Skip to comments.Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 years
Posted on 01/21/2014 9:23:30 PM PST by 2ndDivisionVet
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 doesnt 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.
The people do know how hard it is to find a good paying job.
Nothing that MADE IN THE USA won’t cure.
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?
AND add to the unemployment rate all the other things stealing US jobs and stealing taxpayer dollars:
Add to the jobs losses the 20% of Americans on Food Stamps:
I think it was a year or so earlier.
But we made a comeback, didnt we?
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?
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.
HA...there it is!!!
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%.
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”
I found jobs for thousands of veterans and welfare recipients when I worked there, am I exemplary or is something different now?
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.
The new mandated bulbs turn themselves out don’t they?
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.
I would think if its truly 37% wed 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.