Obama administration toys with numbers to appear competent.
The Obama administration regularly peddles reports that the president’s economic policies have created 14.1 million new jobs over the last 70 months with a 5% unemployment rate.
It’s a lie.
In actuality, the unemployment rate is staggeringly high when accounting for the rate of actual labor force participation which has dropped 65% from 3/10 to 12/15, a rate not seen since the Jimmy Carter era.
The Bureau of Labor Statistics defines the labor force participation rate as the percentage of the population that is either employed or unemployed (either working or seeking work). Given that the BLS clearly outlines the criteria for this statistic, how does the Obama administration skew the numbers to reflect a favorable result?
New American writer Walter McLaughlin answered that question:
The standard unemployment rate is an extremely narrow calculation that leaves out large swaths of the population — which explains why true employment in the United States is substantially worse than reported. What are the primary factors?
1. The weak economy. Although the economy is technically creating jobs, manufacturing and other higher-paid industries have remained moribund, leaving a large number of potential workers discouraged and out of the labor pool. According to the Bureau of Labor Statistics, there were 663,000 discouraged workers not included in the labor pool as of December 2015.
2. Young people are entering the work force later. With the percentage of individuals possessing at least one advanced degree rising from less than 25 percent in 1995 to over 33 percent today, more and more young workers are delaying entry into the workforce.
3. Disability and government assistance is increasing. Approximately 8.8 million people are on disability insurance, a figure that has doubled over the past 20 years. Likewise, the number of people on one or more means-tested assistance program has been on the rise as well, reaching 21.3 percent of the population in a 2012 report. Although not all individuals on assistance programs are out of the labor force, there is a strong correlation.
4. The aging of America. As the Baby Boomers retire, the pool of available American workers shrinks. On July 22, 2014, Senator Rob Portman (R-Ohio) wrote in the Wall Street Journal that approximately 10,000 people retire each day, a number that has been fact-checked and found to be correct. The roughly 4 million retirees every year dwarfs the 2-3 million new jobs created. Source
The 5% unemployment rate has been faked, it doesn’t account for lurking variables that would leave the real rate at an astronomical 42%.
Sound crazy? Well, it is. And it could be why an innumerable amount of Americans have rallied behind Donald Trump in the 2016 election cycle, because career politicians have done nothing but exacerbate the problem while lying about our nation’s economic outlook.
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