Abbott and Costello Explain Unemployment

Costello: I want to talk about the unemployment rate

Abbott: Good subject. Terrible times. It is 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 that'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!

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 are off the unemployment roles, that would count as less unemployment?

Abbott: Unemployment would go down. Absolutely.

Costello: The unemployment rate 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 you?

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 heck I just said!

Abbott: Now you're thinking like a politician!

President Obama Channels President Roosevelt on New Nationalism

President Barack Obama channeled his inner President Theodore Roosevelt yesterday while speaking before a crowd in Osawatomie, Kansas. Osawatomie was the site where Roosevelt delivered his "New Nationalism" speech in 1910, promising Americans a "square deal." (Read the text of Roosevelt's "New Nationalsim" speech.)

"This is a make-or-break moment for the middle class, and all those who are fighting to get into the middle class. At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement," said Obama.
The president pressed for action from Congress on an extension of payroll-tax cuts,a key part of his $447 billion jobs package. Congress is currently stalled on the payroll tax cut issues because the Tea Party feels they are a short-term solution that would worsen the federal deficit and take money away from Social Security. However, all of the GOP presidential nominee candidates have spoken out against payroll taxes completely. The GOP says they want to find a compromise with Democrats that would keep the payroll tax rate at 4.2 percent next year, rather than allowing it to revert to 6.2 percent, but are rejecting the Democratic plan to charge a surtax on people who make more than $1 million a year to pay for the tax cut, thereby taxing the rich to pay for the poor. Something the GOP has always been against. The GOP wants more tax cuts, not just the payroll tax cut.
Meanwhile the President is in Kansas speaking about more than just his jobs bill, and launching a broad defense of more government regulation and higher taxes on the wealthy. (Where is Robin Hood when you need him?)
While continuing to blame all of his budget and debt problems on George W. Bush tax cuts, the President also attacked conservatives' advocacy of a free-market economy as an idea that has "never worked." (And the Founding Fathers all rolled over in their graves.)