Ron Paul was featured on Real Time with Bill Maher tonight, which premiered its new season on HBO tonight. Paul, who appeared on the show to Maher in his one-on-one interview, said that the real problem with the state of affairs in the U.S. is we don't "do a lot less" and that we "should hardly be doing anything in Washington." He notes that it's "politically unacceptable" and yet "that's the right thing to do." He nailed it on the head with the fact that, when you have too much investment and there is too much debt and malinvestment and too much malvestment, you "have to liquidate it." After Paul provides his well-thought out example of what happened in 1921 when we were in a depression (which lasted a year because the government wasn't involved) and then we got into another depression in the 1930s (which was pro-longed by the U.S. federal government's intervention), Bill Maher asks:
But if that's true, why do so many economists say we should do the opposite?
Paul responded with the following:
Well, you're listening to the wrong economists if you think they're serious. All Keynesian, socialist welfarists will say you have to do something. If you believe in the free market and you understand the business cycle, the business cycle was caused by the Federal Reserve system, you know that you have to get rid of the mistakes that were building the system. The real cause is created by the Federal Reserve, and yet very few people are talking about the Federal Reserve.
Here's a clip of Paul's appearance on Real Time:
After Paul's appearance on the show, Maher and his Keynesian, socialistic guests kept shilling for the banks. Panelist Chrystia Freeland of the Financial Times took potshots at Paul's Austrian views, saying that she wouldn't want to live in a country where there's "no economic activity" if we didn't bail out the financial services (banking) industry. Congresswoman Maxine Waters (an airhead socialist if there ever was one) made some glowing praise about Paul, but "parted with him" on the need to get rid of regulations (which Paul didn't even bring up on the show and wasn't the point on the show to begin with).
[Cross-posted at The Freeman Chronicles.]