The Easiest Way To Get The Unemployment Rate To Zero Is To Remove Everyone From The Labor Force

It’s frightening the way the “policy-makers” in this country are now twisting the truth into outright lies.  I recall reading Orwell’s “Animal Farm” and “1984” in high school and thinking:  “I doubt that can really ever happen here.”   Stunningly it’s not only happening here and now but it’s following Orwell’s playbook almost perfectly.

Yesterday Bloomberg News published a report in which Richard Fisher, President of the Dallas Fed, explained that the economy was getting better as private businesses were hiring more workers.   Apparently Fisher is either a professional liar or he doesn’t get his facts straight – in which case he would be a severely unprofessional economist.

We can presume Fisher was referring to Friday’s headline from Friday’s Government jobs report which stated that 288,000 jobs were created in April.  If that was the extent of Fisher’s due diligence of the facts, then he should be fired.

Here’s a table showing the summary data from the Government’s employment report (link):

(click on table to enlarge)

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I’ve highlighted the relevant boxes of data.  While apparently there were 288,000 new hires in April, a more careful reading of the Government’s report shows that there were actually 73,000 LESS people employed in total in April vs. March.  Not only that, but the size of the labor force declined by 988,000.   In other words, the economy LOST jobs well in excess of the 288,000 new alleged positions that were filled.

Now, maybe Richard Fisher is spending too much tutoring his grand kids in the “new math” being taught by school system these days.   But by traditional arithmetic, when you subtract a bigger number from a smaller number, you end up with a negative number.  Sorry Dick, you are wrong, the economy is not producing jobs.

Everyone knows by now that the Government reduces the “unemployment rate” by reducing the size of the Labor Force every month.  That’s the 988,000 increase from March to April of “Not in labor force” line in the table above.

I’m actually looking forward to the day when we wake up and read an editorial in the NY Times written by someone like Paul Krugman or Larry Summers suggesting that we just get rid of the labor force entirely  so that the Government can proudly present a zero percent unemployment rate.  The new economic policy can then be called “addition by subtraction” and the Orwellian cycle will be complete.

5 thoughts on “The Easiest Way To Get The Unemployment Rate To Zero Is To Remove Everyone From The Labor Force

  1. The numbers that is being spitted out is only to keep the stock-market-party going. But your article proves the truth that all of us realize – things are getting bad. The reason for giving everyone that has joined the poor a food-stamps-card is 1) to prevent riots and 2) the goods bought with those cards makes it look like the economy is moving when it isn’t. We’re all waiting for that “pop” to happen I suspect we’ll be in an european war to “mask” that pop. More and more people around me are part-time and are not working enough hours at P/T to cover their expenses.
    —————————————————————————————————————–

    http://www.dailymotion.com/video/x1sgdqx_is-the-u-s-heading-toward-a-deeper-downturn_news

    The economy’s leading indexes were pointing to a slowdown before bad weather hit earlier this year — but there is much more to the economy’s weakness than weather. Co-Founder and COO of the Economic Cycle Research Institute Lakshman Achuthan discusses.

    [ I don’t agree with everything from Lakshman Achuthan (I don’t feel he sees the situation seriously enough not the implications involved with a low-growth economic model) but he and his team does present that the so-called recovery is a bust.]

  2. Earnings Growth Upturn Masks Labor Market Weakness

    Earnings growth has risen for an unwelcome reason – because growth in hours has fallen faster than pay growth. As bad as that is for income growth, it is also not a credible signal of an inflation upturn.

    Given the ongoing taper, the Fed, like most other observers, remains optimistic about economic prospects. In turn, a number of economists are focusing on “bullish” indicators of employment and inflation, particularly growth in average hourly earnings (AHE), which has been rising since late 2012. This strengthening has been taken by some to mean there is less slack in the labor market and wage growth is rising. Yet, is the rise in AHE actually indicative of strengthening labor-market fundamentals, particularly inflationary pressures?

    The bottom line is that the current rise in overall AHE growth is not a sign of strength. In most industries, yoy AHE growth has either declined, been essentially unchanged, or has risen for misleading reasons, proffering false hope.

    https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-earnings-growth-upturn-masks-labor-market-weakness

    1. The brothers of Delta House would have given us more honest economic data than the government. (Let’s see, we can only afford ten kegs of beer this week while last month we could scrape up enough cash for eleven, damn this lousy economy! We can’t even afford to buy the good pretzels this time around!)

  3. And add to that insult to injury ! This blogger has come to realize 3 separate incidents in which individuals have been offered handsome incomes to work for the FBI ,CIA and Intel via NSA , accordingly !

    God ! I hate hidden agendas !!

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