Ron Paul says unemployment numbers don't tell the whole truth

AP Photo/Robert F. Bukaty

Republican presidential candidate Ron Paul said the latest unemployment numbers don't tell the whole story. In an interview with CNN's Piers Morgan Friday night, Paul also said the .2 percentage drop in unemployment is "not all that glamorous."

Paul said there is an under-reported element to the latest jobs numbers released Friday that showed the lowest unemployment rate in three years - and that is that millions more are disengaged from the job market.

"More important if you admit the truth," Paul said about the latest unemployment numbers. "We quit counting people."

The number of unemployed people declined to 12.8 million people in January, according to the Labor Department, but that number only includes people actively looking for work.

Nearly as many people are experiencing the dire consequences of the sluggish economy and that statistic has not seen much improvement. Eleven million people either gave up looking for work or are underemployed, and that's why Paul calls the jobs numbers "not glamorous."

Paul points to the 1.1 million people who have completely stopped looking for a job because they think no jobs are available (and those are the ones who have been employed at some point previously). The Labor Department calls those people "discouraged" and that number is unchanged from a year ago.

Another 1.7 million people haven't looked for work in the past four weeks and 8.2 million people are underemployed, meaning they are working part time or reduced hours.

[st68x]

Paul's right. The ratio of unemployed to total population fell about 5% in 2008/2009 -- and it hasn't changed since then. Take a look at the graph produced by the BLS at http://data.bls.gov/timeseries/LNS12300000.

[karek40]

After 24 years in congress surely Mr. Paul is not surprised to find out that politicians lie.

[bsvitamins1]

People seem to forget that it took 8 or more years of bad policies to put us where we are at . You can't expect it to be fixed in just four years in office. I see things turning around now so why change in mid stream lets keep thing going instead of letting the Republicans back in office lets keep them out of both house and senate and give the us a chance to fix the two BUSH's mess.

[footdr2]

Actually, the first subprime mortgage bailout occured during the Clinton Administration and the subprime crisis is due to the Federal Government wanting to make homes more affordable to those that didn't have 20% for a downpayment and didn't meet the private morgage markets income to expense ratio that was used to qualify a buyer to get a mortgage. So, the Governments intrusion into the practices of the Mortgage Lending business started the ball rolling. Then it began to mushroom when the Government encouraged Fannie and Freddie to buy the loans that were made outside of the regular "norms". Private mortgage companies were forced to compete with Fannie and Freddie and we all know what happened next. Defaults by those that should have never received loans. When you buy a home you must take into account what will happen if you lose your job or your taxes and insurance go up. A good realestate agent always advises their buyers and qualifies their buyers. But when the qualifications are so low, the chance of default is high. It wasn't the subprime mortgages that caused the housing collapse, it was the loss of jobs that caused homeowners to be unable to pay their mortgage payments. Those that paid inflated home prices such as those in California and major large cities suffered the most because they were not able to sell their homes after they lost their job. Equate that to someone who pays too much for a stock and loses or can't sell because the price of the stock is down. You either wait the market out or lose money.

Homes have been a risky investment for over 30 years now. You buy a home to live in and one day own; not with the thought of making money. Once it is paid off is when I consider it to be a real asset.

Those that can't sell should attempt to rent as rents are going up in most areas as people aren't able to buy.

[fiberglass3]

Let's tell the correct story - The hemorrhaging of American jobs accelerated at a record pace at the end of 2008, bringing the year's total job losses to 2.6 million or the highest level in more than six decades.

Who was at the helm during that time? A republican't president !

[Nikos_Retsos]

Ron Paul is correct. Unemployment figures includes those collecting unemployment benefits only. They don't include those who a) Have exhausted unemployment benefits. b) Those who exhausted extensions of such benefits. c) The under-employed. Those who have accepted low level part-time jobs to survive, but still looking for full-time employment. d) Those who have been tired for looking for work, moved in with parents or relatives, and wait to hear or see any jobs available in the local papers "Jobs Wanted ads" to apply. e) Students just out of colleges, not listed in any employment statistics, that cannot find a job.

Then comes the political interpretation of employment statistics, with the democrats presenting a rosy outlook to stay in power, and with republicans presenting a skewer outlook to come to power. In short, the unemployed have become unwillingly a "string-of-beads" of self-serving politicians whose vying for power is more important to them that the jobs available for the needy.

Adam Smith, one of the fathers of modern economics, described the conditions under capitalism as follows: "Wherever is great property, there is great inequality....for one rich man, there must be at least 500 poor!" That is why both the Bush and Obama administrations opened the U.S. Treasury and loaded the Wall Street barons with $ trillions to protect their riches! The poor unemployed are still waiting to sustain the 1 rich, 500 poor, ratio that makes capitalism great for capitalists.

That is also why Mit Romney doesn't give a damn about the poor! He doesn't need them. He is rich enough to buy "his election to public office." Once there, he wants to keep the unemployed begging for jobs! After all, high unemployment means "cheap labor," which makes the rich richer! Nikos Retsos, retired professor

[jimbom121]

These are the same figures that have been used for decades. This is also why the rate in less important than the trend and the number of jobs added.

Either way, the economy is getting better, despite what the GOP wants to believe. 240k private sector jobs added..best since 2008, 50k manufacturing jobs added...best in 13 years.

[karek40]

I might add a retired professor living off his retirement income paid by my and your taxes.

[alongawaitedfriend]

If everybody in this country received $10 million, Republicans would find some reason that that was a bad thing. I really cannot believe all this Republican nonsense about how Obama has failed and the country needs to give Republican policies a try. Really? Let's see now, when Bush took over from Clinton in 2000, the budget was balanced and the economy was great. Then, eight years later, after Republicans controlled the White House, House, and Senate for the vast majority of that time, the country very nearly fell into another Great Depression. Three years later, after Obama took over, and despite tremendous resistance from the Republican House, things aren't great yet, and the deficit has increased to keep us from falling further into a depression, but overall things are improving. But we should go back to the policies that led us very close to another Great Depression? I don't think so.

[av8r81]

It's been what, 1010 days since a budget has been passed. Yet, you think this is a success? BTW, don't lump Ron Paul in with other Reps....the Republicans don't even want him in his party. What's THAT tell ya?

[alongawaitedfriend]

What does my comment have to do with a budget being passed this year? Maybe the Repubs don't want Ron Paul, but that's what he identifies himself as. Why doesn't he run as something else?

[ladyang]

dumb neocons and even dumber teabaggers!

[overtax]

How about checking out and reporting the numbers to the labor force participation.
Yes go to the bureau of labor of statistics and you will find less people in
the work force actively seeking work. This is why the number of unemployed
going down. Not through any job creation. And if not go check out state by state unemployment
numbers. 14 states with unemployment over 8.5%, including some large population states
California, Illinois, Georgia, Florida and Michigan, Indiana.

[jimbom121]

This the same source that get reported each month. Each state is different. For the states you listed, why don't you ask their governors. The figures are national.

[MHalyard]

I'm beginning to see that the majority of Americans are scared witless about the looming train wreck of the world economy, not to mention the military conflicts that will escalate in the middle east. However, it is easier just to vote for Obama and the status quo (which somehow, incredibly, they seem to view as a lifeline; just look at the comments here) than to let go of the establishment's portrayal of our situation and start educating themselves with alternative sources of news like zerohedge.

It won't surprise me if Obama is re-elected, as a result. The leading Republican candidates, with the exception of Ron Paul, are failing to address the real problems with actual plans for recovery. Instead, it is abundantly clear that the same policies of printing money and shoveling it at banks and the military industrial complex will continue to undermine our liberties and our dwindling prosperity, regardless of who wins the presidency. Only Ron Paul speaks the truth about our economy and offers solutions, but the frightened average American voter is blinded to the truth by the mainstream media.

His plans to restore America (including addressing the horrible job and housing markets) are available at his website for all to read. www.ronpaul2012.com

[MHalyard]

I rest my case. With advocates like goptarded, how could Obama fail?

[jcnbma]

Of course the RepubliKKKons deny that the economy is improving. That would be conceding the election. The truth is that Obama's policies are WORKING and with NO HELP -- ZILCH -- from the GOP. In fact, the GOP has hindered any progress. So, go vote for Republicans in the fall and let's go back to the failed policies that got us into this mess. LOL