Saturday, October 06, 2012

Shazam! Unemployment Below 8% Just in Time for the Election!

Does anyone believe this crap:

WASHINGTON, Oct. 5 (UPI) -- The former head of General Electric challenged the Labor Department's Friday unemployment report pegging the rate at 7.8 percent.

The U.S. unemployment rate for September fell sharply, down by 0.3 percentage points, hitting the lowest level since early 2009, the Labor Department reported.

The department said 114,000 jobs were added and the figure brought mixed reactions. Among them, former General Electric Chief Executive Officer Jack Welch, who accused the White House of rigging the figures to help President Barack Obama's re-election campaign.

"Unbelievable job numbers ... these Chicago guys will do anything ... can't debate, so change number," Welch wrote in a post to Twitter.
Apparently Jack Welch doesn't. And while his sentiment is a more than a little paranoid, we knew this was going to happen. Anyone with a brain could've told you that unemployment was going to magically fall below 8% the month before the election. But let's put this into perspective:

1. 7.8% unemployment, if true, would mean that we have moved less that a half a percent in the last two years.

2. If the same number of able-bodied Americans were in the workforce now as at the beginning Barry's term, the actual unemployment rate would be around 11.6%. But the labor market participation rate is the lowest it has been since the last time we had economic policies that mirror the ones we have now. That would be during and just after the disasterous Carter Administration that brought us the actual worst recession since the great depression.

3. If you were to include all the able-bodied Americans that have dropped out of the workforce or are underemployed in the economy, the unemployment rate would be closer to 14%.

4. Barry and his minions conveniently only count jobs added when they claim 4 million jobs created under his regime -- a pathetic figure as it is when you consider that at one point in the Reagan recovery we created 1 million jobs IN A MONTH. But the other thing Barry and his minions don't do is count the Americans who have given up looking for work. So to be truthful about it, you take the "jobs created" against the Amercians who have quit looking for work and come up with a net loss of 1.3 million jobs during Barry's reign.

5. The "jobs added" numbers Barry touts are actually worse than pathetic when you consider the fact that paltry jobs numbers like 114,000 added don't even keep up with population growth. You need 400,000 or better added per month to just keep even, And we almost never get 400,000 in a month and if we do the number is almost immediately revised down.

When you look at how the unemployment statistics are manipulated it's not hard to see how the U3 -- the widely-publicized unemployment rate would magically drop below 8% just in time for the election. Mark my words: This rate will be revised upwards when the October number comes out not on November 5, but conveniently, probably November 7 or 8.

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