WASHINGTON POST
Breaking News Alert: U.S. unemployment rate drops to 9 percent February 4, 2011 8:45:15 AM
“U.S. job creation came nearly to a halt in January, yet the unemployment rate plummeted to 9 percent, according to a new report that gives a muddled picture of the state of the labor market.”
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Now this is why the nation is a mess. The idiots behind major media sources have no grasp on demographics. They should have read my earlier blogs … the ones saying the unemployment rate was bogus and distorted by the baby-boomers who will be counted as unemployed while making the decision for, or awaiting, retirement.
The baby-boom has distorted conventional wisdom and statistics. To strengthen the economy, the government needs to increase medical coverage and benefits to those on Social Security.
Every dollar of disposable Social Security will be spent – !DUH! the retired do not save for their retirement, they accumulate for the next big-ticket purchase, or they spend spend spend.
They spend on small things – like meals at the mom&pop restaurant down the block, gifts for grandkids, small and major stuff to make their lives more relaxing, and hobbies or pass-times, Every dollar goes into local economies and circulates seven to ten times among the taxpaying providers. That yields seven to ten taxable dollars … and you only need an effective 14% tax rate to get the dollar back into the Federal kitty … that doesn’t count the 8-12% that gets paid into those taxpayer’s Social Security account. Basically the workers servicing the retired pay the benefits to the retired and underwrite the Federal spending as well …
Ain’t the math of economics weird?
“Something for nothing and the chicks are free.”
But journalists and the old line economy economists aren’t bright enough to get it.
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