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Unemployment Rate Doubles the Great Depression?! C’mon.

By Peter Andrew – ConservativeAmerican.org – Leading the way Right.

It seems nearly impossible to gain apples-to-apples comparisons of real unemployment numbers as administrations of both political parties bend and twist the data to show different things at different times. Some remarkable data is out today showing the present unemployment rate could be more than double what it was in the Great Depression. Or, maybe not

A Wall Street Adviser is making that claim in the Washington Examiner. But the American Enterprise Institute says, heck, why not go all the way and put the number at 44.5% and call our present economic state, “The Greatest Depression.”  They are NOT serious. While Team Obama is Twisting Again (like they did last summer) and spinning the current rate as “only” 6.7%, AEI says the claim that it’s actually 37.2% (or even more than 44%!!) is nonsense. 

AEI Data

AEI Data

James Pethokoukis says don’t buy that information

“But wait, isn’t [David John] Marotta including as “unemployed” people who really aren’t in the job market such as retirees and college students and stay-at-home moms — as well as discouraged potential workers? He sure is — which is why the 37.2% number is absolutely ridiculous and tremendously overstates labor market weakness. A total joke. Using Marotta’s “logic,” maybe the “real” unemployment rate is merely the share of of the civilian noninstitutional without a job. That comes out to a whopping 44.5%! The Greatest Recession! Now the current unemployment rate probably does understate job market weakness because of the sharp decline in the labor force participation rate. But there is lots of debate as to how much of that LFPR decline is due to demographics and how much is due to anemic labor demand. Maybe the “real” unemployment rate is 8% or 9% or 10%. But anyone who tells you it’s nearly 40% is selling the apocalypse.” 

So how does our present economy compare with the Great Depression? Here’s the government data from the Great Depression…

ContraryInvesting.com

ContraryInvesting.com

So, the dramatic numbers may grab headlines but, we are told, are not what they seem. From James Quinn (head of strategic planning for one of the world’s most prestigious business schools and the host of TheBurningPlatform.com blog.), comes this…

Keynesian policies failed during the Great Depression, and they are failing today. An economic catastrophe caused by loose monetary policies, crushing levels of debt, and appalling lending practices cannot be solved by looser monetary policies, issuance of twice as much debt, and government commanding banks (or, in the case of Fannie and Freddie, “commandeering”)  to make more bad loans. Ludwig von Mises described what happened in the 1920s and 1930s. His explanation accurately illustrates the situation in America today… “There is no means of avoiding the final collapse of a boom brought on by credit and fiat monetary expansion. The only question is whether the crisis should come sooner in the form of a recession or later as a final and total catastrophe of depression as the currency systems crumble.”

To compare the chart from the depression to present day (in both cases using government data), we find this chart…

latest_numbers_LNS14000000_2003_2013_all_period_M12_data

This comparison shows the Obama peak unemployment rate in late 2009 was similar to the rate in 1930.  However, the unemployment rate skyrocketed from 1931-1934 up to more than 20%, about double of what Obama’s highest unemployment rate was.  That is about as close as we can get to an apples-to-apples comparison.  Some argue that with the shrinking labor force participation rates, the current numbers credited to Obama, are not accurate.  This comes to light in charts like this one from LibertyWorks.com…

BergheimFollies Blogspot

BergheimFollies Blogspot

Bottom line?  If you have a job, be thankful to God.  Chances are some people you know are out of work.  Joe Biden says that means its a recession.  If you don’t have a job and are looking for one, you already know the Obamanomony sucks.

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