GDP, Unemployment and Inflation – What the Government will not tell you

We have found such a nice way to talk about Lying Politicians. We do not say they are lying, we say that they are “Spinning”. Government’s falsehoods have become so acceptable that we now have many news organizations that check the facts from the spin machine. Instead of saying to a politician stop lying we gently, with a smile on our face, say this is a “no spin zone.” We are so clever because we caught them spinning.

I thought spinning was something you do on a stationary bike at the gym to increase your cardiovascular capacity. Without a doubt my heartbeat does rise every time I hear the bald faced lies coming out of these pious asses. If it looks like a turd, smells like a turd and feels like a turd I do not need to taste it to know it is a turd even if our government says it is Pate’ du Merde.

The Pollyanna camp you will hear arguments like, “It would be impossible to coordinate false information, there are too many agencies involved,” or “Why would our politicians want to skew our view of the country’s economic situation? You are just too negative.”

The answer to these questions is relatively simple. The way we perceive information is based on how it is presented. A simple example is inflation. We no longer look at the increase or decrease in products normally purchased by Americans instead inflation is based on the purchase of televisions and washing machines. Basic items, like food and energy, the things we buy everyday, are too noisy to be counted in inflation.

The “why” is more important. If we start counting the number of Americans who do not have a job in the unemployment figures then the Free Trade and Open Borders policies would be crushed. Many Americans will say, “I have a job, everyone has a job.” If that were the case then we would have seen a significant uptick in unemployment numbers over the past 12 months. The US economy needs 300,000 new jobs a month to remain job neutral. We have lost about 3 million jobs in housing and new job creation has been averaging about 100,000 a month. We should have seen an uptick in unemployment of about 2 percent. Instead it is ticked 1/10 of 1 percent. Somehow the numbers do not work.

We come back to old adage, “Perception is reality, the Truth is only the Truth.”

Tags: Government Politics Recession Corporate America Finance Illegal Immigration Economy Reaganomics