Increasing Unemployment = Recovery?

Discussion in 'Economy' started by eagleseven, Sep 3, 2010.

  1. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    Is this the newest form of doublespeak?

    How the hell does increasing unemployment demonstrate a recovery? Is anyone seriously believing this?

    Are we so desperate for a recovery that we're going to actively repress our reason and logic to make-believe it true?
     
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  2. Si modo
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    Si modo Diamond Member

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    Take your soma and shush, now.
     
  3. 8537
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    8537 Senior Member

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    Unemployment increases during virtually ever recovery. The 2001 recession ended in October of 2001, but the economy continued to shed jobs for 22 more months.

    After the 1991 recession ended, the economy continued to shed jobs for 12 months.

    If we peg this recession as ending in June or July of 2009 (which GDP data indicates), the economy continued to shed jobs for 6 months.
     
  4. pinqy
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    pinqy Gold Member

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    Unemployment can increase either by people losing/quitting their job and looking for a new one, OR by people who hadn't been working or looking deciding to start looking. For August, the increase in Unemployment comes from people who hadn't been working or trying to work deciding to start looking. That's a good thing. At the same time, more people found work as well. So the rate went up, but BOTH Eployment and Unemployment went up, and the Unemployment came not from people losing their jobs, but starting to look for work.
     
  5. AllieBaba
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    AllieBaba BANNED

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    Not only that, borrowing will lower debt!
    Yes, it's true!
     
  6. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    No it did not. The labor force participation rate was unchanged in August:

    Unemployment increased, while the size of the labor force remained unchanged, according to the government.
     
  7. 8537
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    8537 Senior Member

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    Of course facts are facts. And the fact is that employment lagged much more dramatically in previous recessions.
     
  8. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    The fact is, according to the government, unemployment is increasing while labor force participation remains unchanged.
     
  9. pinqy
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    pinqy Gold Member

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    "Essentially Unchanged" does not mean "no change at all." The participation rate went slightly up from 64.6% to 64.7% and the employment-population rate went slightly up from 58.4% to 58.5%. Neither is a large change and both are within the margin of error, but then so was the employment change and unemployment change. There were no statistically significant changes in any of the labor force numbers. Read the table: http://www.bls.gov/news.release/empsit.t01.htm

    No, according to BLS, there was a small increase in employment, unemployment, the UE rate, the labor force participation rate, the employment-population rate, and a small decrease in Not in the Labor Force. None were significantly different from zero. You can't pick and choose which to say are increases/decreases and which to say stayed the same.
     
    Last edited: Sep 3, 2010
  10. Mr Clean
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    Mr Clean Gold Member

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