That is the problem. The “traditional” definition does not fit the economy today. In addition the spending of untold trillons by the Government skews the real situation (deliberatly). If everything was counted the same was as in 1932 and adjusted for inflation we would see numbers that are worse than any before. I will give you one. The real UE is 21% and rising; using the definitions from the 30’s. BTW classic econ says you do not know until it is over. So only time will tell - except that the Government will lie about it then.
That would be a very good study and a good campaign theme for a Cain or Palin type figure (someone with guts enough to use it is what I am actually saying).
I was driving on a highway into Houston...which they are repaving. Here is what they did: They resurfaced it...and I thought that was it...and it was a nice surface. THEN they came back and added a couple of inches of ashphalt...resurfacing that.
So...they took a highway that really wasn't in bad shape...had no potholes...was pretty smooth...and made it nice and black with a thin layer of road...and then it was really nice. THEN came back and layed a layer of asphalt on THAT...compressed it...and now its super nice.
So...my thought was: This created a lot of jobs. There is a business making a lot of money because the state did this. There are workers employed because the state did this. However...it is my tax $ they are using and its not real because without my tax dollars...these jobs don't exist and this company doesn't exist.
Now I am all for using my tax $ to maintain the roads I drive on...but this was "stimulus." The road didn't need to be repaired. It was a waste of my tax $ to keep people employed. There's a problem here.