President Barack Obama leaves office in two weeks, though he claims to have put the American economy back into good health, has he? Obama will be the first President since Hoover to go his entire length of term while in office without a single year seeing 3% GDP growth. Obama claims to have drastically decreased the unemployment rate, however that is chalked up to manipulating the data.
Via AllenBWest: The unemployment rate we usually see quoted is known as the “U-3 unemployment” rate, and simply divides the number of unemployed individuals into the labor force to find out what percentage of the labor force is unemployed. However, to be counted in the labor force, you must be above the age of 16, not institutionalized, and looking for work.
The “looking for work” criteria is key. That way a seventeen-year-old in high school who doesn’t even have work on his mind wouldn’t be included in the unemployment statistics, thereby exaggerating the unemployment rate. On the other hand, if the economy is so poor that people simply begin retiring early, or give up looking for work, they’re no longer classified as being in the “labor force.” Thus, many people who were unemployed are no longer categorized as such by leaving the labor force – even though they still don’t have jobs.
At first glance it looks like Obama did a great job! That’s if you don’t take into account underemployment, among other things. Contrast the above chart against the below one, which shows population, employment, and the out of labor force numbers.
When the Democrats don’t do a good job they just change the way we measure the data. Fortunately, the great Obama disaster will be over in 2 short weeks.
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