Costello: I want to talk about the unemployment rate in America.
Abbott: Good subject, terrible times, it's 9%.
Costello: That many people are out of work.
Abbott: No that's 17%.
Costello: You just said 9%.
Abbott: 9% unemployed.
Costello: Right 9% out of work.
Abbott: No that's 17%.
Costello: Okay so it's 17% unemployed?
Abbott: No that's 9%.
Costello: Wait a minute, is it 9% or 17%?
Abbott: 9% are unemployed. 17% are out of work.
Costello: If you're out of work you are unemployed.
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 the point.
Costello: What point?
Abbott: Some one who doesn't look for work can't be counted with those who look for work, 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 give up you are no longer in the ranks of the unemployed.
Costello: So if you're off the unemployment role, that would count as 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 you get 9%, otherwise it would be 17%. You don't want to read about 17% unemployment do ya?
Costello: That would be frightening.
Abbott: Absolutely.
Costello: Wait, I got a question for you, that means that they're 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.
