SEARCH BLOG: UNEMPLOYMENT

This has been around for awhile, but somehow stays relevant. From an email I received today:

The Unemployment Rate

COSTELLO: I want to talk about the unemployment

rate in America.

ABBOTT: Good Subject. Terrible Times. It's 9%.

COSTELLO: That many people are out of work?

ABBOTT: No, that's 16%.

COSTELLO: You just said 9%.

ABBOTT: 9% Unemployed.

COSTELLO: Right 9% out of work.

ABBOTT: No, that's 16%.

COSTELLO: Okay, so it's 16% unemployed.

ABBOTT: No, that's 9%...

COSTELLO: WAIT A MINUTE. Is it 9% or 16%?

ABBOTT: 9% are unemployed. 16% are out of work.

COSTELLO: If you are out of work you are unemployed.

ABBOTT: No, you can't count the "Out of Work" as the

unemployed. You have to look for work to be unemployed.

COSTELLO: BUT THEY ARE OUT OF WORK!!!& nbsp;

ABBOTT: No, you miss my point.

COSTELLO: What point?

ABBOTT: Someone who doesn't look for work, can't be

counted with those who look for work. It wouldn't be fair.

COSTELLO: To whom?

ABBOTT: The unemployed.

COSTELLO: But they are ALL out of work.

ABBOTT: No, the unemployed are actively looking for work.

Those who are out of work stopped looking. They gave up.

And, if you give up, you are no longer in the ranks of the

unemployed.

COSTELLO: So if you're off the unemployment roles, that

would count as less unemployment?

ABBOTT: Unemployment would go down. Absolutely!

COSTELLO: The unemployment just goes down because you

don't look for work?

ABBOTT: Absolutely it goes down. That's how you get to 9%.

Otherwise it would be 16%. You don't want to read about 16%

unemployment, do
ya?

COSTELLO: That would be frightening.

ABBOTT: Absolutely.

COSTELLO: Wait, I got a question for you. That means there

are two ways to bring down the unemployment number?

ABBOTT: Two ways is correct.

COSTELLO: Unemployment can go down if someone gets a job?

ABBOTT: Correct.

COSTELLO: And unemployment can also go down if you stop looking

for a job?

ABBOTT: Bingo.

COSTELLO: So there are two ways to bring unemployment down,

and the easier of the two is to just stop looking for work.

ABBOTT: Now you're thinking like an economist.

COSTELLO: I don't even know what the hell I just said!

ABBOTT: Now you're thinking like a politician.

Friday, August 17, 2012

Think Like An Economist

2012 IS HERE