Sounds silly from the start, but makes a world of sense towards the end. Just another way to confuse the average person who thinks things are getting better. So how can over 873,000 people come off the unemployment rolls when there were only a little over 114,000 jobs created? Below is a transcript of a conversation between two eminent economists discussing this very question! cid:6871D52FA3C84AEEA56EB275DDA6D214@Thompson COSTELLO: I want to talk about the unemployment rate in America . ABBOTT: Good Subject. Terrible Times. Its 7.8%. COSTELLO: That many people are out of work? ABBOTT: No, thats 14.7%. COSTELLO: You just said 7.8%. ABBOTT: 7.8% Unemployed. COSTELLO: Right 7.8% out of work. ABBOTT: No, thats 14.7%. COSTELLO: Okay, so its 14.7% unemployed. ABBOTT: No, thats 7.8%. COSTELLO: WAIT A MINUTE. Is it 7.8% or 14.7%? ABBOTT: 7.8% are unemployed. 14.7% are out of work. COSTELLO: If you are out of work you are unemployed. ABBOTT: No, Congress said you cant count the Out of Work as the unemployed. You have to look for work to be unemployed. COSTELLO: BUT THEY ARE OUT OF WORK!!! ABBOTT: No, you miss his point. COSTELLO: What point? ABBOTT: Someone who doesnt look for work cant be counted with those who look for work. It wouldnt be fair. COSTELLO: To whom? ABBOTT: The unemployed. COSTELLO: But ALL of them are out of work. ABBOTT: No, the unemployed are actively looking for work. Those who are out of work gave up looking and if you give up, you are no longer in the ranks of the unemployed. COSTELLO: So if youre off the unemployment roles that would count as less unemployment? ABBOTT: Unemployment would go down. Absolutely! COSTELLO: The unemployment just goes down because you dont look for work? ABBOTT: Absolutely it goes down. Thats how they get it to 7.8%. Otherwise it would be 14.7%. Our govt. Doesnt want you to read about 14.7% unemployment. COSTELLO: That would be tough on those running for reelection. ABBOTT: Absolutely. COSTELLO: Wait, I got a question for you. That means there are two ways to bring down the unemployment number? ABBOTT: Two ways is correct. COSTELLO: Unemployment can go down if someone gets a job? ABBOTT: Correct. COSTELLO: And unemployment can also go down if you stop looking for a job? ABBOTT: Bingo. COSTELLO: So there are two ways to bring unemployment down, and the easier of the two is to have people stop looking for work. ABBOTT: Now youre thinking like an Economist. COSTELLO: I dont even know what the hell I just said! ABBOTT: Now youre thinking like Congress.
Posted on: Sat, 22 Mar 2014 00:13:43 +0000
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