(ThyBlackMan.com) The ploy of undercounting jobless American workers, started with Democrats back in 1994. Mr. Biden was a Senator then, and William Jefferson Clinton was President of the United States. At the same time, some recognizable names, these Congressional Black Caucus members were also in Congress, and currently sit in Congress, today. They are, Delegate Eleanor Holmes Norton, Representatives Maxime Waters, Sanford Bishop, James Clyburn, Bobby Scott, and Bennie Thompson.
Let’s be truthful. In all honesty, President Joe Biden at the time, and the aforementioned politicians may not have been aware of the scheme of undercounting our Job rates. But with that said, the undercounting of our Job rates has continued, since 1994, without any relief or let-up. That amounts to 29 years. The Biden administration as we speak, is undercounting our Job rates, right now, by giving the appearance his 3.6% official rate, U-3, is comprehensive of our Job situation. It is not. The REAL Job rate is 6.8%, U-6. Therefore, it would seem, the aforementioned politicians are, also complicit in the scheme of undercounting our Job rates, because of their silence, and continued silence, and inaction.
Remarkable to many of us, Democrats, actively endorse the despicable policy of undercounting our Job rates, even as we face a possible third Recession in 15 years. In doing this, these Democrats see it as just another marketing tool to attract votes, saying they are responsible for our low “Job rate number.” But, visible to all of us, professional, blue collar, and working-class Americans everywhere, are an exceptional number of economic immigrants in the millions, flooding into America across our North, and South borders, seeking Jobs, as Democrats continue this ploy.
Even the most ardent, and loyal Democrat should understand this. When you undercount our unemployment rates, which leads to under-reporting our layoffs, as the Federal Reserve hikes interest rates to fight inflation, slowing the economy, and putting it into a Recession, Democrats are not delivering for professional, blue collar, and working-class Americans.
“LAYOFFS” are in our immediate future, and “it is a right around the corner kind of future,” we are talking about. Our situation, the current and coming layoffs, needs the Party’s immediate attention. Dr. Larry Summers, former Director of the National Economic Council in the Obama administration, and former Treasury Secretary, in the Clinton administration said this, in comments in a Washington Post article, on December 21, 2022,
“Fiscal policy will need to respond if and when (a) recession comes. There will not be room for massive, across-the-board efforts. But now is the time to put in place carefully targeted measures to “refund child tax credits,” strengthen unemployment insurance and be ready to pull forward federal spending…”
Dr. Summers is anticipating a full-blown Recession, due to the Federal Reserve hiking interest rates to bring inflation under control. It would seem, “the Democratic Party,” knowing (this is about to happen) would halt undercounting our Job rates, and corresponding layoffs. Democrats can justly capitulate to the experts on this one, who are the economists.
A 3.6% economy is radically different, from a 6.8% economy, that is deteriorating, and creating rising Joblessness right before our eyes, as a Recession looms, due to interest rate hikes. Nevertheless, what the Democratic Party did in 1994 to improve their Party’s image and make themselves look good, without regard to us – by undercounting our Job rates – can be repurposed to achieve a soft landing, in these economically troubling, and challenging times.
Once, Biden aligns his official Job rate with economists, a consumer tax cut can be seriously contemplated, to lift us out of the coming Recession. When the unemployment rate categories were readjusted in 1994, economists declared U-6, which is 6.8% for February, from the Table of Alternative Measures of Labor Underutilization, as being comprehensive of our Job situation. Yet, somehow U-3 became our official Job rate.
Here is what Secretary of Labor, during the Clinton administration, Robert Reich said, on April 9, 2021, in a reply to me, at my blog about undercounting Job rates.
“Dear Mr. Davis.
You write that “it was decided by Clinton and Reich that the U-3 category would become his administration’s official unemployment rate.” That is untrue. The Bureau of Labor Statistics is a statistical agency whose independence from politics is critically important to its credibility. Neither I as secretary of labor nor President Clinton intruded on that independence. The BLS decided and continues to decide how the nation’s unemployment rate is defined, measured, and explained to the public.”
So, according to Secretary Reich, neither he nor President Clinton made the decision to undercount our Job rates, through using the U-3 category rate. U-3 is narrow in scope, measuring a small worker group. As a result, it will always flash a low Job rate number. In house economists, at the time the categories were adjusted, at the Bureau of Labor Statistics, also took no responsibility, for how the U-3 category rate got to be comprehensive (official) of our unemployment situation.
This is based on an article in the prestigious magazine named, the Monthly Labor Review, published first in 1915. The monthly publication describes itself, as the principal journal of fact, analysis, and research from the BLS. In an article, titled, “BLS introduces new range of alternative unemployment measures,” which appeared in its October 1995 edition, by John E. Bregger, a retired Assistant Commissioner for Current Employment Analysis and Steven E. Haugen, an economist, at the time, in the Division of Labor Force Statistics, Bureau of Labor Statistics (BLS), they state, on page 24, “(U-6) is the most comprehensive of the new range of alternative measures…” of the rate of U.S. unemployment.
So, we have an unemployment rate, President Biden is using, U-3, at 3.6%, that is evidently, not comprehensive of our Job Situation. It is ill-suited for that purpose, based on Reich’s, and the BLS’ affirmations. Yet, President Joe Biden, and Vice President Kamala Harris continue to promote a false narrative, saying U-3 is comprehensive of our Unemployment Situation, distorting the true nature of our economy. They can end this nightmare, which negatively affects American workers, everywhere, by embracing U-6, as the REAL unemployment rate. We can than move on, as Dr. Summers is suggesting, advancing to the discussion of a Consumer Tax Cut, as “a solution,” to grow us out of this Recession.
Dr. Summers is calling for a reinstatement of the Consumer Tax Credit given to Families with Children, to grow the economy, and new Jobs once rate hikes end, and inflation is conquered, because we have today, a 6.8% unemployment rate economy (not 3.6%), that is expected to get worst. “Refunding child tax credits,” amounts to a Tax Cut to Families with Children.” But the GOP doesn’t like them, as tax cut recipients.
They want them “mean tested,” and work requirements applied. In objecting to Families with Children, as recipients; are Republicans, and Senator Manchin, also objecting to the confirmed principle, of consumer spending, as a means to grow back lost jobs, and pull us out of this Downturn? Even “a college graduate,” can understand this, if you give a tax cut to the 70% (the consumer), who is powering your economy, you are going to get a burst of growth, and job creation through “NEW” spending, by the 70% (the consumer), who is powering, and growing your economy, as the Tax Cut to Families with Children showed us, from July to December in 2021.
If it were just the “Families with Children,” they objected to, there is another consumer group, for the GOP, and Democrats to consider, when it comes to extending a potential consumer tax cut, which will have the same effect, as the tax cut to Families with Children, of growing us out, of the coming Recession.
The age group, beginning at 55 plus years, are currently responsible, for approximately 40% of consumer spending, in our economy. Baby Boomers are the largest homogeneous population, within that group of consumers, and would be the logical and, idea tax cut recipients. They too, will use and spend the money, and not hoard it, based on their statistical track record of spending as indicated, above.
Staff Writer; James Davis
Mr. Davis is an expert, in Financial Analysis, and Social Dynamics. His column is about relating facts, and truth in an understandable, and usable way. Relating the facts, and the truth, in an understanding manner, is his Job #1. He is a graduate of Florida A. and M. University (FAMU), and a human rights activist. He was awarded the Governor Burns Scholarship to attend FAMU, and while at FAMU was awarded the Martin Luther King Scholarship. James Davis is the author of three books, among them, “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M). If you got understanding from this article, “The Fix This Time,” has to be your next stop. ENJOY. James can be reached through his blog @ https://thefixthistime.com.
Question? Comment? One may use this email address; MrDavis@ThyBlackMan.com.
