We all know the official economic numbers are a fraud, but just how bad is the real situation? According to an influential Wall Street advisor, extremely bad:
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.
Unemployment + inflation = the Misery Index. Put smiley-faced lies into the equation, a smiley-faced lie comes out. According to Marotta:
“Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent.”
The reason the official unemployment rate has declined despite Obama still being in office, as Marotta and colleague Megan Russell explain, is that
“officially-reported unemployment numbers decrease when enough time passes to discourage the unemployed from looking for work. A decrease is not necessarily beneficial; an increase is clearly detrimental.”
As for inflation, the government underreports it “by about 3%.”
According to official numbers, the current Misery Index is 7.54. But we no longer have the sort of government that produces reliable numbers. Using a more honest inflation rate of 4.5% and an unemployment rate of 10.2% (which includes discouraged workers who aren’t actively seeking a job, but not everybody who isn’t working) yields a Misery Index of 14.7, “worse even than during the Ford Administration.”
Worse still is the Youth Misery Index, which tracks how well voting for Obama is working out for young people. The YMI is
calculated by adding youth unemployment and average college loan debt figures with each person’s share of the national debt. While it has steadily grown over the decades, under Obama the figure has shot up dramatically, from 83.5 in 2009 to 98.6 in 2013.
The index has increased by 18.1 percent since Obama took office, the highest increase under any president, making Obama the worst president for youth economic opportunity, according to the nonprofit that released the figure.
“Young people are suffering under this economy,” said Ashley Pratte, program officer for Young America’s Foundation, which developed the index and calculates it annually using federal statistics.
Look at the bright side, young people. It could be worse. They could calculate the YMI using real numbers instead of government stats. Then you would really be hurting.