Ron Paul: America Is Hurting While the Fed’s Cronies Enjoy Full Employment and Jackpot Bonuses

by Ron Paul

Unemployment continues to plague our economy. In spite of constant claims that we have just turned the corner into recovery, the jobs report remains grim with no real signs of improvement. While Keynesian economists and big government apologists scratch their heads about persistent unemployment in spite of unprecedented government so-called “investment” in the economy, free-market economists understand the problem perfectly well. In short, they understand that we are looking to the Federal Reserve to solve an unemployment crisis that the Fed itself largely created.

For example, the Fed is supposed to maintain full employment as half of its dual mandate. But the Fed simply has the wrong tools to do this. In fact, its credit expansion and manipulation of interest rates cause harm when they are applied to “help the economy.” As we saw with the housing boom and bust, Fed-created inflation cannot be sustained without harmful consequences. The Fed’s artificial boom led to the unemployment we’re suffering today.

The Fed is not a small business or a manufacturer that creates value or increases productivity to sustain real job growth. It literally destroys value by printing more money and distributing it through sweetheart deals to well-connected banks and corporations, including foreign banks. The only success the Fed has had in maintaining full employment has been on Wall Street, where it props up crony banks and investment houses to protect them from going bankrupt as they should. Instead they survive to malinvest another day while their executives enjoy jackpot bonuses.

The Fed also pumped up employment in the housing industry with artificially low interest rates that created an unsustainable demand for housing. Millions jumped into the sector when the money was loose and the bubble inflated. Besides the many who bought houses they could not afford and now face foreclosure, there were also those who became employed in housing-related fields. These people invested time and money in training and spent years establishing careers in real estate, mortgage lending, construction and contracting. Careers that all vanished into thin air with the burst of the bubble. Now they face considerable disruption in their lives as they struggle with unemployment, underemployment, and decisions about retraining for different careers. This amounts to a tremendous amount of unnecessary waste that would not have occurred had the housing industry be allowed to develop naturally according to market demands.

Jobs are properly created by entrepreneurs who are willing to work hard and take calculated risks. Jobs are also created through real increases in productivity, resulting from real investment profits or conservative borrowing at market interest rates. But the Fed has made those risks impossible to calculate and made borrowing money artificially cheap. As a result, economic growth has been chilled while unemployment skyrockets.

Until those in power understand the harm they do with central economic planning, we will continue to slide backwards and lose jobs. The Fed needs to stay out of the job-creating business altogether, and the federal government needs to focus on its constitutional duties. Just when we need government to back off, we hear about more government intervention in the economy in the form of “more spending”, only they call it “investment”. It is more properly called “malinvestment”, and the resources that are funnelled into industries by government policies will only hurt employment more in the long run.

  • baseballdude508

    wow, 92 likes and 0 dislikes

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  • 1tap13b

    The 2Renaissance will come after u run

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  • ZoneTelevision

    Ron Paul 2012 he’s already got our votes !

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  • wdcsucks1

    its all done by design, no other logical explanation…

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  • RonPaulSwede

    Ron, if you have the strength please run for President 2012.
    Even if you would not win this time either your ideas will go out to many others who never heard them.

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  • MsTommyknocker

    Everything good is bad, and everything bad is good!!!! Dont forget it

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  • tjohn1986

    Run Forrest Run

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  • unlistedoo7

    I hope you become President Ron…!!! 😉

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  • campaign4liberty

    Run Ron Run
    Run Ron Run
    Run Ron Run
    We CAN do it
    brave people of Tunisia Egypt showed us the way…
    learn the truth at Daily Paul & Liberty Poet


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  • ExposingUncleSham

    so why are you still trying to audit this obvious prohibited activity? Why not introduce legislation to repeal legal tender laws and allow competition in money???? You confuse me Ron

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    • David

      To Exposeing Uncle Sam, in reponse to to the comment three hours ago :

      Ron paul was always advocating for competing currencies however I Don’t think he would have enogh support to seriously introduce it yet. He got to biuld it a little more, and that is where we can come in. In our states we can contact Our Congressmen and tell them we want competing currencies, and we support ron paul. But we still need a audit so it would prove why we need competing currencies as not have a single entity have a monopoly on currency and Unchecked power over it. It needs to be accountable.

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  • IamTheAntiMartyr

    Destruction of the middle class and reconsolidation of wealth are the agenda.

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  • Tanarus20

    More and More people getting turned onto Ron Paul because (“He gets it.”) And We know, he knows, We know!

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  • the51project

    I’m British. I live in the UK. I’d just like to say, Run Dr. Paul!!!!

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  • collapseprep101

    For the sake of us all, for the sake of the sacrifice by all those before us, RUN FOR THE PRESIDENT, before it is to late.

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    thumbs up if your Run Paul 2012 bumper stickers are up

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  • 1madaboutguitar

    Nice chemtrail subliminal in the background

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  • SteveXnycperformance

    Inflation is Theft! …TRUE..SO the elites have Hinge-men minding gold in foreign country.The people from other country can`t even own anything in this state. They are just custodian. But the RICH PIGS is Owing other people gold.:(

    WHEN WILL THE WORLD WAR START? PORK(white pig and black hogs) FOR-SALE.

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  • katey1dog

    Run Ron, Run!!!

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  • mayoustard

    such a badass Ron Paul is, only too many people think this is ‘crazy’ talk,

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  • eclipseyy

    Run Dr. Paul!!!!!

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