This is the scariest economic chart I’ve seen in quite a while.
I am convinced that the latest unemployment numbers misrepresent the current state of the economy. There has been a large decrease in the number of people “in the labor force” (self-reported, estimated via survey data). The number of people employed is at historic lows. The number of people under-employed is at a historic high. The number of people who have become discouraged and are no longer looking for work is at a historic high.
And now, there is this alarming report on gasoline consumption.
I suspect the mainstream media will be using the word “unexpectedly” in the next few months.
A large tip of the hat and a referral for a thorough discussion to Charles Hugh Smith and his blog at www.oftwominds.com -> Why Is Gasoline Consumption Tanking?.
For us, we have not gone on a major trip in just over 3 years. We knew unemployment (layoff) was coming and during the year of unemployment we had to watch our pennies (didn’t even drive the 300 miles to visit grandparents) and now that we have employment we are boosting our depleted savings and fixing up our house so we can enjoy living here and be ready to sell if need be. Our taxes just went up too.
It would be interesting to see if tourist destinations see similar downward trend. Things like number of museum visitors and hotel vacancies. Over the last 3 years some of our local museums chose a weekday to be closed to cut costs.