COSTELLO: I want to talk about the unemployment rate in America.
ABBOTT: Good Subject. Terrible Times… It’s 8.3%.
COSTELLO: That many people are out of work?
ABBOTT: No, that’s 16% are out of work.
COSTELLO: You just said 8.3%.
ABBOTT: That’s 8.3% Unemployed?
COSTELLO: Right 8.3% out of work.
ABBOTT: No, that’s 16% not working..
COSTELLO: Okay, so it’s 16% unemployed.
ABBOTT: No, it’s 8.3%…
COSTELLO: WAIT A MINUTE. Is it 8.3% or 16%?
ABBOTT: 8.3% are unemployed. 16% are out of work.
COSTELLO: IF you are out of work you are unemployed, right?
ABBOTT: No, you can’t count the “Out of Work” as the unemployed.
You have to look for work to be unemployed.
COSTELLO: BUT THEY ARE OUT OF WORK!!!
ABBOTT: No, you miss my point.
COSTELLO: What point?
ABBOTT: Someone who doesn’t look for work, can’t be counted with those
who are unemployed. It wouldn’t be fair.
COSTELLO: To who?
ABBOTT: The unemployed.
COSTELLO: But they are ALL out of work.
ABBOTT: No, the unemployed are actively looking for work. Those who are out of work stopped looking. They gave up and if you gave up you are not unemployed
COSTELLO: So if you’re off the unemployment rolls, that would mean less unemployment?
ABBOTT: Unemployment would go down. Absolutely!
COSTELLO: The unemployment just goes down because you don’t look for work?
ABBOTT: Absolutely it goes down. That’s how it got to 8.3%. Otherwise it would be 16%.
Do you think the government wants you to read about 16% unemployment?
COSTELLO: That would be frightening.
ABBOTT: Absolutely.
COSTELLO: Wait, I got a question for you…
That means there are two ways to bring down the unemployment number?
ABBOTT: Two ways is correct.
COSTELLO: Unemployment can go down if someone gets a job?
ABBOTT: Correct.
COSTELLO: And unemployment can also go down if you stop looking for a job?
ABBOTT: Bingo.
COSTELLO: So there are two ways to bring unemployment down,
and the easier of the two is to just stop looking for work.
ABBOTT: Now you’re thinking like an economist.
COSTELLO: I don’t even know what the hell I just said!
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