Unemployment is a BS Metric

Why unemployment rates miss the bigger picture of economic health.

Published May 8, 2024 ET

It is. Unless you're a triple PhD macroeconomist, you should not be saying it.

The fact is, the system is so intricate. We as individuals do not need to worry ourselves with unemployment. Rather, we should be focused on failing regulatory agencies like the FDA.

The FDA blundered the Covid-19 pandemic so badly that they are now worthless as a credible source. Now, I don't think you can really trust any agency, as well meaning as it may seem, on some level, as we have a free market.

For instance, I have a post on fraudulent foods, and it's a well-known issue. But the thing about the FDA is that they can't stop people from being deceptive. Even if you say something is illegal to do, such as using petroleum derivatives for vanilla extract instead of actual vanilla extract, the people making it can submit a legit product for lab testing, show that to the FDA, and then sell a completely different product.

In other words, you can't really trust products unless you understand what those products should look/smell/taste/feel like, and also know where they are coming from, and can trace it back to those places. Long multi-step supply chains invite corruption, as they give it a low-risk platform.

The only smart thing to do is to strictly seek products that have clearly identified sources, ingredients, and supply chains, and which are regularly subjected to independent testing by third parties.

And until governments get this and start designing agencies, laws, and enforcement practices around it, metrics like unemployment are a joke. John down the street could grow vanilla and make a beautiful extract that he sources to cosmeticians, bakers, and households, but instead the large subsidiary for Kellogg's slinging boiled, frozen, and skimmed gasoline as vanilla extract makes his prices unmarketable.

My point is: unemployment is a derivative issue. And a President or politician addressing it at its root is addressing Truth in capitalism, or they're not, and then what does it matter if you have a job?

Over time, even with full "employment", the world gets increasingly worse, products untrustworthy, and labels meaningless.