Just because it’s an official statistic doesn’t mean it reflects reality. From Charles Hugh Smith at oftwominds.com:
Economists and pundits steer well clear of the eventual social and political consequences of America’s entrenched neofeudal wealth-income inequality.
Economists and pundits are falling all over themselves to declare the US is chugging along splendidly, and to express their frustration with the public for their curmudgeonly lack of enthusiasm. For example: If this is a bad economy, please tell me what a good economy would look like We should acknowledge that things are going well, even as we continue to look for problems to solve and How the Recession Doomers Got the U.S. Economy So Wrong.
My intention is not to slam Noah Smith or Derek Thompson. I follow their work and gain value from their analysis.
The point I want to make is we only manage what we measure, and the reliance on statistics that are overly broad and easily distorted/gamed leads to generalizations that ignore consequential cause and effect: we are fooled by overly broad and easily distorted/gamed statistics and enlightened by looking at what is not measured or measured inadequately.
The consensus holds that inflation is declining rapidly and unemployment remains low, so the economy is doing great. Please glance at Chart #1 below to see what enthuses the mainstream: the unemployment rate is near historic lows.
But this measure leaves out a great deal of consequential factors. It’s well-known that the unemployment rate is distorted / gamed by leaving out everyone who is in the workforce but not “actively seeking work.” So what does this official unemployment rate actually measure? Not the percentage of the workforce that has a job.
