Obama once said his economy is better “by every metric” than when he took office – a claim so ridiculous even the center-left fact-checkers at Politifact had to rate as “mostly false.”Anyone who’s heard politicians talk knows there are lies, damned lies and statistics.
Choose your category, but many of the alleged successes Obama touts are what Mark Twain famously called the third kind of lies. While he boasts unemployment rates have fallen during his administration, we haven’t seen the benefits – such as reduced dependency on welfare, and reduced poverty.
As reported by MRC TV: Despite the unemployment rate being at an eight-year low (4.9 percent as of January 2016), the number of people on food stamps remains near an all-time high which was 47,636,000 in 2013.
So what explains why welfare dependency is so high which low unemployment should really solve? For one, people who’ve given up looking for work are no longer classified as in the workforce, and thus no longer classified as unemployed.The Bureau of Labor Statistics reported in January of this year that approximately 94 million Americans are not participating in the workforce.
If we look at the U-6 unemployment rate (which includes discouraged workers), we get an unemployment rate of 9.9 percent in January
And additionally, it’s much easier to get food stamps today than it was before the recession. The Department of Agriculture suspended the work requirement to receive food stamps during the past recession (which makes sense), but some states still haven’t re-instituted their work requirements.Bloomberg Business reported that the last time the unemployment rate was at five percent in April 2008, only 28 million Americans were on food stamps.
They don’t call him the “food stamp president’ for nothing.[Note: This post was authored by The Analytical Economist]