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.


  • unciviltitan

    If only America had the patience to listen to and elect someone who actually explains their points and ideas and does not hide behind party lines and lies to line their pockets. I would love Ron Paul to be elected but the voting population of America will keep electing selfish party zealots.

  • alexn159

    If you think about all the ways they steal from you: Income tax, social security, inflation, property tax, sales tax, endless other taxes

    its amazing to think anyone has anything left at all

  • Metropolis2011

    “I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”

    “The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.”

    Thomas Jefferson

  • nvsyru

    As I continue to hear Ron speak the TRUTH, it becomes harder and harder to believe the LIES!

    Ron Paul for POTUS in 2012!

  • ZeekoWay

    Tea Party in the US – UKIP in Great Britan – Partei der Vernunft in Germany

    seems like a libertarian movement is going on worldwide!

  • Snotface42

    Thanks for the update! I wait each Monday morning for them. Hopefully Dr. Paul will run in 2012, and make us all proud…

  • msungs

    Ron Paul is a modern day Founding Father who has the courage to tell the American people what the truth of the situation is, meanwhile the Federal Reserve as “Federal” as Federal Express continues to print the “Owe”bama bucks to patch up the gigantic hole on the USS Titantic. The iceberg we hit (2008) was severe but the sinking is going to be much more severe. The Fed tries to keep the band playing and Mr. Paul keeps screaming for the people to go to the lifeboats. Very few if any will listen

  • Ron Paul is the man – he makes sense, period. I love this guy, and support him so much! We need Ron Paul to lead our country!!!!!!

  • AdaJank

    Words of wisdom, Dr. Paul. Keep doing what you do and us, the people, will hopefully come around and help these things get fixed as quickly a possible.

  • JoAnn Veburg

    You make common sense in our nation’s capitol where ignorance has gone to seed. I hope you run for president. But, keep in mind that there were rumors about John F. Kennedy’s view of the Federal Reserve Bank and what happened to him. “We should pray to God not for an easy life, but pray to God for strong men,” John F. Kennedy

  • ALittleBitPregnant

    Paul/Paul 2012!!!

  • GreatInca

    Aren’t slogans like ‘Ron Paul Revolution’ helping the American tyranny label Ron Paul supporters as terrorists?

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  • infoget1234

    come be free with us republicoftheunitedstates org

  • TheMass33

    I respect this real American Patriot.

  • NCIcaucus

    Da MAN

  • CJLopez21

    inflation is theft…..with all the technology today to make us more efficient, do people ever wonder why it takes two incomes now on average to support a family.

    government is going to sacrifice savers and those living on fixed incomes to pay off its debts.

  • ScavengerData

    Thank you for the update, Mr. President.

  • MrGottabefree

    It is a shame we cant get this man in office. Well atleast until we all get off our ass, make a stand and put him in there ourselves, and say screw the elite!!!

  • Highrise408

    As Ronald Reagan said:

    “Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free.”