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Tractor Talk Discussion Board

Not quite right on unemployment...


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Posted by Matt from CT on August 01, 2006 at 12:59:47 from (68.118.198.252):

In Reply to: Re: Anyone else out there broke posted by Easy1 on August 01, 2006 at 10:19:59:

Even if you're not collecting any longer, you're still "unemployed" as long as you're actually looking...however the statistics guys figure that out in the polls.

If you say something smart-alec like, "Yeah, I quit looking because there's nothing out there..." then you're not unemployed since you took yourself out of the labor market.

There's other anamolies hard to account for to make a strict apples-to-apples comparison.

For example, we have another million or so in prison today than 30 years ago. So they're not out looking for work.

On the other hand, we've trimmed the Military by a million or so over the last 30 years. So a bunch of guys who used to go in the service are out and looking. Or in jail. ;)

Oh so many ways to try and slice and dice your way through these statistics!

I can say this: My personal use of gas is down somewhat, especially for recreation. My spending on other "luxuries" is off quite a bit.

The *one* thing helping the U.S. a lot right now is partly from company cost-savings over the last 20 years, and partly from workers rolling over for the most part and being to scared to ask for raises: In 2004, U.S. corporations sat on more cold, hard cash reserves...even adjusted for inflation...than any time in U.S. history.

While consumers have been running credit through the roof, the corporations have been saving their profits. Economists where scratching their heads trying to figure out why...was there nothing out there the companies wanted to invest in? Since cash usually doesn't earn much interest.

Along with the Gov't printing money in the form of the national debt, companies have been able to dig into deep pockets to keep buying at high prices rather than stop spending.

Matt


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