Unemployment Rose in September

This report came out a while ago and I've been meaning to share it. Despite the claims by the Federal Reserve Board that the recession has ended, the official unemployment rate rose in September, and not because the number of people who reentered the workforce exceeded the number of new jobs the economy created. The economy actually lost 263,000 jobs in September, worse than the 201,000 loss of August.

I've been saying for more than a year now that the Fed's inflationary policies, a vain Keynesian attempt to trick the economy into real growth by inflating the money supply, were only making things worse, as are the trillion-dollar Bush-Obama big business corporate bailouts, which crowd out real investment in efficient businesses. I've predicted for months now that things would get worse before they get better, and the prediction certainly proved true in September. Notice that the real unemployment rate reached 17%, the highest ever since the BLS started measuring the rate.

If the government stops trying to "help" the economy with more bailouts, borrowing and inflation, it will eventually recover on its own, but government could speed the recovery by spending less and cutting marginal tax rates. Presidents Kennedy and Reagan both got impressive rates of growth after making large cuts in marginal income tax rates. I don't see the current president and Congress cutting marginal tax rates or reducing the growth rate of federal spending (much less actually cutting spending, which hasn't happened since the 1930s) so I think we're still in for a long, bitter recession.


http://www.foxnews.com/politics/2009/10/02/jobless-rate-climbs-percent-september/