Job Losses Demystified

As our economy becomes less competitive due to higher taxes, burdensome and uncertain regulations, and capital flight, more manufacturing and services will be outsourced to foreign firms. However, the flaw in GDP calculation allows the output of those foreign workers to be included in our domestic tally. Since we count the output but not the worker responsible for it, government statisticians attribute the gains to rising labor productivity. To them, it looks like companies are producing more goods with fewer workers.

The reality is that we are producing less with fewer workers. The added "productivity" comes from higher unemployment and larger trade deficits. This is a toxic formula that will have lethal economic consequences.

Government economists are manipulating statistics in an attempt to support mistaken policies. Who are they attempting to deceive? Us or themselves?