Channel: Fox Business
Host: Neil Cavuto
Neil Cavuto: Congressman Republican Ron Paul likens it to a spending bench that has got to stop, but won’t. Congressman, I’m just wondering – they’re just speeding it up, right? They’re actually revving it up.
Ron Paul: It’s unbelievable, you know. I’ve conditioned myself, I’ve lived with this for a long time, but I’m still shocked at their ability to do this and do it with a straight face. I mean, they say, “Yeah, deficits are important but we’ll take care of that later on. Oh yeah, doubling the money supply is important, but we’ll handle that later on”, and then they just march right on. Even if all their policies caused the crisis, they still do more of the same and they do that expecting it to work. But this is bewildering, to say the least.
Neil Cavuto: Alright, now I know if they’re not going to focus on the […], then why not the polls that show that Americans are getting antsy about this. What is driving a separating spending agenda that lot of folks are very, very cautious about and getting increasingly alarmed about.
Ron Paul: Yeah, you know that is the important question because there are a lot of politicians here in Washington, as you may have noticed. And they usually respond to what they hear about and they protect themselves. That also might be the reason why there are some fights going on now within the Democratic Party because right now they’re in the middle of an argument over a rule to bring the regulatory bill to the floor. That means some people are moderate and they don’t want it. So maybe they are starting to hear these messages. But the one thing is they’re slow to learn here, it’s a real slow effort. So I always work on the assumption that the people are about 15 to 20 years ahead of the Congress and I think that makes a difference.
Neil Cavuto: Alright, the president’s poll numbers are falling a bit. The Congress’ has of, course, always been low, so they’re just about as low as they’ve been, and yet they continue pushing this. Now, part of the argument for this in Washington last week was that the trend is our friend; the numbers are improving, the markets are improving, banks are stabilizing, lending is slightly increasing. And this is all the result of all this spending. What do you make of that?
Ron Paul: Well, I think they are looking at the wrong picture. I mean, those people don’t just watch the stock market ticker every single minute of the day saying, “Oh yeah, the government’s statistics are saying things are getting better”. But you know, they says the GDP is up, but if government spends money and buys it on something that has no redeeming value, the GDP goes up. If you buy a tank the GDP goes up; that doesn’t make people wealthier. And besides, the thing that people are looking at is the fact that the standard of living has been going down, real wages have been going down a lot longer than since just this recession, and the unemployment rates are always higher than the government admits. They’re starting to talk a little bit about unemployment rates maybe being really 17% if you count the people not looking for work anymore. But some private sources said unemployment is really close to the 21% mark. So that is why people don’t buy into these arguments – “Oh everything looks pretty good now, couple of statistics came out and it looks we’ve got turned the bend”. But the American people don’t quite buy into that yet.
Neil Cavuto: What if they do, though. What if the numbers improve enough and the jobless situation improves enough and your correct percentage is on the real rate of unemployment notwithstanding, are reversed enough that people saying, “Well, all this spending must have done it”.
Ron Paul: Well, you know, I think you could argue that case in previous recessions when the government got involved and they sort of put a patch over the bursting bubble and maybe delayed it a bit. I think this one is a little bit different. I don’t think they are going to be able to do this. I think that it’s going to be very hard to argue in 2, 3, 4, 5 years that unemployment rates are better and the people are feeling better and real wages are going up and then the ill-effects of all the spending and all the debt is going to hit us because all of sudden we’re going to see higher interest rates and we’re also going to see inflation rates and less confidence in the dollar. So I don’t think there is much chance that that’s going to happen, even though they might feel better for a little bit. The policies are wrong, they were wrong and they were predictable that they would cause this crisis. So the same policies can’t get us out of this mess. So I’m not expecting that in 2 or 3 years the people are going to be doing quite well even though in other recessions they were minor, but I think we’re in something much different. We’re much closer to the 1930s than we are, say, 1990 or some other periods of time when we had a year or two of depression.
Neil Cavuto: Even now you’re saying that.
Ron Paul: Oh yeah. I don’t think we’ve really changed anything because our debt is worse and government involvement is worse. I mean, one of our problems was that we spend too much, we borrow too much and we regulate too much. Just think of what we’re doing here in addition to all the taxes. Does that encourage people to invest here? No, it encourages people to invest overseas because other countries are inviting them over and businesses continue to leave this country.
Neil Cavuto: All good points, congressman. Great seeing you again, thanks.