Couldn’t Stand It

Jim Clifton, CEO of Gallup, finally couldn’t stand the talking heads nodding and clapping at the BLS’ bogus statistics. He started off with a piece – The Big Lie.

I hear all the time that “unemployment is greatly reduced, but the people aren’t feeling it.” When the media, talking heads, the White House and Wall Street start reporting the truth — the percent of Americans in good jobs; jobs that are full time and real — then we will quit wondering why Americans aren’t “feeling” something that doesn’t remotely reflect the reality in their lives. And we will also quit wondering what hollowed out the middle class.

The he went on TV to further explain:

“The number of full-time jobs, and that’s what everybody wants, as a percent of the total population, is the lowest it’s ever been… The other thing that is very misleading about that number is the more people that drop out, the better the number gets. In the recession we lost 13 million jobs. Only 3 million have come back. You don’t see that in that number. “

He also slammed the BLS for adding in an adjustment to employment for un-reported new businesses when even Census Bureau measurements show that business formation in the US is negative.

My hunch is that no one talks about the birth and death rates of American business because Wall Street and the White House, no matter which party occupies the latter, are two gigantic institutions of persuasion. The White House needs to keep you in the game because their political party needs your vote. Wall Street needs the stock market to boom, even if that boom is fueled by illusion. So both tell us, “The economy is coming back.”

Let’s get one thing clear: This economy is never truly coming back unless we reverse the birth and death trends of American businesses.

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