Back to 9.6% goes the official unemployment number – while the total unemployment rate (unemployed, partially employed, out of the labor force because discouraged) rises to 16.7%. All in all, we’re right back where we were in August of 2009, as can be seen in this chart. Meanwhile, because the BLS sacrificed a goat to the Shades of Keynes and re-massaged the June and July data, it appears that the employment picture for those months didn’t suck quite as bad as originally figured…and so stocks took heart and rose 1% in early trading.
Welcome, my friends, to the economic Alice in Wonderland world of Obamunism. It both sucks, and it doesn’t make sense.
Underneath the headline data is the true story – as Mish points out; and its a grim picture. The bottom line is that there has been no improvement in Obama’s “Recovery Summer”, and we have a host of recent information indicating future problems. Our rosiest scenarios figure we’ll limp along with 10%-ish unemployment and slack 1 and 2% GDP growth for a while…the worst-case scenarios have us dropping in to a 1930’s style Depression. I figure we’ll get the latter – but even if things turn out good, they’ll still be bad.
As I’ve said before, only a fundamental change in our economic policy will fix our problems. We need balanced budgets, reduced debts, lower taxes, eased regulations…and a basic attitude that if something is being made, mined or grown by Americans, it must be encouraged. The really bad news is that I don’t think Obama even suspects the problem…
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