Acton Institute Powerblog

National unemployment nearly HALF as bad as 1982

Share this article:
Join the Discussion:

Unemployment hit 7.2% in December, the highest since January 1993– as the economy was recovering from the pseudo-recession of 1991-1992.

In November 1982, the unemployment rate was 10.8%.

Since the “natural rate of unemployment”– the part of unemployment you can’t get rid of (at least without severe long-term consequences)– is generally thought to be 4.0-4.5%.

So, today’s unemployment rate is 2.7-3.2% higher than the natural rate– less than half of the unemployment above the natural rate in 1982 (6.0-6.3%).

And of course, we’re nowhere near the unemployment of the Great Depression when the rate was in double-digits for more than a decade, including 19% in 1939– the 6th year of the (wildly over-rated) “New Deal”.

Eric Schansberg Dr. Eric Schansberg is a Professor of Economics at Indiana University Southeast in New Albany where he has been on faculty for 17 years after earning his Ph.D. in Economics from Texas A&M University. Dr. Schansberg is the author of Turn Neither to the Right nor to the Left: A Thinking Christian's Guide to Politics and Public Policy, Poor Policy: How Government Harms the Poor. He is co-author of Thoroughly Equipped, a 21-month Discipleship Curriculum, and he is the editor of SchansBlog. Eric has been married to Tonia for 13 years and is the proud father of four boys—two by adoption and two the more conventional way. Their family is active in K-TAG—the Kentuckiana Trans-racial Adoption Group.

Comments