Politicians' Actions Demonstrate the Arrogance of Washington

Online, February 2, 2011 (Newswire.com) - While jobless claims in the U.S. rose the first week of January, 2011, from below 400,000 to 445,000, analysts continue to look at what unemployment numbers mean to the larger economic recovery picture. And as financial advisor Dennis Tubbergen notes, politicians continue to throw out absurd comments regarding both unemployment and the economy.

Case in point? Nancy Pelosi.

"Former House Speaker Nancy Pelosi argued that unemployment creates jobs," explains Tubbergen, who is CEO of USA Wealth Management, LLC, a federally registered investment company. "Ms. Pelosi comments that unemployment benefits are a large job creator. Isn't that like saying lifeboats cause cruise ships?"

Tubbergen was so astounded at Pelosi's recent comments that he posted a video of Pelosi making the statements on his websites, www.dennistubbergen.com, on his January 7, 2011 blog entry.

"These videos of Nancy Pelosi demonstrate the arrogance of Washington, politician's opinions of their constituents, and the detachment of politicians from the real world," claims Tubbergen.

Referring to an article posted on Bloomberg.com on January 7, 2011, Tubbergen predicts gloomy unemployment and housing numbers through the end of this year and into 2012. The Bloomberg article reads in part, "Employers in the U.S. added fewer jobs than forecasted in December, confirming Federal Reserve Chairman Ben S. Bernanke's view that it will take years for the labor market to heal."

While payrolls did increase by 103,000 jobs in the month of December, a Bloomberg News Survey predicted the month to grow by 150,000 new jobs, thus falling short of predictions.

"The unemployment rate is down from 9.8 percent to 9.4 percent," continues Tubbergen. "Isn't that good news?" According to Tubbergen, it may not be cause for celebration. The Bloomberg article states "the jobless rate fell to 9.4 percent, partly reflecting a shrinking workforce." And therein lies the answer.

Tubbergen discusses a chart published by The Market Ticker on January 7, 2011, showing the total number of employed individuals actually declined last month.

"The answer lies in the way that Washington calculates the unemployment rate," concludes Tubbergen. "That's why the unemployment rate fell - fewer people were looking for a job. Using this unemployment calculation method, the politicians can at least make most of the population feel good about fewer folks working."

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at www.everythingfinancialradio.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.