Monday, November 23, 2009

The Real Jobless Rate: 17.5%

One in Five American’s Looking For Work, Under-Employed

Link To: CNBC

No doubt Jeff Cox at CNBC is going to be in big trouble for this: telling the truth about the REAL Unemployment Rate in the United States.

According to the U-6 number, which was created in 1994 by the Clinton Administration, one in five American’s is either completely out of work, is under-employed or has fallen off the unemployment rolls. 

The unemployment rate reported by the Bureau of Labor & Statistics, commonly referred to as the U-3 number is 10.2%, but doesn’t count those under-employed, have exhausted their benefits or have simply “given up.”

Many believe their jobs aren’t coming back, and probably for good reason: starting in 2000, 40% of all new jobs created were related to real estate.  This means attorneys, mortgage brokers, bankers, construction workers, appliance manufacturers and more.

Does this mean a ‘jobless recovery’ is on the horizon?  Very likely the answer is YES.

"Workers are unemployed for a much longer span than we've seen historically," says David Resler, chief economist at Nomura Securities International in New York. "Part of that may be affected by the longer availability of benefits. It reduces the incentives for an urgent job search."

There is little doubt in my mind that we’ve yet to see how severe this recession has been, or is going to be in the long-term.  High unemployment puts pressure on consumers, who drive 70% or more of all economic activity in the U.S. to cut spending and reduce debt for fear of losing their own jobs. 

When will the jobs return?  Most experts predict it will be a decade or longer until the jobs market sees 4.5% unemployment as we did under the Bush Administration.


Support For Health Care Reform Hits All Time Low

Just 38% of American’s in Favor

Credit: Rasmussen Reports

More proof that the Democrat Party is waging political and economic jihad against American’s, a new poll shows that a small minority of American’s support “health care reform” as proposed by Barack Hussein Obama and the Democrat Congress.

That’s the lowest level of support measured since June.

The same poll shows that 56% of American’s now strongly oppose the plan, with the remaining 6% “undecided.”

The poll by the way was conducted before the Senate voted on a 2,024 page monstrosity that strips American’s choice in health care, implements the “death panels” that Sarah Palin accurately referred to, strips $500 billion dollars from Medicare which covers America’s Senior Citizens.

Yes, they are most certainly coming for Grandma, and they want her dead.  The proof is in the legislation.  (See Sunday’s entry for all the new taxes!)


Obama Approval Plummets Below 30%

As Obama enters Carter Administration popularity territory, new polling data shows that Obama’s ‘strong approval’ rating has plummeted 10 points in the last 30 days to 28%. 

Obama’s popularity has sunk below George W. Bush’s in this latest poll, and is approaching Jimmy Carter territory of 22% at the lowest point in Carter’s Presidency.


Among men, Obama’s approval rating index is –20.   For the first time in his Presidency, Obama has had double-digit negatives for nine straight days which include the period right before and after the Senate’s vote on Saturday night to seize control of the nation’s health care.


Voters Want Tax Cuts, Less Government Spending

Voters Best Equipped To Fix Economy

In another poll by Rasmussen, more than 62% of American voters said that the Obama Administration’s plans to “fix the economy” are on the wrong track, and that tax cuts with reduced government spending is the cure.  Only 21% believe more government spending and increased taxes are the way to go.

Additionally, more than 50% now want the remaining “Economic4rde04[7] Stimulus” spending cancelled, citing government spending as one of the reasons the recession continues to linger.

Is this any surprise?  Every time tax cuts have been implemented to spur economic growth, it’s worked.  There has never been a government or country in the history of civilization that managed to tax and spend its way into prosperity.


For the so-called “smartest President in history” to not understand this speaks volumes as to how “smart” he really is.

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