Is Obama making the economy worse?
Ron Paul: We’re trying to unwind a Keynesian bubble that’s been going on for 70 years, and you’re not going to touch this problem until you liquidate the bad debt and the mal-investment, go back to work. But you have to have sound money, and you have to recognize how we got in the trouble.
We got in the trouble because we had a financial bubble, and it’s caused by the Federal Reserve. If you don’t look at monetary policy, we will continue the trend of the last decade. We haven’t developed any new jobs in the last decade. Matter of fact, we’ve had 30 million new people and no new jobs, and it’s because they don’t — the people don’t understand monetary policy and central economic planning things.
Free markets will give you 10 percent or 15 percent growth or whatever… and you will not have to turn it off because you think it’s going to cause inflation. It doesn’t work that way.
On manufacturing jobs…
…everything we’ve done in the last 20 or 30 years we’ve exported our jobs. And when you have a reserve currency of the world and you abuse it, you export money. That becomes the main export so it goes with the money.
You have to invite capital. The way you get capital into a country, you have to have a strong currency, not a weak currency. Today it’s a deliberate job of the Federal Reserve to weaken the currency. We should invite capital back.
First thing is, we have trillions of dollars, at least over a trillion dollars of U.S. money made overseas, but it stays over there because if you bring it home, they get taxed. If you want to, we need to get the Fed to quit printing the money and if you want capital, you have to entice those individuals to repatriate their money and take the taxes office, set up a financial system, deregulate and de-tax to invite people to go back to work again.
But as long as we run a program of deliberately weakening our currency, our jobs will go overseas, and that is what’s happened for a good many years, especially in the last decade.
Government subsidies for private enterprise…
There shouldn’t be any government assistance to private enterprise. It’s not morally correct, it’s legal, it’s bad economics. It’s not part of the constitution. If you allow an economy to thrive, they’ll decide how R&D works or where they invest their monies.
But when the politicians get in and direct things, you get the malinvestment. They do the dumb things. They might build too many houses. And they might not direct their research to the right places. So no, it’s a fallacy to think that government and politicians and bureaucrats are smart enough to manage the economy, so it shouldn’t happen.
The government shouldn’t be involved. You take the bankruptcies, we’ve been doing a whole lot. We’ve been propping them up. We’ve had the Federal Reserve buy all the illiquid assets, which were worthless, stick it with the taxpayers. The people who’ve made the money when the bubble was being blown up, they’re the ones who got bailed out.
But you want the correction. Corrections are good. The mal- investment in the bubbles are caused by the Federal Reserve and the government, and we keep propping it up. And that’s why this is going — it was predictable it would come. It’s predictable it’s lasted three years. And it’s predictable, as long as we do what we’re doing in Washington, it’s going to last another 10 years.
We’re doing what we did in the depression. We’re doing what the Japanese have done. You need to get the prices of houses down to clear the market, but they’re trying to keep the prices up. They actually have programs in Washington which stimulating housing. You need to clear the — clear the market and then we can all go back to work. But what we’re doing now is absolutely wrong.
Well, under these conditions, it’s not solvent and won’t be solvent. You know, if you’re — if you’re an average couple and you paid your entire amount into — into Medicare, you would have put $140,000 into it. And in your lifetime, you will take out more than three times that much. So a little bit of arithmetic tells you it’s not solvent, so we’re up against the wall on that, so it can’t be made solvent. It has to change. We have to have more competition in medicine.
And I would think that if we don’t want to cut any of the medical benefits for children or the elderly, because we have drawn so many in and got them so dependent on the government, if you want to work a transition, you have to cut a lot of money.
And that’s why I argue the case that this money ought to be cut out of foreign welfare, and foreign militarism, and corporate welfare, and the military industrial complex. Then we might have enough money to tide people over.
But some revamping has to occur. What we need is competition. We need to get a chance for the people to opt out of the system. Just — you talk about opting out of Obamacare? Why can’t we opt out of the whole system and take care of ourselves?
I think faith has something to do with the character of the people that represent us, and law should have a moral fiber to it and our leaders should. We shouldn’t expect us to try to change morality. You can’t teach people how to be moral.
But the Constitution addresses this by saying — literally, it says no theocracy. But it doesn’t talk about church and state. The most important thing is the First Amendment. Congress shall write no laws — which means Congress should never prohibit the expression of your Christian faith in a public place. KING: OK. Great. Let’s go down to Josh McElveen, and let’s continue the conversation.
Full transcript and video here.