
The government today announced new unemployment statistics for September: U3, the usually reported number, is now 10.3%; U6, the broadest measure of unemployment and underemployment, is now at 17.5%. So by the government's own jiggered and finagled data, we're at 1931, which had an unemployment rate of about 16.3%. Over at ShadowStats, John Williams adds in the millions of unemployed/underemployed Americans the government pretends don't exist to arrive at a new rate of 22.1%. Just astounding! That's only 2-3 percentage points away from the Great Depression maximum of 24-25%.
So why does the government keep lying about the gravity of the situation in this country? How can people respond rationally to the situation when our government pretends that the unemployment crisis is only half as severe as it really is?
Notice in the graph above that the blue ShadowStats line is shooting upward with a very steep slope. The slope of government's U3 line (in red) is substantially less steep. Back in elementary calculus class, we'd say that the blue curve is concave upward, indicating an accelerating rate of change (in a bad way, since up means more unemployment). The red line is concave downward, indicating a decelerating rate of change (that is, unemployment may be reaching a peak or a plateau). See the difference that telling the truth, the whole truth, and nothing but the truth makes? The blue line demonstrates the severity of the unemployment crisis and the utter failure of the government to cope with it. The red line lets government gasbags emit all sorts of happy talk about recovery.
What a remarkable fact that the largest information gathering enterprise in the history of the human race--the Federal government--gathers all this information and then lies about what it means!