all wealth is created by voluntary action. when governments spend money, they take the money out of the economy, which is productive wealth. it is very negative. if they have a trillion dollars and they take it from you and put it into washington, you have lost your trillion dollars. since governments are not productive, they spend a trillion dollars on interfering with your life. getting involved in a war they should not be involved in. we the taxpayers get hit twice. that is why a trillion dollars is a real boost. people get nervous. some of those people are not very productive. it was harder to make a sale back in the 1970's on what we

anticipated would happen. today, we are there. we know what has happened. we have consumed our wealth. we cannot borrow more. we cannot tax anymore. we have this huge debt. we are just behind. they have to either print the money or borrow the money. the economic growth is not there. it is not just the united states problem, it is a worldwide problem. it is a monetary problem. the basis of all the monetary system is the u.s. dollar. it has given us an advantage over the many decades. the disadvantage is that we exported dollars and our jobs went with it. there is a limit to how much? you can sustain. when a country is wealthy, the republicans and the democrats get along pretty well. for decades, they did whatever

they want. you spend your money, we will spend our money. i do not think it is lack of bipartisanship. i think it is bipartisanship doing the wrong thing. they have done this for so long. they have consumed the wealth and that is why we are facing a crisis. [applause] >> as an air force pilot, i flew out of saudi arabia, iraq bosnia. i saw firsthand there is a big difference between overseas military spending versus defense spending. the cuts you are proposing to make in your budget, it does come out of military spending

for defense spending? >> the spending that would cut would not touch defense. i think defense will go up. it will be improved because we will not get ourselves involved in things we should not be involved with. our defense is not enhanced by starting wars, occupying nations, and being the policeman of the world. our defense -- [applause] there are a couple of different ways you can measure the cost of the military occupation and the activities we have. i put it in the category of overseas spending. state department spending, building embassies in baghdad, the military operations, foreign aid. it is about $1.40 trillion a year. we can put a lot from that.

too often the republicans and democrats got together and agreed on spending. it should be that we could get together and agree not to spend money overseas. we should be helping the american people. [applause] half would come from overseas spending. $500 billion. the rest would come from departments. five department i would cause. the department of education, i do not see why we need a department of education. [applause] it would still need a lot more to get to a trillion dollars. we would have to move the baseline back to about 2006. government was not too small in 2006. it was too big event.

just going back to that base line, we could have real cuts. whenever you hear the congress or the president talking about these cuts and super committee is putting a trillion dollars. it has nothing to do with cutting. what they're doing is cutting proposed increases built into the system. it is to be we complained about the communist having five-year plans. we have 10-year plans of continued deficit financing. they would cut one trillion dollars over 10 years. $100 billion a year. i am talking about real cuts. going back to the baseline. we could do it. we could have the budget balanced in three years. the economy surged back. it might even happened sooner. we have to do something. we can not to believe that just

spending money and printing money and borrowing money is going to bring the economy back. europe right now is in big trouble because we are all interconnected. china had a thing going there, we exported dollars, we imported their stuff. they have are dollars of the there. -- our dollars over there. they have us over the ropes. they have inflated their currency, too. there is a lot of distortion. there will be some changes over there as well. we have to think about sound economic policies. when i talk about that, we have to think about what our constitution says, what liberty is, what sound money is all about, having a proper foreign policy. [applause] >> you get twice as many

contributions for military with all the other candidates. that becomes very clear. speaking of economic recovery, the new jobs report, are we out of the woods? has the economy recovered? >> i watch the markets closely because they discount everything. even though it might not be long term, they immediately discounted. this will be very favorable. before you knew it, the stock market closed down. the market players did not think too much of this. there were increased jobs. they're not telling you the truth compared to what? they said unemployment was up to 9%. now it is down to a plan 5%. that is not counting the people who have been out of their jobs for more than four weeks.

they do not count them anymore. people who are very partially employed have just part-time jobs, they do not count them anymore. if you count the way they did during the depression and other years, unemployment is probably closer to 20%. that is why there is a disconnected. the people feel worse than the government tells you you are supposed to feel. the unemployment rate is much bigger than the inflation is much worse, standard of living is going down. people on fixed incomes know about it. the middle class is shrinking. this country lives beyond its means. free-market and sound money given to the largest middle- class, which we used to have. now our middleclass is shrinking in size and the standard of living is going down. if we do not change our policy, this will continue. we could go over a cliff and suddenly have it sink rapidly.

that is why i think it is so important that we do something to prevent ourselves from getting in that bad of shape. >> thank you. >> we will open it up to the audience for questions. as i imagine there are a couple of ron paul supporters here. the primary is only four days away. we need people that are not sure who they are going to vote for to ask questions. this is a big group. let's leave the questions for undecided voters. there will be some people going around with microphones. >> i would like to thank you on behalf of the 110,000 self- employed people in new hampshire. for supporting our equity. the equity for our nation's self-employed act.

it would enable us to doc are health insurance premium as a business deduction. that is so important. self-employed in this nation are really suffering from this self employment tax on all of our income. the first question, would you consider cutting back in half? i really do not know the answer to this, but what is your position on corporate personhood? >> on the taxes, my goal is to get the tax is as close to zero as possible. [applause] we did pretty well up until 1913. we did not have an income tax. but the government was very small. the people should be in charge of their money.

we are a long way off from that. anything we can cuts is good. on the medical, being able to deduct that as a small business, that got out of whack back in the 1940's. it was very unfair. and the corporations should have been -- it would have been better for all of us to assume responsibility. look for the policies that are automatic and transferable. it became a problem because your insurance was associated with your business. then you had to say, we will move it and it will go to another company. it should have been private all along. i would do anything i could to get the proper deduction.

this is going in the opposite direction of what obamacare does. what we should do is make sure that anybody and everybody can get their money back. tax credits of some sort. maybe have a tax savings accounts. that is totally tax deductible. if that is tax-deductible, did a major medical policy. the important reason for that, we get the doctor and patient talking to each other again. now it is corporate medicine and lobbyists in washington -- some of the big players do not care about how big the government is. they just want to get part of the pie. you have the drug companies, insurance companies, it is very much a corporation. on personhood of the corporations, personhood implies rights. only individuals have rights.

you do not have rights by groups. [applause] the difficulty with having rights by groups, to reasons why that is not good. you punish a group, which we have all had to live through a system of punishment. that is wrong. privileges to groups are not any better. that is why we should all be individuals. if you have a legal organization, it is the individual that should be responsible. the corporation itself is not a person. only we as individuals are. [applause] >> good evening, dr. paul. thank you for being here. my question is a continuation of the health-care issue. i spent most of my life as an advocate for children.

especially disabled children. i understand from your plan that you would like to see the end of medicaid and medicare because they are government run programs. that is possible, but how would be a sure that people who are virtually all uninsurable would be covered to buy companies and better in the profit-making business? that is a tremendous concern and i guess in families that cannot coverage if they do not have -- there is nobody that is going to take care of those kids. >> it is and important question. even if one agrees we should have never started it, we are not there now. we have a system where we are very dependent. i know some people say it sounds like i will cut those

medical programs. in a way, i have a very modest position on this. earlier on, i mentioned were i would cut. overseas spending, wartime spending, some of the department's going back to a certain level of budgeting. i think social security beneficiaries, the promise has been made. we took the money. the money has been spent. i still think we should try to provide the promises and take care of the promises. medicare is the same way. child health care would be the same thing. my budget proposal does not diminish it. i would hope to see the day or we could work our way of out of bed and think of a better way. this is rather new in history. in my lifetime, and the time i practiced medicine, there was a

time when people would go to hospital and if they needed help, there were charity hospitals. i worked in a catholic hospital for a while. even in the midst of all the government, there is a bird hospital in galveston, texas that takes care of any child that is burned for free. just think how much more prosperity we would have if we had a free-market economy. now the concern is we are broke, we cannot pay any of our bills. how will we make -- how will we service all these people? the only way you can do that is to cut that kind of spending. if you go along with this idea that you do not have to cut anything, you are kidding yourself. those programs will exist, but already those checks are buying less. we are on a dead-end course. in order to take care of some of those programs, you have to

cut the spending elsewhere. but they are not my top priority. i would hope that someday we would be able to work our way and make encouragement that we get back to self-reliance. [applause] >> dr. paul, is there any way you would consider allowing citizens my age -- the same access to medicare benefits as your age? >> medicare benefits? >> even though i am a lot younger than 65, i should not be denied the right to have those benefits the elderly have. >> they are struggling and they cannot even take care of the elderly right now. medicare is in worse shape than social security. financially, there is no way. if young people do not have a job and take care of

themselves, and they have the medicaid programs. that is something i do not attack. that would not work. as the dollars are not there. the previous generation are depending on you to work to pay for their medicare. at your age, it is not going to work. we need a very prosperous economy where you have good jobs. did your own benefit and your own deductions rather than the corporation's being involved in giving a tax break. [applause] >> welcome to new hampshire. my concern is related to foreign policy. there has been a lot of discussion regarding your policy on air safety abroad, pulling troops back where they

be felt -- where we feel they should not be deployed. we face some serious threats in the middle east, particularly iran. how would you handle iran? nuclear iran [inaudible] >> all nuclear bomb scare me. we have had way too many of them. [applause] some of my opinions come from the experience i had when i was in the air force during the 1960's. i went in with the greatest confrontation with the soviets occurred in the october of 1962. that is when i received my draft notice. that was over with by the time i was sworn in. i was in during the vietnam era. they had 30,000 -- they has been in cuba. we were about to have a nuclear exchange.

compare that to the problem we see with iran. maybe someday getting a nuclear weapon. the danger is way overblown about them having one in the near future. i think they would like to, that would be a concern. i do not want them to get one. the u.n. says they have no evidence there on the verge of a nuclear weapon. are all in cia says that. to give you some reassurance, the secret police for israel said if iran gets a nuclear weapon, it will not pose an existential threat to israel. they are saying, hold off, let's not get overly excited. let's not start dropping bombs. the three generals have said,

they are against doing anything radical. my greatest fear is that we will overreact, go in and not have a good reason. like we went into iraq. think of all the things that were stirred up about iraq. weapons of mass destruction. al qaeda. all these things related to 9/11. none of it was true. and then we ended up occupying afghanistan. we have lost 8500 americans. hundreds of thousands begging for help. we should only go to war with a great deal of caution. [applause] it is not that i dismissed it and that is not important, it is

that there are different ways to do it. i felt very fortunate in the october 1962 because kennedy at least had the wisdom to talk it out. they both agreed to move their missiles out. khrushchev moved them out of cuba and kennedy move them out of turkey. i am suggesting that more can be achieved without resorting to violence. the need to get involved over there right now -- this whole thing of sanctions, that is the first step to war. this is really very dangerous. we had sanctions on iraq for 10 years and finally went to war against iraq. i want you to think about a golden rule for foreign policy. what if china did in the gulf of mexico what we are doing in the persian gulf, how would we act?

what if china is moving their ships and and used drone of missiles to bomb a few of their enemies that might be on our land. we would not like that very well. we never see it from their viewpoint. we just see it from our viewpoint. i think sometimes it is a distorted view point. they have not forgotten 1953. we went into iran and overthrow their government. they were practicing democracy but we did not like him because he did not want to give the oil benefits to the british and the americans, he wanted to keep the benefits for the iranians. we overthrew him and put an the shaw who was there for 26 years. he was a ruthless dictator. what did that do? that stimulates radicalism. that is how radical islam got going in iran.

most of us do not know that or care about it or see the relationship. there are reactions to this. there is blowback. our cia knows about it. this is what we should be more cautious. i talk about what happened in the 1960's and 1950's. the french and the americans were fighting the vietnamese. we did not declare war, we went over there and got involved in a civil war. we were going to stop the movement of communist -- communism. we lose 60,000 lives and then we walk out. there was no domino effect of communism. the chinese moved toward western economics. they have not done so badly. the vietnamese have become westernize. just think of what happened in

peace that we could not pursue in war. the use of force should be the very last thing you do. [applause] also, i think it is worthwhile -- it introduces the religious attitude. i think there is nothing wrong with considering the just war principles that have been around since st. augustine. they are not bad principles. you fight a war in defense and you do it proportionally. you have to do it to protect your own people. there is nothing wrong with those principles. they are a universal principles. i just try to follow those because i think the goal is peace. it is not occupation. [applause]

>> i wanted to ask about current health-care system that was voted in that costs a lot of money. do you have any plans? the direction you could go to make that not as bad as it could be if he were president. >> is she talking about obamacare? >> yes. >> anything we could do it could make it better i would think. if we cannot reverse it and get congress to repeal the entire thing, the one thing we always should preserve when government gets overly involved is always give the people the option of getting out of it.

opting out is very important. if it is a bad deal to be involved in one of these programs, i think everybody should have a chance to get out of it. it is sort of like the way a lot of people complained about our educational system. i do not think federal control of education helps. we also are able to opt out and a lot of people do. they have the right to go to private school. i think that is very good. in medicine we ought to be able to opt out, too. [applause] there are a lot of things we can do. obviously, i voted against obamacare and we should repeal it. there is no way can be paid for the way we are going. and there will be rationing. there already is rationing. that is a bad thing. once government get involved -- the big problem is since the 1960's when the government got

involved, the pomp money. whether it is pumping money into education or medicine or housing, it usually does not give us better quality. it pushes prices up. if it pushes the cost of education way up. that is what government does in medical care. it makes the prices and the cost skyrocket. they say the government has to come in and give more money out to poor people who cannot afford it. if the problem is really a monetary policy and then a government intervention policy, if you want the maximum efficiency in delivering goods and services you have to look to the free market. that is the way to deliver free -- that is the way to deliver goods and services. [applause] >> how about up here. i know this gentleman has been waiting.

>> thank you. i traveled here from rhode island. i want to say thank you for letting us ask the questions. i have been following the news a little bit. i watched cnn, msnbc, fox. i do find there seems to be a lot of people that keep saying you are an electable. you are unelectable. i start to see that on twitter and facebook among friends and family. whitey you think that the media keeps saying things like that. is there some sort of agenda behind it? i do not understand. >> i think it is wishful thinking on their part. [applause] we take on all the special interests whether it is the military industrial complex,

everybody that has gotten a bailout. we take on the federal reserve. anybody close to the establishment has something to try to protect. the other thing that they do -- when they ask me this, i am supposed to get angry and upset. it makes me laugh they said, how come you are so dangerous? you people are dangerous. yes, i endangers because i live in the constitution. that is a dangerous thought. [applause] and other dangerous idea, i do not think we should be printing money. we should only have gold and silver as money like the constitution says. [applause] my goal is free markets, the protection of civil liberties, sound money and property rights, contract rights, sensible foreign policy.

the other thing i sometimes do not see how this could be dangerous because i see great danger in our country right now. it is against our liberties. if you protect liberty, you protect the marketplace. he protect your property. you do not have this foreign- policy we have. right now liberty is very much threatened in this country. after 9/11 there was a lot of fear. i understood it and i was concerned and i voted to go after the guys that did it. but there was a lot of overreaction, too. immediately they brought up a bill that had been floating around congress for a couple of years and passed it in one week. that bill was not patriotic even though they called it the patriot act. we should repeal the patriot act. [applause]

now, if it would have called the bill what it was really doing -- any time you see a bill in washington that sounds good, figure it is doing the opposite. that is a safe bet. if they would have called the repeal the fourth amendment act, a lot of people might not have voted it. they do not name and what it is. it has gotten worse since then. one year ago the president send somebody over to the senate to announce any policy. under certain circumstances, the president has authority to assassinate american citizens. that is the law of the land, at least he assumes it is. he has already done it three times. maybe one out of three might have been a bad guy. that people deserve a trial as well. -- bad that people deserve a trial as well. [applause] can you think of anything worse than the nazi war criminals?

they even got trials. there is nothing we should be intimidated and so frightened of that we allow our presidents to assume this power to assassinate american citizens with no charges. not only that, two weeks ago they passed the national defense authorization act, another bad bill. people always know about it and i am very pleased about that. it is very bad. it gets rid of the prohibition against the military and forcing domestic law. there were only seven senators that voted against it. my son voted against it, let me tell you [applause] that means an individual who may be associated with an organization that might have done something bad -- that is

all they need, associated forces. a website or donation or what ever, no matter how in the senate was. even if it was not an asset you are still supposed to get a trial. for now the military can haul you often put you in a secret prison and an attorney is the night to you. one senator boldly said if we pick you up because we suspect you belong to al qaeda, do not ask for a lawyer. a u.s. senator saying that. that has to reverse. we have to protect civil liberties. liberty is the most important item. we are a free and prosperous country and at one time was very wealthy because we are honored and understood this. it was written into our declaration of independence. it was acknowledged that governor -- government did not give us our rights, our life and liberty came from our creator and comes in a natural weight. if we lose that, worrying about paying some bills is academics because life will not have that

much meaning. one thing i have noticed in the last four years, there has been a sudden change in interest in the economic issues that have been talking about for a long time but also the foreign policy issues. even in the last four months there has been a tremendous surge in interest in what our campaign has been talking about and why it offers us so much. it is not offer us something new and strange that we have to invent something new. all we have to do is look at our traditions and look at what we were given. do not let what we started disappear so casually. right now it has been slipping away. in an economic crisis, which i anticipate will come. if we do not clean up our act the economy will get much worse. the destruction of currency can have a lot of violent repercussions and a lot of

demonstrations in the street if not violence. if they have all these laws against us, who knows? if you happen to be locked in a group that happens to be construed as anti war -- oh, and you might be an associated force. you cannot tell what they might do. that stuff need off the books. we need somebody an office to say the top of a president is to protect your freedom. it is not to run the world. it is not to run your life. [applause] it is not to run the economy. the president, the bureaucrats, the politicians do not know how to do that. our obligation should be the protection of liberty. this will work its way out. then we have a very good chance that once again our calls will be peace and prosperity, which should be our goal all the time. thank you very much.

[applause] >> do me a favor. here is what we are going to do. before we go any further, we will ask the press to move over. we will give people time to that to get pictures. we have to give them some room. will the media please move back. form a line over here. folks who are not interested in that can exit over there. on the photos you are going to have to go to our web site www.ronpaul2012.com.

click on the new hampshire site and you will have to download it. the we have a photographer here. he will do the -- she will do the photos and we will applaud them and you can get them. that is the program. thank you very much. come on, guys. give us some room. [captions copyright national cable satellite corp. 2012] [captioning performed by national captioning institute]

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. . [ no audio ] very good. >> had fun working your campaign. >> wonderful, glad you came out tonight.

hello, sir. you're right here. right there. hello. hello, everybody. hell

hello. glad you're here. got it. thank you. >> hello, there. how are you? is that right? we're keeping it.

there you go? are you sure? thank you. that looks like a good one. hello, dear. yeah. hello? thank you.

thanks for coming out. >> got it? >> right. >> hello, dear. how are you? >> thanks for coming out. >> hello? >> hello? good to see you again. there we go. how are you? another one? why not? glad you came out. hello, how are you?

>> i don't think we have the picture. >> did we get it? nice to meet you. thank you. thank you, dear.

that will be a real challenge. but if we line up a little bit -- thank you. thank you. >> thank you. could we get a picture? glad you came back? glad you came back. >> thank you. thank you very much.

>> okay. hello, there, how are you? warmer weather? what happened to the cooler weather? got to be able to leave. >> thank you for joining us. >> thank you. >> right there? >> how are you? >> jonathan -- >> all right. >> thank you. thank you for coming. there we go. >> all right. >> before the primary, i was the first guest four years ago. >> did you know? >> their daughter was standing there.

okay? >> one more left? >> i wanted to give you -- >> this is for me? >> yeah, it is. >> very good. >> thank you, thank you. >> all right, sir. >> good job. okay. >> today, c-span's road to the white house coverage in new hampshire continues with republican presidential candidate newt gingrich at a

town hall at 11:00 a.m. eastern. and rick santorum at a town hall meeting in hollis at 2:00 p.m., both live, here on c-span. >> i know president obama came to office talking about procurement reform. everybody leaves on the defense ministry and military to neck down and people leave out one part that's going to make a difference, lawmakers, go ahead and lose hundreds of jobs in your district. that's how that falls and that's where it always stops. >> as editor of military.com, ward carroll provides the ten million members with news, information, and support. sunday, we'll discuss how the tax dollars are spent on the defense department and procurement procedures on c-span's "q&a". this morning, new hampshire leader president and publisher joseph mcquaid talks about the ne