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. I believe that this country is hopeless. I really wish Ron Paul could win, but there are too many jackasses on both sides that will prevent that from happening. America is quickly becoming an Idiocracy. Soon, our grass will be fertilized with Gatorade and a pornstar/pro-wrestler will get nominated for the presidency. It sounds ridiculous, but if Bush can get elected twice, and people applaud Guiliani every time he mentions 9/11, then there is no limit to this nations stupidity.

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  2. inflation is a secret tax

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  3. ron paul 2012 money bomb! google runronpaul.

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  4. "I am not very good at the partisan blame game" --- God I love that man

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  5. All the Socialist filth talking about the evils of free market health care (which was a strawman anyway since it was corporatist and now Obama's making it Socialist) would have done well to realise that every penny spent on Keynesian stimulus was one taking out of the people's pockets that could ave paid for their healthcare-and if they so needed help from the government then no Keynesian can say that their propensity to spend it would have been low. Not that private thrift needs to be offset!

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  6. I pray that Ron Paul or someone with the same mind-set will run for President and actually get elected. Since JFK, we have truly had subpar individual get elected as president. What angers me is that the vast majority of people can't even to begin to understand what Ron Paul stands for. The one bright spot in all of this is that a movement seems to be forming and people like Ron Paul are our voice

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  7. Ron Paul for life!

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  8. I don't agree with everything that Ron Paul would do as president. However, I give this man immense credit for standing up for what he believes in. I hope he runs for 2012 since we need someone like him.

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  9. RON PAUL = FREEDOM NWO = SLAVERY We have a huge vote in November,we better get it right !! Please WAKE up PEOPLE time is getting short. This could be our last vote !! Oh Canada the NWO has a firm grip on your country as well. LONG LIVE THE REPUBLIC !!!!

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  10. We need to spread this guy's information so he will get in on 2012.

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  11. ron paul is like awesome.

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  12. we NEED to Learn his message, spread it, and carry it on- He is a great role model- and when I see people from all over the world supporting him and hoping for US that he can lead us to a Better place in truthful light- that's pretty awesome :)
    He OWNS on every1 because he seeks and demands accountability, and we need to back THAT up. We must not be afraid in our journey to good, and unity as people will bring strength and confidence and expose the dark that keeps us blind.

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    • soulfeltart on Ron Paul: "we NEED to Learn his message, spread it, and carry it on" "he can lead us to a Better place in truthful light"

      Proselytize much? He is a freaking two-faced politician, just like all of the others (well, Ron Pauls hysterical track record is a bit more rac ist than the others), not a saint.

      No wonder people think Paulians are cultish, unreasonable, followers.

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  13. Ron Paul and the people v NWO...Let's go get em!

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  14. Ron you have the attention of the young and educated. The type of people who don't enjoy having issues glossed over and the wool pulled over their eyes. You are one of the few politicians I really like, looking forward to seeing you back in the race in 2012.

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  15. of course the people understand unimployment. They're living it. They migh just want to know why, without all the lies this ragbag government continues to foist.

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  16. im a canadian as well, and trust me, we are no better off!

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  17. Paul is a fake. 911 was done by the federal govt. If you disagree watch Building 7 fall down. Don't be a fake patriot yourself. Get informed.

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  18. Reading some of these comments on here is a perfect example on how little people know of Ron Paul, No reading or listening or researching his back ground and what he has been fighting for all his life, but it doesn't stop anyone from spewing out what ever nonsense just happens to pop into their little shallow minds in their little shallow worlds remaining sheep till death never understanding the system, the FED, and the Elites role. Our country is asleep.

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  19. Unshackledtruth

    Ron Paul a straight shooter no bull politician a very rare thing in these New world order times.

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  20. Thanks for not attacking me like a ron paultard bro.lol

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