You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #41: U3 and U6 Unemployment during the Great Depression [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-06-09 08:31 AM
Response to Reply #39
41. U3 and U6 Unemployment during the Great Depression

5/12/09 U3 and U6 Unemployment during the Great Depression

A frequent meme propounded in the economic blogosphere is that U6 unemployment, running near 17% now, is a truer measure (and there are good reasons to believe it is), so that means we have unemployment already approaching Great Depression levels of 25%. Left out of the comparison is the fact that U3 and U6 measurements didn't exist during the 1930s. So, is the 25% unemployment peak for the Great Depression a fair comparison to U6 unemployment today?

Nelson Andrews compared historical versions of unemployment statistics with the modern U3 and U6 versions, published as "Historical Unemployment in Relationship to Today" , has an answer. He writes:

Based on that research, he was able to generate a mathematical formula to calculate U3 and U6 unemployment for the entire period since 1900. He found that at the peak of the Great Depression, U3 was 25.2%. U6 was 37.6%.

If Nelson is correct, the notion in the blogosphere that current U6 unemployment levels are close to those of the Great Depression appears to be false, and indeed, far off the mark. Using Nelson's methodology, our currrent U3 and U6 unemployment are both very close to the figures in 1930, which is bad enough. But they are less than half of the unemployment that existed at the peak of the Great Depression.

That was interesting

Printer Friendly | Permalink |  | Top
  -STOCK MARKET WATCH, Friday November 6 ozymandius  Nov-06-09 04:40 AM   #0 
  - Market Observation  ozymandius   Nov-06-09 04:43 AM   #1 
  - Today's Reports  ozymandius   Nov-06-09 04:45 AM   #2 
  - Oct. nonfarm payrolls fall 190,000 - U6 alternative jobless rate up to 17.5%  UpInArms   Nov-06-09 07:33 AM   #34 
  - Uh oh. Unemployment rises to 10.2%  DemReadingDU   Nov-06-09 07:36 AM   #35 
     - 22nd straight month of job losses. 9 months into Obama's admin. Same % was 2 yrs into Reagan  Roland99   Nov-06-09 08:24 AM   #39 
        - U3 and U6 Unemployment during the Great Depression  DemReadingDU   Nov-06-09 08:31 AM   #41 
        - In 1983, the U-3 (seasonally adjusted) was coming down.  Birthmark   Nov-06-09 09:45 AM   #42 
           - So, nearly a full 2 yrs into Reagan's admin it peaked and HELD there for nearly a year.  Roland99   Nov-06-09 10:11 AM   #44 
              - Correct on all counts.  Birthmark   Nov-06-09 10:37 AM   #47 
              - I was laid off for 2 solid years back then.  Dr.Phool   Nov-06-09 11:01 AM   #48 
              - "You can't blame that on Reagan!" I can hear THEM saying.  tclambert   Nov-06-09 02:55 PM   #54 
                 - Still, 10.2% is bad.  tclambert   Nov-06-09 03:16 PM   #56 
  - Consumer debt drops for record eighth straight month  Roland99   Nov-06-09 02:24 PM   #50 
     - -$14.8B (-$10B expected)  Ghost Dog   Nov-06-09 02:32 PM   #51 
        - Plus they're not spending more on credit as credit limits are lowered, cards are canceled, ....  Roland99   Nov-06-09 03:05 PM   #55 
  - Oil nears $80 a barrel amid stock market surge  ozymandius   Nov-06-09 04:47 AM   #3 
  - Unemployment nears 10 pct. as rebound remains slow  ozymandius   Nov-06-09 04:51 AM   #4 
  - If This Is a Rebound, I'd Hate to See Prostration  Demeter   Nov-06-09 06:50 AM   #24 
  - BofA says credit environment remains difficult  ozymandius   Nov-06-09 04:55 AM   #5 
  - U.S. stock futures trade near two-week highs before data  ozymandius   Nov-06-09 04:58 AM   #6 
  - Fannies Draws From Emergency Treasury Fund Reach $60 Billion  ozymandius   Nov-06-09 05:05 AM   #7 
  - Worst Idea of 2009  ozymandius   Nov-06-09 05:34 AM   #11 
  - Is that a vote that Goldman Sachs is more evil than Exxon Mobil?  tclambert   Nov-06-09 06:47 AM   #23 
     - They hate Democracy  Loge23   Nov-06-09 07:07 AM   #30 
        - But "greed is good" and "government is the problem" and  tclambert   Nov-06-09 03:27 PM   #57 
  - When in the hell is Obama going to WAKE UP and purge the Goldman execs from his admin?!?!  Roland99   Nov-06-09 08:25 AM   #40 
     - We Need a Pool For That  Demeter   Nov-06-09 10:27 AM   #45 
        - No kidding.  Roland99   Nov-06-09 07:56 PM   #63 
  - Reed Apologizes for Glass Steagall Repeal, Building Citigroup  ozymandius   Nov-06-09 05:15 AM   #8 
  - "Citigroup sought help in the wake of a credit freeze. . . "  Tansy_Gold   Nov-06-09 05:23 AM   #9 
     - "I'm sorry. I'm so very sorry. Give back money?!? I'm not that sorry."  tclambert   Nov-06-09 06:50 AM   #25 
     - Is there no real mention of possible "Windfall Taxes" over there?  Ghost Dog   Nov-06-09 07:02 AM   #29 
        - It's Never Been Raised in Public Discussion or Polite Conversation  Demeter   Nov-06-09 07:48 AM   #37 
        - The oil companies said windfall profit taxes discouraged spending on infrastructure like refineries.  tclambert   Nov-06-09 03:34 PM   #58 
  - Banks Thwarting Feinberg Pay Model by Changing Bonus Formulas  ozymandius   Nov-06-09 05:24 AM   #10 
  - 'Octopussy' charged as insider-trading net widens  Demeter   Nov-06-09 05:38 AM   #12 
  - YOU CAN ADD THIS TO YOUR LIST, OZY  Demeter   Nov-06-09 05:40 AM   #13 
  - Thank you.  ozymandius   Nov-06-09 05:45 AM   #15 
  - "It was a dark and stormy night . . ."  tclambert   Nov-06-09 06:56 AM   #28 
     - Just Big Fish Eating the Minnows  Demeter   Nov-06-09 07:47 AM   #36 
  - Wake me when Goofy and Helo Ben are in Chains.  TheWatcher   Nov-06-09 06:51 AM   #26 
  - Goldman, Fed, Citi Getting Preferential Allotments of H1N1 Vaccine  ozymandius   Nov-06-09 05:43 AM   #14 
  - Sounds Like a Good Class Action Lawsuit  Demeter   Nov-06-09 06:52 AM   #27 
  - You kind of expect them to steal our money. But now they're stealing our medicine?  tclambert   Nov-06-09 03:42 PM   #59 
  - In Europe, especially Germany, the military and  truedelphi   Nov-07-09 01:45 AM   #64 
  - Have a nice day, everyone.  ozymandius   Nov-06-09 05:47 AM   #16 
  - TGIF Ozy!  Karenina   Nov-06-09 05:56 AM   #17 
  - Debt: 11/04/2009 11,978,953,722,825.90 (UP 362,110,344.95) (Wed)  Festivito   Nov-06-09 06:06 AM   #18 
  - Debt: 11/05/2009 11,990,561,444,829.48 (UP 11,607,722,003.58) (Thu)  Festivito   Nov-07-09 07:17 AM   #65 
  - Debt: 11/05/2009 11,990,561,444,829.48 (UP 11,607,722,003.58) (Thu) (Population update)  Festivito   Nov-07-09 07:27 AM   #66 
  - dollar watch  UpInArms   Nov-06-09 06:30 AM   #19 
  - SEC official worried about "naked access"  UpInArms   Nov-06-09 06:39 AM   #20 
  - "renting a brokerage's license"... Hmmm.  Ghost Dog   Nov-06-09 07:31 AM   #33 
  - Sparring over evidence at Wall Streeters trial  UpInArms   Nov-06-09 06:43 AM   #21 
  - US govt backed $4.3 trln in assets in crisis-report  UpInArms   Nov-06-09 06:44 AM   #22 
  - Robert Prechter Warns Wall Street Is Setting Investors Up for Another Hurting  DemReadingDU   Nov-06-09 07:16 AM   #31 
  - "around 2014, 2016."  ozone_man   Nov-06-09 08:16 AM   #38 
  - You too can time the market and make moolah.  MilesColtrane   Nov-06-09 10:00 AM   #43 
  - Worlds Central Banks Signal End to Policy Largesse  Ghost Dog   Nov-06-09 02:43 PM   #52 
  - AIG profitable for second straight quarter  DemReadingDU   Nov-06-09 07:23 AM   #32 
  - Tonight and All Weekend!  Demeter   Nov-06-09 10:34 AM   #46 
  - FYI, yours truly is find and dandy. The Orlando shooting is about a mile north of me.  Roland99   Nov-06-09 01:15 PM   #49 
     - Glad to hear it!  Tansy_Gold   Nov-06-09 02:44 PM   #53 
     - That was Orlando? I saw a little about shooting on the TV news and assumed it was more on Fr. Hood.  tclambert   Nov-06-09 03:51 PM   #60 
     - I'm getting sick of this shit. Time to repeal the 2nd Amendment.  Dr.Phool   Nov-06-09 04:10 PM   #61 
        - Personally, I don't think the Founding Fathers had in mind personal use of a gun as it is today  Roland99   Nov-06-09 04:42 PM   #62 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC