You may have noticed that we Americans have trouble communicating. We may–or may not– talk to each other, but talking is not the same thing as communicating.
One of the reasons we are so polarized is that we not only occupy different realities, we use the same words to describe very different things.
I’ve previously pointed out that “conservative” does not accurately describe a radical MAGA movement filled with White “Christian” Nationalists. Labeling every social program, no matter how modest, as “socialist” confuses modern mixed economies with soviet-style, authoritarian regimes. But the problem goes beyond propaganda and intentional misdirection, because we can’t solve our problems if we can’t describe those problems accurately.
In an article awhile back Vox illustrated that problem. The first paragraph was eye-opening:
A person who is looking for a full-time job that pays a living wage — but who can’t find one — is unemployed. If you accept that definition, the true unemployment rate in the U.S. is a stunning 26.1%, according to an important new dataset shared exclusively with “Axios on HBO.”
The article then noted that the official unemployment rate excludes people who might be earning only a few dollars a week, along with people who have stopped looking for work for whatever reason–perhaps a lack of available jobs or child care. The definition of “unemployed” that we use affects our evaluation of the severity of the problem. As the 2020 article pointed out, that year, if we had identified as unemployed anyone over 16 years old who wasn’t earning a living wage, the overall rate would have been 54.6%. For Black Americans, it would have been 59.2%.
The Axios article gave the backstory of our current measurement metric:
The official definition of unemployment can be traced back to the 1870s, when a Massachusetts statistician named Carroll Wright diagnosed what he referred to as “industrial hypochondria”.
By restricting the “unemployed” label to men who “really want employment,” Wright managed to minimize the unemployment figure.
Wright went on to found the Bureau of Labor Statistics, and he brought his unemployment definition with him.
To this day, to be officially counted as unemployed you need to be earning no money at all, and you need to be actively looking for work.
More recently, Gene Ludwig, a former U.S. Comptroller of the Currency, founded the Ludwig Institute for Shared Economic Prosperity. According to calculations by that institute, in January of 2020, when the official rate of unemployment was 3.6%, the true rate was seven times greater — 23.4%. Whether you agree with Ludwig that the higher number is the “true” unemployment rate is less significant than the fact that most Americans don’t understand what the official number measures.
What would be helpful–what would allow us to actually communicate about jobs and wages– would be a report that broke down the data into categories: these are people actively searching for jobs who don’t have one; these are people whose jobs don’t pay a living wage; etc. That sort of report would allow voters and policymakers to focus on the actual issues involved. As it is, a single number that excludes everyone who has any sort of employment–whether part-time or poorly paid–obscures reality.
We can’t fix a problem we can’t properly define.
Insufficient jobs and insufficient wages are two very different problems. The Biden administration has done an admirable job of creating new jobs, and various economic reports indicate that the administration has also presided over significant wage gains, but few of us have the time or ability to delve into the official data of the Bureau of Labor Statistics and to calculate what percentage of workers has escaped the “under-employed” category.
This problem of accurate–or at least agreed-upon–definition isn’t limited to employment figures. Some years ago, I was looking into arguments about the U.S. balance of trade, and realized that those official calculations only included tangible goods–not services or other intangibles. So if we were sending printed books (or cars or widgets) abroad, those got counted; but if Americans were selling publishing rights (or providing design services) to consumers in other countries, the value of those exports wasn’t included. (I don’t know whether that is still the case.)
What was that bible story about the Tower of Babel?
We live in a very complex society, and wide differences in culture, education and expertise add other complications to even the most sincere efforts at communication. But–assuming we elect people in November who are committed to running a functional government–we really need to look at the way official data is compiled and reported.
Using the same words to talk about the same things would be a start….
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