Tag Archives: Rick Santelli

THE REAL UNEMPLOYMENT RATE IS 12-19%

You remember Rick Santelli.  He is the floor trader whose spontaneous outrage gave birth to the Tea Party.  Here is his assessment of the just released 8.3 % unemployment figure, a number that put a smile on the face of Barack Obama.  Santelli finds that the favorable looking number resulted from two not so favorable causes, an adjustment in the calculations and more people dropping off the unemployment list because they have given up seeking for work.

The unemployed number is intended to count only those people who want work, so students who have yet to enter the work force and retired folks are excluded.  That makes sense.  However, people who do want work but have given up and dropped out of the system are also excluded.  That is a distortion.  Statistically speaking, they are neither employed nor unemployed.  They don’t have jobs but are treated as though they do not exist.

There is no official tally of their numbers but various estimates say the published unemployment rate would be somewhere between 12 and 19 percent if these truly unemployed were considered officially unemployed.

Click here for the Santelli video.

THERE IS A GOOD REASON WHY THE DEBT CEILING FIGHT WAS SO FIERCE

It was a bitter fight.  Thank God for the fight!  For without it the Democrats would have ratcheted the national debt even higher.

The reason the nation’s credit rating was reduced is because the federal government overspends and is deeply, very deeply,  in debt.  In defiance of all reason, the Democrats fought hard to increase spending and increase the level of debt.  Rick Santelli got it right when he said if it had not been for the Tea Party the nation’s credit rating would be BBB.  Thank God for the Tea Party!

Santelli may have been engaging in a bit of hyperbole, but then he may not.  What rating would you give to a family with an 80,000 annual income that is 501,000 dollars in debt?  Would you trust them more if they promised to cut a little spending, perhaps to 124,000  sometime in the near future,  but only if you agree to increase their line of credit immediately so they can spend more now?

The numbers in the table below are real. They were not pulled out of a hat.   See this prior post for an explanation of the family equivalent table.  Click on the table to enlarge it.


As long as Democrats control the Senate and the presidency the choice will be bitter word fights in Washington or deadly riots elsewhere as the money for “entitlements” runs out.  Thank God for the word fights.

P.S.
We are back.  The vacation was great.  Look for new posts.