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Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 years
The Washington Examiner ^ | January 21, 2014 | Paul Bedard

Posted on 01/21/2014 9:23:30 PM PST by 2ndDivisionVet

(VIDEO-AT-LINK)

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.”


TOPICS: Business/Economy; Culture/Society; Front Page News; Government
KEYWORDS: authorondrugs; banglist; bsarticle; economy; idiocy; miseryindex; unemployment
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To: 2ndDivisionVet

The people do know how hard it is to find a good paying job.


21 posted on 01/22/2014 6:45:33 AM PST by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
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To: 2ndDivisionVet

Nothing that MADE IN THE USA won’t cure.


22 posted on 01/22/2014 7:23:28 AM PST by ex-snook (God is Love)
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To: 2ndDivisionVet

These two men can expect calls from the Secretary of the Treasury (Standard & Poor) and visits from the IRS asking questions about their previously approved tax returns for the last decade or so.

And don’t even think about how they and their families will be ostracized!

How dare they tell the true and use real numbers!! Ain’t we governed by feelings any more?


23 posted on 01/22/2014 8:13:03 AM PST by Nip (BOHEICA and TANSTAAFL - both seem very appropriate today.)
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To: 2ndDivisionVet

http://www.impeachobamacampaign.com/articlesofimpeachment/

AND add to the unemployment rate all the other things stealing US jobs and stealing taxpayer dollars:

http://jubakpicks.com/tag/unemployment/

http://investmentwatchblog.com/

http://www.dailymail.co.uk/sciencetech/article-2542113/Will-robot-jobocalypse-make-YOU-obsolete-2014-year-droid-takes-job-say-experts.html

http://www.telegraph.co.uk/news/uknews/defence/10587820/US-Army-considers-replacing-thousands-of-troops-with-robots.html

Add to the jobs losses the 20% of Americans on Food Stamps:

http://cnsnews.com/news/article/ali-meyer/record-20-households-food-stamps-2013


24 posted on 01/22/2014 8:30:28 AM PST by Kackikat
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To: goodnesswins

25 posted on 01/22/2014 9:55:38 AM PST by carriage_hill (Peace is that brief glorious moment in history, when everybody stands around reloading.)
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To: goodnesswins

I think it was a year or so earlier.

But we made a comeback, didnt we?


26 posted on 01/22/2014 10:47:21 AM PST by crazycatlady
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To: Blood of Tyrants

Not everywhere:
http://www.indeed.com/jobs?q=&l=76208


27 posted on 01/22/2014 11:19:37 AM PST by 2ndDivisionVet (Jealousy is when you count someone else's blessings instead of your own.)
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To: relictele

You don’t see much of that here in Texas, just the opposite. New businesses, new stores, improvements, construction, people moving in, road work, busy malls, “help wanted,” etc. Wild, huh?


28 posted on 01/22/2014 11:30:46 AM PST by 2ndDivisionVet (Jealousy is when you count someone else's blessings instead of your own.)
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To: 2ndDivisionVet

ping


29 posted on 01/22/2014 11:53:52 AM PST by fhayek
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To: Old Sarge

The “someone” and the “who” will be obvious when the time comes. We each have to keep our own list of traitors, those we can actually reach. They are not all inside the Beltway by any means.


30 posted on 01/22/2014 1:05:14 PM PST by cherokee1 (skip the names---just kick the buttz)
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To: carriage_hill

HA...there it is!!!


31 posted on 01/22/2014 3:39:23 PM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: 2ndDivisionVet

I find 37% to be hard to believe. I certainly don’t believe the government’s 7% number.

But shadow stats.com has unemployment near 24%.


32 posted on 01/22/2014 7:11:23 PM PST by DannyTN (A>)
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To: freedom462

Disability payments now go to drug heads who are able to get that “mental” disability diagnosis. And they have no plans whatsoever to stop getting high and get a job.

“disability payments - which dwarf welfare payments in terms of national expenditures”


33 posted on 01/22/2014 9:11:48 PM PST by Cedar
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To: pallis

I found jobs for thousands of veterans and welfare recipients when I worked there, am I exemplary or is something different now?


34 posted on 01/23/2014 4:15:17 AM PST by 2ndDivisionVet (Jealousy is when you count someone else's blessings instead of your own.)
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To: DannyTN

There are roughly 200 million people of “working Age” in the US,this is NOT COUNTING RETIREES and CHILDREN under 18, there are only about 97 million TAX FILERS, this includes spouses working or not. How do you come up with a 7% unemployment rate??

I have been asking people this simple math question for over a year now, and finally someone digs deep and prints the truth, I believe their number is a little low though, but I will accept it.


35 posted on 01/23/2014 8:15:09 AM PST by eyeamok
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To: Bullish

The new mandated bulbs turn themselves out don’t they?


36 posted on 01/23/2014 8:18:39 AM PST by Resolute Conservative
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To: eyeamok

Good point. The only reason I prefer shadowstats 24% over the wall street advisor’s 37% is that 40% of the people I know aren’t unemployed. But there certainly are some that are unemployed and some are barely subsisting. And my circle of contacts is rather limited and I live in an area that is doing pretty well economically. I would think if it’s truly 37% we’d have demonstrations in the street.

24% are getting by because of help from family and friends, government help, dissaving, etc.


37 posted on 01/23/2014 8:57:46 AM PST by DannyTN (A>)
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To: DannyTN

I would think if it’s truly 37% we’d have demonstrations in the street

Take away their food stamps and welfare checks, then stop all the people from Fraudulently collecting SSDI, Force these people to go to SOUP KITCHENS and CHARITABLE ORGANIZATIONS, like the old days before LBJ’s “War on the Family” Began, and there will be.


38 posted on 01/23/2014 9:03:20 AM PST by eyeamok
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