Sunday, March 11, 2012

Will a 1% change in the unemployment rate matter?

The TV news is full of stories about the improving economy, unemployment rates dropping by fractions of a percent, and it's effect upon the voters. Personally, I think the voters are going on gut feel, their own employment status, the prospect of a layoff, the price of gas and groceries, and their prospects of a raise in judging Obama's performance on the economy. None of those indicators is very favorable. I don't think anyone pays much attention to a fraction of a percent change in unemployment. If the unemployment rate were to drop from 8% to 6%, that would get their attention, but that ain't happening.
Certainly, no one (except democratic activists) really thinks the economy has improved much.

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