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Fake Unemployment And Inflation Figures Sustain The Illusion Of An Economic Recovery
TMO ^ | 4-17-2011 | Joel S Hirschhorn

Posted on 04/17/2011 7:08:45 PM PDT by blam

Fake Unemployment And Inflation Figures Sustain The Illusion Of An Economic Recovery

Politics / Economic Statistics
Apr 17, 2011 - 06:32 AM
By: Joel S Hirschhorn

How do the powerful keep the US population dumb and distracted? A key tactic has been using methodologies that produce totally misleading underestimates of key economic factors. First we learned that official unemployment figures are too low by a factor of two. Now, understand that the official rate of inflation hitting consumers is even more inaccurate. You will hear about a low inflation rate of less than 3 percent. In reality, it is closer to 10 percent, according to the highly regarded analysis by John Williams.

It is difficult for any one of us to have first hand evidence that unemployment nationally is really much higher than what the government says, even though most of us know people who are out of work or taking part time work out of sheer necessity. But when it comes to rising prices hitting our pockets, credit cards and checkbooks we have a much clearer sense of what is really happening. Gasoline prices have jumped more than 10 percent in recent weeks and for most of us is about a dollar more a gallon than a year ago or so. Some experts are predicting that $4 gas will soon hit most of the nation and, even worse, that $5 gas may hit us this summer.

Food prices are also jumping like a frog on crack cocaine. Many of them are masked by smaller weight packaging. Health care costs, especially insurance premiums and drugs, have also hit many Americans substantially and painfully. High inflation especially hits hard those people who have seen their incomes decline. Those on Social Security receiving no cost-of-living increase have every right to be angry.

The federal government is manipulating statistics to intentionally get a low number for inflation as well as unemployment in order to mask just how awful and unfair the economy really is. Political leaders in both major parties use this propaganda strategy, as if there are simply too few intelligent Americans to see through the lies. Sadly, they seem to be correct. And the mass media push the propaganda strategy by continually hyping and spreading the intentionally false data.

“We have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US ,” said Jim Rogers back in June, 2010. It has only gotten worse. At this time John Williams has correctly described economic reality: “Near-term circumstances generally have continued to deteriorate. Though not yet commonly recognized, there is both an intensifying double-dip recession and a rapidly escalating inflation problem.” Wow! How does that compare to all the glib recovery talk by President Obama and just about everyone else in government?

In addition to banks and financial companies too big to fail that benefit the rich, when it comes to the economy plutocrats think it is too bad to tell the truth.

Who is falling for the economic propaganda? Gallup measures optimism about the economy as a function of age, income and political party affiliation. Worst of all are Democrats and the young.

Meanwhile the Federal Reserve keeps printing money to cope with the budget deficit and national debt problems, which is a major reason for the sharp increases in gasoline prices.

None of any of this, of course, matters much to the rich and powerful Upper Class that is doing just fine and buying more luxury things. And the fat cats on Wall Street and in the financial sector are giving themselves huge bonuses and salaries. Dr. Phil of television fame is selling his $15 million mansion estate so he can buy an even bigger one for $30 million.

Over at Ford, the chief exec recently received $56.5 million in stock and last year pulled down an additional $26.5 million in annual compensation. The latter amounts to 910 times the annual pay of entry-level Ford workers.

In 2011, Americans who make over $1 million will pay just 23.1 percent of their incomes in federal income tax. In 1961, the Institute for Policy Studies notes in its newly released annual Tax Day report, Americans who made over $1 million — in our current dollars — paid 43.1 percent of their incomes to the IRS. That was when the middle class was prospering.

If congressional Republicans get their way, the middle class will feel considerable pain from program-cutting tactics to curb the national debt, while the rich Upper Class gets more tax breaks and keeps sapping the wealth of the nation as Democrats lack the courage to fight hard for increasing their taxes. With rising economic inequality the US is rapidly becoming a two-class society: 20 percent rich and 80 percent poor.

Meanwhile, whenever I listen to Obama and congressional leaders it is like watching a skit on Saturday Night Live or the Daily Show. They are that absurd.

How many more millions of Americans must experience more pain and suffering, go hungry, lose their homes, lose their jobs, postpone retirement, and go without decent health care before the public snaps out of their stupor? Not that there is very much optimism among Americans. In a University of Michigan March survey just 11 percent expect inflation-adjusted income gains during the year ahead, barely above the all-time low of 8 percent in 1980, and only 21 percent expect the economy to improve over the coming year. But where is the loud political outrage? Loud enough to scare the hell out of politicians and the rich.

When will Americans rise up as those in Tunisia and Egypt did and before that in former Soviet-bloc nations and tear down their corrupt and dysfunctional government?

Unemployment at 20 percent, inflation at 10 percent, a multi-trillion dollar national debt, and nothing but lies from politicians. Have you had enough? Do you still believe that voting in different Republicans or Democrats will fix things?


TOPICS: Business/Economy; Editorial; News/Current Events
KEYWORDS: economy; inflation; politics

1 posted on 04/17/2011 7:08:52 PM PDT by blam
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To: blam; Kaslin; SunkenCiv; Nachum

“When will Americans rise up as those in Tunisia and Egypt did and before that in former Soviet-bloc nations and tear down their corrupt and dysfunctional government?”

I thought we had done that on election day last year.


2 posted on 04/17/2011 7:11:34 PM PDT by Clintonfatigued (Muslims are a people of love, peace, and goodwill, and if you say that they aren't, they'll kill you)
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To: blam

Nah, it’s funny remembering how the one party who claims fiscal responsibility only cared about debt when they whined. The party who must not be named...


3 posted on 04/17/2011 7:11:48 PM PDT by Morpheus2009 (I pity the fool - Mr. T)
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To: blam
Inflation Versus Hyperinflation, The Crucial Difference
4 posted on 04/17/2011 7:12:16 PM PDT by blam
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To: blam

Unemployment Rate - U6
http://portalseven.com/employment/unemployment_rate_u6.jsp


5 posted on 04/17/2011 7:13:52 PM PDT by 2ndDivisionVet (A thorough knowledge of the Bible is worth more than a college education. TR)
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To: Clintonfatigued

“When will Americans rise up as those in Tunisia and Egypt did and before that in former Soviet-bloc nations and tear down their corrupt and dysfunctional government?”

I thought we had done that on election day last year.”

We got some good people but not enough the Head is rotten,Our worthless government needs to be setup right again!


6 posted on 04/17/2011 7:14:37 PM PDT by Cheetahcat ( November 4 2008 ,A date which will live in Infamy.)
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To: blam

Yes, enumployment is 20% in this nation. Twice what they will admit.


7 posted on 04/17/2011 7:16:52 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Morpheus2009

Fake data from a fake president who’s mother used to work for Geithner’s daddy, skimming and bankrolling leftist causes. Obamma was raised on this grifting scheme. To think he wouldn’t apply the same tactics but only on a larger scale is sheer stupidity. That larger scale is not the Ford Foundation, but the entire US Economy.


8 posted on 04/17/2011 7:20:05 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: blam

” None of any of this, of course, matters much to the rich and powerful Upper Class that is doing just fine and buying more luxury things. And the fat cats on Wall Street and in the financial sector are giving themselves huge bonuses and salaries. “

The author was doing just fine until he took off on the sudden Class Envy tangent....


9 posted on 04/17/2011 7:20:33 PM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: blam

I was listening to one report....no inflation...but it excludes food and fuel. Bas*****


10 posted on 04/17/2011 7:27:00 PM PDT by Sacajaweau
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To: blam
Josef Göbbels on the "Big Lie":

"If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State"

Sound familiar to anyone???
11 posted on 04/17/2011 7:28:59 PM PDT by NWFLConservative (Fight Like a Girl!!...............Saracuda in 2012)
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To: Clintonfatigued

—“When will Americans rise up as those in Tunisia and Egypt did and before that in former Soviet-bloc nations and tear down their corrupt and dysfunctional government?”

—I thought we had done that on election day last year.

I regretfully believe that we will not even begin to dismantle our corrupt government until most of the “elected” officials in DC are under indictment and on their way to the hoosegow.

And we will not install another, less corrupt government until the Constitution again becomes the law of the land.


12 posted on 04/17/2011 7:32:38 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: blam
Real unemployment is 18%
Real inflation is 10%
13 posted on 04/17/2011 7:34:15 PM PDT by evad (SHUT IT DOWN!)
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To: blam

One of the hallmarks of communism was complete phony numbers in every category from employment, to defense, industrial production, agriculture, and inflation. The West distinguished itself with transparency and honest number. No more. We are looking like the old Soviet Union more and more with each passing day.


14 posted on 04/17/2011 7:51:56 PM PDT by ProtectOurFreedom
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To: evad

“Real unemployment is 18%
Real inflation is 10%”

Yep, that’s what i hear, and looking around it is quite believable. Need some wage inflation to kick in too or soon even the people with jobs will be broke.


15 posted on 04/17/2011 7:53:51 PM PDT by east1234 (Cut, Kill, Dig and Drill!)
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To: blam

Low unemployment, jobs galore, no inflation, no illegal aliens, no drugs, no deficit problem. Things could not be better. Thanks Obama. Glad you told me. We no longer need any more hope and change.


16 posted on 04/17/2011 7:59:02 PM PDT by Armaggedon
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To: east1234
Need some wage inflation to kick in too or soon even the people with jobs will be broke.

Unfortunately most companies just can't afford to pay folks more right at the time 0care is going to start increasing the cost of providing medical benefits to employees.

17 posted on 04/17/2011 8:15:13 PM PDT by gieriscm (07 FFL / C2 SOT - www.extremefirepower.com)
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To: Uncle Ike
The author was doing just fine until he took off on the sudden Class Envy tangent....

I agree. He had tripped over the truth then brushed himself off and continued on to the class envy way.
18 posted on 04/17/2011 8:24:53 PM PDT by PA Engineer (Time to beat the swords of government tyranny into the plowshares of freedom.)
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To: blam

People are not stupid, they are just beaten down. I have brought up the theme in my posts on this board many times about the unfair deal given Social Security recipients and federal retirees about being cheated out of their COLAs due to false manipulation of the data. Everyone who shops knows there is inflation. However we never hear one word about this from politicians of either party. This has to be intentional. They need our money to buy more votes.


19 posted on 04/17/2011 8:27:46 PM PDT by Ciexyz
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To: Clintonfatigued
"I thought we had done that on election day last year.

Not everyone got the message. But you had to know that without a change in the Senate all we would see, at best, was a blocking action.

More seats on both sides need to change hands including many Republicans (but not with Democrats). The main problem is that the Democrat party and many Republicans are completely owned by special interest group, and unlike the special interest groups of the past the ones owning the Democrats are anti-american and anti-business.

20 posted on 04/17/2011 8:37:30 PM PDT by WHBates
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To: Uncle Ike

That’s where he lost me.


21 posted on 04/17/2011 8:52:21 PM PDT by Vendome ("Don't take life so seriously... You'll never live through it anyway")
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To: blam

Very sloppy article deisgned to appeal to the echo chamber.


22 posted on 04/17/2011 9:08:04 PM PDT by JerseyHighlander
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To: F15Eagle

if you look at the reported unemployment numbers, they have also cheated on those. The numbers behind their calculations show that the working age population has increased by over 6 million over the past two years, but the available labor force has dropped about a million.

Quite obviously the available labor has actually increased by several million, so they are under reporting unemployment by several percent, even if you ignore all those part time workers who are underemployed!


23 posted on 04/17/2011 10:04:47 PM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
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To: blam

What crap.

Everything would be so much better if we just taxed “the rich” more... Bla, bla, bla...

We could take everything “the rich” have and the government would still be running in the red.

Screw these people that are constantly trying to blame successful productive people for all the economic problems we have today. Most of our problems today are due to people who think they are entitled to others hard work instead of pulling their own weight.


24 posted on 04/17/2011 10:36:12 PM PDT by DB
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To: ProtectOurFreedom
Yes, we don't have government spokesmen any more. We have dispatches from the Ministry of Truth.

Even though the USSR is no more, we still have this in China btw. They have a totally hollowed out potemkin economy that will shock everyone when it collapses, probably before ours does.

25 posted on 04/17/2011 10:43:12 PM PDT by hinckley buzzard
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To: ProtectOurFreedom
35 Statistics That Show The Average American Family Has Been Broke Down, Tore Down, Beat Down, Busted And Disgusted By This Economy
26 posted on 04/17/2011 11:26:03 PM PDT by blam
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To: blam
Do you still believe that voting in different Republicans or Democrats will fix things?

Name a third party that has the apparatus to give either of the other two a run for it's money? I'm waiting...

You see, that isn't the solution, either. It's a false dichotomy. The solution isn't Democrat/Republican vs. Something else. Who knows what the solution is? It's probably hopeless because of how tribal we've all become. Laments for a third party are unrealistic. We're only further fragmenting and balkanizing ourselves each day.

Americans need to come together and do the right things if we are going to get out of this mess. If we can't do that, we're done for. It's that simple.
27 posted on 04/18/2011 2:29:13 AM PDT by lmr
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To: F15Eagle

“Yes, enumployment is 20% in this nation. Twice what they will admit.”

The numbers the government puts out there have no credibility at all; everyone can see they are a sham. One hundred years ago people could be mislead by convincing themselves that the bad conditions they were seeing must not be widespread; now technology lets us know otherwise. Lying to the people will not get the Kenyan Pirate re-elected; most people know they are worse off than 30 months ago, regardless of what the TV says.

There is a very real conflict of interest in having the government publish inflation numbers; if the true numbers were used, the costs of current Social Security recipients would skyrocket to adjust for it. All of the prices that we see rising could only be offset by the fall of home prices; hardly an indication of “no inflation”.


28 posted on 04/18/2011 2:44:52 AM PDT by kearnyirish2
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To: lmr

People can always vote for members of either party that truly represent them, and against members of either party that don’t. The Dems lose in this arrangement because when the votes really matter, their members toe the party line and support the socialist agenda of their leadership (see Stupak, for example). Repubs who support big spending should be tossed as quickly as Dems who do, and if TEA Party candidates can be supported in primaries they should be.


29 posted on 04/18/2011 2:48:30 AM PDT by kearnyirish2
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To: east1234

“Need some wage inflation to kick in too or soon even the people with jobs will be broke.”

Unfortunately wage deflation seems to be the trend. Most of the unemployed people I know find jobs 1/3 to 1/2 of what they made before. People who have held on to jobs have not had an increase in several years and have seen an increasing share of escalating health care costs passed on to them by their employer. For exempt white collar workers, working hours also continue to rise as they take on the jobs of their coworkers terminated in waves of downsizings.

The CEO’s and executives of major corporations are playing into Obama’s class warfare game by continuing to award themselves outrageous (by historical standards) compensation while making the working environment more and more oppressive everyday. I’m hearing more and more middle class people who believed in the system and are now crushed by declining personal income and rising inflation, plus the ever present fear of unemployment, complaining about executive greed and Republican policies. What is left of the middle class is losing faith in the capitalist system due to the behavior of the leaders of the private sector.


30 posted on 04/18/2011 3:38:11 AM PDT by Soul of the South (When times are tough the tough get going.)
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To: Soul of the South
Inflation survival is just a matter of proper management. It use to be that our food budget allowed us to select from the entire store. Now we stop after the 3rd isle....
see?? no problem
31 posted on 04/18/2011 4:41:21 AM PDT by evad (SHUT IT DOWN!)
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To: evad

err..aisle ;-)


32 posted on 04/18/2011 4:42:57 AM PDT by evad (SHUT IT DOWN!)
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