Ron Paul: Real Unemployment Is at 22.8%




Ron Paul

Last week, supporters of the current administration rejoiced over job numbers released by the Bureau of Labor and Statistics (BLS). For the first time since the administration came to power, the official unemployment number fell below 8%. Keynesian cheerleaders all claimed the numbers meant we are surely on the road to economic recovery, just in time for Christmas, and also, the election. Others saw through this ruse.

The situation on the ground looks nothing like a recovery. 23 million people are still out of work or chronically underemployed. This number is expected to rise dramatically next year. The situation in Washington should not give anyone cause for optimism. Politicians refuse to look honestly and intelligently at the cause of our economic malaise, and so real solutions are not taken seriously or acted upon. It is much easier and less painful to simply recalculate the numbers and redefine the terms until a rosier picture is presented. There is only blind hope that at some point, for some reason, things might change. But nothing will change for the better if we only stay the course.

The truth is the long term solutions to our economic quagmire involve some short term pain. Re-evaluating the economic role of an institution as insidious and behemoth as the Federal Reserve will inconvenience some people, and those people happen to have a lot of power. Similarly, the idea of ending government programs and closing down superfluous departments will always upset someone because it means someone will stop getting a government check.

No one wants to upset the apple cart, even if all the apples are rotten.

Not all of the unemployed are counted in the BLS unemployment numbers. This is no secret. In 1994 government statisticians came up with the term “discouraged worker” to remove entire swaths of people from the unemployment statistic. Now all the government has to do to improve the unemployment numbers is discourage people from looking for a job.

Far more unintended consequences are created in Washington than jobs.

Ideally, the business sector should be able to depend on sound numbers from the BLS, but smart business leaders know that trust in these numbers leads to bad decisions and failure. In regards to the recent jobs numbers, investor Jim Rogers recently stated “I have learned not to take advice from the government, especially the US government, which frequently misleads its citizens.” He also noted the election just around the corner, suggesting timing as an extra incentive to keep fudging the statistics.

The real drivers of the productive economy can’t afford to take risks based on false numbers. This is why economist John Williams created Shadow Government Statistics, utilizing more traditional methodologies and definitions to show business decision makers the real economic picture, warts and all. He shows the real unemployment rate to be a staggering 22.8%.

This is a difficult figure to accept as the actual truth. Perhaps if the politicians did, the people would finally demand real change and real solutions. Perhaps they would consider that all of the so-called stimulus spending, quantitative easing and mountains of regulation from Washington has only crippled the economy. Perhaps people would come to understand that fewer checks handed out from the public sector would mean more checks available in the private sector, and a return to real prosperity instead of just the appearance of it.

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308 Comments:

  1. Live in your fanciful world! Your idealist world is no different from communism in the sense that they are pipe dreams.

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  2. 22.8, rounding to 25 instead of 20. yeah yeah I’m picky.

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  3. I used to support Ron Paul 100% But now i am starting to get tired of Dr Paul not letting the cat out of the bag. He is not Going to be president this year Which is unfortunate Because he would have been the only one who would have changed the corrupt Corporation of Amerika. He needs to let the people of Amerika that they have been taken over by bankers and Very sick people. That most of the Laws are not for the benefit of the people and that the drug war is a fake war like the rest of them

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  4. Thanks for clarifying. Shadowstats was 4 years ago for myself
    PEACE

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  5. u mean obama, a politician, lied to us?! omaigawd :O

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  6. You are kidding right? He worked at a charity hospital in his early days and shows over and over again Americans are very generous and charitable when they can keep what they earn. Government has been crowing out private charities for decades. Even the poorest get taken care of in a free society because capitalism creates abundance, and abundance creates wealth.

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  7. I think you should look at his record because he did.

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  8. Yeah but those ballots will be thrown in the garbage.

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  9. So what your saying is, you have no proof he lies.

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  10. Yes, but he can be written in in a few states. In those states people should vote for him if they choose to, after al, he is a hero.

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  11. you dont get it…3rd party doesnt have a snowballs chance of winning so there is absolutely no point in voting for them…that leaves me with two clear choices: Obama or Romney…i choose the bum in office.

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  12. He isn’t on any ballot. However, Gary Johnson, who is very similar to Ron Paul, will be on most ballots.

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  13. I think you need to look at his voting record. He did not vote for those things.

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  14. He didn’t vote for those things.

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