Of ‘the 11 most disturbing economic charts of 2011’ presented by Tyler Durden, this particular graph struck me hardest:
Why is this single graph so horrifying?
Please note what occurred to the labor force participation rate when Barack Obama took office.
Not when “the Great Recession” hit. When Obama took office. After he took office, the labor force participation rate went into freefall.
And please note the coincidental rise in food stamps and government assistance at the exact same time; free money to stay unemployed, dispensed with leaf-blower-like efficiency throughout the country:
See that flattening of the Food Stamp Participation chart at 4 quarters ago?
Michelle’s pet program siphoned off tons of Food Stamp money to waste on ”better” food for public school kids.
SNAP!
Had her money not been taken out of SNAP (Food Stamps) that graph, too, would go straight through the roof.
Very telling was the best/worst DOW components for 2011.
Best performer on the DOW was McDonalds.
Worst was Bank of America.
The safety ”net” has become too hard to escape from.
There is no incentive to quit it.
I agree with the concept here, but the chart may overstate the decline somewhat. The recent economic festivities began just as the first wave of boomers hit their high earning years or headed into semi-retirement. I’ll have to follow up with anedoctal evidence.
I’m watching people who are self-employed slowing their work pace, not hiring, and not attempting to expand. They are treading water and accepting a lower income in exchange for less hours spent at their business. Others, who lost full-time employment, have struck out on their own and are self-employed now. Some are ‘underemployed’ and loving it.
Our aging population has to be taken into account. More people are taking forced retirement now due to physical disability. I know laborers, plumbers and such that have hit the wall at 55-60 and can’t physically handle the work anymore. They take disability and work a little for cash on easy jobs.
If it becomes obvious by Sept/Oct that Obama is going down, a mini-boom will begin and things will be a little better going forward.
@Meremortal:
This type of graph shows what is wrong with your baby boomer explanation.
Even though the graph is 10 years old it still shows that the bubble of population is in their (now) 30’s 40’s and 50’s.
A scary figure from the news this week is this:
Only 55% of all people between the ages of 16 and 29 holds any job!
That tosses another monkey wrench into your baby boomer theory.