5 votes

"Spin Cycle"

I don't think any of us believe in the government's job numbers but, on Michael Pento's podcast today (http://www.pentoport.com/mp3/MRC130313.mp3), he gave a good example of how the "spin cycle" works:

Let's just look at some of this improved data that they point to and see if it's really legitimate. So let's just go right to the non-farm payroll report. That report showed there were 236,000 net new non-farm jobs in February. Of course what they neglect to point out is that 446,000 jobs in the household survey were created on a part time basis. That is because instead of hiring one person full-time, the Affordable Care Act (a.k.a Obamacare) is forcing employers to hire part-time employees. So for every 1 hire you're getting 2 part-time employees, which is making the job creation numbers look great.

But are they really great? Not at all. They're really counting 2 jobs as 1 and the labor force participation rate dropped in February's report. It dropped to 63.5%. It is the lowest reading a very, very long time. And it's down (down!) from 65.7% when the NBER called the recession officially over in June of 2009.

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Sorry for the self-bump

But I don't want to let this one fall through the cracks.