DiLorenzo: Unemployment During Great Depression May Have Been Overstated by 5 Percent

Thomas DiLorenzo – professor of economics at Loyola College in Maryland and a member of the senior faculty of the Mises Institute – argues:

Fed official Dennis Lockhart recently stated that if people who have simply given up on finding a job (“discouraged workers” in governmentspeak) are counted, the actual unemployment rate is more like 16 percent. That would be comparable to the unemployment rate in Depression years 1931 (15.9%), 1936 (16.9%), 1937 (14.3%), and 1940 (14.6%).

Government miscalculated the unemployment rate during the Depression years by counting many government make-work employees as unemployed. As a result, economists think the unemployment rate might have been exaggerated by as much as 5 percentage points. That would make the 1940 Depression unemployment rate almost exactly what it is today, without counting the “discouraged workers.”

See this for background.


Print this post
This entry was posted in General. Bookmark the permalink.

 

 

Twitter