May 8, 2009
Unemployment Higher but the Economy is Getting Better? Is this Possible?
AUTHOR: Colin Keller
As we struggling through these tough economic times, we continue to hear contradictory information. Each and every day the public and private sector gives us uplifting economic data that helps to support that things are getting better. It seems right after we get this news we see headlines like “National Unemployment Rises to 8.9%.“ This piece of economic data comes out shortly after Federal Reserve Chairman Ben Bernanke stated that the economy could continue to grow later this year. So what is the truth? Is it possible that unemployment is continuing to rise yet the economy is getting better?
It is not only Ben Bernanke who is giving us contradictory information, it is also the private sector. In March, Ken Lewis, CEO of Bank of America, made the statement that his company would be able to pay back TARP funds. Today we learned that Bank of America will need another $34 billion in government assistance. What gives? How can you possibly lose track of $34 billion dollars? Obviously he was trying to instill confidence back in March, but to be as bold as to say that Bank of America could pay back TARP funds by the end of the year is just plain lying.
We have also heard President Obama state that the stimulus package is starting to help the overall economy. I realize it is going to take quite a bit of time to see the effects of his economic policy, but are we to believe him? It is hard to believe anyone with their hand in the piggy bank these days.
The goal of this website is for me to get the conversation started and let you, the reader and blogosphere, finish. Please post your thoughts and opinions and I will chime in periodically to offer my opinion as well.
actual unemployment (not the numbers the government gives you) is pretty much the key indicator of the overall economy. this is why government obfuscates this figure. actual unemployment is closer to 20% nationwide.
there are various ways to measure economic success. another way is to add up all the expenses and compare that to our total output. if the former is larger than the latter, (and it is), then that means we are doing bad.
until we stop spending all this money on war and other government programs, then the actual unemployment will continue to rise.
I read a book in college in 1978 and it is still
relevant. It is called “How To Lie With Statistics”.
I’m sure it’s still out there..
So who is doing the lying Robert? The media, the government, private industry or all three?
Unemployment is a lagging indicator. If you think about it it makes sense. It’s easy to fire someone if you need to cut costs immediately. But it takes a long time to hire new people once you figure out that thinks are picking up again. (get budget approved, interview, do background checks etc.)
I think the Govt should subsidize the minimum wage! The Employer would pay $6 and hr and be matched by the Govt. That would give spending power to more people and they in turn would pay taxes. Car purchases would go up, and two people in a family with minimum wage jobs could afford to buy much morem stimulating the economy even more!
Very interesting take Richard, but try explaining that one to the politicians. Ultimately we need Americans to spend money they actually HAVE not money they think they will have in the future.
After throwing $12.8 Trillion in fake money out there, there should be some false flag signs of a recovery. What they can’t prevent is high unemployment which really is about 17-20% (see University of Maryland report). Also, the foreclosures are still occuring at a record pace. The truth will hit next year. The private for profit Federal Reserve international banking cartel has only forestalled the inevitable.
how can the economy get any better when you have home foreclosures, commercial property foreclosers, and credit cards that people cant pay.then you have a unemployment of about thiry percent because every one is losing thier jobs. the goverment should stop giving money to these bums(banks and automotive) and force the companies that have sent jobs away to bring them back! if not force a heavy tax and watch how they return. quit giving bad money after bad money. Save our country before it is too late and quit supporting other countries and save our selves.
the bank are now hiding the foreclosure, so we dont see them on an mls but when I go out side every thing is being forclosed.3 out of 5 home are being foreclosed, being that people bought homes they could never afford and these banks and builders made sure every one qualified they should be sued they should arrest everyone who took part banks,builders,and mortage brokers who showed how to falsefy the papers so they can sell the homes and property.
WHERE ARE WE GOING AND WHAT AM I DOING IN THIS HANDBASKET???
From: cJerry
The current economic down-turn is just the tip of the iceberg. It is only a preview of future economic conditions in the USA, we haven’t seen anything yet.
For many years the objective of the liberal legislators in the USA has been to improve the standard of living for everyone worldwide and they are more than willing to reduce the standard of living in the USA to achieve that objective.
Three things are the cause:
—–Liberal welfare
—–Liberal education
—–The balance of trade
—–Free trade legislation
Seventy percent of Americans are now under-educated and under-employed or unemployed and tax revenues are steadily decreasing. At this very moment, 5/13/2009, All of American cities, states and the federal government are in the process of cutting services because tax revenues are dwindling.
You and I voted the liberal legislators into office, you and I are suffering because of it and you and I had better think real hard before we vote again.
Sit back and relax, have a great cup of coffee from premiumpods and learn to vote smart. For a change!
Our government has been lying to us for so long
people have just gotten use to it. Company profits are up do to cost cutting. That means people have lost their jobs, that’s it. In the long run it will cost that company far more than it is saving now.
New people will have to be hired and retrained. Short term fixes to makes ones numbers look better. How about these numbers. Please tell us how many of the people who have gone through their unemployment funds have found new jobs? A new bubble is building, it’s called the B.S. bubble. When the government and companies can no longer lie about our situation, that one is going to blow and that will be that. Good luck people.