The Empoyment Problem: It Has a Real Serious Issue

Each month for for years we have examined the employment report especially after the predictions of Romer and her ilk as to what the Stimulus would do. First Romer's curve as above. Note that we have her predictions which said by now we would have an economy on fire, NOT.

Above are her errors. Still hanging embarrassingly high.

Now above we have unemployment based upon the current Administration's calculations, at 7.7% and the number if we were to assume the employment base as per the previous Administration, a whopping 11.5% unemployed.

The above is telling. We have a systemic loss of tens of millions from the employment base. That is the problem with the economy. We are paying them and they are not generating GDP or tax revenue. It does not appear to show any improvement. I have been pointing this out for a while. It is a real problem.

Finally we show the employment base. This is the problem which we will have for decades going forward. These people are just out of the economy. Where are they, what are they doing. That should be the first question. The second is how do we put them to work. The third is why are we paying for them.