Ron Paul: The People Can Handle The Truth About Unemployment and Inflation

Ron Paul tells the Joint Economic Committee that the people can handle the truth about unemployment and inflation numbers. Real unemployment is at 22% and real inflation is at 6% according to the original method of measuring the CPI.

Date: 07/14/2010
Event: Joint Economic Committee Hearing


Ron Paul: I thank the Madam Chairman, and welcome Dr. Brummer[?]. I’m not very good at the partisan blame-game, but I am very interested in the business-cycle and why we have unemployment and actually I’m interested in the measurement of our problems. I think sometimes we deceive ourselves because following some free-market websites that measure unemployment somewhat differently than our government, they come up with a figure of 22% of unemployment. And also, even the way the Bureau of Labor Statistics measure it; they look at all the people who are not looking for work at the moment, that is 16%. So things are not very good. Also, the GDP is what we measure. If the GDP is going up, everybody is supposed to feel good. You know, if we spend a billion dollars on a missile and we blow it up, that’s counted as increase in the GDP, and it didn’t give us a house, and it didn’t give us a health care or education. So there is a big difference. And also the inflation rate is very important. If you go back and use the old CPI measurement of inflation, we have 6%, not 2%. So there is a lot of deception, and the people sense this. I think they’d rather here, you know, accurate information than to be bamboozled into believing things are just honkey dorey, when they know there is a lot of inflation out there.

The other thing that I have concerns about is in the measurement of the GDP. If you look at the GDP in a private way, if somebody had a $200,000 job and he lost his job and the family had 2 or 3 hundred thousand dollars of debt, for them to be told what they need is a million dollar loan and spend it, buy a house and buy a car and live high and their personal GDP goes up. But they never measured the debt. But when we go to the government we say the government’s in debt, they’re spending too much. What we need to do is spend, we need to borrow, and the GDP goes up. But if you measure the GDP that goes up because of borrowing, inflating and spending, and look at that with a better perspective, I would say that maybe the real GDP isn’t going up and maybe that’s why we’re not having real growth. There is a big difference between people working hard and paying their bills and actually saving some money. I think the biggest fallacy that we have because we don’t have a correction is we don’t understand how we got here. We had too much debt, too much mal-investment and we haven’t dealt with that. And when you get too much of it, you have to liquidate it. When you get in over your head and you can’t pay the bills, you either have to declare bankruptcy or work harder and take a new job. But we can see this as an individual or company, but evidently our economic theory now is the governments are exempt from those kinds of economic rules.

And I yield back the balance of my time.


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  • voting machines r corrupt. send your vote for ron paul in w your name on it.

  • voting machines r corrupt. send your vote for ron paul in w your name on it.

  • voting machines r corrupt. send your vote for ron paul in w your name on it.

  • Washington need’s a doctor… Ron Paul for President in 2012,While we still have an America.

  • Washington need’s a doctor… Ron Paul for President in 2012,While we still have an America.

  • “Mr Paul”? “MR PAUL”?! that’s “DR PAUL”.

  • all of you guys fail to realize that Ron Paul is a double agent for the Elite.

  • all of you guys fail to realize that Ron Paul is a double agent for the Elite.

  • swilk

    I firmly believe this man is on to something, and his ideology is the most consistent than I have seen from any president since I’ve been alive.

    “And the truth shall set you free..”

    Those words should echo in all ears nationwide. A solution to creating jobs is not to hire more government employees, but rather it is up to us, as patriotic Americans, to hire within our borders and keep this country ALIVE. Asking for more social programs and new countries to invade will have the ominous consequences of raised taxes, increased debt, and increased interest payments and will NEVER spur growth because those business owners would never take the pay cut willingly when they have outsourcing options. WAR, government pensions & payroll including that of tenured undeserving faculty members of public higher education institutions (which rely heavily on student financial aid programs), as well as the consistent surge of defense contracts will only make matters worse.

    It is NOT up to Uncle Sam to bail us out of this one. However, it IS up to HIM to ensure that we don’t get in over our heads in debt by slowing the money printing process contributing to inflation, and to pull back our troops, cut defense spending (which is taken out primarily on government loans), and give tax incentives on business owners enough to promote bringing the manufacturing back into the states – thus creating jobs and spurring economic growth.

    Because the majority of those who can’t and WON’T contribute to society no matter the circumstances and who are raised to RELY on these entitlement programs, we are, unfortunately, fighting a powerful needy machine of a foe that MUST be brought down. It’s understandable that there are those in need but it’s those that don’t believe that they must WORK for their lives to improve or, heck, even function, then get out or starve. Simply put. There are plenty of options available, and to make education less affordable will have DIRE consequences – guaranteed.

    My vote is with Dr. Paul!

  • carcabe

    Ron Paul is one man and can’t do it alone. Our Founding Fathers pledged “our lives, our fortunes and our sacred honor”. It will take nothing less today. Give your tome, your talents and your money. It’s your future and your life that’s a stake.

    Ron Paul2012 and Ron Paul TODAY.

  • AJC

    If you ask – “What will we do with all the servicemen if we pull them back”, then you are admitting that the US Military is really a disguised welfare jobs program. And it is.

    So, if the US Military is a welfare jobs program – then the answer is too simple to comprehend. Put all returning servicemen on welfare.

    The reason Obama has not cut back the size of government is that the unemployment figures would skyrocket. The first thing I would do as a 1-term president is follow the most successful businesses and issue an across the board hiring freeze for all US Government jobs, and a 15% paycut on all us govt employees. Then in the remaining 4 years of my term I would work to do what EVERY US Business has done, and ELIMINATE Retirement Pensions.

    Once I did that, I wouldn’t have to worry about running for president again since every government employee wouldn’t vote for me again.