If you have seen our previous video, you would know how the government fudges unemployment rate by
- choosing U-3 rather than U-6 numbers, and
- by not counting discouraged workers, temp workers who may not have jobs throughout the year etc.
But there are also three more ways that Obama was able to reduce the official unemployment.
A. Replacing Full-time jobs with Part-time jobs: As you can see from the graph below, the number of full-time jobs now is the same as it was in 2008, although the population has increased by 25 million people during that time. How was it done? Part-time and temp jobs! For example, replace three 40-hr full-time jobs with four 30-hr part-time jobs, and the corporation has “created” a new job while keeping the total number of hours (120) the same.
B. Adding millions of people to the “disability” program. Got no jobs? No problem, we will put you on disability. Come up with some nebulous ailment that can’t be measured (back pain, depression etc.) and, bingo, you are on government roll. That’s 13 million Americans who are not working, but are not considered unemployed either.
5% of people between 18-64 are on “disability” and are not counted in the “unemployment rate”. Just including these people will make the unemployment rate go to 10%.
C. Mindless Student Loans = Millions of people not counted as unemployed. Total amount of student loans has more than doubled, from $600 billion in 2008 to more than $1.2 trillion in 2015. So you have tens of millions of young people enrolled either full-time or part-time in colleges … and none of these future Einsteins will be counted as unemployed.
(By the way, this is going to become another bailout by tax payers. Who in the right mind will give tens of thousands of dollars of unsecured loans to 18 and 19-year-olds?? Already, more than 7 million dudes and dudettes haven’t made payments on their student loans for more than a year).
So, there are your three legal, sneaky and completely unsustainable ways to make the economy look good.