Friday, October 05, 2012

Smoke and Mirrors Unemployment Rate Drops Below 8.0%

By Douglas V. Gibbs

My wife reported to me tonight about how a co-worker of hers was raving about Barack Obama, and proclaimed that news the unemployment rate dropped from 8.1% to 7.8% is proof that the President's policies are working.

For simple minds like the squirming brain of that Obama supporter, the Democrats accomplished exactly what they were aiming for.

"The Force can have a strong influence on the weak minded."

The unemployment rate is being manipulated, and is nothing more than smoke and mirrors.  The unemployment rate being reported does not reflect reality.  And yes, there are actually people out there that thinks the government doesn't lie to them.

For the rest of us, the fact is, the Democrats have been playing with the unemployment numbers ever since they were able to control the information ministry.

The numbers are being reported in such a way where the unemployment rate is actually doing the opposite of all of the other numbers.

Ninety-nine weeks of unemployment was timed for the election.  As we approach November, people's unemployment benefits are running out. As they drop off the unemployment rolls, their status is being changed from "unemployed," to "no longer searching for work."  These people still don't have a job, still wish to be employed, but are no longer being counted as being unemployed.

Meanwhile, the guess-ta-mation of how many jobs are available in the universe of jobs is also being manipulated.  The total number of jobs available nationwide has been reduced by the Obama administration, and when you compare the number of jobs available to the number of people working, suddenly the unemployment number drops.  The guess for figuring out the employment number is largely due to phone surveys - you know, like polls? And we know how accurate those can be, right? (That was sarcasm, for those of you that are, shall we say, less informed).

The drop of three-tenths of a percentage point, however, is the largest drop in the rate in twenty-nine years.  Yet, last months job creation numbers are less than the average for the year, and less than the prior month. How can it be that job creation is dropping, yet the unemployment rate drops three-tenths of a percentage point?  Economic growth would need to be approaching a little less than 5% for that to happen.  In realty, if the universe of jobs was the same, the unemployment rate would be between 11% and 14%.  If those dropping off the rolls were still considered unemployed, the rate would be around 20%.

Of course, it is no surprise the Democrats have gotten the rate below 8%, because no President has been reelected with the rate above 8%.

As for the claim the numbers were manipulated? Economic Policy Institute's Lawrence Mishel claims such a claim is bizarre.  Somehow, in his universe, decreasing job growth, and a dropping unemployment rate, coupled with people dropping off unemployment rolls without actually finding a job, and the decrease in the size of the universe of jobs based on guesses by the administration, makes all of the sense in the world.

Like the liberal media, Mishel is willing to lie to keep the Marxist Alinsky-ite Obama in office to continue his fundamental transformation, a.k.a. destruction, of the financial foundations of our economic system.

The Associated Press is reporting that the number of unemployed Americans is now 12.1 million, the fewest since January 2009.  Remember, however, that an untold number of folks dropping off the unemployment rolls because their benefits ran out, not because they found a job, is not being included in that number.

The AP also reports that the Labor Department claims employers added 114,000 jobs in September, a number higher than estimations.  However, if we go back to July through September, the number was 146,000, whitc means the latest September number is actually a drop in job creation - yet, I might remind you, somehow the unemployment rate came down.

The media then indicates that the 7.8 percent unemployment rate for September matches the rate in January 2009, when Obama took office, which is a way of trying to convince you that good ol' Obama has beaten back the rate to where it started, now all he has to do is get it below the horrible rate he inherited.

Really? Do they think we are that stupid?

And yes, the marvelous minds of the hard left are careful to remind us how this can be such good news for Obama's campaign.

If Obama is destined to win, as the press has been telling us, then why does he need help?

Romney accurately stated that manufacturing has lost 600,000 jobs since Obama took office.

For any economic growth, job creation really needs to be over at least 300,000 jobs per month, and we are no where near what is needed (in fact according to the Associated Press, we have added a mere 325,000 jobs since Obama took office - and then what little job creation there is, is not in the all too important manufacturing sector).  Interestingly enough, unemployment among government workers is only 4.3%, which gives you a good idea where, along with a rise in part-time employment, the supposed job growth is coming from.

In Wednesday's debate, and pretty much every time Obama opens his mouth, the President has professed his love for a growing government, while demonizing the success stories of the private sector.

According to Republican Presidential Candidate Mitt Romney, "This is not what a real recovery looks like."

-- Political Pistachio Conservative News and Commentary









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