Wall Street Advisor: Actual Unemployment is 37.2%

Considering there’s at least 90 million people out of work in this country, this percentage is more truthful than the pablum put out by the Feds.

From The Examiner.

Don’t believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.

In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.

Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn’t being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.

“The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more.

“Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work. Policies that remove the barriers to employment, thus decreasing this number, are obviously beneficial,” he and colleague Megan Russell in their new investors note from their offices in Charlottesville, Va.

When you figure in all the people who stopped looking for work and ran out of unemployment benefits, the numbers get real fuckin’ scary. The current ‘official’ numbers according to the Bureau of Labor Statistics are:  6.7% unemployment and 13.1% ‘under utilization’.

The 13.1% is described as:

Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Updated population controls are introduced annually with the release of January data.

Marotta’s assertion that the government isn’t being honest about the real numbers is probably right.

He explains:

Unemployment has never been measured very accurately . Calculations do not count those who have just entered the labor force and haven’t found a job yet, who have been searching for employment so long they have given up the search , who work part time but are actively seeking full-time work and who are actively seeking employment but were not included in the monthly jobs survey.

Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2%. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work.

……So how could our stock market be at such record highs while so many are unemployed? Given current government policies, it is specifically by avoiding U.S. workers that companies are keeping their profits strong. Obamacare punishes large companies for each full-time worker and provides strong incentives for small businesses to stay below 50 full-time-equivalent employees. Automation and outsourcing are making U.S. companies more profitable at the expense of U.S. employment.

Inflation, the other half of the misery index, assists stock prices as well. Every month, the Federal Reserve has been injecting $85 billion into the money supply. This devaluation of the currency causes inflation that naturally pushes all prices, including stock prices, higher.

The broadest measure of inflation is the Consumer Price Index. But since 1997, the government has manipulated the raw data and significantly underreported inflation.

……These tricks, along with a host of other dubious accounting schemes, underreport inflation by about 3%. Today, inflation is officially 1.24%. According to Shadow Stats , which computes the old way, it is closer to 4.5%.Think of that 4.5% of actual inflation as a tax on anyone who is storing their money in dollars. And since 1997 that 3% annual underreporting has had the effect of cutting Social Security benefits by a cumulative 40%.

Today, the misery index would be 7.54 using official numbers. Using Shierholz’s measurement including discouraged workers (10.2%) and the historical method of calculating inflation (4.5%), the current misery index is closer to 14.7, worse even than during the Ford administration.

If the government ever accurately calculated the numbers,  it would yank a knot in people’s tails, politicians in particular.  I’ve always wondered how you could have such a high number of people out of work, yet such a relatively small percentage reflected in the BLS reports.  People have got to ask themselves how the government could come up with such low numbers when they look around their neighborhoods and see nothing but deterioration and scarce employment.

Now you know.

 

 

Related posts:

https://sfcmac.wordpress.com/2013/10/24/the-obamacare-casualty-list-so-far/

https://sfcmac.wordpress.com/2013/08/14/shocker-nbc-actually-reports-devastating-effects-of-obamacare-on-businesses-and-employees/

https://sfcmac.wordpress.com/2013/02/18/businesses-already-suffering-obamacare-side-effects/

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3 responses to this post.

  1. Posted by genomega1 on 21/01/2014 at 18:59

    Reblogged this on News You May Have Missed and commented:
    Wall Street Adviser: Actual Unemployment is 37.2%

  2. Reblogged this on GulfDogs.

  3. Reblogged this on Brittius.com.

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