The true state of the economy
The economy is a crumbling mess…but the headlines are about a growing number of new crises. Crumbling mess…
- IRS Scandal–crumbling
- Release of 5 strategic, brilliant mass murderers/terrorists–crumbling
- NSA privacy–crumbling
- Vet’s medical care–crumbling
A crumbling mess–and each caused from a progressive/liberal policy guided by a misled ideology that’s disconnected to reality.
And that’s what we see with the economy.
The liberal media and politicians shout for joy–the economy is growing, jobs are growing, we are recovering. They say “every” economist agrees the economy is headed in the right direction. They say these things are “indisputable truths.”
Reality check: they’re a disconnect from truth.
- Economists aren’t all in agreement
- We are headed in the wrong direction
- The “truths” are false
- The economy is shrinking and not growing
- Individuals are out of a job–and can’t find one
- People are giving up even looking for jobs
- Salaries are shrinking
- Inflation is growing, as the dollar loses its value–so as prices rise, we all get poorer
But the media and Liberals made a big deal that the recent government-created employment report showed an economic “recovery” was happening.
The first quarter 2014 GDP contracted by an annual rate of 1%. We are stagnant–not growing at 5%, 6% or 7% as we should be!
Here is the reality check:
- The previous jobs report was revised down by 6,000 jobs.
- The labor participation rate is now 62.8%–about 40% of working-age people have given up looking for a job.
- 217,000 jobs were created in May, a little above the 205,000 population growth rate. Jobs are growing at a pace that’s only an inch ahead of what’s needed, just to keep up with the new people coming into the job force.
- Involuntary part-time work–196,000–household survey
So, the working population rose by over 2 million, but the labor force was essentially flat. People dropping out of the work force accounts for nearly the entire declining employment rate. And that’s not counting involuntary part-time work.
The official government unemployment rate is 6.3%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a truer picture of what the real unemployment rate is: 12.2%.
Both numbers would be much higher still, were it not for millions dropping out of the labor force over the past few years.
Private economists say the unemployment rate is closer to 18%.
Here are the six negative labor force factors:
- Discouraged workers stop looking for jobs
- People retire because they can’t find jobs
- People go back to school hoping it will improve their chances of getting a job
- People stay in school longer because they cannot find a job
- Disability and disability fraud
- Increase in welfare lifestyle
Everyone suffers…because of excessive taxes that kill jobs…unnecessary regulations that kill jobs…federal policy that kills jobs…legislation from Washington and Sacramento that kills jobs…
It’s time for a reality check.
What do you think of the jobs situation? I would like to hear your own journey with jobs in the past few years. Email me with any comments or questions at[email protected].