10.2% = Economic Recovery

In the sci-fi movie Time Cop, science has perfected time travel. With this new technology, rules were put in place to prevent individuals from gaining an advantage such as knowing who will win the Super Bowl or what stocks will go up in the future. To enforce these new rules a new police force of time cops was formed. During the movie, we were warned that if you traveled in time and met up with yourself, you had to be careful not to touch the other you. The rule was that “the same matter cannot occupy the same space”.

This leads us to the question of how 10.2% unemployment and economic recovery can occupy the same space. My guess is that this is possible as long as you measure economic recovery solely based solely on success of Wall Street.

The stock market has been rising in recent days and this is good news, especially for those with money in the market. Experts tout that this equates to success in corporate America since it is a reflection of rising stock prices for the companies listed in the stock exchanges. However, it fails to take into account the plight of small companies that are not listed in the stock exchange. Since these small to medium companies make up a majority of the workforce, contraction of these companies results in rising unemployment. Therefore, by ignoring the plight of Main Street, you can declare an economic recovery.

However, those unemployed workers from Main Street still vote and they will vote in the next election with their pocket books. The recent elections in New Jersey and Virginia are signs of the growing economic discontent on Main Street. Politicians declaring an economic recovery in the midst of 10.2% unemployment need to beware. The truth is that 10.2% unemployment and job security for politicians claiming economic recovery cannot occupy the same space.

I invite your comments on this issue.