Only 3 videos you need to watch that tell you how the US economy is REALLY doing
I’m not an economist but I’m a big fan of trying to understand the economy. I spend a lot of time running through the numbers and following experts (the ones that make it plain) who can help us understand the true health of the US economy and the wider global economy.
Unfortunately, you’re not going to get a straight answer from some mainstream media outlets and you most certainly are not going to get a cogent answer from most politicians. You need to spend time in the “alternative” media, with those of us browsing the universe of content for those nuggets of economic truisms that give us real clarity on the state of the US economy.
Unemployment Rate vs Labor Force Participation Rate
- Most are familiar with the unemployment rate, it’s simply
the percentage of individuals who are without employment, actively seeking work for at least four weeks, and are ready to work. - Labor Force Participation Rate (LFPR) includes both numbers. The number of individuals working and the individuals looking for work.
- What you’ll get out of this video:
– Why politicians love using the unemployment rate and not the LFPR.
– Why the November 2023 statement from Joe Biden and his administration creating 14 million jobs is misleading. It’s more like 2.7 million jobs, 80% less than what was stated.
– Real wages, adjusted for inflation has not increased by much since 1983. In 1983, the median weekly wage was $362. Today, it’s $371. 😱
Labor Force Participation Rate kind of measures what’s the ratio of those who are actually working, looking for work, and the total that could be employed in looking for work — Dr. Jack Ramsus
It’s not just so-called urban areas, people living in the suburbs are getting poorer too
- More than 2 million don’t have running water or a flushing toilet at home
- In 2019, the median net worth for White households was roughly $188,000 and for Black households, roughly $24,000. 😱
- As of 2023, According to federal data, the wealthiest 1% of Americans currently possess a greater share of wealth than the entire middle class combined.
- What you’ll get out of this video:
– A better understanding of the so-called “working poor” is no longer limited to those below the poverty line.
– More and more Americans are falling through the cracks and it’s not because of overspending. Day-to-day costs are eating more and more of your take home pay, leaving very little for savings and investing in the future.
If America’s poor founded a country, that country would have a bigger population than Australia or Venezuela. Almost one in nine Americans — including one in eight children — live in poverty. There are more than 38 million people living in the United States who cannot afford basic necessities, and more than 108 million getting by on $55,000 a year or less, many stuck in that space between poverty and security — Matthew Desmond, author of Poverty, by America
Are Americans able to save or are they just overspending?
- 51% of Americans with an income of $100K+ are living from paycheck to paycheck
- The median age of home buyers increased from 31 in 1981 to 49 in 2023. 😱
- What you’ll get out of this video:
– Why higher interest rates are cause for concern for loans and first-time home buyers
– Many Americans are in a debt-cycle and this not due to overspending. More emergencies are being put on credit cards due to the inability to save for an emergency fund
This might seem grim and that’s because it is. When you look at the personal savings rate, (PSR) it continues to plummet. The massive spike in 2020 was due to COVID stimulus checks. The highest PSR was in 1975 at 17.3% which was almost 50 years ago. As of January 2024, the current rate is 3.8%. Not good.
Household debt is not looking good either.
Don’t let these politicians and corporate bought economists convince you that all is well in economic paradise. We are far from any type of financial equilibrium. With one wave of the hand, they’d like you to believe:
