There are less people in the work force since 1979 with 90 million people no longer even attempting to find a job. However, if you look at the unemployment numbers, they would suggest a different picture. Right now, the unemployment rate is hovering around 7.6%, but if you included those who can work who don’t, it would be around 17%! This tends to paint a different picture.
It doesn’t take a mathematician to realize that having less people in the workforce (and subsequently not paying income tax) hurts the economy. A healthy economy needs to have a good amount of cash flow exchanging hands, investment go up and people relying on a job over the government.
According to ZeroHedge.com:
Things just keep getting worse for the American worker, and by implication US economy, where as we have shown many times before, it pays just as well to sit back and collect disability and various welfare and entitlement checks, than to work .The best manifestation of this: the number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work. This was the biggest monthly increase in people dropping out of the labor force since January 2012, when the BLS did its census recast of the labor numbers. And even worse, the labor force participation rate plunged from an already abysmal 63.5% to 63.3% – the lowest since 1979! But at least it helped with the now painfully grotesque propaganda that the US unemployment rate is “improving.”
People not in labor force:
Labor participation rate: