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

Transcript

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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226 Comments:

  1. Restore The Republic!

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  2. Ron Paul is the only person in congress who speaks with sanity.

    Ron Paul 2012!

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  3. Not that they could not take it, they do not care. Mel Gibson's flip out is WAYYYYYYYYYYYYYYYYYYYYYY more important than jobs, economy, recession or wars. Way more.

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  4. RON PAUL - AMERICAS ONLY HOPE

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  5. If only the ignorant masses understood Ron Paul, the U.S could become such a great country.

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  6. the only thing i hate about ron paul is the fact that everytime he's talking to other people in a video clip, 9 times out of 10 i just wanna reach my hands through the computer and shake the crap out of the morons arguing with him

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  7. All the other congressmen/women should just forfeit their time and let Ron speak for everyone, because 98% of them do not represent us, our priorities or our goals. Ron Paul 2012.

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  8. It's a shame that Ron Paul won't tell people the truth about how he helped cause this 22% unemployment by voting for Most Favored Nation trade status for Communist China. He didn't just vote for this communist country to get Most Favored Nation trade status, he argued their case before Congress. I wonder how much Red China paid him for his support in Congress? 30 pieces of silver might not work now with inflation and all. The important thing is, Ron Paul has his cushy government job with great health care benefits and retirement. You don't have the same opportunity because he made it more profitable for industrial base and the jobs they provide to move to a communist country. And he calls this "free trade".

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    • Dfens, If you read his case, he clearly makes the case that MFN is not free trade, but the closest thing we have to it. Also, as history shows, ending trade hurts both sides not just one. Out of concern for us, he voted for what he called, a step in the right direction. And I agree it is. MFN is not the free trade I want, but its better that whatever else we would have gotten and better than no trade or limited trade. I would not call this his finest achievement in his voting record, but I certainly don't see any sense in condeming him. Besides, arguably the increase in product prices that would have incurred by barring MFN would have also killed jobs to make the diffrence in profits soon to fall, or for products buisnesses might have been counting on. Additionally cost of living would have gone up across the board. It was a double edged sword.

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  9. Impeach ben bernake!

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  10. We need more people like Ron Paul in office!!!

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  11. Ron Paul 2012!

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  12. The system is BROKE, Spend ,Spend, Tax ,Tax ,Tax,
    That is all they know how to do. And pass laws that
    our Illegal in the Constitution. We know it and they
    know it. Lets get rid of these Traitors this coming election.
    Oh & that bailout!! "WHAT A SCAM THAT WAS" THIEVES!!!!

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  13. The fact that the people chose the fool currently in the White House over this brilliant man is a clear sign that this country's days are numbered. We're in for some rough times.

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  14. why does this guy get it, and the rest of the politicians in the world don't.

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  15. In the last few months I've wondered why his son doesn't seem to have the same sense that his father does. It's a shame really. RP is the ONE Republican in my life that I would vote for. He was also the one and only candidate that I have ever given money to.

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  16. none of the financial terrorists have an answer to this clever analysis of GDP. so they will just ignore and try to shut ron paul down. but the people are behind him, so they will try to shut down the people, which they are really in the process of doing. Pray for RP!

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  17. Salladsdressing

    Austrian Economics...the economics of reason!

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  18. if only people would listen to this genius!!! ron paul 2012!

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  19. We got this in 2012!

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  20. grandillusion52

    more economic reasoning from ron paul. i could listen all day

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