I’ve written before on the dubious validity of the official unemployment statistics because of issues concerning how “unemployment” is counted. A high-ranking official with the Federal Reserve has now spoken publicly of this phenomenon and estimated that, if the statistical contrivances are taken into account, the “real” unemployment rate is not the official 9.4 percent rate, but rather 16 percent. That reality indicates that it is going to take much longer for the economy to dig its way out of the recession than many are forecasting.
All of which leads to a simple question: if the “real” unemployment rate is 16 percent, why isn’t that the rate the federal government is reporting to its citizens? Does our government really think that we are so brittle that we cannot bear to hear the truth, or that we are so divorced from reality that chronic undercounting by the government will convince us that things are better than our personal experiences demonstrate they are?