Unemployment is still at just under 10%, or as some people reckon – 23%. New numbers are coming out weekly and I thought it might be fun to think of a new way of looking at employment figures.
Most of the figures, like the one above, are based on the notion of “how many people are looking for work, or are not working as much as they would like, or would work if they could but have given up?”. I think this is a good notion to have, but there is another I think we should consider once we have answered that one.
This notion should be “what is the ratio of people adding to the economy versus subtracting from the economy?” I would define jobs that add to the economy as any job that is for a private company that receives less than 30% of it’s receipts from any form of public money – i.e. money that comes from any sort of governmental entity. The reason for this is because government, in any form, is not a wealth maker. Everything that the government does, requires money to be taken from someone in order to do it, since government does not generate its own wealth.
So, look for super rosy jobs reports around 2012 and when they come out, ask yourself if those jobs are additive or subtractive. If 100,000 jobs are added, but 80% of them are subtractive and require tax dollars (or borrowed money in lieu of tax dollars) to fund them – that isn’t helping.
That’s actually worse.