This is the transcript of the GOP debate at the Reagan Library Wednesday January 30, Ron Paul ONLY.
(CNN) -- ANDERSON COOPER, CNN: The first question is actually a question that will go to all of you, but I'll start with Governor Romney. During a 1980 debate, he suggested Americans determine who to vote for by asking themselves, "Are you better off than you were four years ago?"
So tonight, in terms of the economy, are Americans better off than they were eight years ago?
COOPER: Congressman Paul, 61 percent of Americans think there is a recession already -- 61 percent of Americans say there's already a recession.
Are we better off than we were eight years ago?
TEXAS REP. RON PAUL: No, no, we're not better off. We're worse off, but it's partially this administration's fault and it's the Congress. But it also involves an economic system that we've had for a long time and a monetary system that we've had and a foreign policy that's coming to an end and we have to admit this.
The Republicans were elected in 1994 to change direction of the country, because people sensed there was something wrong, we were going the wrong direction, but we didn't do anything.
In the year 2000, we did, also. We were elected in the year 2000 to have a humble foreign policy and not police the world, and yet what are we doing now? We're bogged down in another war. We're bankrupting our country and we have an empire that we're trying to defend which costs us $1 trillion a year.
And the standard of living is going down today. It's going down and the middle class is hurting because of the monetary policy.
PAUL: When you destroy a currency, the middle class gets wiped out. Poor countries don't even have middle classes. We used to have one, and they're on the ropes right now.
But it has to do with a fiscal policy, monetary policy, and foreign policy of way too much spending, but it took a lot of years for us to get here. The people in this country have been begging for a change in direction, and they haven't had it. It's time we gave it to them.
COOPER: Congressman Paul, do you agree with Governor Schwarzenegger on this one?
PAUL: Yes, I think California should do what they want, and we all recognize that. But one thing that hasn't been emphasized here that should be emphasized when we're dealing with the environment and gas house -- you know, greenhouse gases is property rights.
We neglected during the industrial revolution property rights, and governments and big corporations got together and colluded. And that's what has to be reversed. You have to emphasize the property rights.
But I would like to take one minute, since I didn't get a chance to answer this discussion on conservative versus liberal.
COOPER: We're going to have -- I promise you we're going to have -- you're going to have another opportunity to do that. I promise you, coming up in like two minutes or two questions.
COOPER: Congressman Paul? PAUL: Well, you know, the governor says that you have to borrow for a handout of a check from the Chinese. Where are you going to get the money to build the highway?
Same old thing. We have a foreign policy where we blow up bridges overseas and then we tax the people to go over and rebuild the bridges overseas and our bridges are falling down and our infrastructure is falling down.
So, yes, this money should be spent back here at home. We have a $1 trillion foreign operation to operate our empire. That's where the money is. You can't keep borrowing from China. You can't keep printing the money.
We have to cut some spending. That's what nobody here talks about. Where do you cut spending if you want to spend some money? We need lower taxes, less regulations, and we need to free up the market.
We can't expect the government to do everything. We have to faith and confidence that the market works, but you can't do any of that unless you look at the monetary system.
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