Being prepared requires an understanding of the signs to watch for when things may be headed in the wrong direction. This is true in most any crisis. There are even signs that will help you to see the coming danger and be prepared for an economic collapse prior to an actual economic collapse occurring.
The reality of economic collapse in almost any economy can be seen in several different areas. It doesn’t take a “rocket scientist” to figure out that the real state of our economy is not going to be reported in order to prevent civil unrest by the people affected most by this situation. The civil unrest in many countries that have suffered an economic collapse is witness to this fact. In fact, we are seeing some of the early signs of civil unrest in this country due to the weak economy. One of the major signs to watch in order to realize the actual health of our economy is the true rate of unemployment in this country.
The Bureau of Labor reports statistics on employment on several different levels that range from the U1 unemployment rate to the U6 unemployment rate. The unemployment rate that is normally reported in the media is the U3 (official) unemployment rate. This rate (U3) doesn’t include a lot of the people who are unemployed but represents a more politically acceptable level of unemployment data when reported.
Many people are also unaware of just how many people aren’t included in the workforce as a matter of routine. Our workforce is primarily based on the civilian population 16 years old and over (many of which are still attending school). Persons who are in places such as nursing homes, correctional institutions or prisons, and members of our military on active duty aren’t included as part of the workforce in these statistics. It also doesn’t include retirees. That’s a lot of people who are simply not included.
If you are concerned about the implications of a possible economic collapse as something to prepare for, it helps to know what to look for in advance. Knowing and being aware of the true rate of unemployment is just one of these factors.
Disclaimer: This is merely an opinion of this writer and should not be considered professional advice of any kind.
Staying above the water line!
I agree with this article, except that it implies those who are active duty in the military are unemployed. They are employed, but by the military. Yes the labor department does try to understate the true unemployment figures. Not near as much as the whitehouse talking heads do though. I've noticed every month the whitehouse voicebox announces low unemployment figures. Stocks rise and oil prices spike. A couple days later the labor department releases theirs, which are less optimistic (not lying as much) as the whitehouse's, and both stocks and oil prices drop again.
ReplyDeleteTo: Life Student
ReplyDeleteI did not mean to imply that active military personnel are unemployed but merely reiterate the fact that they aren't included in the statistics.
Unfortunately, there is a great deal of misinformation floating around that sometimes it's hard to sort fact from fiction.
Thanks.
RW
great post rw!
ReplyDeleteemployment/unemployment statistics are just that - statistics.
which we know are manipulated all the time to suit one viewpoint or another... for propaganda's sake.
as you point out, it is up to us to figure out what is really going on for ourselves and judge from there... being aware is the best medicine/advice..
and it helps to listen to your gut, mine tells me there are a LOT more people in trouble than what is being "advertised".
cheers!
To: jambaloney
ReplyDeleteA lot of times things that are happening locally will often be a better gauge of how the economy is doing...particularly in your own area.
Too many times the statistics are "adjusted" to fit the situation. AS a result, they may not be reliable.
Thanks.
RW