Friday, March 8, 2013

Phony Unemployment Numbers for a Phony Recovery

Phony Unemployment Numbers for a Phony Recovery:
Supposedly “unemployment” is down today, which is an utter joke. Only a President and media that calls spending increases “cuts” would pay attention to this number we call “unemployment.” This quote from CNN Money explains why:
Meanwhile, the unemployment rate dipped to 7.7%, as 12 million workers were counted as unemployed. The drop was partly because more people said they got jobs, but also because 130,000 people dropped out of the labor force.
This is the same kind of genius logic that causes people like Paul Krugman to declare that World War II got us out of the Great Depression. Take your best, most able-bodied workers, and ship them all overseas — millions of them — and voila! they are no longer unemployed! (Problem is, the same phony GDP numbers they cite to show a “recovery” during the war also show a deep depression during the incredibly prosperous year of 1946.) When you can play with your denominators at will, it doesn’t matter so much what your numerators are, does it?
The number that matters is this: what percentage of the population is working? James Pethokoukis has the chart, along with some incisive analysis, and it’s not pretty:

I have said for a while now: we are going to get a phony “recovery” before the big crash. Today’s numbers help prop up the Phony Recovery Narrative. If you want to get suckered by it, that’s your business.