The MSM will be crowing about unemployment claims falling this week, even though the more important 4 week moving average went up. But that isn’t the story. They don’t want to let you know the story. The chart below reveals the truth. One year ago 3.7 million people were receiving emergency or extended benefits – also known as the 99 week club. Today, there are only 2.5 million receiving emergency or extended benefits. That means that 1.2 million people have fallen off the unemployment train in the last 12 months. Most of them did not get jobs. Many are realizing they are suddenly disabled after watching a “How to get on SSDI” commercial on their 72 inch HDTV.
The fact is that these people were getting checks of between $300 and $400 per week and now they’re not. They were spending this money and artificially propping up retail sales. There has been $22 billion of spending knocked out of the economy with their departure from the unemployment rolls. Now you know why McDonalds had its first decrease in sales since 2003 last month. When you remove the artificial stimulus from the economy, you see the truth. And it ain’t pretty.
I wonder where all those people are being classified by Obama and the BLS?