We keep hearing that the depression is over – in fact it ended two years ago.
So why is the economy still so rotten?
The answer is in how you define “depression.” And, how you define unemployment. And inflation. Yes, the devil is in the details, or as Mark Twain noted: “There are three kinds of lies: lies, damned lies, and statistics.”
For example, core inflation as measured by the gub’mint’s CPI (Consumer Price Index) counts things like housing prices, but not oil or food. Housing prices are down, so the official inflation/CPI numbers are down as well. The problem with that is, even if you own a home, you probably aren’t buying and selling houses on a regular basis. You are, however, likely to be buying gasoline and foodstuffs. In short, the reality of your pocketbook is not connected to government measurements of the reality of your pocketbook. (The real inflation rate is calculated around 10%).
Unemployment? The real unemployment rate as of early June is calculated somewhere between 16.6% and 22%. What makes this number “real” (versus the numbers the gub’mint flogs) is that it includes people who’ve given up looking for work, and people who are stuck in part-time jobs because they can’t get anything better. But even the real unemployment rate misses a big chunk of the population — the self-employed who don’t qualify for unemployment checks when their business tanks, or who are limping along not making enough money to live on, because their business has tanked.
Obama has been the ultimate “spin” president. Ignore the fact he had no administrative experience – he’d be great running the US! Forget about his radical associations with people like Bill Ayers, he’s a moderate! His own words about redistribution of wealth — pay no attention! And now we’re being asked not to believe our lying eyes about what’s happening in the US economy. Just take the government’s word for it – all is well.