From Paul Bedard, in the Washington Examiner
Don't believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.
In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.
Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn't being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.
Presumably, the way this figure is derived--the three-out-of-eight number--is to include retirees, as well as those actively seeking employment. As the article itself notes, "This number obviously includes some people who are not or never plan to seek employment."
Still, I have recently heard that the real
ubemployment rate--including discouraged workers (who have simply dropped out of the labor force, due to the inability to find work) and temporary and part-time workers--is 11.3 percent. And that is simply unacceptable.
The author also notes that the current Misery Index--unemployment plus inflation--is really about 14.7 percent, if one includes discouraged workers; or about double the "official" rate for the Misery Index.
Here is the link: Wall Street adviser: Actual unemployment is 37.2%, 'misery index' worst in 40 years | WashingtonExaminer.com