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Peter Schiff - Job Losses Demystified



November 13, 2009 – Comments (2)

As the unemployment rate crossed the double digit barrier for the first time since Michael Jackson learned to moonwalk, President Obama announced that he will convene a “jobs summit” to finally bring the problem under control. Using all the analytic skill that his administration can muster, the President is determined to figure out why so many people are losing their jobs and then formulate a solution. That's a relief; for a while there, I thought we were in real trouble! In fact, the absolute last thing our economy needs is more federal government interference. If Obama really wants to know what's behind entrenched joblessness, he should start by looking at the man in the mirror.

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2 Comments – Post Your Own

#1) On November 13, 2009 at 3:43 PM, russiangambit (28.66) wrote:

> Uchitelle pointed out that foreign outsourcing of component manufacturing has led to consistent overstatement of U.S. GDP and productivity. The connection goes a long way to explain why we keep losing jobs even as GDP is apparently expanding.

I rmember being pretty shocked when Q2 2008 GDP came out as 5% or something while it felt like we were in a recession. All the financial pundits were arguing whether we are in a recession or not.

There are two many things distorting GDP. At the time I thought that it was due to the government meddling with the deflator. I guess, there are plenty of other distortions in GDP.

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#2) On November 13, 2009 at 6:18 PM, AdirondackFund (< 20) wrote:

Thanks again KDakota.  This is exactly as claimed.  The more workers you lay quickly, the faster your productivity numbers will increase.  A $28,000 car is counted as $28,000 in GNP, except that we didn't make all $28,000 of the car that went into it.  Yet another example of how errant all numbers and calculations are in today's age.  I have never seen such a nonsensical steam of tripe and miscalcualtion as I am currently seeing....let's hope no one is foolish enough to believe in these reports.

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