Thursday, January 14, 2010
How Bad Is Unemployment?
That's the chart from Shadow Government Statistics. The blogger who runs that site takes out a lot of Government "adjustments" to arrive at his numbers. In the case at hand, you see that Government-adjusted U-6 is about 5 percent less than SGS' numbers.
Frankly, I think SGS' numbers are a better reflection of reality.
And Goldman's short essay (linked below) tells you why: small business is pancaked; it is not generating "new jobs." Thus, the job-loss index is very strong compared to the job-gains. This observation is not unique to Goldman, by the way; I saw another blog arguing the very same case yesterday.
HT: First Things/Goldman