Rand Paul channeled his inner Ron Paul Tuesday night, slamming the Federal Reserve like only his father had done in years past. Appearing on “Tucker Carlson Tonight,” the Kentucky senator explained his Audit the Fed bill and also gave a full-throated economic defense of the policy.
Paul first credited the Federal Reserve with higher prices in the economy due to its inflationary policy. He stated “The dollar’s lost 96% of its purchasing power. What does that mean? Your prices have gone up every year. What was once worth a dollar now takes $24.” Paul specifically gave the example of senior citizens whose social security checks haven’t gotten any larger while prices at the grocery store have increased. He also pointed out that the institution increases income inequality.
Asked what the average person gets from the Fed, the eye doctor humorously replied that they get the “recessions and depressions that come about.” He argued that there have been more recessions since the Federal Reserve was created in 1913, and also pointed out that the Great Depression occurred only a decade after its imposition.
Related: Rand Paul: “Constitution Doesn’t Apply to People Not in U.S”
Finally, Paul gave a short-hand explanation of Austrian business cycle theory. Crediting the Fed with creating the housing crisis in ‘07 and ‘08, Paul explained that the interest rate, the “price of money,” plays a vital role in the economy. Because the Federal Reserve kept interest rates too low, housing was unduly stimulated, leading to the eventual crash. Paul added that the stock market was currently in a bubble and that it would eventually come to an end.
Rand Paul seemed fairly optimistic about the possibility of passing the bill. Carlson stated that with Donald Trump, who has voiced support for Audit the Fed, in charge of the White House, it was perhaps more likely to pass than at any other time. Paul also noted that they had a majority of votes in the Senate, including all 51 Republicans, as well as two Democrats, including Bernie Sanders.
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