The Real Unemployment Numbers

The Real Unemployment Numbers



Well, here’s confirmation of what we knew already. The unemployment numbers are a big lie, and this is coming from the Chairman and CEO of Gallup (the poll people), Jim Clifton. Those of us old enough to remember past recessions can recall the recovery periods as times of growth for our economy. But now, something’s different, and we all know it. More Americans are out of work than in any ‘recovery’ period of post-recession economic growth in American history. The real question is ‘why’? Why does it not feel like the Great Recession has ended? Why are we being told the economic growth is steady and unemployment is down?

You can read the particulars in Clifton’s post, but we’ll sum it up for you: millions of people have given up looking for full time employment and have settled for either part time work, or a lower standard of living. And as Clifton notes, those people are not counted as unemployed. We’re willing to bet you or someone you know is in this situation; either they’re struggling to make ends meet with a part time job, or they have simply given up looking for work.

But how can anyone simply stop looking for employment? Don’t they need money to survive? What Clifton is talking about in this case are people who may have been well off with two incomes in the household, but are now just making ends meet with one income, or one and a half as it were. Sometimes two-income families who reduce to a single income sell their homes and take up more affordable residence in an apartment or smaller home. They’ve found ways to just get by on what little they earn and cut costs; not just budgetary adjustments, but larger expenses like a new automobile or saving for a child’s college tuition.

There’s a subtext to ‘The Big Lie’ that Clifton doesn’t specifically address, but certainly has in mind when he speaks about how the current state of the economy is worse than we are being told. Imagine a corporation during economic prosperity; we’ll call it The Company. The Company employs a thousand people and makes a popular product. Thanks to good economic times, they can offer their workers good pay and benefits. Also thanks to good economic times, they pay a decent amount of corporate taxes and their employees pay a decent amount of income tax. Then, bad economic times come, and The Company must let go of two hundred people. Sales are down, which means less tax generated, and few employees means less income tax generated. This is a simplistic way of explaining why government deficits increase during bad economic times. But now, we’re being told that Wall Street is doing better than ever and unemployment is down; everything is recovering, even though everyone knows it isn’t. The result: The Company - fearing their product may be in less demand because more people aren’t buying it in what is supposed to be good economic times – decides to streamline their production process, eliminate more jobs and produce less in an effort to stem potential losses. Sound familiar? This is the reason we hear about layoffs, despite the fact that this is supposed to be an economic recovery. Companies are afraid to invest, jobs are lost and not created, less tax is generated creating bigger government deficits…

We at CASH 1 believe in the real numbers. We’re not trying to depress you with this post, just confirming what you already know, and letting you know we feel it too. If you’re dealing with a temporary shortfall, come see us for Personal Loans for bad credit. We’ll strive to get you the cash you need until a real recovery can finally come along.

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