Friday between calls for “yes we can” murder Syrians to save face for Obama the latest unemployment numbers were released. The new as yet unrevised numbers showed an exceptional growth in this Democratic run economy of holding at 7.3%. Which as the Bureau of Labor statics stated is better than last year’s recovery summer rate of 8.1%. (http://www.bls.gov/news.release/empsit.nr0.htm) The problem like so many announcements is fewer people believe these numbers than actually understand where they come from.
Some believe it is the number of people collecting unemployment insurance, others figure it is hard numbers collected then adjusted for political purposes. It is a combination of both. The Bureau of Labor polls to arrive at the monthly numbers. They poll a total of 60,000 households every month in the middle of the month. Each month 15,000 are removed from the poll and replaced with an equal number. So the number they arrive at is actually a poll number and not an actual hard statistic. Their assertion is the numbers of responses is enough to give them an accuracy rate in the high nineties. This is borne out by Google who performs the same type survey with fewer participants but more often and arrives at the same result.
So why the doubt about the accuracy? Most of the skepticism comes from the numbers the Labor Department claims have dropped out of the work force. The current count is 90 million that have stopped looking or dropped out. This number is significant considering the work force is estimated to be 154 million of a population of 316 million. Could it be as some like the New York Times reports baby boomers retiring? Probably not since Germany, Australia, France and Italy are not seeing the same drop with almost the same demographics. What would cause so many to drop out of the work force that results in only 66% of Americans working or the same amount employed during the Jimmy Carter era of malaise despite 10 million new workers coming of age since 1978?
Could it be the generosity of the American taxpayer, as forced by the politicians need to buy enough votes to stay in power? Where is the incentive to work for some of those 10 million entering the workforce when 35 states pay more on welfare than minimum wage? Why return to work after two years of unemployment when you can apply for disability and get paid for sitting home and as a bonus prime handicapped parking wherever you go? Why work to provide food for the table when besides free breakfast and lunch provided no further than the closest school, food stamps are being handed out to enough people to feed the entire country of Spain.
The numbers by the Bureau of Labor must mean something. Somebody must be hiring or the rate would continue to climb. Well someone has to manage all those taxpayer provided benefits. In August the private sector lost 278,000 jobs but the government gained 324,000 jobs. Just like the Federal Reserve buying its own government bonds the economy is being propped up rather than fixed.
At what point will the government collapse under the weight of its generosity and reluctance to change the status quo? At the current rate we may find to our horror how far above 47% it takes to send the house of cards down.