On this special episode of The War Room: A Labor Day Edition, David and EJ and Tony take a look at the economic and political implications of the Trump administration's agenda. They discuss the deep state, runaway spending, and the never-ending wars that keep us in debt and unable to get our country back on track.
00:07:30.400What people care about is the rewards for their labor.
00:07:33.500Well, David, one of the things that that transition to capitalism did, to free markets did for people around the world, anywhere it was implemented, was that it allowed people to keep more of the fruits of their labor.
00:07:47.960Whereas in, let's say, a feudal system where essentially no matter how much you work beyond a certain point, you don't actually get to keep any of those proceeds.
00:07:57.760You get to keep the bare minimum, essentially, for you and your family to survive, and everything else is going to go to your feudal lord.
00:08:04.900And sadly, we are fast approaching a return to that, I think, with the radical left being in charge and with our monetary system becoming so corrupt.
00:08:14.260But neither here nor there, again, looking backwards for a moment, as people were able to keep more of what they earned, they all of a sudden had a huge incentive to work more.
00:08:23.820And it is working that we – it is by working, I should say, that we increase production, that we increase income, that we increase wealth.
00:08:32.140And once you have an incentive all of a sudden to not just produce but to invent, to innovate, that's when we get the great inventions of mankind all begin after the implementation of the capitalist system.
00:08:47.580And, of course, it is during those periods when the capitalist system was most free that we got the most innovation.
00:08:53.920You know, the Roaring Twenties might be the best example of this when you had all kinds of brand-new household appliances, for example, that first, you know, were, if not invented, at least all of a sudden became affordable to the common man.
00:09:08.320And I think that's another really important piece here, David, is the fact that your labor could get you more.
00:09:14.980In other words, one hour of work in 1928 could get you so much more than one hour worth of work in 1728.
00:09:24.580And the reason for that was all of the fruits of the capitalist system, which primarily benefited the lowest-wage workers.
00:09:33.260Now, is it true that you had the J.P. Morgans, the John D. Rockefellers, the Andrew Carnegies?
00:10:44.880And now we're seeing Waltz's education plan in Minnesota.
00:10:48.720If you haven't seen that, go Google that.
00:10:51.280It's horrific what our feudal lords are going to force upon us.
00:10:55.800And then just a few weeks back, the BLS, Bureau of Labor Statistics, redid our jobs numbers over 800,000 in error, overstated, of course, just 100,000 a month roughly.
00:11:14.260And so, EJ, we've said it on The War Room.
00:11:19.400We've been saying this for years, right?
00:11:21.320Not just on the labor stats, but what does this imply about our feudal lords who are running our economy right now into the ditch, by the way?
00:11:30.460And how do we need to take our economy back to restore labor to its rightful place?
00:11:38.020So I actually had a piece in the New York Post just recently about this where I kind of went through how on earth did this even happen and what's going to happen with, for example, there's some Republican senators right now who are calling for an investigation.
00:11:51.320Because they're saying, hey, we smell a rat.
00:11:53.180Not only did we just get that huge downward revision of 800,000 jobs over a 12-month period, but on top of that, if you look at the individual monthly reports within that 12-month period, what you find is that you already had combined downward revisions in those months of several hundred thousand just in the original revisions.
00:12:14.460Now, with the new revisions, it's a grand total of about 1.2 million jobs.
00:12:19.520Again, we're talking a 12-month period here.
00:12:46.320But the BLS needs a way to account for those changes because each of those businesses that closes is going to lose all their employees.
00:12:54.200But each of the businesses that opens is going to potentially hire employees.
00:12:57.980And so, again, the BLS needs a way to try to keep track of that.
00:13:00.560The way they have been doing it is essentially the same as the way they did it before the pandemic.
00:13:06.280And unfortunately, the economy has changed too much.
00:13:09.000And the statistics, the numbers just don't pencil out anymore.
00:13:12.320In other words, they don't match up to reality.
00:13:14.500I can give you a couple examples of that.
00:13:16.040One is the fact that the number of businesses today that are started but then actually make it is way below the proportion from before the pandemic.
00:13:25.620Additionally, even those firms that once they're underway actually are able to be profitable, right, they stay open, they're not employing the same number of people that they used to.
00:13:39.120And so the consequence is that just looking at the number of businesses created is going to give you a gross overestimation of the number of businesses that are actually employing people besides just the owner.
00:13:49.780And, again, the average number of people employed by each of those new businesses.
00:13:53.740This is something called the birth-death model at BLS because it's looking at both the birth and the death of firms and from that trying to give this estimate.
00:14:05.920And the scary thing is, David, the problems with these statistics first became evident in the spring of 2022.
00:14:13.540And so even though there's no smoking gun here saying, oh, someone at the BLS is cooking the books for the Biden administration, to be clear, there's no evidence of that, right?
00:14:21.820There isn't, no matter how much people have made that assertion.
00:14:25.120What there is evidence of, however, is the fact that these problems have been evident because people like myself from outside BLS have been calling it out since the spring of 2022.
00:14:35.580And the fact that nothing has been done is, frankly, a scandal.
00:17:58.760We're paying homage to all the workers that have come before us today, thankful for the sacrifices they made.
00:18:07.060When you think of the average family 100 years ago or 50 years ago at World War II,
00:18:12.200you look back at the grandparents and the great-grandparents, the sacrifices they made so the next generation could get an education for the first time in their family history.
00:18:49.340They don't know that quite yet because the war room hasn't taken over, you know, half the country.
00:18:56.520We need to get from millions and millions to 200 million people in force.
00:19:02.600So share this program and this platform with all your friends.
00:19:05.900This is the only place I know of where you're getting the information that we're going over today and that Peter Navarro has been covering all week and that Steve has covered for the past years, right?
00:19:17.240Just looking over the horizon better than anyone.
00:19:20.560So we're just very thankful on the war room today for all the work the workers have gone before us.
00:19:27.820There's a populist revolution taking place that's joining RFK Jr. and new forces and new blood and black, brown, blue collar.
00:19:38.400Men, women, every race is now pulling in the same direction.
00:20:04.200Imagine, you know, 100,000 over, you know, 10 months in a row.
00:20:07.920What Wall Street, you know, economic statistics and prices, stock prices are information.
00:20:13.700That's the key part of a free market system.
00:20:16.620And so EJ just covered why the misses occurred.
00:20:20.300And then I'm going to ask them to weigh in just quickly on, you know, some of those misses also.
00:20:26.280A lot of this, a lot of the gains were, of course, always in the government sector, in the education sector, et cetera.
00:20:35.380And then on top of that, the war room for the past few years has also been treating you to the key graphs.
00:20:41.460That's no shock to you, thanks to the border invasion.
00:20:45.880All the new jobs have not only been government nature and sector, but none of the net jobs in the last four years have gone to American citizens.
00:20:54.860They've all gone to foreign-born workers, right?
00:20:58.080And again, we don't hate foreign-born workers.
00:21:02.740But the point is the American people did not get to vote for that system, and they wouldn't vote for that system because, as EJ will tell you, if you have a huge influx of labor, guess what happens to the working-class wage rate?
00:21:18.240So, EJ, you want to weigh in on any of those key graphs you've been covering for the last few years and just add to the urgency of people taking action and how they can take action to save our economy and our republic?
00:21:34.100Well, David, not only – first of all, you're absolutely right on the wage growth going down as you have this huge influx.
00:21:40.220You increase the supply of labor, particularly low-skilled labor.
00:21:44.040But at the same time, you're also penalizing in another way the American worker who is already here by increasing his cost of living.
00:21:53.380For example, if all of the illegal immigrants that – just the ones that we know of, let alone the ones we don't know of, but just the ones we know of under the Biden-Harris administration, if they all just went to one state, it would be – it would have increased the population of that state by more than the total population of New Jersey, which, by the way, is the most densely populated state in the country.
00:22:13.680So, I think that gives you some kind of perspective as to how much we have increased demand for products and services like housing, for example, during the last three and a half years.
00:22:23.640Let's not forget that all of these illegal aliens that are here, they're staying somewhere, right?
00:22:28.620They need some kind of housing, and that is increasing the demand for housing, which is increasing the price.
00:22:33.600So, at the same time, you are penalizing the American worker by reducing wage growth.
00:22:39.200You're also penalizing the American worker by increasing his cost of living.
00:23:09.280And so, let's go to Kamala Harris, Walt's recent addition.
00:23:17.620They're hearing all this from the American people, and they have economic policies they've put forward, $25,000 per house for new homeowners, price controls.
00:23:33.180I don't know if folks know what price controls are.
00:23:35.780You may want to explain to them that all of human history, we had price controls, right, by pharaohs, kings, and despots in the last few hundred years have been the miracle.
00:23:46.160But what do you make of the Harris-Biden economic policies coming out?
00:23:51.700And then Walt's, and all of them, very friendly with China.
00:23:56.580There's evidence from Comer and Jim Jordan in the committee.
00:24:37.540Then all of a sudden, all the campaign surrogates are trying to walk it back, saying, no, no, no, we didn't really mean that because the American people are saying, wait a second, this smells like communism.
00:24:46.720You know, same thing with this crazy idea to tax unrealized capital gains.
00:24:58.340You know it's bad on the left when you've lost CNN.
00:25:02.360And, you know, you even had outlets like the New York Times, for example, and other, again, very left-wing outlets pointing out the fact that, you know, your opponents are accusing you of communism and your solution was to announce a communist policy.
00:25:43.660And it has constantly, or I should say consistently, always led to those shortages.
00:25:49.240You know, in the 1970s, for example, we had three different presidential administrations from both parties who tried wage and price controls every single time it led to shortages.
00:26:16.520Because you are telling consumers, look, this item can only be sold for a certain amount, which is less than what it was previously being sold for.
00:26:25.400Well, if the price of something goes down, I want to buy more of it, not less.
00:26:28.800So you are simultaneously reducing supply while you increase demand.
00:26:42.860That literally happened in Venezuela, for example, just a few years ago, where, David, after they had fully implemented all of their price controls on food, on groceries, within a year of being fully implemented, there were no zoos left in the country.
00:26:57.700They all closed down because the people broke into the zoos to eat the zoo animals because they were literally eating anything they could since they were all starving.
00:27:07.420That is the kind of thing you will bring to this country if you implement those kinds of policies.
00:27:42.540It's got both a free market lean to it about what capitalism should be, but it's also got the full populist frontal assault of what needs to happen.
00:27:53.720So we're going to be back with EJ and Tony after the break.
00:27:57.800And then we have our special guest, of course, Patrick O'Donnell, America's military historian.
00:28:03.720Steve Bannon's favorite military historian.
00:28:06.380To hear those two go off is just fun every time.
00:28:09.820He'll be with us again after the break as well.
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00:31:09.200Number one, governments have become a main customer of tech and media platforms, instilling an ethos of political deference and cooperation.
00:31:17.600You saw the headlines this week from meta, resulting in surveillance, propaganda, and censorship.
00:31:24.580E.J., true, false, and what do you make of it?
00:31:29.000You need look no further than the last several years to see how much big tech has tried to influence elections in order to appease their political overlords.
00:32:27.720It's the reason why we, frankly, have such—it's the reason why we have an electorate that buys into so much of the nonsense from the radical left.
00:32:36.160Four, agricultural subsidies that build vast industries.
00:32:45.640What do you make of our agricultural system?
00:32:50.120Again, unfortunately, it mirrors some of the other industries we're talking about here, where there is far too much government involvement,
00:32:57.480and the free market system is not permitted to bring better quality products to the consumer at a lower price.
00:33:03.640Number five, on Labor Day, a point E.J. drove home in our analysis earlier, a wildly complicated and confiscatory system of taxation, et cetera, et cetera.
00:34:28.520But ten, let's just close on an all-time winner that's going to be probably the basis of this next election.
00:34:34.800A bloated federal budget supports 420-plus agencies that lord it over the whole of commercial society, ballooning up compliance costs for entrepreneurs, creating vast uncertainty about the rules of the game.
00:34:53.420Not only does all of that cost money, which has to be taken from the private market, so you're reducing efficient production.
00:35:00.960But on top of that, as you said, it also makes the rest of the production that is left much more inefficient because it's imposing all those costs on businesses and on individuals.
00:35:13.340E.J. and Tony, thanks for being with us on The War Room.
00:35:16.540Thanks for all your life's work on economics.
00:35:19.560It's a service to our country and to God.
00:35:36.680We're back with Patrick O'Donnell in The War Room.
00:35:40.680Patrick is one of Steve Bannon's favorites.
00:35:44.020When they go at it, it's just fun to hear them spar back and forward.
00:35:48.040I wish I could do justice in his realm.
00:35:51.160But, Patrick, thanks for being on The War Room with us today.
00:35:54.220And I think you probably overheard some of the past economic sparring and analysis over what it means for us on Labor Day, right?
00:36:05.160Trying to keep the fruits of our labor.
00:36:08.480You're here as a military historian going back a lot of times to the Revolutionary period, the Civil War period.
00:36:15.620What comes to mind for you when you reflect on Labor Day and all we have to be truly thankful for in this country?
00:36:24.840Dave, it's great to be with you today.
00:36:26.680And what I think about is 248 years ago, around this time, the Battle of Brooklyn was raging.
00:36:34.340And it was at that time that we almost lost the United States.
00:36:37.540But what's interesting is when the Hessian troops, these are men that were recruited by Great Britain to fight in their service, came to the United States, they were amazed by the standard of living that we had in 1776, which at the time was the highest in the world.
00:36:54.480It was also – the United States Army, the Continental Army, was made up of men that could read and write.
00:37:01.600It was the most literate army in the world at the time.
00:37:05.100And this is all about American growth, which was dynamic then, and it's what we need to continue now.
00:37:14.100And I reflect back about what was going on 248 years ago, and it was a time where everything could have almost been lost.
00:37:21.400And, you know, it was for a handful of Americans that stepped up that really did the impossible.
00:37:30.220This is where the crown comes over with two-thirds of their navy and almost practically most of their army and also brings over these volunteers – well, not volunteers, that the Princetons and fiefdoms in Germany basically loaned out their troops.
00:37:47.020These men were serfs for the most part, and they were forced to fight in the Hessian forces, tens of thousands of men.
00:38:20.480There's an American thermopoly where the Marylanders, you know, 248 men of honor, family, and fortune make a stand, an epic stand with bayonets.
00:38:32.840They're one of the few units that actually has them.
00:38:34.760They make multiple charges into Cornwallis' lines, and they allow the army to escape.
00:38:41.160And it's, you know, it's in this period of about two or three days.
00:38:44.400Then there's a massive rainstorm and thunderstorm, and Washington has to decide what to do, and he wisely decides to retreat.
00:38:52.160And this sets up, you know, really one of the greatest evacuations in military history where, for all intents and purposes, it probably shouldn't have worked.
00:39:02.180But, you know, they have to transport somehow over 10,000 troops, including the wounded and their equipment, across the East River, which is over a mile long, and make multiple trips doing it.
00:39:14.840And I wrote a book called The Unvanquished – I mean, I'm sorry, The Washington's Immortals, which tells the story of the Marylanders, and The Indispensables, which tells the story of the Marblehead men, that somehow brought it off.
00:39:27.020And it's the hand of God that comes in because it's a race against time to somehow get the army across.
00:39:34.420Well, oh, by the way, you have tens of thousands of British and Hessian troops that are really just about to pounce on the army and destroy it, and they somehow do it by the hand of God, which miraculously a fog sets in, which screens the movement of all these small boats and brings them across and allows the American system to continue.
00:39:57.380And, I mean, this is – the time of the revolution is a hard one.
00:40:00.100When you think about today, what you've got going on is inflation is just beginning to start to rage.
00:40:07.020It would take $1.5 – they were called Continentals, they were printed by the Congress at the time – to equal one silver coin, which was equivalent.
00:40:20.740And as the years would go by, in the first year or two, it would go all the way up to 100 to 1.
00:43:03.340And everything was arrayed against it.
00:43:05.000I mean, the greatest military power in the world at the time was there to crush America.
00:43:10.620And they had never lost an insurrection in their entire history as an empire.
00:43:15.640And the results were severe for anybody that betrayed the crown.
00:43:21.720I mean, in Ireland, they put it down by crucifying people, like drawing and courting them.
00:43:27.480You know, they were vicious and ruthless.
00:43:30.860I want to warn you of a huge change that could be coming to our money and our bank accounts.
00:43:35.820First, think back to 9-11, shortly after the government pushed through the Patriot Act.
00:43:40.680This gave the government power to spy on innocent Americans by monitoring our phone and email and tracking our movement across the Internet.
00:43:49.020Now, Jim Rickards, editor of the independent financial newsletter Strategic Intelligence and New York Times bestselling author,
00:43:56.100is warning about a coming event that could elevate this governmental surveillance to a terrifying new level.
00:44:01.860In fact, some of the guests I've had on The War Room believe that the government will soon expand their powers to track our every move.
00:44:09.780If we say the wrong things on social media, donate to the wrong causes, buy firearms, or even vote MAGA,
00:44:16.680the government may be able to shut us out of our bank accounts.
00:44:20.660I can't say for sure if this will happen, but it's an interesting and dire warning.
00:44:26.080Fortunately, Jim Rickards, an American patriot and friend of mine,
00:44:29.120has made it his mission to educate us on what he believes is coming
00:44:32.940and how to protect yourself from the possibility of programmable money.
00:44:38.720Watch Jim's warning video now before it's censored like I've been in the past.