Rick Perry: ‘The Unemployment Rate Is A Sham’

Rick Perry: ‘The Unemployment Rate Is A Sham’ – http://huff.to/1Ah36xS

Just when I was thinking that he was about to say something intelligent for once, and he goes off on a bizzarro tangent about Obama.

The “unemployment rate” in western countries has no connection with the unemployment rate in the normal English mraning of the words.

If the official rate is 6%, that just means that proportion of the population are looking for work and haven’t been hired yet.

The number of people that aren’t employed and have given up looking for work is usually two or three times that number.  It doesn’t mean that they would not try to work if they had cause for optimism.

The flip side is right wing policies also skew the fake rate, because people that aren’t going to get jobs are often pressured to show signss that they are looking for work in order to receive benefits.

As far as economic impact, a higher fake rate means more downward pressure on wages, supply and demand.

Probably what should be measured is the full time employment rate.  That’s a better barometer of economic health.

Even that is shaky as in the new economy jobs are shed at blue chip companies and created at Walmart and Pizza Hut.

That could be refined by employment over some threshold, say employment full time at double the federal minimum wage or more, but then there is the cost of living issue, an income that could be middle class in rural Iowa might be enough for grinding poverty in New York city.

It’s impossible to come up with a number that doesn’t involve some subjective and to an extent arbitrary distinctions that would have the potential to mislead and have potential for abuse.

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