Unemployment Rate even worse than it looks, latest says 22.9%

[Bad_Daddy 2,209]

http://articles.philly.com/2012-07-11/news/32633451_1_unemployment-cheap-imports-work

July 11, 2012|By Clyde Prestowitz

So the headlines said jobs were up by about 80,000 last month and unemployment stayed at 8.2 percent. Not great, but not a disaster. At least things are not getting worse. Right?

That was how it looked to me at first glance. But I took a second glance — and quickly lost my appetite.

The headline unemployment numbers are the so-called U-3 government numbers, which count current jobs held, gained, and lost. Because of seasonal factors, they are subject to distortion that makes them more or less meaningless, as was the case in June.

A broader, more meaningful measure is U-6, which considers workers who have only recently stopped looking for work, as well as part-time workers who want full time work. U-6 unemployment is 14.9 percent and was up about 0.2 percent in June.

Until 1994, the U.S. government also kept track of long discouraged workers. Then the method of collecting and calculating unemployment data was changed, and workers who said they would like to work but were so discouraged that they hadn't been looking for work for a long time were defined out of the calculation. But the consulting firm Shadow Government Statistics still does that calculation, and it's a shocker: 22.9 percent.

That's the share of Americans who say they would like to work but for one reason or another can't find work; are working only part-time but want to work full-time; or have become so discouraged that they have given up looking for work. That means the full-time workforce ought to be a quarter larger than it is.

Can you imagine what that would do to U.S. growth, tax collections, savings, investment, and long-term retirement prospects? The fact is that the U.S. economy is operating far below its potential. Estimates of how far vary, but a good guess is about 5 to 8 percent of gross domestic product, or close to $1 trillion.

A trillion dollars is real money, and it's money America isn't making. Why is the big question.

A significant piece of the answer can be glimpsed in a recent report by U.S. Trade Representative Ron Kirk. In a press statement about the Generalized System of Preferences, a series of trade preferences for developing countries, Kirk said: "GSP is a valuable tool for advancing the administration's goals to boost trade and to advance international economic development. The GSP program helps developing countries to grow their economies while also helping U.S. businesses, workers and consumers by lowering the costs of imported goods, including those used as inputs for U.S. manufacturing. The annual review allows the administration to ensure that the program is working as intended."

Got that? The focus is on promoting cheap imports. Looking at the U.S. trade deficit, I'd say the program is working as intended. But if the U.S. government spent a fraction of the effort it spends on promoting cheap imports on promoting domestic American production, the U.S. unemployment numbers would look a lot better, and the economy would be much closer to operating at its full capacity. For the United States to achieve growth without increasing debt, it must substantially cut its trade deficit.

Clyde Prestowitz is president of the Economic Strategy Institute and writes about trade for Foreign Policy.

[Obama 2012 1,714]

Perhaps if people (or hypocrites) like Nancy Pelosi weren't making millions with offshore investments...

[Captain Oates 911]

Perhaps if people (or hypocrites) like Nancy Pelosi weren't making millions with offshore investments...

I heard something about offshore accounts in the cayman islands and Switzerland

I couldn't catch the name of the politician though.. something like "Willard"

[rocks 494]

I heard something about offshore accounts in the cayman islands and Switzerland

I couldn't catch the name of the politician though.. something like "Willard"

If only he had filed his tax returns for 2011, like a responsible US citizen.

[X Factor 1,112]

Until 1994, the U.S. government also kept track of long discouraged workers. Then the method of collecting and calculating unemployment data was changed, and workers who said they would like to work but were so discouraged that they hadn't been looking for work for a long time were defined out of the calculation. But the consulting firm Shadow Government Statistics still does that calculation, and it's a shocker: 22.9 percent

That is the real number because it was how the rate was calculated traditionally. 22.9% that is just over 1 in 5 people

[spookyturtle 9,466]

I hope Obama does something about this when becomes President.

[Dan J 277]

I've come to the conclusion in such that I dont see the government or private industry creating enough jobs to reduce the unemployment rate as well as handle future growth.

Private industry does not as its primary purpose create jobs. It does so more as a "side effect" of making money. While they will keep creating jobs in the future, increases in productivity, outsourcing, etc are going to ensure that the pace of job creation will be much lower than pace of wealth creation. There has been no time in the past where a company can make as much money as they can now with so few people.

The government can only create government jobs and can create jobs that are not purely driven by profit motivation. But the business elite has driven the Republican party to prevent the government from creating jobs outside of the DOD and defense contractors (Most of whom, profit quite handsomely from government spending)

So if private industry is not going to create jobs, and governments can't. Where are the jobs going to come from?

[kytwell 179]

If only he had filed his tax returns for 2011, like a responsible US citizen.

Would it make any difference in how you'd vote in November?

Like millions of other Americans, Mitt Romney isn't going to be ready to file his taxes on time this year. The Romneys aren't the only ones asking for more time to finish up their taxes. The IRS estimates that 10.4 million taxpayers filed for extensions last year.

http://money.cnn.com/2012/04/13/pf/taxes/romney-files-tax-extension/index.htm

So using misguided reasoning: You would conclude that those that file extensions are irresponsible, but the ones who pay in nothing or get returns bigger than what they paid in are being responsible US citizen's. The man has paid more tax in one year than most will ever pay in their lifetime. According to the extension filed for 2011, the Romneys have paid $3,434,441 in estimated taxes for 2011.

http://www.reuters.com/article/2012/04/13/us-usa-campaign-romney-taxes-idUSBRE83C1KD20120413

[kytwell 179]

I've come to the conclusion in such that I dont see the government or private industry creating enough jobs to reduce the unemployment rate as well as handle future growth.

So if private industry is not going to create jobs, and governments can't. Where are the jobs going to come from?

Accurate assessment. They'll create jobs out of thin air. Maybe we will get some more czar's in a 2nd term?

In all honesty though, things are screwed up here. In decades past say a job as a trash man for a local municipality was a good job. A union guy making 30-50k a year. It was a livable income, if he was a single guy or had a wife working too. And you had many doing it all across the country. Then we "privatized" trash collection, these private companies then utilize prison work release labor and one "company" driver and now we have just one guy at the top or a few already wealthy shareholders making all of the money(the driver gets a couple of nickels), while before you had lots of people each getting a little bit of money. I don't know how to rectify it or to stem it's march into every sector, but it's a problem. We can't keep funneling all of the money to the top, while taking out the bottom on the way.

Edited July 13, 2012 by kytwell

[rocks 494]

Would it make any difference in how you'd vote in November?

Like millions of other Americans, Mitt Romney isn't going to be ready to file his taxes on time this year. The Romneys aren't the only ones asking for more time to finish up their taxes. The IRS estimates that 10.4 million taxpayers filed for extensions last year.

http://money.cnn.com/2012/04/13/pf/taxes/romney-files-tax-extension/index.htm

So using misguided reasoning: You would conclude that those that file extensions are irresponsible, but the ones who pay in nothing or get returns bigger than what they paid in are being responsible US citizen's. The man has paid more tax in one year than most will ever pay in their lifetime. According to the extension filed for 2011, the Romneys have paid $3,434,441 in estimated taxes for 2011.

http://www.reuters.com/article/2012/04/13/us-usa-campaign-romney-taxes-idUSBRE83C1KD20120413

You really are tiresome. Read the first line, almost fell asleep due to boredom.

He thinks he can fix the economy but he can't file his tax returns on time? OK, great. He sounds really credible.

I'm sure you have some illogical argument to defend why he won't release more than 1 year of his tax returns, like his father did. Or like he showed to McCain last election.

These are rhetorical questions, in case you can't figure that out.

[Captain Oates 911]

This is all a misunderstanding

Mitt has opted for an extension using pills rather than surgery

I hope it's clear now

[MyLittlePony 340]

Obama has done anything to fix the job market he is full of it all talk and no results.

[Captain Oates 911]

Obama has done anything to fix the job market he is full of it all talk and no results.

Or $2 gasoline or free beer on friday or suppressing the sun spots that interfere with TV reception, or discovering the secret of immortality

He has had 3.5 years so he really is hopeless

[rocks 494]

Or $2 gasoline or free beer on friday or suppressing the sun spots that interfere with TV reception, or discovering the secret of immortality

He has had 3.5 years so he really is hopeless

Did he file his tax returns for 2011?

[Captain Oates 911]

Did he file his tax returns for 2011?

He doesn't know - he is not responsible and ask someone else and he was on the lake on filing day.....these questions are so irrelevant and they are picking on him because:

Article 10: “We believe in the literal gathering of Israel and in the restoration of the Ten Tribes; that Zion (the New Jerusalem) will be built upon the American continent; that Christ will reign personally upon the earth; and, that the earth will be renewed and receive its paradisiacal glory.”

“Basically, the 10 tribes that were lost (in the original priesthood) will come back and gather in Missouri,” Johnston said. “That’s where the Garden of Eden was and that’s where Christ will be raised.”

I am off to buy land in Missouri as a hedge in case Willard wins