Unemployment Reality and America’s Future
So today Obama is talking about the unemployment rate going down. It’s all the way down to 8.2% from 8.3%. So now it’s been above 8% longer than at any time since the last time these policies of Obama were tried, when these same policies turned a great recession into the Great Depression. Every nation who did NOT follow these same Keynesian policies, BTW, got out of the Depression sooner than did America.
But – do you know how the official unemployment rate is calculated? If you are not looking for work, you don’t count as unemployed. So if you’ve gotten tired of months or years of being unable to find a job and decided just to dropout of the labor force – you don’t count as unemployed. If you count everyone not working – rather than those still looking – then the real unemployment rate, U6, is over 14%.
REPORTED Black unemployment is 14%, Youth unemployment 25%. Real unemployment in those groups is even worse.
I guess if you’re a Democrat voter you are unemployed. Probably why you are a Democrat voter. If you think Democrats want to fix unemployment, you don’t understand politics.
Here is the most important chart on employment you will see.
America is at a record in those not participating in the labor force, 88 million people have given up looking for work.
88 Million people are not even in the labor force. And the children of those families are not learning about Mom and/or Dad going off to work in the morning, creating a complete culture of dependency on the taxpayers, rather than being independent as adult human beings.
This does NOT bode well for the future of America.
Not coincidentally, below is an Op-Ed from today’s WSJ (requires subscription). When you read it, remember – Detroit was the wealthiest major city, per-capita, in America in the 1950s. It also had the highest population of Middle Class African Americans. Then the same policies that Obama is implementing nationally were put in place by LBJ to make Detroit the “Model City” for Liberal programs and policy.
Now they are bulldozing houses no one will buy to regain farmland… And it is the poorest major American city, and has the worst schools, with a dropout rate over 75%, and an illegitimacy rate of over 85%, creating an enormous future drain on taxpayers – and, of course, future Democrat voters.
(Anyone thinking that Democrats want to fix education or illegitimacy simply does not understand politics.)
Motown Repair Plan
Michigan rides to Detroit’s rescue.
There’s nothing like bankruptcy to concentrate the mind, and that prospect finally induced the Detroit city council Wednesday to approve a consent agreement with the state of Michigan to save the day—at least for a while.
The deal will help refinance $137 million in debt but, more important, it gives Mayor Dave Bing authority to void and amend labor agreements. He’ll now have the whip hand to renegotiate contracts that unions ratified earlier this year. Employee benefits make up about half of the city’s parched general fund, and Detroit’s largest liability is $6 billion for pensions and retiree health care.
Workers who have been loathe to concede anything more than a pay freeze will have to pay more for benefits. Many haven’t been contributing a dime to their pensions. If the unions refuse to make concessions that meet the state’s cost-cutting benchmarks, the mayor can impose new contracts.
The city council, which approved the agreement kicking and screaming, will retain control of day-to-day operations. But a financial advisory board will oversee the budget and ensure that city leaders fulfill the accord. City council members resent the oversight because of the implication that they’re not up to the job.
Maybe they haven’t been outside lately. Detroit has one of the nation’s highest crime and foreclosure rates, and its schools are among the worst. The city has lost 250,000 residents in a decade and its jobless rate tops 17%. Motown’s economy has been in recession for much of the last decade, but its politicians kept ratifying generous labor agreements. To pay the bills they raised taxes, which drove out more businesses and residents.
Detroit will never recover unless its leaders recognize that government can’t grow a local economy. Mayor Bing seems to understand this, but if the city council won’t do more than claim to be victims of an authoritarian state government, they ought to step aside.
Why is this important?
Because the policies that killed Detroit are the same policies that Dems demand nation-wide. Unable to learn from Greece, Spain, Portugal, Italy, Ireland, CA, MI, IL or Detroit… Dems demand we do more of the same.
Never another Democrat. Never.