Understanding Unemployment Statistics

Dave 07Until now, it’s been hard to wrap your head around Canada’s Prime Minister, Justin “the budget will balance itself” Trudeau’s understanding of economics. However, my cousin sent me this Bud Abbott and Lou Costello exchange which clearly and brilliantly illustrates how Justin’s thinking works, at least as regards unemployment statistics.

For your continuing education, I included a link at the end of this exchange, in which Lou Costello educates Bud Abbott on some of the finer points about how the marketplace works.

COSTELLO:    I want to talk about the unemployment rate in Canada

ABBOTT:        Good Subject.  Terrible Times.  It’s 5.6%.

COSTELLO:    That many people are out of work?

ABBOTT:         No, that’s 23%.

COSTELLO:    You just said 5.6%.

ABBOTT:         5.6% Unemployed.

COSTELLO:    Right, 5.6% out of work.

ABBOTT:         No, that’s 23%.

COSTELLO:    Okay, so it’s 23% unemployed.

ABBOTT:         No, that’s 5.6%.

COSTELLO:    WAIT A MINUTE.  Is it 5.6% or 23%?

ABBOTT:        5.6% are unemployed.  23% are out of work.

COSTELLO:    If you are out of work you are unemployed

ABBOTT:        No, Trudeau said 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 his 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 ALL of them are out of work.

ABBOTT:        No, the unemployed are actively looking for work.  Those who are out of work gave up looking and if you give up, you are no longer in the ranks of the unemployed.

COSTELLO:   So if you’re off the unemployment roles that would count as less unemployment?

ABBOTT:        Unemployment would go down.  Absolutely!

COSTELLO:   The unemployment just goes down because you don’t look for work?

ABBOTT:        Absolutely it goes down.  That’s how it gets to 5.6%. Otherwise it would be 23%.

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 have people stop looking for work.

ABBOTT:       Now you’re thinking like a Liberal.

COSTELLO:   I don’t even know what the hell I just said!

ABBOTT:       Now you’re thinking like Trudeau.

 

Abott and CostelloIf you’re too young to know who Abbott and Costello are, or you want further education, please follow this link  that I discovered. Finally we have proof of where the left goes to learn math!

← $7 X 13 = $28

 

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Have a great long weekend!

Dave Reesor

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