ll be hitting an important point in our history. We’ll be getting into so much debt — unless something stops the increase — that we’ll have to either default on the debt or just print our budgets in the first place.
That’s bad. That’s a big deal. And you should be prepared for both recessions and inflation going forward.