Who's on First?

Barry Levinson: The Economics of Abbott and Costello

“ Unemployment as reported is at 9 percent. But it's actually more than 16 percent. Some smart statistician came up with a distinction. A slight of hand to make the unemployment number tolerable rather than frightening. The concept was simple: 9 percent are unemployed and are actively looking for work. The 16 percent includes those who gave up and are no longer actively looking for work. So those casualties are no longer counted. They cease to exist. The 9 percent is a fake. A sham. And worthy of an Abbott & Costello routine. If that great comedy team were still alive, the routine on our unemployment woes might go something like this. - Barry Levinson COSTELLO       I want to talk about the unemployment rate in America. ABBOTT            Good Subject. Terrible Times. It's 9%. COSTELLO       That many people are out of work? ABBOTT            No, that's 16%. COSTELLO       You just said 9%. ABBOTT             9% Unemployed. COSTELLO        Right 9% out of work. ABBOTT             No, that's 16%. COSTELLO         Okay, so it's 16% unemployed. ABBOTT              No, that's 9%... COSTELLO         WAIT A MINUTE. Is it 9% or 16%? ABBOTT              9% are unemployed. 16% are out of work.   (continued) ”   cuzzin ricky