It's a Wel-fraud Wonderland, Industrial-Scale Theft in Minnesota & GDP Boom vs. Media Gloom Week In Review

Summary

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Podcast Summary: Verdict with Ted Cruz

Episode: It’s a Wel-fraud Wonderland, Industrial-Scale Theft in Minnesota & GDP Boom vs. Media Gloom Week In Review
Date: December 27, 2025
Hosts: Senator Ted Cruz & Ben Ferguson

Overview

This special "Week In Review" episode dives into three critical stories the mainstream media “downplayed” over the Christmas season:

• Explosive findings on massive welfare fraud and government waste (with reference to a Wall Street Journal op-ed by Phil Graham and John Early)
• Industrial-scale Medicaid and welfare fraud in Minnesota, with billions potentially funneled away, some tied to terrorist organizations, and politicians' alleged lack of accountability
• Record-breaking GDP growth and strong consumer spending reported nationwide, with discussion of corporate media’s "gloomy" framing in contrast

Throughout the episode, Cruz and Ferguson advocate for accountability, transparency, and a conservative approach to welfare and economic policy, often critiquing Democratic leadership and mainstream press narratives.

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Main Discussion Segments & Key Insights

1. The Biggest Fraud in Welfare: Nationwide, Not Just Minnesota

[03:00 – 11:39]

• Wall Street Journal Op-Ed Breakdown
  Ted Cruz highlights Phil Graham and John Early's Journal op-ed, detailing "bogus bookkeeping" in the US welfare system that keeps Americans misinformed about the true scale of government support, abuse, and incentivized dependency.

  • Economic Progress vs. Escalating Spending

    • Despite 142% real per capita GDP growth (1974-2024) and most households doing better than the top 20% in 1967, welfare spending jumped 765%—now at $1.4 trillion a year!
    • “If you just took all the welfare payments and sent a check to each household directly... more than $70,000 a year.” (Phil Graham, [06:56])

  • Counting the Real Income

    • Government doesn’t count non-cash benefits/refundable tax credits as “income,” so poverty appears worse than it is, masking the true extent of support.
    • Example: A single parent making $11,000/year could actually receive $64,128 in combined benefits—yet still be labeled ‘in poverty’.
    • “This family would qualify for benefits worth $53,128... puts the family's income at $64,128, or 254% of the poverty level.” (Phil Graham, [07:09])

  • Systemic Incentives for Fraud, Lack of Accountability

    • The system, focused on “shoveling cash out the door,” isn’t set up to detect or prevent fraud.
    • Cruz’s philosophy: “The social safety net should be a trampoline and not a hammock.” ([09:35])
    • Importance of the “dignity of work” and breaking “generational poverty.”

  • Memorable Quote, Ted Cruz ([09:58]):

    “God created mankind, I believe, to work and to be productive and to make a difference and to provide for your family. And this welfare machine that the left is so invested in traps people in dependency.”

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2. Industrial-Scale Fraud in Minnesota: “Fraud Tourism,” Political Evasion, and National Risk

[15:16 – 25:50]

• The “Industrial-Scale” Medicaid/Welfare Fraud
  Ferguson and Cruz discuss recent Wall Street Journal and local CBS reporting:

  • At least $9 billion—possibly half Minnesota’s Medicaid spending since 2018—lost to fraud.
  • Federal indictments allege organized rings created fake companies and funneled money, e.g., “Anthony Jefferson and Lester Brown… had no connection to Minnesota except they heard its Housing Stabilization Services program was easy money.” (CBS reporter, [19:03])

• Fraud Not Small, Not Isolated

  • Assistant U.S. Attorney Joe Thompson:

    “The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… It's a staggering industrial-scale fraud. It's swamping Minnesota and calling into question everything we know about our state.” (Phil Graham paraphrasing Thompson, [16:56])

  • Ferguson dubs this “fraud tourism”: outsiders coming to Minnesota purely to exploit loopholes.

• National Problem, Political Accountability

  • Cruz predicts this fraud model is worse in large “blue” states—calls for federal audit starting with New York, California, and Illinois.

    "As horrific as this fraud is in Minnesota... I'm going to make a prediction that it's worse... in New York, California, and Illinois." (Ted Cruz, [21:50])

  • Critique of political leadership—specifically, Minnesota Governor Tim Walz’s alleged prioritization of party over oversight.

  • Link to Terrorism:

    • Some fraudulent funds allegedly routed to Al Shabaab, a Somali terrorist network.
    • “The single largest contributor to Al Shabaab are the Minnesota taxpayers. That’s the level of the theft that went on.” (Ted Cruz, [17:55])

• Race Card & Political Deflection

  • Clip of Gov. Tim Walz holding a press conference, shifting focus to accusations of “white supremacy”—Cruz calls this formulaic deflection:

    “This is the classic Democratic playbook. Don't look at what I'm doing. I'm going to yell you’re a racist.” (Ben Ferguson, [24:39])

  • Cruz: “At some point, those talking points get a little tired and it’s a clear and transparent effort just to avoid... accountability.” ([25:00])

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3. GDP ‘Boom’ vs. Media Gloom: Did the Press Suppress Good News?

[29:39 – 37:21]

• 4.3% GDP Growth—Media Downplays, Contradicts Previous Panic

  • Third quarter GDP clocked in at 4.3%, beating forecasts; strong consumer spending, record-breaking retail numbers.

  • Cruz reads Wall Street Journal highlights: "Robust spending by US consumers drove greater than expected economic expansion... strongest rate in two years."

  • “That’s big, by the way.” (Ferguson, [31:36])

  • Media contrasted: NYT predicted trouble; Cruz calls out “corporate media” for dishonesty, reading two ABC News tweets:

    • In 2024, 2.8% growth was hyped; 2025’s 4.3% is buried with “concerns.”
    • “That is not news... go work for the DNC because you want to be a partisan parrot. That’s who they are.” (Ted Cruz, [34:17])

• Policy Credit and Political Stakes

  • Cruz notes that “President Trump’s trade policy and supply side policy” have driven “investment, jobs, and booming economy.”

  • Kevin Hassett (NEC head):

    “No, it’s a fantastic report. 4.3%. That’s just about as good as GDP numbers get... these numbers are showing that President Trump's trade policy... is really working.” ([35:56])

  • Ferguson: Despite predictions of shortages and price spikes, shelves are full and prices reasonable.

  • Cruz underscores: “When you cut taxes, as we did, and when you repeal job killing regulations as President Trump is doing, it results in more investments, more jobs and the economy's booming. This... is basic cause and effect.” ([36:53])

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Notable Quotes & Timestamps

• “If you just took all the welfare payments and sent a check to each household directly... more than $70,000 a year.”
  — Phil Graham ([06:56])

• “The social safety net should be a trampoline and not a hammock.”
  — Ted Cruz ([09:35])

• "The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… It's a staggering industrial-scale fraud."
  — Assistant U.S. Attorney Joe Thompson (paraphrased by Cruz, [16:56])

• “As horrific as this fraud is in Minnesota... I’m going to make a prediction that it’s worse... in New York, California, and Illinois.”
  — Ted Cruz ([21:50])

• “The single largest contributor to Al Shabaab are the Minnesota taxpayers. That’s the level of the theft that went on.”
  — Ted Cruz ([17:55])

• “That is not news... go work for the DNC because you want to be a partisan parrot. That’s who they are."
  — Ted Cruz ([34:17])

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Episode Structure & Timestamps

| Segment | Start Time | Highlights | |--------------------------------------------|------------|---------------------------------------------------------------| | Welfare fraud & WSJ report | 03:00 | Systemic, government-enabled fraud; miscounted benefits | | Minnesota Medicaid fraud | 15:16 | “Industrial-scale”; links to terrorism; political avoidance | | Media spin on economy, GDP growth | 29:39 | Data vs. news spin; credit to policy vs. media critique |

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Memorable Moments

• Ferguson calling the system “fraud tourism” as outsiders travel to Minnesota for easy welfare money ([19:03])
• Cruz drawing direct lines from Minnesota’s fraud to global terrorism funding ([17:55])
• Local CBS report highlighting the scale and ongoing nature of the fraud investigation ([18:42])
• Clips and readings exposing the shift in tone of media economic coverage after a political transition ([33:55])

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Tone and Style

Direct and assertive, with a focus on “calling out” perceived media and political bias. The hosts don’t hesitate to use hyperbole and sarcasm for emphasis (e.g., “where's Waldo,” “asleep at the switch,” “go work for the DNC”). Policy points are often illustrated with detailed numerical examples, intended to shock and mobilize listeners around calls for transparency and reform.

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For Listeners Who Missed the Episode

This installment of Verdict with Ted Cruz presents a detailed, data-driven critique of welfare fraud, its implications for American taxpayers and national security, and the political/media dynamics that, in the hosts' view, enable such abuse and obscure positive economic news from the public. The tone is urgent, incredulous, and geared toward a conservative audience eager for policy accountability and integrity.

For full conversation, policy details, and additional context, listeners are directed to the complete podcast episode.

Transcript

[Podcast Host]

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[Ben Ferguson]

Welcome. It is Verdict with Ted Cruz Week in Review. Ben Ferguson with you. And here are some of the big stories that you may have missed as you were celebrating Christmas with your family and your friends. First up, Wall Street Journal is now reporting there's massive fraud in the US Government. Like we didn't see that coming, but they're even admitting now it's worse than you could ever imagine. We'll have the details of that for you in just a moment. Also, Minnesota fraud costing taxpayers billions of dollars. And what we're also being told is the fraud, well, it's not going away anytime soon. So how do we stop it? We'll explain that as well. And finally, the media and the liberals got it wrong. Economic data looking great for the GDP report and the media is now downplaying it, trying to act like it never even happened. It's the Weekend Review and it starts right now. All right, Senator, I want to move to another part of this story and it's bigger than Minnesota. We were talking about the fraud there, but the Wall Street Journal came out with a very interesting report and I think it's worth us taking a moment to talk about it. It's the biggest fraud in welfare and it just talks about how much abuse there is in the welfare system that's costing hundreds of billions of dollars to American taxpayers.

[Phil Graham]

Well, and in particular, what it talks about is bogus bookkeeping. That covers it up. And this is an op ed that was written by Phil Graham and John Early. Phil Graham was previously senator from the state of Texas. He's an economist. Phil is a good friend of mine and it's an important op ed that he wrote December 17th in the journal. It's entitled the Biggest Fraud in Welfare. The government gives tens of thousands of dollars to in benefits to the poor, which it doesn't count as income. And so this is in some ways an accounting story. And please don't go to sleep right now, particularly if you're driving. Don't go to sleep. It is an accounting story that matters. So here's what Phil Graham wrote. Something is profoundly wrong with the US welfare system. A problem that runs far deeper and is more dangerous than the shocking fraud in Minnesota that has been making headlines across the past half century. America has seen what in any other country would be considered a golden age in which lower income households have made incredible progress despite the end of our post war economic dominance around 1975. The country's real per capita gross domestic product grew by 142% from 1974 to 2024. More than 2/3 of U.S. households have inflation adjusted incomes today. That would have put them in the top 1/5 of households in 1967. So used to be the top 1/5 of households In 1967. Today more than 2/3 of U.S. u.S. Households have inflation that would put them there. 62% of all children who grew up in the poorest fifth of all households in the 70s and 80s worked their way up to a higher income bracket as adults. Some all the way up to the top quintile. Yet even as our economy has experienced broad based growth, real federal welfare spending has soared by what do you think the number is? I'm going to guess 70%, 765% more than twice as fast as total federal spending and now costs $1.4 trillion annually.

[Ben Ferguson]

Incredible.

[Phil Graham]

Were that were that money simply to be doled out Evenly to the 19.8 million families the government defines as poor. Each household. How much you think each household would receive a year if you just took all the welfare payments and sent a check to each household directly?

[Ben Ferguson]

Yeah, yeah. I mean I'm going to guess in the Thousands.

[Phil Graham]

More than $70,000 a year.

[Ben Ferguson]

Tell me. I mean that. I mean that. Tell me that's not a perfect example of government waste when you could just send direct checks of 70 grand a year to people.

[Phil Graham]

The source of this dramatic mismatch is a fraud built into how various programs determine welfare eligibility. The government doesn't count any refundable tax credits or benefits that aren't paid in cash as income to the recipients. Some claim this is appropriate because the beneficiaries will aren't free to spend non cash benefits on whatever they like. But that is a specious argument because money is fungible. Receiving Medicaid for example, frees up cash that would otherwise be spent on health care, allowing the recipients to spend the newly freed cash on other things. Non cash benefits aren't in the end that different from income except that salaries are taxed while government benefits aren't and if individual welfare programs often don't even count benefits paid in cash as income for the purposes of gauging eligibility, the government's failure to count its largesse as the recipient's income allows welfare households to blow past the income level above which a working family no longer qualifies for government help. Take a single parent with two school age children who earns $11,000 annually from part time work. The government considers this household in poverty because its income is below $25,273. Yeah, but this family would qualify for benefits worth $53,128. It would receive treasury checks of $3,400 in refundable tax credits and $4,400 in refundable earned income tax credits would also receive food stamp debit cards worth $9,216 a year, $9,476 in housing subsidies, $877 of government payments for utility bills, $16,033 to fund Medicaid, $3,102 in free meals at schools, and $6,624 in temporary assistance for Needy Families. All this puts the family's income at $64,128, or 254% of the poverty level. And look, the point, Phil Graham goes on, on this, but the point is when they're measuring income, they exclude all the welfare and benefits that are going down and then they measure income and said, look how poor people are without counting the money that is going out, out the door. And by the way, this also contributes to the massive fraud we saw in Minnesota because, because the Democrats and the federal government and state government are just focusing on shoveling cash out the door and they're not focusing on how do you, how do you actually ensure any accountability? Or even more importantly, how do you get people off welfare? Look, one of my favorite phrases is that the social safety net should be a trampoline and not a hammock. And by that what it means is, listen, many people have get down on their luck, they need help. But the entire focus should be to get you back on your feet. The entire focus should be to spring you out of the safety net and get you where you're working, where you have a job, where you're providing for your own family. You know, there's a dignity to work. You look at families that are trapped in generational poverty, one generation after another after another, and you lose the self respect. You know, one of the amazing successes of welfare reform, one of the amazing successes of the first term of Trump that saw over 7 million people go off food stamps and go into the workforce is that 7 million people that get to experience the dignity of work. I mean, that's literally a single mom who comes home from her job and is carrying two bags of groceries and puts those groceries on the kitchen table and she looks at her kids and she has the self respect of knowing, hey, I'm providing for you and the kids. Look at her and, and know that my mom is providing for you. Look, look, God created mankind, I believe, to work and to be productive and to make a difference and to provide for your family. And this welfare machine that the left is so invested in traps people in dependency. And you're not doing anyone a favor by making them dependent on government. Instead, you're sapping them of the path to the American dream.

[Ben Ferguson]

Now, if you want to hear the rest of this conversation, you can go back and listen to the full podcast from earlier this week. I want you to just pause what you're doing for the next 60 seconds and I want you to imagine Lucy, a 7 year old. Her stomach often aches with hunger. Her small hands, instead of holding crayons, know only the struggle of survival on dusty streets. School is a distant dream. Medical care a forgotten hope. Lucy's potential is overshadowed. Her future is dim. But what if someone stepped in? What if there was a way to ignite hope for children just like Lucy? Well, there is. And that is with Compassion International Partners and the local churches that provide children holistic support. More than just food, they receive critical medical care, life changing education, vital skills training and spiritual development, all in Jesus's name. And you can empower a child just like Lucy to break free from poverty. I want you to do what I've done and sponsor a child today. You can visit compassion.com that's compassion.com did you know?

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[Podcast Host]

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[Ben Ferguson]

Now on to story number two. Senator, there's another big story that I want to get to and that is the out of control fraud. We have now got a number and it could go higher. And at least 9 billion was looted from the Minnesota Medicaid programs. Plus there was welfare fraud as well. In a bombshell report coming from the Wall Street Journal, this does not look good for the governor there and a lot of mayors have now sent him a letter saying we are in trouble and it's your fault.

[Phil Graham]

Look, the level of fraud we're seeing welfare Medicaid fraud in Minnesota is Staggering. It is an order of magnitude greater than we've seen. And here are the basic facts. Federal prosecutors alleged Thursday that Minnesota may have lost billions of dollars to fraud in its Medicaid program, the latest development in an ongoing investigation. As much as half, half, 50% of the roughly $18 billion Minnesota has spent since 2018 on 14 Medicaid programs particularly vulnerable to abuse may have been siphoned off by fraudsters, According to Assistant U.S. assistant Attorney Joe Thompson. Thompson made the remarks as prosecutors announced additional charges in the ongoing investigation of the staggering industrial scale fraud engulfing the state. Quote, the fraud is not small. It isn't isolated. The magnitude cannot be overstated. What we see in Minnesota is not a handful of bad actors committing crimes. It's a staggering industrial scale fraud. It's swamping Minnesota and calling into question everything we know about our state. The level of it. Half of Medicaid for years, that's in Minnesota. By the way. If you, if you watch the corporate media, you've seen very little about this. They don't want to cover this at all because it is, it is the complicity of the Democrats in office. And understand Minnesota is a one party state. It is governed by Democrats. Democrats are in charge. They look the other way. Why did they look the other way? Well, much of this fraud was carried out by Somalis. We covered in a previous verdict how the single largest contributor to Al Shabaab. Al Shabaab is a radical Islamist terrorist organization in Somalia. The single largest contributor to Al Shabaab are the Minnesota taxpayers. That's the level of the theft that went on. And Democrats elected Democrats in Minnesota, they happily looked the other way. Why? Because they were buying votes. And you know what? If they actually watched the taxpayer dollars and didn't let the criminal steal it, well, somebody might be upset if they had even the tiniest modicum of scrutiny. It is shocking.

[Ben Ferguson]

Well, and you know what you mentioned a moment ago and that is that the media has not been touching this. Luckily, local media has. Cbs, for example. Locally in Minnesota, they did a report on this that was just kind of throwing their hands up in the air like this is so egregious. We need you to know the national media, completely silent, no accountability for the governor. There are those in leadership under him. I want to play this for people. This is again the local CBS affiliate. They're talking about the fraud crisis. Take a listen.

[CBS Local Reporter]

Minnesota's fraud crisis is growing.

[Phil Graham]

Today prosecutors charge more people for billing.

[CBS Local Reporter]

The state for social services they did not provide. The federal prosecutor says it's possible half or more of the $18 billion billed to 14 programs since 2018 is fraudulent. We have team coverage starting with Jonah Kaplan with more on what we've learned.

[Phil Graham]

About these latest charges.

[CBS Local Reporter]

Jonah? So we've gone a billion dollars to possibly 9 billion or more. Well, we've heard from the new U.S. attorney, Frank, that we're not even at the end of the beginning of this investigation, and now we know why. Feeding our future was just the tip of the iceberg.

[Phil Graham]

The fraud is not small. It isn't isolated. The magnitude cannot be overstated.

[CBS Local Reporter]

Prosecutors on Thursday indicting six people, including one already charged in another case. The five new defendants are all accused of defrauding a state program meant to provide housing assistance to the disabled and those dealing with addiction. Two people charged aren't even from here. According to officials, Anthony Jefferson and Lester Brown came from Philadelphia to Minnesota looking for an opportunity to make money. They set up two fake companies and collected $3.5 million.

[Phil Graham]

This is an instance of what's essentially fraud tourism. Mr. Jefferson and Brown were residents of Philadelphia who had no connection to Minnesota except for they heard that Minnesota and its Housing Stabilization Services program was easy money.

[CBS Local Reporter]

The state already cut off the Housing Stabilization Program because of suspected fraud, but it's one of 14 social programs now under federal investigation. Together they billed $18 billion since 2018. We asked how much could have been fraud.

[Phil Graham]

You know, I don't, I don't make these generalizations in a hasty way. So when I say a significant amount, I'm talking in the order of half or more. But we'll see.

[CBS Local Reporter]

One of the new indictments accuses a fraudster of exploiting a program to help children with autism. Court documents say Abdi Najib Hassan Yousef used some of the 6 million bucks he stole to buy a Freightliner semi truck. Governor Walz in a statement said he applauds the new indictment, saying, quote, this is exactly the type of strong action we need from prosecutors to ensure fraudsters are put behind bars. Frank, this is not going away anytime soon.

[Ben Ferguson]

I love the end there. Frank, this is not going away anytime soon. Well, if Democrats have their way and the governor, this will just be like a one time report and then we just move on. And hey, if it goes from 9 billion to 12 billion or 15 billion, who knows where the number could end? And that was what they were referring to there at CBS Local. They're like, hey, we went from 1 billion to 9 billion and that may not be the final number.

[Phil Graham]

Well, and Tim Waltz says He applauds the indictments. Well, my question is, where was Tim Waltz? Where was the governor? He was like, where's Waldo? He was popping up everywhere he could. He was following Kamala Harris on the campaign trail, but he was not actually doing his job as governor. And listen, there is a political reason. And Ben, I'm gonna make a prediction right now.

[Ben Ferguson]

I love it when you do this because usually you're right. So pay attention, everyone.

[Phil Graham]

As horrific as this fraud is in Minnesota, and it is staggering, it is historically bad, I'm going to make a prediction that it is worse that there is even more fraud in New York, California and Illinois.

[Ben Ferguson]

So you don't believe this is an isolated incident to there follow the money?

[Phil Graham]

I do not. I think in bright blue states where the Democrats control all of the levers of government, all of the machinery, I think the same incentives that caused the Democrat politicians in Minnesota to try to buy votes by allowing people to rob the taxpayers blind, I think those exact same incentives are playing out in New York. I think those exact same incentives are playing out in Illinois, and I think those exact same incentives are playing out in California. So I'm calling on the Trump administration to audit. Audit every state, but start with the big blue states, because I think that is where you are most likely to find the fraud, where the pattern is the same. And I gotta tell you, people like Gavin Newsom are sweating right now. They don't want anyone looking at the fraud in California because my. The incentives are identical. And I suspect you're going to see the very same pattern playing out over and over and over again.

[Ben Ferguson]

You know, you mentioned they don't want you looking. There was a very interesting playbook. When Democrats get in trouble, they usually just start playing the race card, throwing down on the race card. Tim Waltz had a press conference and he was asked about the fraud in the Somali community, the money going back to the terrorist organization Al Shabaab, and how much just total pure corruption there was. And then he was asked about ICE raids in Minnesota. He's obviously against that. They are a welcoming state, as he describes it. They're a sanctuary state. And what Tim Waltz had to say back, it really did kind of make me laugh because it's so predictable, and yet it's the classic playbook they've been using. You question them on anything, they get wrong. They're like, oh, well, you're racist, a bigot, homophobe, xenophobe. The list goes on and on. Well, now it's white supremacy. If you actually enforce the Law of the land with illegal immigrants in a state. Here's how he put it. Tim Waltz in Minnesota.

[CBS Local Reporter]

So this is what happens when your own federal government wages war against you. This is what happens when they target communities for their own benefit. This is what happens when they scapegoat. And this is what say happens when they no longer hide the idea of white supremacy. When you hear the Vice President of the United States talk about now white people won't have to apologize for being white. That's never happened once in my whole damn life. And I think everybody in this room knows what they're doing. So we're here today to say enough of this. We're here today to stand that Minnesota will protect their neighbors.

[Ben Ferguson]

Minnesota will protect their neighbors. And this is what happened.

[Phil Graham]

And rob them blind.

[Ben Ferguson]

Yeah, and rob them blind. Nine billion that we know of. Right? And he says we're not going to. We're no longer going to allow them to hide the idea of white supremacy. When you hear the vice president, this is the classic Democratic playbook. Don't look at what I'm doing. I'm going to yell you're a racist.

[Phil Graham]

Like he is literally overseeing the biggest recorded fraud in US Government history. Not just a fraud on the taxpayers, that defrauded the taxpayers of Minnesota, that defrauded the taxpayers of every state, federal taxpayers, but also that saw the federal tax dollars diverted to illegal immigrants to Somalis who sent it to Al Shabaab, a radical Islamic terror organization. So it's fraud, funding Islamist terror. And what is Tim Waltz's response to scream white supremacy. White supremacy. At some point, those talking points get a little tired and it's a clear and transparent effort just to avoid any accountability and to be avoid being held responsible for what he allowed to happen as before.

[Ben Ferguson]

If you want to hear the rest of this conversation on this topic, you can go back and download the podcast from earlier this week to hear the entire thing. For the next 60 seconds, can you hit pause on your life and just think about this? Every day, millions of children face a crushing reality. A constant defeating message echoes in their empty stomachs and their desperate eyes. It is that you don't matter. Poverty doesn't just steal food and shelter. It steals hope, dignity and the fundamental belief that they are love. But there's another message, one of boundless love and hope. Through Compassion International, you can change the child's story forever. You can sponsor a child just like I do. You can introduce them to a loving heavenly father. You can equip them with education, health care, and the support to overcome poverty. This isn't just about one child. It's about transforming families, revitalizing communities and changing nations. It's about proving that every child truly matters. So help give a child a future. Give them hope. Visit compassion.com today. That's compassion.com did you know?

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[Podcast Host]

Season 2 of unrivaled basketball is here and the talent is unreal. The best women's players on the planet are running it back with even bigger moments and bigger stakes. Don't miss as Paige Becker, Snafeeza Collier, Kelsey Plumb, Brianna Stewart and more. Take the corporate and redefine the game. This isn't your regular season. This is unrivaled, where the pace is faster, the energy is higher and every athlete shines. Unrivaled basketball season two, sponsored by Samsung Galaxy, tips off January 5 on TNT, TruTV and HBO.

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[Ben Ferguson]

I want to get back to the big Story Number three of the week you may have missed, Senator There was a Christmas gift that was given to all Americans. Didn't matter if you're rich or poor. It didn't matter if you were black or white or Hispanic or anything else in between. We got some new economic data and it was I tell you what, if there's anybody that had coal in their stocking, it was the media. There was an article that came out by the New York Times predicting the complete opposite of what GDP report showed. Of course they're not going to retract it, but they do look like idiots. And again, you got to ask yourself this question. Are they really willing and wanting to hurt Americans? They want Americans to suffer just so Donald Trump looks bad because that's what their reporting seems to look like.

[Phil Graham]

Well, listen, the news that broke just this week is the economy is booming. That the latest GDP numbers show 4.3% GDP growth, which is terrific GDP growth. And let me read from the Wall Street Journal. Consumers power strongest U.S. economic growth in two years. A long delayed government report shows third quarter GDP grew at an annual 4.3% rate. Robust spending by U.S. consumers drove greater than expected economic expansion in the third quarter and the strongest growth rate in two years. Gross domestic product, the value of all goods and services produced across the economy, rose at a seasonally and inflationally adjusted 4.3% annual rate from July through September. The Commerce Department said Tuesday the report was delayed nearly two months by the government shutdown and looks back at the period before the shutdown was in effect. It does, however, offer a snapshot of an economy that has managed to keep humming along for much of the year. Growth picked up from 3.8% in the previous corner and easily beat the 3.2% forecast among economists polled by the Wall Street Journal.

[Ben Ferguson]

That's big, by the way.

[Phil Graham]

It's over a point higher than expectations That's a big deal. As the Journal said, it was the strongest expansion since the third quarter of 2023. Rising consumer spending was partly driven by health care, including outpatient services and at hospitals and nursing homes. International travel, legal services and spending on products like personal computers and software also contributed. Artificial intelligence related spending helped, too, though the pace of growth appeared to cool from the second quarter. Overall business investment growth slowed to 2.8% in the third quarter from 7.3% in the prior three months. This is great news. And listen, when GDP is booming, what that means is it means there's more jobs, it means there's more productivity, it means the stock market is going up, it means people 401ks are going up. It means wages are likely to rise. And so GDP growth, it's not always immediate. Are there still people struggling? Yes, but GDP growth is driven. And I'll tell you, one of the things we're seeing is the Christmas spending numbers are very, very strong. And so that's one of the signs of consumer confidence that if you're worried, if you're scared about not being able to pay your rent or your mortgage, then you don't necessarily go out and do some big shopping for Christmas time.

[Ben Ferguson]

We saw the record breaking numbers on, on Black Friday and Cyber Monday. And that was, as the Democrats are saying, that we were in a tailspin and this was a disaster of an economy. And they were trying to say, Donald Trump is ruining your Christmas. I'm like, well, the data says that people, as you just mentioned, they're going out and spinning at record numbers on Black Friday and Cyber Monday. So that tells me that someone's lying.

[Phil Graham]

That's exactly right. And here I want to show you. You talked about the press being dismayed, and I got to say that the corporate media is utterly corrupt. They are dishonest. I just want to read to you two tweets. The first tweet is from October 30, 2024. Now, now what was happening right after October 30, 2024?

[Ben Ferguson]

The election. Presidential.

[Phil Graham]

There was a presidential election. And who was president in October 2024, at least nominally?

[Ben Ferguson]

Well, the auto. The auto pen. But if you want an actual person with a heartbeat, we'll go with Joe Biden.

[Phil Graham]

Okay, so here's what, what ABC news tweeted. Tweeted. October 30, 2024, one week before the presidential election, just in. The US economy grew at a robust 2.8% annualized rate in the third quarter, slowing slightly from the previous quarter. But continuing to dispel any concern about a possible shutdown. This report comes just ahead of the presidential election. All right, so that was a year ago now. That was 2.8%. What do you think ABC News said about 4.3%. What was it just in. The U.S. economy expanded more than economists expected over a recent three month period, recording robust growth despite concerns about sluggish hiring and cash strapped shoppers. Federal government data showed. So 2.8% is robust and fantastic and yay, 4.3%. Well, we're really worried about sluggish hiring and cash strapped shoppers. And yeah, okay, I guess it is like almost twice as high. But, but damn it, we don't like those numbers. I mean, that is not news. And I literally, whoever wrote that tweet should be fired. Like, if ABC pretended to be a journalist, you'd say, okay, go work for the DNC because you want to be a partisan parrot. That's who they are. And it's why people don't trust the news. Now I want you to listen to Kevin Hassett. Kevin Hassett is the head of the National Economic Council in the White House. Listen to Kevin talking about these recent GDP numbers. No, it's a fantastic report. 4.3%. That's just about as good as GDP numbers get. And especially coming, you know, on the heels of the CPI report, Consumer Price Index report we got, which you actually showed some interesting data that, consistent with this, showed that core inflation is all the way down to 1.6%. And so I think that these numbers are showing that President Trump's trade policy and his supply side policy, which is really increasing factory production and so on, is having a big, big effect, as is his trade policy. So if we abstract from the reduction of the trade deficit, then the 4.3% number would only be 2.6%. So Trump's trade policy is really working as well.

[Ben Ferguson]

You notice they mentioned trade policy because that was one of the other big lies this year in 2025, which is the shelves are going to be empty at Christmas. The toys you wanted for your kids were going to be not on those shelves. You're not going to be able to afford basic things. Half of the stores can be gone at Walmart and Target and Costco and Sam's Club. None of that happened. And they said there was going to be massive spikes in prices for everything that you couldn't afford. Again, that didn't happen either. While we collected record number of tariffs and cash, the President's trade deals seem to actually be working and the leverage seems to be working and they don't want to admit that this has not been a disaster.

[Phil Graham]

Well, listen, there's still some volatility when it comes to trade policy and as you know, I'd been advocating that the President uses trade policy as leverage to open up foreign markets and he's been doing that. That has been very, very successful. This also underscores basic supply side principles that when you cut taxes, as we did, and when you repeal job killing regulations as President Trump is doing, it results in more investments, more jobs and the economy's booming. This, this, this is, this is basic cause and effect.

[Ben Ferguson]

As always, thank you for listening to Verdict with Senator Ted Cruz, Ben Ferguson with you. Don't forget to download my podcast and you can listen to my podcast every other day. You're not listening to Verdict or each day when you listen to ver. I'd love to have you as a listener to again the Ben Ferguson Podcast and we will see you back here on Monday morning.

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[Podcast Host]

Season 2 of unrivaled basketball is here and the talent is unreal. The best women's players on the planet are running it back with even bigger moments and bigger stakes. Don't miss as Paige Becker, Snafeeza Collier, Kelsey Plumb, Brianna Stewart and more. Take the court and redefine the game.

[Phil Graham]

Game.

[Podcast Host]

This isn't your regular season. This is unrivaled, where the pace is faster, the energy is higher and every athlete shines. Unrivaled basketball season two, sponsored by Samsung Galaxy, tips off January 5 on TNT, TruTV and HBO.

[Public Investing Advertiser]

Max support for the show comes from Public, the investing platform for those who take it seriously. On Public, you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index. With AI, it all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like EFTs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.com podcast and earn an uncapped 1% bonus when you try transfer your portfolio. That's public.com podcast paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA SIPC Advisory Services by Public Advisors, llc SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not investment recommendation or advice. Complete Disclosures available at public.comDisclosures your ticket.

[Ben Ferguson]

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[Phil Graham]

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[Ben Ferguson]

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And you could score $100 or other.

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[Ben Ferguson]

Or save even faster with mobile coupons you can use right [e-mail] Valpak there's.

[Phil Graham]

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[Phil Graham]

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[Phil Graham]

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[Podcast Host]

This is an iHeart podcast. Guaranteed Human.