There are two elements inherently wrong with jobs numbers: the unemployment rate does not consist of part-time jobs and the adding of jobs each month includes part-time employment, which skews the released data. Due to a number of aspects, most predominantly because of Obamacare, the United States is transitioning into a part-time jobs nation and economy.
Last week, the Bureau of Labor Statistics released the jobs report for the month of July. The private sector added 162,000 jobs – the worst report in the past four months – but most of those positions (two-thirds) were part-time and/or low-paying.
The Obama administration and the president’s supporters look at the total number at face value without noticing the underlying issues: Americans are underemployed, have stopped looking for work and have left the labor market entirely. In addition, the era of part-time jobs is also having a tremendous effect on growth in the economy.
As Peter Schiff, president of Euro Pacific Capital, stated in the video blow, the employment figures, the gross domestic product and Federal Reserve data are all “propaganda disguised as information.”
Schiff went onto explain how government figures are usually revised to reflect that its initial numbers are incorrect. He cited the GDP in the first quarter when it was first reported to be 2.5 percent, but was then changed a few months later to 1.1 percent. Now, the government is reporting that GDP for the second quarter was 1.7 percent, but Schiff thinks it will decrease again.
“My guess is that it’s going to be a lot closer to zero percent than two percent. But of course by then we’ll get another bogus number that they’ll later revise down. The government always comes out with a number most of the time that’s too big and by the time they revise it down nobody pays attention.”
He also questioned as to why academic economists are not upset over the fact that the government is continually changing the GDP – Schiff added that he doesn’t believe the GDP is an accurate method to measure economic growth. The reason why the government has changed the methodology to the way GDP is calculated is to make it look bigger and thus create an illusion for the American people to think things are improving.