35 online
 
Most Popular Choices
Share on Facebook 4 Printer Friendly Page More Sharing
Diary   

Are We Experiencing Depression-Level Unemployment?

Message George Washington
Become a Fan
  (5 fans)

The government bandies around scary figures concerning rising unemployment. But those figures are still well below those suffered during the Great Depression.

Right?

Well, it depends.

The official unemployment reports of the Department of Labor's Bureau of Labor Statistics provide conventional "U-3" figures and various alternative measures including "U-6". For example, as of December 2008, U-3 unemployment was 7.2 percent, while U-6 was 13.5 percent. (U-6 is actually more accurate, because it includes those who would like full-time work, but can only find part-time work, or have given up looking for work altogether).

The U-6 unemployment rate is therefore almost double the more commonly-cited U-3 figures.

But those in the know argue that the real rate is actually higher.

For example, leading economist John Williams and Paul Craig Roberts - former Assistant Secretary of the Treasury and former editor of the Wall Street Journal - both say that if the unemployment rate was calculated as it was during the Great Depression, today's figure would actually be 17.5%.

Indeed, according to an article summarizing the projections of University of Maryland Economics Professor Carmen Reinhart and former International Monetary Fund Chief Economist and Harvard University Economics Professor Kenneth Rogoff, U-6 unemployment could rise to 22% within the next 4 years or so.

So what are the best unemployment estimates? And where will the unemployment numbers end up?

I'm not sure. But when you scratch the surface of the "official" U-3 figures and measure things the way they were measured in the '30's - and when you remember that the worst unemployment numbers did not occur until 1933, 4 years after the 1929 crash - these sure sound like Depression-level unemployment figures.

Indeed, as shown in this chart, unemployment percentages may already be worse than they were during the start of the Great Depression.

And see this.
Rate It | View Ratings

George Washington Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

George Washington


As a political activist for decades, I have rejoiced in victories for the people and mourned in defeats. I chose the pen name "George Washington" because - as Washington's biographies show - he wasn't a (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

To View Comments or Join the Conversation:

Tell A Friend