Mark Twain famously remarked, “There are three kinds of lies: lies, damned lies, and statistics.” It’s possible that he had government economic reports in mind when making this statement.
A cursory look at the latest unemployment figures released on Friday seems optimistic. The unemployment rate in August dropped to 7.3 percent, a slight decrease from 7.4 percent in July. On the surface, this appears to be a positive development.
However, once we delve deeper into the Labor Department report, a troubling trend becomes apparent. A significant number of working-age individuals have exited the labor force altogether, having ceased to search for employment. In August alone, 516,000 American workers left the labor force, raising the total of those not participating to nearly 90.5 million.
By excluding discouraged workers from the unemployment rate equation, the Labor Department can present a decreased unemployment rate. This tactic undoubtedly aligns with the aims of government statisticians. Continue reading
There’s an intriguing dichotomy at play. Some data indicates the economy is improving, while other metrics suggest it is struggling.
Nevertheless, we aim to make sense of the situation. Recently released figures show that spending in manufacturing and construction is on the upswing…
“Data on U.S. manufacturing and construction spending released Tuesday suggests the world’s largest economy is gaining momentum,” reported Reuters.
“The U.S. manufacturing sector expanded last month at its fastest rate in over two years, with the Institute for Supply Management’s (ISM) index rising to 55.7 in August from 55.4 in July.”
“This surpassed expectations for a reading of 54, marking the index’s highest point since June 2011.”
“Readings above 50 indicate growth in the sector.”
So, what’s not to appreciate? Continue reading
Federal workers, along with many others, observed Labor Day leisurely. However, at the Economic Prism, we continued our endeavors for enjoyment and for you.
With August now behind us and September ahead, there is much to analyze as we look both backward and forward. Reviewing the past month, we see a stock market that may have reached its peak. The DOW and S&P 500 recorded their worst monthly performance since May 2012.
Is the market just pausing to gather strength for another upward movement, or is it beginning a significant downturn? Only time will reveal the answer.
In the meantime, your broker may advise you to “buy the dip.” Technical traders will analyze resistance patterns, claiming the bull market remains intact. Meanwhile, pessimists will highlight the August decline, predicting a potential market crash of 50 percent or more. Ultimately, certainty in the market is elusive. Continue reading
What has happened to school cafeteria staples like Sloppy Joes and Tater Tots? This is the question many schoolchildren across the nation are asking.
It seems Michelle Obama has deemed them unhealthy. She believes that too many children are overweight and have taken it upon herself, as First Lady, to dictate their lunch options.
Unfortunately, students in rural Kentucky have reported that the meals served under her National School Lunch Program “taste like vomit.” Furthermore, they described the food as “poor quality, with insufficient portions.”
Somehow, the federal government has come to dictate what children eat and the portion sizes in many American schools. Cafeterias are now required to adhere to a calorie limit: 850 for lunches in high schools, 700 for middle schools, and 650 for elementary schools. Continue reading
