The Employment Picture - Who's on first?

George Rebane

A correspondent from up north sent me this thoughtful dialogue that puts currency on a comedy routine some of us remember from the golden age of TV.

COSTELLO:  I want to talk about the unemployment rate in America .
ABBOTT:  Good Subject. Terrible Times. It's 9%.
COSTELLO:  That many people are out of work?
ABBOTT:  No, that's 16%.
COSTELLO:  You just said 9%.
ABBOTT:  9% Unemployed.
COSTELLO:  Right 9% out of work.
ABBOTT:  No, that's 16%.
COSTELLO:  Okay, so it's 16% unemployed.
ABBOTT:  No, that's 9%...
COSTELLO:  WAIT A MINUTE. Is it 9% or 16%?
ABBOTT:  9% are unemployed. 16% are out of work.
COSTELLO:  IF you are out of work you are unemployed.
ABBOTT:  No, you can't count the "Out of Work" as the unemployed.  You  have to look for work to be unemployed.
COSTELLO:  BUT THEY ARE OUT OF WORK!!!
ABBOTT:  No, you miss my point.
COSTELLO:  What point?
ABBOTT:  Someone who doesn't look for work, can't be counted with those who look for work. It wouldn't be fair.
COSTELLO:  To whom?
ABBOTT:  The unemployed.
COSTELLO: But they are ALL out of work.
ABBOTT:  No, the unemployed are actively looking for work.  Those who are out of work stopped looking.  They gave up.  And, if you give up, you are no longer in the ranks of the unemployed.
COSTELLO:  So if you're off the unemployment roles, that would count as less unemployment?
ABBOTT:  Unemployment would go down. Absolutely!
 COSTELLO:  The unemployment just goes down because you don't look for work?
ABBOTT:  Absolutely it goes down. That's how you get to 9%. Otherwise it would be 16%. You don't want to read about 16% unemployment, do ya?
COSTELLO:  That would be frightening.
ABBOTT:  Absolutely.
COSTELLO:  Wait, I got a question for you. That means there are two ways to bring down the unemployment number?
ABBOTT:  Two ways is correct.
COSTELLO:  Unemployment can go down if someone gets a job?
ABBOTT:  Correct.
COSTELLO:  And unemployment can also go down if you stop looking for a job?
ABBOTT:  Bingo.
COSTELLO:  So there are two ways to bring unemployment down, and the easier of the two is to just stop looking for work.
ABBOTT:  Now you're thinking like an economist.
COSTELLO:  I don't even know what the hell I just said!
ABBOTT: Now you're thinking like a politician.

Exit quiz: If just one more person would lose their job, then millions of unemployed Americans would again find employment.  Can you identify that worker?

Comments

[Ryan Mount]

Reminds me of "core inflation" vs. "inflation." The Fed likes to focus on core inflation because it doesn't include things like food and energy into their factoring due to their volatility.

You know, things we use every day in order to survive.

So, there's no inflation just temporary price spikes. lol.

[Walt]

Well, speaking of employment look what I found.
Harvard University’s graduates are earning less than those from the South Dakota School of Mines & Technology after a decade-long commodity bull market created shortages of workers as well as minerals.
Those leaving the college of 2,300 students this year got paid a median salary of $56,700, according to PayScale Inc., which tracks employee compensation data from surveys. At Harvard, where tuition fees are almost four times higher, they got $54,100. Those scheduled to leave the campus in Rapid City, South Dakota, in May are already getting offers, at a time when about one in 10 recent U.S. college graduates is out of work."

[TomKenworth]

This is not hard to figure out. We've screwed up as a nation. Who's "we?" 310 million folks, rich and poor. Now between the guy under the overpass, and Mitt Romney, who was in a better place to take care of business, and be aware of what exporting all the jobs and simultaneously extending credit in all directions as the jobs here dried up would do to the country? Romney or the guy under the overpass? Who had more resources to control and powers to do things a little differently, hint, it sure as hell wasn't the guy under the overpass. And, now who leading the charge to blame the guy under the overpass? Picking on the little guy has always been a bullying cowards's answer to his own shortcomings. Sorry about this Kay, but I really didn't like that 47% video. He knows better than what he said, but he said what he said to those vfolks to get money to get elected, to export more jobs, and bring in the fully robotic New Feudalism America, where only the very rich have lives worth living any more.