Over the past couple of weeks, the liberal main stream media has been reporting that the economy is improving and that things are looking better for Barack Obama in his campaign for re-election.
Part of those news stories were based upon reports that spending was up in August. Hallelujah, spending is up and everything is looking rosier.
True, consumer spending was up 0.5% in August. However most of the increase is directly to the price in gasoline going up nearly 50¢ a gallon in July and August. It’s not that consumers were willingly spending more, rather they were forced to spend more at the pumps and they aren’t very happy about it.
Income sneaked up a whopping 0.1% in August. However, once you take into account the rise in inflation and taxes, the result is actually a 0.3% loss in income. Couple this with the forced rise in spending at the pump and the average consumer in America is 0.8% worse off at the end of August than they were in July.
And if you think this is a sign of economic recovery, realize that these are the worse figures since last November.
Government reported unemployment rates are still above 8% and people are still desperate for work. Watching the news this morning I saw interviews with two business owners that said they would like to hire more people but the unstable nature of the economy right now is causing them to hold off on any new hires. That seems to be the case with much of the business world.
Another report said that nearly 200,000 fell off the unemployment benefits roll this past month, but it also indicated that it wasn’t because they found jobs, rather that they were either being forced to take part time work or they were just giving up looking for now.
When you take a real look at America’s unemployment rate, it tells a shocking story. According to one source the real unemployment figure is 23%:
“The real rate of unemployment is 23%, not the official figures we hear on a regular basis. The 23% figure represents all of those unemployed no matter how long, the involuntarily under employed (part time), and those who have given up looking, the discouraged, due to a chronically arid job market. If either wing of The Money Party, Democratic or Republican, admits to the real unemployment situation, they would be forced to admit a complete system failure and compelled to act now. There would be no choice but to drop the nonsense about austerity and balanced budgets.”
“The official unemployment number we see excludes those marginally attached to the labor force, discouraged workers, and those working part time due to the absence of full time work.”
One thing I’ve learned is that government unemployment figures are like the reported temperatures you see on the news. They’re not real. Many people may not realize that the temperatures you see reported by the weather people and stations are taken in climate controlled conditions. They do not take into consideration the heat from direct sunlight or the heat reflected off the ground or pavement. Their thermometers are protected from all those ‘other things’ that actually affect the temperature that you feel when you walk outside.
Some years ago, I worked for a major utility company in Arizona. We were building a huge power receiving station. It was the middle of August and the official temperature was reported at 117ºF. We happened to have an industrial thermometer hanging 6 feet above the ground from a canvas tarp connected to our work truck. At the same time the airport in Phoenix was reporting 117ºF, our thermometer was reading 147ºF.
If the weather people reported the real temperatures that you feel, people would start dying just from the psychological effects of knowing how hot it really is. The same holds true for the unemployment rate and pretty much all of the economic indicators for today’s economy. If the American people knew the real figures, Barack Obama would have been run out of the country months ago.
So just remember when you hear the news saying that the economy is recovering, they are doing nothing more than pedaling fairy tales based on unreal statistics. I just wish at least one of the main stream media would report the real figures and see what happens to the polls then.