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FBN’s Gerri Willis on how government handouts may be making the economy appear better than it really is.
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We're making so much progress against -- recession.
Aren't we.
I mean think about it unemployment has come down from a high of ten point 2% in just eight point 21 little -- staff the poverty rate decline.
Being sure do look good according to the president.
Today's news that.
Our businesses created another 121000.
Jobs last month and the unemployment rate ticked down.
Well are things really all that good let's see beyond the obvious idea that eight point 2% unemployment is still nothing to write home about.
The reality is the march rate came down because more people are dropping out of the labor force confidence about getting a job well it's at an all time low.
In other words when you're jobless rate goes down because you stopped counting some of the jobless folks well.
That's no comfort.
It doesn't mean the market is getting better.
And that's not all the Agriculture Department proudly touted this week the poverty rate has been reduced substantially.
By a full 8% which isn't small 8% in 2009.
And that -- most recent year included in their study.
But again the press release it doesn't really tell the whole story.
The rate decline because the federal government was handing out more and more.
Food stamps in fact enrollment and what they call snap grew 45%.
From January 2009 to January of this year.
And that my friends is -- Food stamps are patch -- tonic for people in poverty but not a solution.
To my mind in these problems getting worse not better.
Everywhere I look at seems people are -- reading results economy isn't all that much better the performance is marginally improved.
Because government spending is propping it up.
But a recovery brought to you by Uncle Sam can't continue it's not sustainable.
Consider -- now this was a country where not only was tax invasion levels at the highest among western nations.
But even elected official engaged in tax cheating.
Now despite the fact the country has a practical -- -- has as a practical matter defaulted on its debt.
Old habits among the countries members of parliament die hard in recent weeks legislators -- -- government jobs for award winning athletes.
Tax exemptions.
For theaters.
This century old practice of exchanging votes for cushy government -- just goes on and on and on line.
Despite the country's desperate financial problems.
So when our government comes out with challenge private business to -- vendors to find ways of say developing electric plane to say gas.
Well -- got to ask yourself.
Why isn't NASA doing that already somebody already on the payroll why are we paying ten million to some private not to be nor somewhere didn't do it.
Now to be sure Google added to the largesse on this one.
But the program raises more questions than answers how much to these competitions cost would a regular government contract be -- cheaper way to solve the problem.
-- government spending -- no substitute for real economy that is putting people to work others in college putting others into retirement.
And putting a rose colored glasses on at this point.
Not any better of an answer.
That's what I think.
