Enter an Era of Permanent Structural Unemployment
A persuasive analysis by CFA Daniel Amerman of the government's own self-serving employment numbers reveals that if artificially engineered boosts in government jobs were backed out, we arguably have a true unemployment rate of about 26% – just one point from the worst of the Great Depression in 1933. Amerman shows how the government's Bureau of Labor Statistics has concealed these depressionary unemployment levels by creating three broad classifications which in turn break down into six distinct categories (U-1 through U-6).
Defenders of our sick, politically dominated economy keep repeating the 10% headline unemployment number – also known as U-3. Unfortunately, this statistic excludes millions of jobless Americans who are deemed to be "discouraged" from actively seeking work. U-3 also fails to account for many who have fallen off hugely expanded unemployment benefits (now 99 months out and growing) and for skilled workers holding down part-time, low-wage jobs.
The U-6 unemployment figure includes short-term discouraged workers and others who are left out of U-3. It is currently running at 17%. This is the government's own number (which I'd argue is still incomplete), yet it goes virtually unreported in the mainstream media in favor of the "official" unemployment rate, U-3.
But Amerman takes it a step further. Because federal deficit spending amounts to another 9% of the overall U.S. economy, he argues that if it weren't for the Federal Reserve's printing of money to buy government bonds, unemployment would currently be the 17% plus at least another 9% – or 26% in total!
Bottom line – a more accurate examination of statistics suggests we are staring straight into the maw of depression-level unemployment.
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