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)
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.