Friday, March 6, 2009

Recession Update 2009, We Are FUBAR

The unemployment number was released today. The US Department of Labor reported the jobless rate hit 8.1% in February, a 25-year high with more than 12.5 million people claiming unemployment. What does this mean you ask? Quite simply, we are fucked. The economy is in such steep decline that not even the largest dose of stimulus Viagra intravenously injected into the arm of our whiskey dicked economy could get it up at this point. And what’s worse is that this number is in fact, complete bullshit. The actual unemployment number is much higher than the Department of Labor is reporting but is circumvented using the same shady number manipulating tactics that are commonly used by our most prestigious Fortune 500 companies.

Shortly after the 9/11 attacks in 2001 and subsequent stock market fall off, the Bush Administration changed the criteria for what constitutes an unemployed person. People who are not receiving unemployment benefits because they are no longer eligible due to a longstanding period of unemployment (most states permit benefits to be paid for 26 weeks) were not factored into the report. They are technically not considered part of “the workforce”. The reason this was done was to give the illusion of a more positive economic outlook during those times in order to help boost the market.

To break down the numbers, this group of “Not in the Workforce” accounts for as many as 7.6 million people. So, in actuality, there is a real unemployment rate of 13%.

12.5 mm = unemployed receiving benefits
7.6mm = 5.6mm persons who currently want a job + 2mm persons marginally attached to the workforce and are not looking for a job because of discouragement over prospects and other reasons
154.2mm= Total workforce

13% = {(12.5mm + 7.6mm)/ 154.2} * 100

Once the savings and unemployment runs out, people are now beginning to take “survivor jobs”- working part time at restaurants, providing janitorial services, etc. just to get by. And now these jobs are becoming increasingly difficult to obtain. This goes from former executives to blue collar workers. Where does it all end people? Pretty soon we will all be immigrating in steamboats to China to work in sweatshops sewing together Nikes.

Jbones OUTRO

1 comment:

  1. "Uncle" Ben BernankeMarch 10, 2009 at 11:50 AM

    Thanks for the hard-hitting insight, Jbones. I look forward to more of your posts.


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