At 9.5%, Let the Recovery Summer Begin!

by Ryan on July 2, 2010

in Economy,Politics

The unemployment rate unexpectedly fell to 9.5% in June as President Obama declared, “Make no mistake, we are headed in the right direction,” though he’d like us to be moving in that direction faster.

But, economics ain’t that simple sometimes.

The economy lost jobs in June, but the unemployment rate nonetheless went down from 9.7% in May.  Huh?  Well, if you use the U3 figure like the President did, it refers to the fact that 9.5% of those still looking for work cannot find it.  If you use the U6 numbers of actual unemployed (looking or not) it’s closer to 16.5%.  If you use the common U3 figure but included the 652,000 or so workers too discouraged to look for work anymore in June, we’d be closer to 9.9%.

But, somehow, in the Obama Nation, that’s recovery.  Just for kicks, someone who shares Obama’s distance from reality is Nancy Pelosi, who believes that unemployment checks provide critical help in stimulating the economy.  Yes, in San Fran Nan Land taking money from your rich and prosperous right pocket and shifting it to your unemployed and empty left pocket apparently makes things much better and must be continued.

Why do I have a hunch that even John Maynard Keynes himself is rolling around in his grave watching these dotes try to fix an economy they demonstrably know nothing about fixing.

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