Real Economic Data: Unemployment 22%, Inflation 9.3%, GDP DroppingJune 10th, 2013
The TV talking heads and government bureaucrats ramble incessantly about the rosy recovery Americans have allegedly been experiencing since the crash of 2007. In the real world, however, household wages have dropped for years on end, while prices have surged. Some months, more Americans sign up for disability than join the workforce. At this rate, the recovery will take another century before economic activity reaches 2007 levels again.
Meanwhile, the US Treasury is running out of cash. Also, according to ShadowStats.com, economist John Williams’ site which recalculates economic data (according to the way it used to be counted before the government changed the methodology in an attempt to hide the depth of the crisis), real unemployment is at 22%, inflation is around 9.3%, and the US gross domestic product is moving backwards. To make matters worse, as Peter Schiff points out in the below video, the Federal Reserve now admits that its own deposits are at risk.
Manipulating the Unemployment Data
Most people think of unemployment as a figure that tracks the number of people who do not have a job. However, that is not the case, as people who have given up looking for a job are not counted according to the way the numbers are calculated by the government now. Often, a drop in the unemployment rate really means that some job seekers gave up looking for work entirely, disappearing from the list into abject poverty. Despite this, establishment media outlets will broadcast such “drops” in unemployment as proof of an economic recovery.
As a result, policymakers are increasingly unaware of the plight of these invisible discouraged workers, who are likely to wind up turning either to government benefits or a life of crime to survive as a result. Politicians do not like reporting the truth to the people, especially when the numbers aren’t favorable. Young people are particularly struggling to find work, a perfect storm of economic disaster when one considers the looming student loan bubble that could pop if too few college grads find high-paying jobs.
Government statisticians also utilize smoke and mirrors when it comes to the calculation of inflation stats. Newer inflation readings leave out staples like food, fuel, and housing in order to beef up the end results. The problem with this is that most poor people spend almost all of their money on food, fuel, and housing, and, as a result, those products are typically the first to rise in price with inflationary pressure.
By leaving out these particular categories of products, the government misleads the public into thinking that it’s safe to prepare for a lower cost of living than what is truly possible. Struggling families are not experiencing the low, 2% inflation levels that the government touts. The products they buy have gone up in price significantly in recent years.
By fudging the stats, government economists do a disservice to the public at large. Consumers and businesses sometimes make decisions based on these statistics. Policymakers design legislation under false assumptions about the health of the economy. A real economic recovery requires a sober look at the data. It’s important to chart how recent government interventions have failed the economy, but politicians are doing everything in their power to hide any information that might demonstrate the erroneous nature of their policies.