The unemployment rate fell in July, falling to 9.4% from 9.5% in June.
So is Obamonomics working? Are Barack Obama’s policies turning the economy around? No doubt the mainstream media will try to spin it that way.
But, no, the economy is not necessarily getting any better. The unemployment rate is measured through a survey of households by the Department of Labor. The government asks people whether they are looking for work, and if they have a job. Basically, if you are looking for a job, and you don’t have one, you are unemployed.
Thus, if people drop out of the labor force or stop looking for a job, they are not considered unemployed. The drop in the unemployment rate can be a reflection of the fact that many people have given up looking for a job.
So, a 0.1% drop in the unemployment rate hardly means that the recession is over.
However, I will say this much, given the stability in the capital markets, some signs of life in business activity, and most Asian economies starting to rise again, it appears our economy has stopped collapsing.
The sky is not falling, as we feared. However, a late 2009 recovery was predicted to occur way back when George W. Bush was president.
The question now is, will things get better? Will we have the economic growth necessary to make America truly America again? We shall see.
See more on the unemployment rate below.