Rush is Right

Obamanomics is 'disappointing and awful. 'So sayeth the sage Berkeley economist--and former Clinton Admin Treasury official--Brad DeLong. Let him count the ways;

...since November 2009, the household employment survey results have been disappointing and awful as they have chronicled the flat-lining of the employment-to-population ratio: no greater a proportion of Americans have jobs now than had them in October 2009.

But, but...the unemployment rate is down to 6.7%!

Sorry, Pollyannas;

... true, but missing–and most important–is the fact that the reason the unemployment rate is trending down is not because the employment-to-population ratio is rising but because labor force participation is falling.

To the extent that those dropping out of the labor force will return when the labor market strengthens, the declining unemployment rate is irrelevant–the strength of the labor market is then best measured by the employment-to-population ratio.

To the extent that those dropping out of the labor force won’t return when the labor market strengthens, the declining unemployment rate coupled with the flat-lining employment-to-population ratio is an absolute and total complete disaster: a permanent reduction in the efficiency of the American economy at matching potential workers who could use jobs with potential jobs that could use workers, and a permanent injury to America’s wealth and productive potential.

'Total complete disaster'. The Brad has spoken.

All that's missing is Prof. DeLong guest hosting, the next time Herr Limbaugh vacations.