Don't believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.
In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.
Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn't being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.
“The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more.
“Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work. Policies that remove the barriers to employment, thus decreasing this number, are obviously beneficial,” he and colleague Megan Russell in their new investors note from their offices in Charlottesville, Va.
They added that “officially-reported unemployment numbers decrease when enough time passes to discourage the unemployed from looking for work. A decrease is not necessarily beneficial; an increase is clearly detrimental.”
Then there is the Misery Index, which is a calculation based in inflation and unemployment, both numbers the duo say are underscored by the government. He said that the Index doesn’t properly calculate how Uncle Sam is propping up the economy with bond purchases and other actions.
“These tricks, along with a host of other dubious accounting schemes, underreport inflation by about 3 percent,” they wrote, adding that the official inflation rate is just 1.24 percent.
“Today, the Misery Index would be 7.54 using official numbers,” they wrote. But if calculations tabulating the full national unemployment including discouraged workers, which is 10.2 percent, and the historical method of calculating inflation, which is now 4.5 percent, ‘the current misery index is closer to 14.7, worse even than during the Ford administration.”
~ Washington Examiner
20% of households on food stamps - Why? No jobs.
This post was modified from its original form on 22 Jan, 3:12
They do like to play around with unemployment figures to make Obama look good and show how he's helping the economy grow again, don't they? They sure cook the numbers.
My gosh, Diane, no wonder people are so upset. That is better than 1/3 of the population and that is not good at all. It does make it better, I believe, for the Republicans and if they can get people working again that will be better. I believe that the Republicans can do that, too.
There is not any way that you can really lie to those that are out of work, is there. When will the liberals come to the party? When will the Democrats admit that they have backed the wrong man and at least get to work to turn this around, working with the Republicans and all of them ignoring Obama and if it means overriding his veto or executive order, just do it. They have to work with the Republicans and get the job done right.
Baby Boomers are hanging on to their jobs and, like me, are planning to work until they are 70 to 73 years old.
Many in the US believe we are in another recession and I tend to agree with them. Meanwhile, however, the stock market is at an all time high, Obamacare was deliberately written so that employers would drop coverage on their employees.....seems Obama has systematically broken down healthcare and the middle and lower middle class have been torpedoed.
Diane, a lot of us are going back to work as well even after retiring. They realize that their pensions are not sufficient and social security benefits are definitely not sufficient. They are at least working parttime. Where it was once necessary for most of us women to start to work outside the home to make ends meet, now baby boomers are finding that they do not have the luxury of retiring completely at 65 or 67; it is necessary to continue to work or to go back to work as I said.
That is going to impact the younger generation; but since all they do is complain about how we are draining social security and taking all their money that they would retire on, I guess they won't mind our going back to work and thus there won't be as many jobs for them as a result. Unfortunately it can't be both ways and that is just the way it is now.
I do get tired of the idea that baby boomers are dead beats and draining the system, etc. and "entitlement" recipients no different than welfare recipients and yes, that is a very common statement by the younger generation (25-45 year olds). What is so funny about it is that I can remember the days when my generation felt the same about our parents generation; not that they were like welfare recipients, but that they were draining the system and there would be nothing left for us; and even more amusing is that they felt the same about their parents generation who had indeed not pay all their lives into social security and were therefore taking more than they paid into the system. It is the recurring theme, it apprears and until one becomes retired they do not see the full picture; attitudes do change. LOL
I agree, Linda. The Baby Boomers had paid into both of these programs and contributed the lion's share of taxes for decades. Most have a strong work ethic getting to work on time and putting in their 8 to 9 hours every day. Most are dependable and stay current on technology. Most of us have computers, ipads, iphones, kindles, etc and we can navigate the web every bit as efficiently as the younger employees. We have people skills, manners, compassion and we are involved in politics and we vote.
While many of us have been saving for retirement so that we will not be a burden on society it is difficult to watch those who expect the government to take care of them when they've made a lifetime of bad decisions for themselves. As Boomers, we have witnessed and lived through more radical changes in our country than any other generation. We have raised our children to know the importance of learning a trade and having a college degree. Many of our children believed in our military and have fought for our safety and freedom.
I will continue to work as long as I can to help my grandchildren with their education. Keeps me young!