Tag: unemployment

Categories
government transparency

Dum, Dum Datum

President Obama immediately ballyhooed the Bureau of Labor Statistics’ September unemployment rate of 7.8 percent as the logical outcome of the good work he has done.

But the BLS was promoting B.S. … according to many conservatives. 

NPR’s talking heads immediately pooh-​poohed the idea that there was a conspiracy going on at the BLS. “That’s not how Washington works,” they informed us. And as if of one voice, Washington insiders rallied to the BLS.

Former GE CEO Jack Welch, one of the doubters, defended his skepticism in the Wall St. Journal. BLS data are decidedly not “handled like the gold in Fort Knox, with gun-​carrying guards watching their every move, and highly trained, white-​gloved super-​agents counting and recounting hourly.” His basic take on the allegedly sacrosanct numbers? “Get real.” Welch provided more than a little reason to suspect “the possibility of subjectivity creeping into the process.” And he noted that skepticism is not just a right-​wing trait:

I’m not the first person to question government numbers, and hopefully I won’t be the last. Take, for example, one of my chief critics in this go-​round, Austan Goolsbee, former chairman of the Obama administration’s Council of Economic Advisers. Back in 2003, Mr. Goolsbee himself, commenting on a Bush-​era unemployment figure, wrote in a New York Times op-​ed: “the government has cooked the books.”

Truth is, unemployment figures are not tallies of surefire data, but statistical extrapolations based on surveys. They are more like Gallup Poll results — but perhaps less reliable.

And Welch is right to conclude that “the coming election is too important to be decided on a number,” especially that kind of number.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies

A Wealth of Joblessness

Did you know that the unemployment rate — as high as it is — is actually very much understated? It doesn’t include those who are out of work but have given up trying to find a job.

This puzzles me. 

Oh, I see the rationale for not counting those who have abandoned their job searches (the information gets harder to collect and maintain, and you enter into the farther regions of statistics), but, nevertheless, they certainly do remain unemployed. 

What puzzles me is the ability to remain permanently jobless. I don’t think my wife would let me make that choice. And even if she did, without income where would we get the money to pay the mortgage or buy food?

There’s unemployment insurance, which helps tide folks over when they lose a job. Yet, a condition for receiving unemployment benefits is continuing to actively seek a new job. 

Like many, we could fall back on family and friends. But I’d feel bad enough about that if I was pounding the pavement every day in search of gainful employment. I can’t imagine doing so without any intention of landing a position and getting back on my own two feet.

So what can we conclude about folks who don’t have a job and aren’t looking for one? There are apparently a lot of rich folks out of work.

This yields the unwelcome-​to-​many conclusion that, in America, everyone is rich. Inequality notwithstanding.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets general freedom too much government

A Million Jobs, Gone

You’re fired! Now get a real job.

Does this sound mean? 

It’s just what Cuba’s biggest employer plans to say between now and March — fire half a million workers and tell them to find other jobs, or (better yet) go to work for themselves.

After March, another half million will be given pink slips.

Or so say the Castro Bros., who are, in effect, the chief employers in Cuba. 

Just like a despot, you might say. But hey: The country is broke, and the initial hiring of everybody by the government (which Fidel ran for scores of years, and his brother, Raul, now runs) was, itself, despotic. Thankfully, as more and more outlets of the “Cuban Communist Corp.” go under, the Cuban commissars say they will ease up on the regulations that now prohibit small, entrepreneurial businesses.

Of the many comments I’ve read about this, I was amused most by Tom Knapp’s. After drily noting that it is the Castros who will build down government, not Republicans in the U.S., he explained how the commies had kept their transportation going all these years: By maintaing old American cars from the ’40s and ’50s. Now that trade restrictions will likely be eased, those well-​kept-​up vintage cars could help “finance an explosion of economic prosperity just by tapping the U.S. classic car collectors’ market.”

Hope so.

And I hope the newly fired will transition to a slightly freer economy without too much trouble.

This is Common Sense. I’m Paul Jacob.