The Dodd–Frank Wall Street Reform and Consumer Protection Act, was signed into law by President Barack Obama on July 21, 2010. 2,300 pages with 385 new regulations to assure that never again would we see the kind of accounting irregularities that created the likes of EXXON, TYCO, and WorldCom, and caused the demise of the famous Arthur Anderson accounting firm. It was said to be the most sweeping change to financial regulation in the United States since the Great Depression.
Unfortunately, like much federal legislation, it did not apply to the Federal Government’s own bookkeeping. Thus today we see a reduction in the percentage of the unemployed from 9.2 to 8.6, while the number of the unemployed actually increased! Now how is this possible? Well, to our conservative views, it’s called “cooking the books.”
Conservative Views On “Cooking the Books”
Here’s how it works:
A net increase of 120,000 jobs was reported for the month of November. That is, the difference between the number of new jobs, less the number of jobs lost. Of the net increase noted, 105,000 came from the service and retail sectors, mostly from the seasonal hiring of Christmas help. The Administration was hoping for 400,000. So how to make up the difference in order to show a drop in the percentage of unemployed? Not too difficult, you drop the number of those out of work by declaring that another 315,000 of them just quit looking, and are thus no longer “unemployed.” They aren’t either working or not working. They aren’t anything. They have just disappeared. Simple, huh?
So the percentage of unemployed dropped from 9.2 to 8.6. Why not 8.0, or 7.5? Just be patient. It will get there before the 2012 Presidential election comes around.