[sidesentists]

This sort of thing is why I've started to wonder if employment rate is really all that meaningful as a general socioeconomic index. It is what it is, of course, but I'm not sure it's use as a proxy for well-being is really justified.

[NTDF9]

> This sort of thing is why I've started to wonder if employment rate is really all that meaningful as a general socioeconomic index. It is what it is, of course, but I'm not sure it's use as a proxy for well-being is really justified.

Great point. Look at how paradoxical it is.

Every time unemployment is high, they pump in more money (raising asset values). But unemployment is not high because of "lack" of money.

The real problem is unequal distribution of money pumped into the system. Unemployment is a joke. It's not like the world has run out of things to do. I can think of so many more jobs that need people (like more Boeing testers, more street cleaners, more infrastructure repairers, more artists, mores school teachers, more nurses etc.) None of that is happening because of lack of money. No, its happening because money is being sucked by the few at the cost of the society.

[neffy]

Actually - no they don't. Changing interest rates doesn't change the money supply. But you're right, the real problem is the uneven distribution of money - the precise causes are a little more complex though.

[NTDF9]

> Changing interest rates doesn't change the money supply.

It does by discouraging creation of new money by way of loans.

The uneven distribution of money is because of an unbalanced wealth creation system. Money trickles down from the Fed into assets (owned by banks and wealthy) who then loan that money out to others.

Some of that money goes into business activities such as procuring goods and services, thus creating demand. The rest of that money goes into speculation and buying up more "assets" that will pay out in future.

Notice how labor is not important in any of this at all. Labor is almost a side-effect of this economic system of assets vs assets.

Unfortunately, no human is born with assets. Most humans still make money from labor. If money printing goes into assets but humans make money from labor, it's obvious that this will throw most humans out of the system.

This is like a video game where some people got the cheat code while others didn't.

[syshum]

Unemployment rate has only been a part of the factor, and the U3 number is a VERY VERY bad indicator or economic health which is the number the news reports

U6 is much more comprehensive but even it has its limits, you have to contrast it with Workforce Participation numbers which is still at a Decade low number though it on on the rise

2009 (peak of economic rescission and unemployment BTW): 65.7% of people where in the workforce

2018: 62.7% of people where in the workforce

U6 Unemployment sits at almost 7.3% where U3 is 3.8%

[snakeboy]

The adoption of slavery can reduce employment rate to 0 quite effectively.

[anfilt]

Kinda a dark point, but defintely a counter example to why unemployment may not always be the best index/stat to look at.

However, I think there are probably better counter poonts than such an extreme.