Sunday, February 19, 2012

Natures beauty and the Obama administrations ugly economic reality!

Breaking News: Some optimism as the #EU is scheduled to meet tomorrow to decide the fate of the #Greece #bailout.

The beauty has been supplied by a mich higher authority and the economic reality by the Obama administration!

In conjunction with the graphic posted this morning at TPC showing relevant US economic performance statistics from the first 3+ years of the Obama administration, the charts below provide a level confirmation from other sources.

This confirmation is important because some readers considered the source of the original statistics, the Senate Republican Conference, to be suspect despite the fact that statistics are statistics and can't be manipulated, right?

Not entirely, because economic results can at times be presented in such a way to appear either better or worse than they actually are, and are therefore susceptible to misinterpretation and manipulation to suit someone's or somethings purposes.

Nowhere is this clearer than the way in which the headline unemployment number has been used by the mainstream media and the Obama administration to portray some dramatic economic improvement, when in fact if one were to look under the hood that actually is not really the case.

This poses something of a problem due to the fact that the average American of voting age does not necessarily look under the hood themselves, but instead relies on media reports to provide them with what are purported to be the unbiased dissemination of facts.

We have found, however, that this may not be the case and that media bias in the reporting of the news is actually quite prevalent. At no time will this be more obvious than leading up to the 2012 presidential election where the state of the US economy will play a major role in voters choice of a presidential candidate.

So after the recent release of the US unemployment rate, here is a small dose of economic reality.

The U-6 Unemployment Rate!

While the headline unemployment number has dropped into a still abysmal 8.2% range, the actual number, as the legions of people who have dropped out of the market for a new job can attest, is actually much, much worse.

This U-6 unemployment rate, however, is not one that you are likely to see reported on the evening news. Here is a description and an historical chart.

What is the U-6 unemployment rate?

The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but it also counts "marginally attached workers and those working part-time for economic reasons." Note that some of these part-time workers counted as employed by U-3 could be working as little as an hour a week. And the "marginally attached workers" include those who have gotten discouraged and stopped looking, but still want to work. The age considered for this calculation is 16 years and over.

The number of Americans receiving some kind of government assistance!

This chart provides another angle on the failure of the performance of the Obama administration from the standpoint of the economic independence of the American people.

U-6 chart source

Dependence Index chart source

Photos courtesy of

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