Skip to comments.New Unemployment Rate A Political Fraud
Posted on 10/06/2012 4:30:06 AM PDT by LD Jackson
The media will no doubt trumpet the new 7.8% unemployment rate as evidence that Obama’s policies are working. Unfortunately the new 7.8% figure is a political fraud. The numbers don’t add up. The government claims 114,000 jobs were added last month, which isn’t all that great of a number. This resulted in a 0.3% drop in unemployment? That isn’t believable in the least. The ranks of the unemployed decreased by 456,000 last month. Well wait a minute, how does that figure decrease by so much when only 114,000 new jobs were created? The government is tossing 340,000+ people out of the job market in order to boast unemployment is down. It took me all of 30 seconds to figure out what they’re doing. Unfortunately the press will only report the 7.8% number.
CNBC claims the numbers are tame and they’re confused by all of the contradictory figures. This report is overtly political. It’s meant to secure Obama’s re-election. Just wait, the November surprise we’ll get when the October jobs report is released on November 2nd will be even worse. Magically unemployment will be below 7.5%. That the government threw half a million more people out of the job market will be ignored. Just in the last two months the government has claimed that over 500,000 people are no longer in the job market. Where are they? Did they leave the country? Surely they aren’t all women who have decided to stay at home with their kids.
In fact, the numbers are even worse than this. We need 150,000 new jobs every month just to keep pace with population growth. Each month new kids graduate college or high school, jobs need to be available for them. When 114,000 jobs are created that means we aren’t even keeping pace with population growth. Sure, some people are retiring and that offsets the number. But a lot of people are foregoing retiring in this economy. Romney was right during the debate 50% of college graduates can’t find a job out of college right away. These people are either going directly to the ranks of the unemployed or the government simply isn’t counting them.
The real telling figure from the government is the U-6 report which indicates that real unemployment remained at 14.7% last month. U-6 includes people who have given up (like the 340,000+ the government doesn’t count in the official unemployment rate) and people who are underemployed. In other words, the economy isn’t really getting better. Instead the government is manipulating the numbers to favor an incumbent President.
Mitt Romney needs to issue an ad today attacking the new unemployment rate. He needs to focus on the 340,000+ that the government simply removed from the job force. The ad should make it clear 114,000 isn’t good enough. If we had a real recovery we would be creating jobs at the rate of 500,000 a month like we did during the Reagan recovery. What we have now isn’t a real recovery, it’s a stagnation. Romney has to make these points loud and clear over the next couple of days otherwise any bump he would have received from his debate victory will be lost.
This sort of nonsense job reports shouldn’t surprise any of us. It was entirely predictable. It’s a good example of why government really shouldn’t be in the business of labor statistics in the first place. These statistics are easily manipulated to favor those already in power, no matter the party. In fact, the government has changed the formula so that the U-6 rate, which used to be the official unemployment rate, is no longer used officially. Why? Because it hurts the incumbent as it is always higher than the current version of the unemployment rate. The question now is whether the public will pay attention to the September number or whether they’ll wonder how it dropped so much when only 114,000 jobs were created. My guess is that they’ll pay attention to the number alone.
UPDATE: It appears that several Bureau of Labor Statistics economists are donors to Obama’s re-election campaign. Is anyone at all surprised?
The onlybthing Obama has successfully done is ensure that it will be a long time before another black president is elected and I happen to think Allen West would have made a good president. At least he would have been honest (as a politician be).
“...that it will be a long time before another black president is elected...”
IMO, not a fair statement should probably be:
‘that it will be a long time before a Chicago thug is elected President’
I do feel bad for Allen West. I think Obama has really spoiled things for him.
7.8 % don’t jive as long as the 47 % is high...
U6 data, NOT the cooked/fried/boiled U3 numbers, MUST be used. The corrupty, criminal BLS gets away with too much to benefit the marxist-POS-liar-traitor-in-chief.
Yes. There's A Recovery Underway 0.67%
No. Someone's "Cooking The Books" 99.33%
No, no, y’all got it all wrong. These numbers are correct. President Obama’s plan is starting to work, it is just that these new jobs and the people employed are invisible. Why, last month this country added 125,000 new jobs in pixie dust manufacturing, 135,000 in the transportation of unicorns, and thanks to Obamacare tooth fairies are now required to harvest organs along with correcting teeth.
As I posted several years ago;
Obama is America’s David Dinkins.
Is that an actual scientific poll?
When Romney secures the Presidency, a top prioity is to make heads roll at the BLS.
Why are we continuing to sign up for this little piece of fiction in the first place? I wish they would cite the actual 14.7% number...Say it often. Say it every chance you get. Our national unemployment picture is a national disgrace. Historically, America has always been about work. WORK. Not how you take care of those who can’t find it.
Shades of Saturn 3.The administration will start distributing photos of an American astronaut landing on Mars except they are really photoshopped photos of a guy meandering in a Louisiana marsh.Much like coming up with a a healthy dip in the unemployment rate while simultaneously posting dismal job numbers in this last report.
Most of these people are unemployed and their emergency benefits have run out. Despite what you hear there is a limit on the benefits an unemployed gets. More than that sometime around Jan 14th EVERYBODY’s federal emergency benefits end because that’s when the program expires. It does not matter if someone has just got on emergency unemployment in August, October or december - they all stop on that date.
What the republicans should do is put up a bill that extends the emergency unemployment benefits for 3 - 6 months. And offer cuts in other places (preferably in places Harry Reid would not like to see cuts) to offset the cost of the emergency unemployment.
This will put Harry Reid and his party in a very difficult position (between a rock and a hard place). It will NOT look good if his party votes against the unemployed victims of this pResident.
If this had been done earlier we would not be seeing 7.8% unemployment because the more people that get back into the program the higher the unemployment rate will reflect Realville as it heads up toward 11%.
Most likely we will see another drop in the unemployment rate next month. This is the time that those who went on emergency unemployment expire and are no longer counted as unemployed. This benefits Obama.
Mitt Romney is right, the rate is dropping as people’s unemployment benefits expire.
Obabaa “found” 800,000+ jobs the same way Dems “find” boxes of ballots in the trunks of cars and in storage closets that were “overlooked”....close election? Repub winning by a little? Wow! Lookee here, we just “found” more ballots! And we must count every ballot! (except for military ballots or ballots from Repub districts, etc)
This is “The New Normal”, isn’t it? Now all about the “takers” and screw the “makers”, like us, who’ve worked for 50+ years. What’s coming is truly frightening, at this rate.
This “New Normal” is so surreal to us with a functioning brain.
You’re 100% right. When UE runs out in Jan 2013, if *something* isn’t in-place to quell the growing exasperation and anger, SHTF.
Reid&Co will fight everything to keep it as is, until after Nov 6. the GOP-e doesn’t have the stones to challenge him and the corrupt congress.
The U3 data will continue to drop and show an even bigger gain in Oct, as 11/6 gets here, making 0bummer&Co the heroes. R/R won’t know what hit them unless they go after the U6 data daily and push the truth out there. The MSM will cover, spin, lie... do whatever it takes to get that POS back in.