News Anchor: …eventually went to John McCain, and Congressman Paul is on the line with us. Congressman, thanks for your time, we appreciate it.
Ron Paul: Thank you, good to be with you.
News Anchor: Hey congressman, do you give the president’s policies credit for thawing markets and auto sales and student loans? What do you think about what the president said in his speech?
Ron Paul: Well, I don’t think a whole lot of it. I think we had a new deal and a fair deal, but I think this is going to be a bad deal and not help at all. But I don’t blame him for the problems, I blame him for the prolongation of this, because he was very explicit by saying that government shouldn’t cut back on spending. He wants to massively increase the spending. And therefore, he is going to prolong it.
But this was a long time in building. This took 25-30 years to build the bubble. And everything he talks about is re-inflating the bubble and buying up bad assets and then later on we’ll deal with discipline. But he had mentioned that individuals don’t want to spend money because they’re doing the correct thing. They’re cutting back, they’re saving. That’s what an individual is supposed to do.
But a country shouldn’t be any different. When you spend beyond your means and have too much debt, too much borrowing, that’s what you have to do. And his statement that if government didn’t do this it would prolong the depression… he’s absolutely wrong on that because that is the understanding of the depression. It was prolonged because of the intervention of Hoover and Roosevelt.
News Anchor: Okay, congressman, let me jump in and ask you this: Do you believe the markets would have cleared away the wreckage in our economy, to use the president’s words here, without the 787 billion dollars stimulus package?
Ron Paul: Well, it wouldn’t be completely done, but this way it is going to go on for years and years and they’re going to destroy the dollar. I’ve use the analogy about a sound foundation, but the foundation should be on a sound dollar, and he never even mentioned the Federal Reserve. The only time he talked about money was when he said, “you know, if we create one dollar and put it in the bank we get interest 7 or 8 dollars”. He’s preaching inflation and that’s how you destroy the value of the dollar. That’s actually the way you liquidate debt, too. Unfortunately that is a tragic way of liquidating debt, because you punish those ‘foolish’ people who are out saving money and planning for their future because they want to take care of themselves. So we preach a deliberate policy of ruining the people who act fiscally responsible.
News Anchor: Go you. So you clearly are suggesting that a different set of policies would have shortened the duration of this downturn. Give me a couple of areas… just two… that’s all I have time for, I’m sorry. But give me two policies that you would have pursued differently from the president, that might have curtailed the length and depth of this recession.
Ron Paul: Okay, maybe if General Motors went bankrupt one year ago and somebody bought up the bad assets, so they can get their house in order or something, that would have been over and done with and we’d be back buying their cars by now. Because right now we are not going to buy their cars, because we don’t know what the government is going to do to GM. The same way with…
News Anchor: Did you suggest that to President Bush, “Hey, GM is in trouble, let them go under?”
Ron Paul: No, but that’s why I said that Obama isn’t to blame to all this, this has been a long time coming, and that’s what we have to understand. It’s Keynesian interventionist economics that we’re pursuing, they went awry and now all we’re doing is accelerating it. It leads to a business-government partnership which trends towards fascism.
News Anchor: Wow!
Ron Paul: It is socialism, but when you get in bed together and businesses are owned and regulated and controlled, that adds a fascist aspect to socialism.
News Anchor: Okay, can I say something to you? You know what? Very few people will remember the context in which you used that word ‘fascism’. Is that responsible to toss that word around?
Ron Paul: Well, that is if you don’t understand economic fascism versus military fascism, and I am not referring to military fascism. I’m strictly talking economic terms and there is an economic fascism where government and business are partners. And when businesses get into trouble they love that. Is it the [big] guy that’s going to have the tax rallies tomorrow? No. It’s not the big guys. The big guys are getting all the benefits. The little guys are having the rebellion because they haven’t received anything. So they are sick of this type of partnership where the big guys get bailed out and when times are good they get low taxes and they make million. But no, I think you have to understand there is a difference between economic fascism and military fascism.
News Anchor: Well, I wanted to at least give you an opportunity to expand on that statement. Congressman Paul, thanks for your time. We appreciate it.
Ron Paul: Thank you.