Topic: U6 Unemployment

The hosts discuss the media's sudden interest in the accuracy of unemployment numbers under the Trump administration. They contrast this with the "rosy" numbers reported during the Obama years. They reference Ross Perot's use of charts to explain complex economics and cite John Williams of ShadowStats, who estimates the real unemployment rate is closer to 23-24%.

Federal Reserve Chair Janet Yellen admitted during congressional testimony that the U6 unemployment rate, which includes discouraged and part-time workers, provides a "less rosy" picture of the economy at 11.3%. Yellen conceded that the official 5.7% rate does not reflect the true level of underemployment in the U.S. The hosts predict that Yellen's honesty regarding economic weakness may lead to political pressure for her removal.

The December jobs report showed only 74,000 jobs created, far below economist expectations, yet the unemployment rate fell to 6.7%. This drop is attributed to over 500,000 people leaving the workforce entirely rather than finding employment. According to Shadow Stats, which uses older government calculation methods, the true unemployment rate remains near 23.5%, contradicting the official narrative of a robust recovery.

President Barack Obama's weekly address regarding sequestration impacts on programs like Head Start and Meals on Wheels is contrasted with alternative economic data. The hosts utilize "Shadow Stats" to argue that the real unemployment rate is closer to 25% rather than the official government figures. The discussion challenges the administration's claims that the deficit is shrinking and the economy is consistently creating jobs.

John C. Dvorak deconstructs the latest U.S. employment figures, which dropped to 7.8%. He references Jack Welch's "crackpot" tweet questioning the validity of the data. Using John Williams' Shadow Government Statistics, Dvorak argues that the true unemployment rate, when calculated using Depression-era methods, is closer to 24%.

The discrepancy between official U3 unemployment figures and the ShadowStats (SGS) alternative rate is examined. While government data suggests a recovery, the SGS metric, which includes discouraged workers who have left the labor force, indicates a real unemployment rate of approximately 23%.

The "Endorse Liberty" Super PAC supporting Ron Paul is revealed to have ties to former Jon Huntsman and Mitt Romney supporters in Utah. Additionally, the hosts predict that the media will spin rising unemployment numbers as a positive sign, claiming that more people are entering the workforce because they are "optimistic" about the economy.

Congressman Ron Paul appeared on CNN with Piers Morgan to discuss the discrepancy between official jobless figures and economic reality. Paul argues that the 8.5% unemployment rate is "cooked" because it ignores 1.2 million people who dropped out of the workforce, suggesting a true rate closer to 11%. Reference is made to ShadowStats, which places the figure near 25% when including discouraged workers.

The U6 unemployment rate, which includes underemployed and discouraged workers, shows a slight increase despite official job growth reports. Discussion focuses on the plight of recent college graduates who are struggling with high debt and low-paying jobs. The hosts clarify that "small business" is often misdefined by the IRS and that government aid rarely reaches the mom-and-pop shops with fewer than 25 employees.

The official U.S. unemployment rate of 9.5% is challenged by the U6 data, which provides a more comprehensive measure of labor underutilization. The U6 figure, which includes discouraged workers and those in involuntary part-time positions, has reached 16.5%. This level of economic distress is compared to the Great Depression, which saw peak unemployment between 25% and 33%.