Atlanta Fed Chief admits false Unemployment Stats
In what we can only assume to be an embarrassing slip, the Chief of the Atlanta Federal Reserve announced Wednesday that the real unemployment rate is something close to 16%, almost double the Bureau of Labor figure of 9.4%.
It is common knowledge that the Labor department regularly under-reports unemployment by a variety of methods (not counting so-called “discouraged workers”, not counting those who run out of unemployment benefits, not counting those ineligible to work, etc.), but for an administration official to acknowledge this deception is a rare event indeed.
If anything, we can take this announcement as a tacit acknowledgment of our worsening situation. It may also signify dissent within the Federal Reserve system (Bernanke’s re-appointment must have ruffled some feathers), but that is mostly speculation. What this does tell us, with some degree of certainty, is that our unemployment rate is far worse than officially recognized.
Once again this throws new light on Ben Bernanke, who has neither curbed unemployment or small bank failures. He has, however, kept inflation low at the expense of unemployment, saved a few big financial players, and allowed some large competitors of Goldman Sachs, AIG, Citigroup, et. al. (namely, Lehman Bros) to fail.
Issues concerning the everyday American appear largely beneath Mr. Bernanke’s concern. No wonder he was re-appointed!