Economy Still in Tank as New Unemployment Claims Jump by 399,000

Posted by Gate   @   12 January 2012 2 comments

by Chuck Ness

After being told by Obama, and his propaganda machine the MSM, that the increased number of jobs created during the holiday season proves his economic policies are working and the country is on a rebound, we again learn they are all telling tall tales. Every year, whether the economy is up or down, the number of people being employed goes up during the holiday season. Those of us on the right have been saying it since November,

“When the higher unemployment numbers for January start trickling in, the drop in November and December’s unemployment numbers will prove to be the usual temporary holiday drop we see every year.”

Now we are learning that the number of people applying for unemployment in the first week of January is proving us right, that Obama and the MSM are spewing their usual propaganda lies instead of telling us the facts. The Bureau of Labor Statistics (BLS), is reporting an increase of 399,000 new unemployment claims for the first week of January 2012.

Get ready for the administration to report sometime in the next week or so, that those numbers are being revised to over 400,000. After all, almost every economic number released by the Obama administration since his inauguration in January 2009, has been revised to look worse than originally reported. Usually on a Friday afternoon when everyone is getting ready for their weekend and not paying attention to the news. We can count on the MSM to tout loudly the numbers Obama puts out that look good, but they barely even report when the numbers have being revised in a negative way, because then they would not be able to get him re-elected for a second term.

Funny how the media keeps telling us that the economy is recovering and Americans are optimistic about the future. Just ask your neighbor how they are doing, and you will get a much different opinion. Remember when George Bush had unemployment numbers in the 5% area, the MSM was writing stories of how America was doomed. Now they are carrying Obama’s water by reporting lies that Obama’s policies are beginning to work. When in truth, Obama has made things so bad in America that the real unemployment in America is more than twice as high as it was when George left office. But it’s not about truth, it’s about re-electing Obama. The only way they can do that is to make it seem like America is on it’s way to a recovery, and who would want to change horses in the middle of the stream when the future looks so bright?

What the MSM is not telling Americans, is how the Obama administration has manipulated the unemployment figures to make it seem like his policies have improved things. The Obama administration has reduced the number of jobs available by 2.5 million since he became president.  That alone reduces the unemployment number, because you now have less jobs to fill. Truth is, if George Bush had used the same formula the Obama administration is using, then almost forty of the ninety six Months of his term, the unemployment rate would have been reported as 0% unemployed Americans. However the MSM would never have allowed it to be reported because they would take him to task for manipulating the numbers the way Obama is.

Just because you filled out an application with every business in town, and go back once a week to physically check to see if they were hiring yet, does not mean the government considers you unemployed. If you have not registered at your local unemployment office, then chances are you are not counted as being unemployed. After all, if you do not get an unemployment check, there is no reason for you to check in with them to let them know you are actively looking for work. Also, when your unemployment benefits run out, the BLS does not consider you unemployed any longer. Yup, you are just removed from the list of needing or looking for a job. Thus you are not considered unemployed.

I will admit that being dropped from the ranks of the unemployed when your unemployment check stops coming has been happening for a long time. If they still counted unemployment like they did in 1930′s, the unemployment numbers in America would have looked drastically different for a very long time. However, Obama has added to the false numbers by the way his administration has been cooking the books for the last 3 years.

In the excerpt below, from Ezra Klein’s December blog post, the Wonkbook, he writes that the Obama administration has neglected to include Americans who have given up on looking for a job. That alone will skew the unemployment figures. If the administration counted those who gave up looking for work, as Bush did, the unemployment would be closer to 11%. By adding the extra 399,000 who filed for claims in the first week of 2012, the true unemployment today would be more like 11.5%. So when Obama announced that the unemployment fell from 9.1% to 8.6% he was, to put it politely, being dishonest with the American people. Of course the MSM willingly perpetuated the lie.

Then there are those who look at the real unemployment numbers as being closer to 17% or even higher at 20%. That is where the numbers would be if the government counted all the people who gave up looking for a job plus added the number of Americans who have never been classified as unemployed to begin with, because they we self employed. Yes, while many Americans can collect unemployment for being laid off, self employed businessmen and women are not given that privilege. Think about, the Obama administration claims that there are 2.5 million less jobs available today then in January 2009, and a vast majority of those jobs were in the small business sector. So those business owners who closed shop are unemployed also.

Now if you added together the number of Americans who were self employed yet unable to collect unemployment along with those not counted because they quit looking for work plus added in the adjusted number reported Monthly since January 2009 by the BLS, of those filing new unemployment claims, and then subtracted all the jobs reported to have been created on a Monthly basis since January 2009, you would end up with an actual unemployment of 17% to 20%.

I could get real picky and add all those the BLS does not count as unemployed. Like those baby boomers who are getting older and now considered to be of retirement age, yet they desperately need a part time job to make ends meet. The college and high school students who, if they had jobs many would not be getting into trouble. Those collecting welfare that would be looking for work if they were not receiving welfare, as the Republicans Welfare Reform Act of 1996 proved. Then there are those who collect disability checks. Many of which who would love to have a job. Ever see the smile on a disabled person’s face that works at Walmart saying, “Welcome to Walmart!”. Add all these Americans together with those whom the government calls discouraged workers, and we are talking about about 20% to 23% of the working age population that is unemployed in America today.

If you look at the hard numbers, the total number of working age Americans who are unemployed today is over 40 million people. That number dwarfs the 10 million people Obama and the BLS claims are unemployed. For those who think this isn’t serious, just think of all the jobs being lost because Obama is letting the EPA shut down any business that might pollute Al Gore’s precious Mother Earth. As a lame duck President, Obama will continue his battle against any industry he does not think is Eco-friendly, and by the time his second term is over, America will have ceased to be the great country our Founding Fathers fought and died for.


The real unemployment rate is 11 percent

    by Ezra Klein

    ………….today, the most important sentence isn’t a report on something that just happened, but a fresh look at something that’s been happening for the last three years. In particular, it’s this sentence by the Financial Times’ Ed Luce, who writes, “According to government statistics, if the same number of people were seeking work today as in 2007, the jobless rate would be 11 percent.”

    (Editors note, it was a Democrat controlled Congress that changed the way the unemployment is calculated, but it did not go into effect until 2009. )

    …………………………………………………. the percent of the population that either has a job or is actively looking for one has fallen from 62.7 percent to 58.5 percent. That’s millions of workers leaving the workforce, and it’s not because they’ve become sick or old or infirm…………………. If 62.7 percent of the country was still counted as in the workforce, unemployment would be 11 percent…………….. real un- and underemployed rate — the so-called “U6″ — is near 20 percent.

    There were some celebrations when the unemployment rate dropped last month. But much of that drop was people leaving the labor force. The surprising truth is that when the labor market really recovers, the unemployment rate will actually rise, albeit only temporarily, as discouraged workers start searching for jobs again.

    Excerpt, you can read Ezra Klein’s posts at the (Washington Post)

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2 Comments

Comments
Jan 13, 2012
11:19 am
#1 Nancy D :

Nice article OV.

Obama and his henchmen are really digging us all a hole so deep that even the best conservative will have trouble righting the sinking ship I’m afraid.

Thanks for the email about your problems. You are in our prayers.

I do miss your pings, but I understand the trouble you are having, because my father had a bad case of degenerative spinal disease. Let us know what the Neurologist says. I pray it is not as bad as my fathers, but if it is I am sure your faith will see you through.

Love ya big guy,

Nancy

Jan 13, 2012
11:22 am
#2 Gate :

Thanks Nancy,

I’ll know more next week. I see the specialist on Thursday. Today is a good day.

Yes, I think even Ronald Reagan would have a tough time making things right, but time will tell. It will make things much easier if the SCOTUS shuts down Obamacare.

Sorry, comments are closed.

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