Unemployment Rate: A Visual Guide to the Financial Crisis

How was unemployment measured during the great depression?

@Alex, I think you missed one of the points of the piece. The point I took away was that our comparison of today’s crisis may be downplayed against the Great Depression, since we’re measuring both crises in different ways

A question though… How does one distinguish student from someone who CAN’T find work. And even then it still is the choice of the student to find work or not to. Personally, I think the Unemployment rate was never meant to be 0. unless of course you find a way to ban high school/college students from getting jobs.

I am sorry Atish, but I see Alex’s argument more than I see yours. Nice post from the author, but the posting makes the outlook seem more grimmer than it truely is.

I don’t see Alex’s argument at all. The point is comparing apples to apples, thats all. For sure the societal consequences of our high unemployment are not as great simply because of some of the safety nets put in place by the new deal but the employment situation is as dire, and getting worse.

How much unemployment can our society handle before there is serious breakdown?? I have a feeling we are going to find out before the end of ‘09. We will have lots of empty buildings and idle hands.

Fantastic presentation! The Govt propaganda has been relentless in playing down the severity of the current economic situation as compared to the GD. Still posts like this makes one wonder.

Still, I must ask, “what advantage would knowing this give me?”

John Doe…you mean truly. You’re a turd burglar.

It’s all somewhat of an interesting study in stats, but at the end of the day, all I really care about is GDP. That measures our output…whether it’s by 1 smart person or 3 morons doing the same job. Per capita measures just keeps the peeps in Wash DC busy…spending our cash…

not all rich people are thieves, you know. Some people worked hard and some worked smart. I’m not rich but I’ll be damned if I would ever let the government take away my money to give to others. I would do that myself and not let them tell me where it goes. Who says they would even give it to the people who need it and not to the automotive industry again. Think people think!

interesting take… had to repost: http://www.the405club.com/post/75792145/the-not-so-official-unemployment-guide-visual

just came upon your site, love the info. perhaps you’ll enjoy our new club for those receiving New York’s $405 Unemployment Benefit per week, New York’s fastest growing club: http://www.the405club.com.

Hope to see you soon & link up.

Trying to compare our current economic downturn (one that occurs every 10 to 15 years like clockwork) as if it were similar to the great depression does a great disservice to those who lived through those tough times. The most downtrodden person you know experiencing tough times today should thank God every night they’re not going through what our grandfathers and grandmothers went through. Stop trying to blow up the numbers. Leave the sensationalism for the MSM.

If only the government would look back at the mistakes it made to create the great depression in the first place. FDR started by attempting to control wages. Guess what Chairman 0bama did this week? That’s right. Oh well… doomed to repeat it I guess.

Unemployment is always in the mind first. Change your thinking and jobs will come to you.

Sounds like ‘hocus-pocus’ but it’s true.

Minh

Interesting point of view. Well here is my plan for fixing the economy.

I want an economist or someone who could study my idea to run this scenario or give me some numbers to tell me why this idea would not work. I know I might be missing some areas of taxation or government dealings but overall I think most of this plan could & would work.

1. My idea combines the Fair tax & Flat tax concepts. 23/30 Fair tax numbers have some justified arguments. I say let’s start with 16/23. State sales taxes remain between 5-10%. Most other areas of the Fair tax proposal are implemented with the exception of eliminating the IRS & removing the 16th amendment. These are unrealistic goals and complicate an already complicated agenda.

2. 23/30 numbers were created to maintain current government revenues. I make up my gap with a Flat tax. Flat tax individuals who make over $200-250K. No taxes for those who make less than$199,999. Flat tax medium & large businesses. No taxes for companies who make lass than $250M. Rates for individuals 2-4%. Rates for business 3-5%. There is a lot of room for movement with these numbers. I need to know if this would make up the gap!!!

3. I believe my plan would create more $$ for the government. If this is the case there are some mandatory programs the government must undertake. Universal Healthcare, Public school investment, Infrastructure, Quality public housing. Also no less than 25% of any surplus must go to paying the national debt.

4. Illegal aliens have the option to become citizens if they have not committed a crime & pay flat tax 5-10% for a period of time.

5. The IRS will shrink 50% and compliance should only cost 25% of the current cost. Total savings 300M. New focus would be on enforcing consumption tax & flat tax payments.

6. Reduction in consumption tax for car purchases. Particularly for high MPG vehicles. This would launch the auto industry back in business.

7. Housing would be excluded from resale rule. Flat tax on all real estate purchases.

This outline addresses Republican & Democrat agendas and bases. The GOP & far right would love the idea of flat & fair tax, smaller IRS, illegal pay for breaking the law. The Liberals & tree huggers get to tax the “Rich”, Universal Healthcare and other public programs, and promote “green” cars. Oh and the Democrats get the last laugh….they get to sign the bill.

Despite Obama’s statements about the unemployment rate, it is still 25% LOWER than it was in the early 80’s following the disaster of Jimmy Carter. Obama loves to say it is the worse economy since the “Great Depression.” He knows that the press will never call him on this, so he keeps up the fabrications.

Great visuals. Thanks for posting.

great idea..

haha. 100% unemployed. funni. no not really. :\

Unfortunately, I am compelled to take the same route as many of those who posted before me and bash slightly on one of the more ignorant folks who just had to share their unquestionably thoughtless opinion, Andi (2 Feb post), you’re cool with what’s currently done with your tax money, but if asked to pay more (if you were rich as you claim not to be) you espouse the idea that additional tax requirements should be treated differently? What exactly are you saying? I gather that you just don’t approve of any tax increases, so you believe that the extremely wealthy should instead simply give their extra cash directly to the programs, persons, or charities without any type of government requirement… right. I mean, that’s how they’ve been able to amass such ludicrous fortunes to begin with, by their relentless desire to help those at the other end of our gratuitous economic disparity.
Enough of that, as it is true that unemployment rates do seem to rise and fall with some regularity, by checking out the U.S. Bureau of Labor Statistics, one will find that they are not exactly cyclical. Throughout the 1070’s and 1980’s there were times of high rates comparable to those that we are seeing now. There are also explanations for these rises (i.e. bad investment in a foreign war coupled with unscrupulous negligence from the top down- 70’s; massive tax cuts and deregulation as a top fundamental of, well, let’s just put it simply – Reaganomics- 80’s). Taking cash out of the domestic pot, as was characterized in both of these instances, has always historically led to high rates of unemployment. I believe that the frequently repeated comparison of our current situation to the great depression results from the events that have led us to this point, coupled with a legitimate fear that this downturn will continue. Whereas in the 70’s the decline in stock was actually a subsequent event to heightened unemployment, the situation we face now is consequent to a failing market (a direct result of an intentional lack of oversight by our government institutions that, yes, are necessary no matter how “free” one believes the market should be). The statistics reported by this site are not sensationalized, they are the unfortunate truth we as an irresponsible capitalist society must take notice of. The adjustments made in order to account for the actual rate of unemployment may be the only way that we the people can try and prepare for the possibilities that lie ahead.
This time there will not exist a new deal, and where in the past war stimulated a struggling economy (well, not since WWII, which did more than the new deal to revitalize our still struggling economy), now war just costs more to the taxpayers, while benefiting the select few running the weapons industry. Despite nearly a $trillion pumped into the banking system, and the bailout of multiple firms whose demise surely would have put our economy in a worse place than it is now, we continue to struggle with economic stagnation? That type of cash injection straight into the vein of our banking system should have had some fallout at the labor level, or at least provided some confidence at the loan desk; but people are still being laid off by the hundreds of thousands per month, and if small business wasn’t already on its way to extinction, you can bet it ranks as endangered…only with no guaranteed protection.
So yeah, I suppose that we really shouldn’t make any connections between what we are currently experiencing, and what occurred 80 years ago, back then our nation was a very different place. Most were willing to do what they could to preserve our way of life, including substantial tax increases for the extremely wealthy, rationing, and the development of a federal welfare system known as social security which, unfortunately, became a piggy bank for the federal budget after the Reagan tax cuts. Now our country is run as though it were a multinational corporation, complete with favorable stats such as our unemployment rating system, whatever makes the stockholders happy, or at least ignorant enough to remain complacent. Oh, and to my friend Andi up there, seeing as you feel so adamant regarding rich folks’ cash and exactly where it goes; don’t you think we the taxpayers (those of us who enjoy the luxury of employment that is) should be honored the same right when loads of our money is turned into a welfare fund specifically allocated for many of the institutions who are directly responsible for the severity of this “financial downturn”, When it all comes down to it, these financial institutions took full advantage at every possible turn to exploit people who simply wanted to live the ever-assured American Dream; these faceless brokers, banks, creditors, (the more convoluted, the better the return) without a shred of morality or even basic human compassion. As Bush put it “Wall Street got Drunk”, but their liquor was greed, as for the hangover, it was easily remedied with more of those same people’s tax dollars. SO who cares that the place they partied at was burned to the ground only to be pissed all over by them while they told the bewildered hosts to “deal with it”, subsequently aiming their flow on the last things the unsuspecting marks had left, the clothes they were wearing. If our current crisis turns out anything like the great depression, and the uber-rich are forced into sharing some of their outrageously massive fortunes with the less fortunate, the indicator won’t be soft statistics, it will be far more obvious than that. Statistics are unique in the many ways that they can be manipulated, it’s a bit more difficult to alter the evidently growing masses as you start to notice more and more forage abandoned tract home subdivisions, complete with mostly empty strip malls (nobody wants a jamba juice when even Wal-Mart isn’t hiring). Should it come to this? Will it come to this? Anything is possible, the deciding factor is whether you choose to turn a blind eye, or you choose to stare down the issue until you have the knowledge to consider all of the many possibilities and the courage to take action.

Didn’t read all the comments so I’m not sure if someone mentioned this, but another important thing to remember about the unemployment rate is that it’s a LAGGING indicator. Meaning it doesn’t provide insight into the immediate future condition of the economy, but the past.

Rich folks hate poor folks because we remind them of all their sins – greed; hatred; war; nurder; theft; exploitation; slavery…and the list of rich folks sins goes on and on, fuelled by money.

Brian:
Why should they take that money and buy a car that’s bad quality?
They failed because of quality, prices, and not keeping up to date on what Americans want out of a car.
I kind of like the rest of that idea- yet, what do we do for those who were never taught how to handle money properly and run out?

Skept:
The wealthy in this country are WEALTHY. “But they pay such high taxes!”-(people say). But they don’t really. They find loopholes, ways around it. They also have so much money (and taxpayers help) because of all the protection the gov’t gives them. Look at the banks- they aren’t even afraid of failing because they will either be bought out for billions (by someone) or the gov’t will take our taxes and bail them out. We give the wealthy them so much welfare, it’s sickening.

I feel no sorrow for them, and wish they would spread the wealth out a bit more.

“The most downtrodden person you know experiencing tough times today should thank God every night they’re not going through what our grandfathers and grandmothers went through.”

Like Hoovervilles? They’re called Bushvilles now. Lots of them are in CA.

FDR did something good for the little person. People who are on the side of the major corporation or wealthy individual hate him because he gave us smaller people a lift. Minimum wage? What a horrible idea! Social Security and welfare? I am probably not the only one to say that stuff is amazing and kept people from dying on the streets. I mean, the rich must like it as well, they are the biggest recipients of welfare!

Anyways, the unemployment right now is really bad. Anyone who is looking for a job knows this. If you already have a good job and don’t see being fired in the seeable future, it’s easy to loose touch with reality and see that it’s not that easy or simple for others right now.

Extraordinary people doing ordinary things that make extraordinary differences

Just a comment from an outsider,

As for the comment from Allie, shouldn’t the public be driving the market as far as the type of cars that are being bought and sold?
Being an outsider looking in I see the American cars selling very well in my country….there are a lot worse cars as far as quality goes?
Besides that have you bothered to investigate the advancements being made in that sector regarding hybrid and electric cars? And the plans for renovating the industry to cater for the deployment of these’s green cars?
I think the Amercan government is not solely responisble for the direction that market goes…..oil might be driving that? And they are not irresponsilbble either as they are workin on changing it to work for the economy ist a big expensive transition and it takes time….as much as we all want it to happen now technology and infrastucture have to catch up and be implemented…all of the oil company’s are working on hybtid and hydrogen replacments for the future and a lot of that technology comes from the way America thinks, the american dream is driving it to a large extent…

As for the rich, if peeps stopped for a minute to concider the priciples that made the amercan draem such a succsess through good and bad times they would relize that bieng rich is what life is all about, not all rich peeps are bad not by a long shot.
That’s the dream to have stuff and american cars, jobs too come from the edevours of the rich? You take that away you will be worse off! Mabe you should make friends with a succsessful person and you might see the also started from scratch? And they might even teach you something about being positive?

Some of the greatest technology in the word was born in this enviroment that benefits millions around the word on a daily basis. Mabe you should stop thinking about taking money from the people that are doing this good work, this is the Amercan dream that the rest of the world keep’s draming about…is that such a bad thing?

Maybe you should get together with some of your friend and come up with an idea that will make you money?
Buy an american classic fix it up and sell it? Sell it on the internet to a rich oil sheik? Who knows mabe you will make enough money to be thought of as rich? Then you can buy a new american car ….andmaybe keep someone employed…..

all of this information is so good especially what anthony wrote.
:]

Pretty cool post. I just stumbled upon your blog and wanted to say
that I have really liked reading your blog posts. Anyway
I’ll be subscribing to your blog and I hope you post again soon!

Nice post! GA is also my biggest earning. However, it’s not a much.