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. If you love your country … Ron Paul 2012

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  2. For the sake of America and the world, i hope he runs in 2012. Ppl need to wake up and listen to this honest man.

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  3. Ron Paul is the only one that can’t be bought….

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  4. cpi>gdp

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  5. i wish we had at least ONE politician like ron paul in europe….

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  6. This man is a truth teller. If people can’t see the inflation that has already started and frankly been happening then they haven’t gone to the grocery store lately.
    Our government is lying to us about the state of the Union. We are grossly in the hole in all ways. Small businesses are hanging by threads to keep going and this government wants to let the Bush smaller tax percentages to lapse, this will hurt everyone. This government needs to stop spending now! No new taxes!

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  7. Well i finally had the time to check out this blog and i’m seeing some really, really good posts here. I’m absolutely amazed at how many people have begun figuring things out and are putting the blame for each and every one of our problems squarely on the heads of those who deserve it an are the cause of them, which are the miserable F’ing parasites who manipulate our currency and economy to buy power for themselves at the expense of those of us performing the useful production and the politicians they put into power to serve their interests. America’s Banks.

    The reason we have unemployment is a very simple one, its created by banks who have reached the point where they have managed to accumulate enough of the countries wealth that there is nothing left to fuel any form of useful production, even though that production capacity is already here and has been all along. Kill the banks and then our economy will be regulated by our production capacity alone and then instead of unemployment, we will have a shortage of people to perform the work, wages will skyrocket due to competition for labor and we will have to be importing people from Mexico to perform the additional work as there simply will not be enough people here to do it all.

    Its a very simple thing.

    Everyone is understanding the problem, but we need to understand the solution as well. I’m going to post a link here to a long discussion several of us have had on another one of the blogs here, and i’ll ask everyone to go there and read through the entire thing right to the end. Its a fascinating conversation and you will find it interesting, so don’t mind the length, there’s a lot of good information and good questions and answers there.

    http://www.ronpaul.com/2010-07-09/majority-of-americans-believe-obama-is-a-socialist/comment-page-3/#comment-115818

    This is Ben Franklin economics, and the original American economic system, and not something invented by some F’ing Rothschild from the Bank of England as we have today. You will love what you see, you will understand how this can work, and then come and help is make this happen for all of us, per the instructions.

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  8. I’m from Europe but my big hope is Ron Paul for the world. Anyway I think we should take away completely our government system, our monetary system. We must upgrade it!!!!

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  9. consciousminds808

    Vote Ron Paul for President!! I’ll be the vice!!

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  10. A nation can survive its fools… but it cannot survive treason from within. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear.” – Cicero 42 B.C

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  11. I just wish he was 10-20 years younger.

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  12. broncofan92slay

    it would be very sad if a man with such a great knowledge of economics and politics won’t get the chance to be president

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  13. I wish Canada had a Ron Paul… we could sure use a man with such integrity and passion for individual liberty.

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  14. I liked to think that Western society as a whole had progressed generally since Dickens’ day – and while a lotta things sure are better, there’s a hell of a lot wrong with good old America. No doubt the Revolution will come, and I hope those stooges Greenspan and Bernanke, along with the other rich corporate bastards, are the first with their heads upon a pole. Democracy be damned. GOD BLESSING F***ING AMERICA!

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  15. I watched Michael Moore’s “Capitalism: A Love Story” the other day, and I must say I was absolutely BLOWN AWAY by some of the revelations in that documentary. Corporate America really is one of the most evil entities this world has ever seen. Did you know they have something called “Dead Peasants Insurance”, whereby big companies like Wal-Mart take out life insurance claims on employees (without their employees’ permission of course) and then stand to PROFIT from it? Disgusting.

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  16. Fred the protectionist…are you from this planet? Libertarians are for China? That’s like claiming President Obama is for free-markets.

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  17. Today I was watching c-span, and I saw 4 democrats talk about using government to stop certain videos being made. All I can say is, why not just make a new “department” if you prefer, that watches these videos, and then gives them to a higher up part of the department, which will not force these companys or websites to take these videos down, but inform them, and ask them to take it down, because I’m pretty sure they will. That is not intervention and can help solve a problem. protect 1 amendmnt

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  18. Idiot conservatives elected Bush. Idiot liberals elected Obama.

    Ron Paul will never get elected because idiots make up a majority of the US population.

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  19. I wish people of other nationalities that lived anywhere besides the U.S that recognize what a genius this man is would post some youtube videos saying so. It’s unfortunate most American’s live inside their bubble and have no other perspective of the world other than our falsly propagandized media.

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  20. realinfochannel

    It should say Dr. Paul instead of Mr.

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