Hey, everybody, economic ninja here. I hope you’re doing well, but I’m about to bring you the worst economic news you’ve heard all day. Some of this, you’re going to go, I get it. And it’s entitled the government’s lying to you about the unemployment rate. But you know what? Isn’t the government lying to you about right now? Before I start this story, and the story is entitled, I got this, it has to do with something that came out of the Heritage Foundation.

It’s a story that came from an awesome subscriber and it’s entitled true unemployment rate is double what the government is telling us. Economists say so few people understand what is going on in the world. Let me explain this. In the simplest terms. When the government says that unemployment is here, I want you to understand it’s actually here. And the reason why is because the government goes out and they go to a company and they say, hey, how many employees you got? And they say ten.

They go, great. And they go to the next one. They say, how many people you got? And they go, ten. They go sweet. And they keep going around. They don’t sit there and go, how many of those people are underemployed? The thing is that you could have somebody right now having two or possibly three part time jobs just to make ends meet. And the government counts that as three jobs.

This is not a joke. The american population right now is severely underemployed and their wages are not keeping up with the inflation that the government and the Federal reserve have created. Okay. They don’t want you to know that they created it, but they did it. All right, so here we go. This story. Let’s get my notes again. True unemployment rate is double what the government is telling us.

And this comes out of money in politics. Out of the Daily Caller News foundation, it says a large section of Americans left the workforce following the 19 shutdown. Got to be careful with the words these days and have not returned. And if the workforce returned to its previous size, the unemployment rate would be nearly double. According to data from the Bureau of Labor Statistics analyzed by the Daily Caller News foundation, the official unemployment rate in December was 3.

7%, accounting for around 6. 2 million Americans without jobs who were still looking for work. With 100 million jobless people being counted as not in the labor force and therefore not being counted as unemployed despite not having a job, according to data from the BLS. In comparison, the number of people counted as not in the labor force in February of 2020 was only 95 million. With around 5 million people permanently leaving the workforce following the COVID Yeah, messed that one up.

Shutdown, which when added to those counted as unemployed yield and unemployment rate of around 6. 7%, 6. 7%, double what the government is actually telling you. Here’s a great quote. These more accurate estimates of the true unemployment rate signals weakness in the overall economy and the labor market. Specifically, this came from E. J. Antony, a research fellow at the Heritage Foundation’s Grover M. Herman center for the Federal Budget told the Daily Caller News foundation they are consistent with a mild recession.

The number of people on disability has exploded for three years now with a spike of millions of people. That indicates a very large portion of these unemployed workers who are missing from the labor force have simply shifted from the unemployment to welfare. Think about this right now, the government is already telling you that unemployment is half of what it is. We have so many Americans right now that are underemployed, that are seeking more assistance.

We have this year alone, up to almost 50% of Americans are receiving a 1099 in some way or another, which means they are seeking other types of cash flow, more money. They don’t have enough. Inflation is not keeping up with what’s going on. This is getting serious now. These numbers in the unemployment rate right now already signal a mild recession. Yet you’ve got the government or the president came out and just said, you know what, we’re just going to change the definition of what a recession is.

This is where we are. If you aren’t planning for a deep recession, something greater than the great financial crisis, you’re nutball. But it’s okay, because if you think about it on a wealth standard, that’s why wealthy people only account for a few, like a small percentage of the nation. Because most people don’t plan ahead of time. Most business owners don’t care or don’t think ahead. They’re just thinking about the next toy they’re going to buy.

They’re not thinking about where we are now and then project where we’re going. Check this out. It gets even worse though. Hey, labor force, it says the official unemployment rate has been historically low over the past few years, dropping below 4. 4% during the Trump administration. Screwed that one up. See, then there you go. The algo is not going to want to share it because that’s the truth.

That is the truth. What’s going on right now? It says, hey, it was 4% back then and for the first time since 2000, according to the Federal Reserve bank of St. Louis, the rate briefly spiked during the shutdown before descending back below 4% around the start of 2022. Labor force participation has also taken a hit following the shutdown, with 63. 3% of Americans employed or looking for employment in February of 2020, compared to 62% looking for jobs in 2023.

It absolutely blows my mind. If you’re unemployed for a certain amount of time, you just fall off the government doles. They just go, well, we’re not going to count them anymore. Isn’t that nice? Isn’t that nice? And it just sort of blows me away. Still to this day, I talk to business owners all over the country, and they’re still having a problem finding people that are looking for gainful employment.

Where are we headed? That’s the question. But this is like, to me, 2007 all over again. It’s like nutball time. Everyone’s like, you’re crazy. There’s not a housing crash. Hey, you’re crazy. There’s nothing wrong. Unemployment is not spiking. All right, get ready, because if you’re not ready for it, it’s not going to hurt me. I guess if somebody leaves the workforce, then they are not considered unemployed. This comes from Michael Falkinder, chief economist and senior advisor for the center of American Prosperity, told the DCNF.

There were about 700,000 people last month, according to the survey they put out last Friday. That left the workforce. Yes. So to the extent that people are not working and they are not looking for work, the unemployment rate does not grab that. There were over 167,000,000 Americans counted in the labor force in December, less than the 168,000,000 that were counted in November. So just a million people fell off.

Oh, well, according to the BLS, again, bureau of Labor Statistics, the difference equates to actually it was less than a million, 676,000 fewer people in the workforce in the month. Okay, 676,000 people just sort of fell off. Whatever. Just surrounding error. The government also heavily reported the numbers of jobs in 2023 in its monthly jobs report, later revising the numbers down. In total, the number of jobs in the country the country had in 2023 was 749,000, lower than what it had initially given.

The expansion of many welfare programs besides disability under the current administration means additional people can live off the dole instead of going back to work. And Tony told the DCNF the expansion or that expansion has been in terms of both who is eligible and also the graciousness of the benefits for which people are eligible. Look, here’s the facts. The treasury is moving into a massive deficit. The budget is expanding, not expanding.

The government raised $1. 1 trillion in the third quarter through debt and it can’t even get enough people to show up to its debt auctions to be able to get a low rate, a good rate rates. The tails on these auctions are getting longer and longer. We’re seeing more tails than in any previous time in recent history. We are in a moment where people don’t understand how the government is paying people.

They’re paying people similar. I would say it’s akin to when they were paying farmers not to grow or to till crops under to bring prices up of food. They are doing that right now with the workforce. And something’s about to happen in the next year, year and a half where the shoe is going to drop. And depending on what happens in November, that shoe may drop a lot faster on purpose, if you get my point, you’re being lied to when it comes to the official government numbers for unemployment.

Start watching this and get ready. Because when all of a sudden the subsidies stop, watch what happens in the streets of America in different cities. It’s not going to be fun. But hey, it’s okay. It’s not going to happen tomorrow. When I’m talking, talking about comes a little bit later. So it’s going to take a smarter type of person, bigger mind to think a little bit farther out.

And that’s just the truth of the matter. Hey, I hope you got something out of this. Thank you to the Heritage foundation for putting out this information. Really appreciate it. The economic ninja is out. .