Friday, December 2, 2016

Austrian-Lite Theory Destroyed: U.S. Jobless Rate Hits Lowest Level Since 2007

Nonfarm payrolls rose by a seasonally adjusted 178,000 in November from the prior month, the Labor Department reports. The unemployment rate dropped to 4.6% last month, the lowest level since August 2007.

This is not what a recession looks like.

The absurd idea held by Austrian-lites that the Federal Reserve had "run out of bullets" and could not manipulate the economy into the boom phase of the boom-bust cycle is looking more absurd every day.

Their view will be completely pummeled later this month when the Federal Reserve does not cut interest rates at their December 13-14 FOMC monetary policy meeting, as Austrian-lites have claimed the Fed would  have to do since the last hike, but in fact, do the opposite and raise rates once again.



  1. Just who are these "Austrian-lites"?

    I certainly disagree on which economic indicators are more relevant, but I've never predicted Fed policy. What I will say is I believe the economy is in borderline recession and a rate hike, no matter how small will have negative consequences.

  2. The unemployment rate is a fraud as it arbitrarily excludes unemployed from the labor force. There are now 95M adults not in the labor force. The job participation rate is the lowest since 1978 showing the economy is indeed in terrible shape: