Unemployment Rate Isn’t the Only Measure of an Economy

Some would have you believe we are facing the worst economic crisis since the Great Depression that began in 1929. However, I would point to some factoids that may give hope to struggling American families…

 

• Though today’s news reported that the jobless rate (6.1%) is the highest in 5 years, the average jobless rate from 2001-2008 was just 4.7%. Compare that with the average jobless rate during the Clinton Administration, which was about 5.2%. Additionally, the average jobless rate in Europe is 8.3%. (Source: Organization for Economic Cooperation and Development)
• The U.S. spends the most on health care per capita at about $6,657 (in 2005). This rate is double that of Britain. BUT because of private funding (which equals 55% of the total) the actual cost to the U.S. taxpayer is kept to similar levels as France and Germany, which both have a universal health care system. Additionally, in 2006 about 85% of the U.S. is covered by heath insurance. That number increased by 3.6 million people in 2007. The average life expectancy also rose from 77 in 2001 to 78 in 2007. (Source: U.S. Census Bureau)
• Investments: Additions to fixed assets (machinery, buildings) amounted to about $8,000/per capita in 2005 compared to just $5,000 in Germany and the U.K. What does this mean? If Obama institutes higher taxes on upper-income Americans, there would be lower savings and investments, a reduction in entrepreneurial activity, and a decreased availability of bank credit – lower-income Americans would be affected significantly (negatively). (Source: International Comparison Program)
• U.S. Output (measured by GDP) has expanded faster than many/most advanced economies since the year 2000. GDP grew about 2.2% from the period 2001-2008. Thus, the next President will inherit a 19% bigger economy than Bush inherited from Clinton. In the same period, France grew by just 14%, Japan by 13% and Italy and Germany by just 8%. (Source: ICP)
• The GDP per capita grew to $41, 813 (purchasing power parity dollars) in 2005. This number is 33% higher than Great Britains, 37% higher than Germany’s, and 38% more than Japan’s. (Source: ICP)