In a recent article by Lanny Ebenstein, he states the obvious….The Current Economic Recovery is a Fraud. Read the facts here.
First though just a short fact on Mr. Ebenstein. He is the author of “Milton Friedman: A Biography” and is the editor of “The Indispensable Milton Friedman”. This in my opinion gives him a certain amount of credibility.
Mr. Ebenstein aptly states:
The first is that most of the decline in the unemployment rate has been a result not of more people working, but of more people leaving the labor force.In November, unemployment went down to 7.7 from 7.9 percent in October, the lowest unemployment rate since late 2008. But at the same time unemployment declined, so did labor force participation–which fell to 63.6 in November from 63.8 percent in October. Half a million Americans have left the labor market in recent months.
Long term economic growth and even growth in the short run–depends on an expanding labor force. Since January 2009, the labor force participation rate has declined by almost two percentage points.–snip–
Moreover, more than 70 percent of new civilian jobs created in the United States in recent months are in government. Since June, according to the Bureau of Labor Statistics, the economy has added about 847,000 jobs. About 621,000 of these are in local, state and federal government.
Economic growth in the long run cannot be sustained by a declining labor force participation rate and more government jobs. The current recovery is a fraud, a deceit. There remain about four million fewer private sector jobs in the economy than there were in 2008.
More Americans are worse off each month than the month before. The African American unemployment rate is 14.3 percent, up from 13.4 percent just a few months ago. The length of time that people remain unemployed is twice what is was in 2008. The number of Americans on food stamps continues its inexorable rise.
Concerning food stamps, the most recent monthly data show that 47.7 million Americans use them, close to one in six Americans. About 30 percent of children under eighteen in the United States are on food stamps. Use of food stamps has continued to grow in recent months, up 600,000 between August and September 2012. Since 2009, spending on food stamps has approximately doubled.Me thinks Mr. Edlestein has nailed it. The economic indicators are a falsehood and just another example of the lies and blatant lies coming from people who are in positions of authority and will never be held accountable for their deceptions.
This is not economic recovery. This is long term economic stagnation. (emphasis mine)
Read the rest here.