Ron Paul on The Economy

Last Updated : Jan 16, 2012

Summary

Congressman Paul believes that the role of government is to remain as small as possible to provide a stable and predictable taxing and regulation structure to allow private industry to flourish. Congressman Paul advocates for both limiting the federal government to the functions allocated to it by the constitution, and ensuring that Congress acts with all the powers granted to it within the constitution.

Congressman Paul promotes an Austrian economic model, which is in direct opposition to Keynesian ideals that government can and should stimulate and direct the economy. He believes that government should maintain a sound money policy, protect the rights of it's citizens, enforce contracts, and regulate industry as little as possible. In handing over control of the monetary supply to the Federal Reserve Bank, growing the size of government beyond reasonable spending levels, and inserting itself into the private market, the federal government has promoted mal-investment, created inflation and the boom/bust cycles, and hindered the private sector. Returning the government to it's defined roles and creating a sound monetary system is Congressman Paul's economic plan.

The first facet of Congressman Paul's economic theory is returning the federal government to it's allocated roles and returning the other functions to the states and to industry. This would include eliminating federal departments such as the Department of Education and Drug Enforecement Agency and returning those functions to the states, and eliminating the Transporation Safety Administration and returing control of security to the airlines. Congressman Paul is quick to point out that although he does not believe the federal government should not be engaging in activity it is not permitted to be involved in does not mean that those industries should not be regulated, it simply should be done at the state level and at the state's discretion. This dramatically reduced federal government would be easier to fund, easier to reign in, and provide for a more stable investment in the US economy through certainty of the rule of law.

The second item in Congressman Paul's economic theory is a sound monetary policy. He strongly opposes the ability of a private company such as the Federal Reserve to control US monetary supply. He repeatedly asserts that the constitution gives only congress the right to coin money and that congress cannot cede that authority to a private entity. He notes that the policies of the Federal Reserve expand and contract monetary supply and cause the cycles of booms and busts, create inflation through deficit spending, and allow for the federal government to grow beyond it's ability to fund itself by providing an unlmited money supply. He advocates for auditing and ending the federal reserve and returning control of the monetary supply to the people through their congress.

A third facet of Congressman Paul's economic theory is reforming the welfare state in the US. He notes that each person has the right to theiry live, their liberty, and the fruits of their labor. He states that a person is not entitled to a free college education, free health care, or any entitlement that would be taken from one person and given to another. He states that this is stealing and the fact that the IRS is taking the funds and not an individual person does not negate that theft. This welfare state also consists of corporate welfare in the form of subsidies and a tax structure designed to favor those with ties to government.

In addition to reigning in the federal government, reforming the welfare state, and restoring sound monertary principles, Congressman Paul advocates for ending the wars in Iraq, Afghanistan, Libya, and all other nations, and bringing the troops home. He asserts that no troops should be participating in conflicts without a declaration of war. He also states that he would close most of the overseas bases noting that it is not the job of the US to provide security to other nations at no cost to them, and not at the discretion of the President to fund the occupation of another nation without a declaration of war.

With the federal government removed from the private sector, the military-industrial complex reduced in scope, the welfare state in check, and control of the monetary supply returned to the people, Congressman Paul states that government will function more effectively as the magnets for corruption will be gone. Without government control of industry, there is no desire on industry's part to corrupt government officials. The final facet of Congressman Paul's economic theory is removal of government regulation wherever possible.

Congressman Paul's legislative record reflects his stated positions. He voiced opposition to government involvement in the housing market and has repeatedly called for the government to cease manipulation of that market. He opposed the TARP legislation, the Obama stimulus, the Bush stimulus, Sarbanes-Oxley, and the GM restructuring loan.

Congressman Paul's 2008 mirrored the facets previously described with the addition of tax reform.

  • Veto any unbalanced budget Congress sends to his desk.
  • Refuse to further raise the debt ceiling so politicians can no longer spend recklessly.
  • Fight to fully audit (and then end) the Federal Reserve System, which has enabled the over 95% reduction of what our dollar can buy and continues to create money out of thin air to finance future debt.
  • Legalize sound money, so the government is forced to get serious about the dollar’s value.
  • End the corporate stranglehold on the White House.
  • Drive down gas prices by allowing offshore drilling, abolishing highway motor fuel taxes, increasing the mileage reimbursement rates, and offering tax credits to individuals and businesses for the use and production of natural gas vehicles.
  • Eliminate the income, capital gains, and death taxes to ensure you keep more of your hard-earned money and are able to pass on your legacy to your family without government interference.
  • Oppose all unfunded mandates and unnecessary regulations on small businesses and entrepreneurs.

 

As part of the 2012 campaign, Congressman Paul put forth the "Restore America Plan"

  • Spending
    • Cut $1 trillion in spending during the first year
    • eliminat Departments of Energy, Commerce, Interior, Education and HUD
    • Abolish the Transportation Security Administration
    • Abolish corporate subsidies
    • Stop foreign aid
    • End foreign wars
    • Return most other spending to 2006 levels
  • Entitlements
    • Honor our promise to our seniors and veterans, while allowing young workers to opt out
    • Block grant Medicaid and other welfare programs to States
  • Cutting Waste
    • 10% reduction in the federal workforce
    • Slash Congressional pay and perks
    • Curb excessive federal travel
    • Presidential salary of $39,336, approximately equal to the median personal income of the American worker
  • Taxes
    • Lower the corporate tax rate to 15%
    • Allow American companies to repatriate capital without additional taxation
    • Extend all Bush tax cuts
    • Abolish the Death Tax
    • End taxes on personal savings
  • Regulation
    • Repeal ObamaCare, Dodd-Frank, and Sarbanes-Oxley
    • Mandate REINS-style requirements
    • Cancel all onerous regulations previously issued by Executive Order
  • Monetary Policy
    • Conducts a full audit of the Federal Reserve
    • Implement competing currency legislation to strengthen the dollar and stabilize inflation

 

Section 404 of Sarbanes-Oxley

In April of 2005, Congressman Paul released a press statement noting his support for the repeal of section 404 of Sarbanes-Oxley.

   

The Bush Stimulus

In January of 2008, Congressman Paul used his "Texas Talk" to discuss a possible stimulus.

 

The Fed and the Economy

In April of 2008, Congressman Paul used his "Texas Talk" to address the relationship between the Federal Reserve, the economy, and banks.

  

Neo-Conservative Economic Policies

In June of 2008, Congressman Paul used his "Texas Talk" address to discuss what he calls "neo-conservative" policies and their effects on the economy.

 

2008 Economic Plan

As part of his 2008 Presidential campaign, Congresman Paul put forth an economic plan which he called a Comprehensive Economic Revitalization Plan. This plan includes tax reform, monetary policy reform, spending reform, and regulatory reform.

 

Cures for the Economy

In January of 2009, Congressman Paul used his "Texas Talk" address to discuss what really needed to be done to address the economy.

 

Response to AIG Bonuses

On March 19, 2009 Congress Paul spoke on the House floor about the House's response to the AIG bonuses that were issued after TARP. He notes that the Congress authorized unconstitutional spending to allocate TARP and then when that money causes problems, they push further unconstitutional legislation in the form of bills of attainder to fix that problem.

 

Floor Speech on the Economy

In June of 2009, Congressman Paul spoke on the House floor about the problems in the economy and the need to understand those problems to address solutions.

 

Free Market as a Regulator

In August of 2009, Congressman Paul used his "Texas Talk" to address the free market as the best regulator of a sounds economy.

 

Cash for Clunkers

In August of 2009, Congressman Paul used his "Texas Talk" address to discuss the cask for clunkers program.

 

Government and the Economy

In January of 2010, Congressman Paul used his "Texas Talk" address to discuss causes of the Great Depression and the overburdensome regulations placed on people by the government.

 

Opposition to Keynesian Policies

In January of 2010, Congressman Paul used his "Texas Talk" address to discuss the failures of Keynesian economic policies.

 

Government and Job Creation

In October of 2010, Congressman Paul used his "Texas Talk" to discuss the role of government in job creation and theory of Keynesian economics.

 

Free Markets Create Jobs

In October of 2010, Congressman Paul used his "Texas Talks" to discuss the theory that free markets are what creates jobs. He notes that the poorest countries are the least friendly to free markets.

 

On More Stimulus Spending

In September of 2010, Congressman Paul used his "Texas Talk" to note his opposition to the possibility of more stimulus spending.

 

MSNBC Appearance

In March of 2011, Congressman Paul appeared on MSNBC and discussed the overall economy, credit, defense spending, and other items. In this discussion with Cenk Uygar of The Young Turks, Congressman Paul outlines his overall economic theory.

 

New Hampshire Debate

In June of 2011, Congressman Paul participated in the Presidential debate in New Hampshire. He spoke about his opposition to Keynsian economic policies, and about the need for a strong currency and it's effects on the economy. He was also asked about government involvement in industry and stated that government involvement causes mal-investment.

 

Questioning the Success of Economic Policies

In September of 2011, Congressman Paul used his "Texas Talk" to call into question the economic policies of the Obama administration.

 

TEA Party Debate

In September of 2011, Congressman Paul participated in the TEA party debate in Tampa Bay, Florida. He responded to statements made by Governor Perry and stated that one area that could be cut was the embassy in Afghanistan that cost $1 billion.

 

Fox News / Google Debate

On September of 2011, Congressman Paul participated in the Fox News / Google debate. He notes his overall economic theory in relation to the federal reserve and the cycles of booms and busts.

 

Dartmouth Economic Debate

On October 11, 2011 Congressman Paul participated in a debate at Dartmouth college. He discusses the causes of bubbles in general and the housing bubble in particular. He also discusses his opposition to Keynesian economics and his support for Austrian economics.

 

Restore America's Prosperity

Congressman Paul's economic plan for the 2012 election consists

 

Restore America Plan

 

Voting Record

Small Business Jobs Tax Relief Act of 2010

In June of 2010 the House voted to pass the Small Business Jobs Tax Relief Act of 2010. The act passed 247-170. Ron Paul voted in favor of the Small Business Jobs Tax Relief Act of 2010

Ron Paul voted in favor of the Small Business Jobs Tax Relief Act of 2010

Wall Street Reform and Consumer Protection Act of 2009

In June of 2010, the House voted on the Wall Street Reform and Consumer Protection Act of 2009. The act failed to pass in a . Ron Paul voted in favor of the Wall Street Reform and Consumer Protection Act of 2009.

Ron Paul voted in favor of the Wall Street Reform and Consumer Protection Act of 2009.

TARP Bonuses

In March of 2010, the House voted on legislation to impose an additional tax on bonuses received from certain TARP recipients, and for other purposes. The legislation passed the House 276-145. Ron Paul voted against the legislation to tax bonuses to TARP recepients.

Ron Paul voted against the legislation to tax bonuses to TARP recepients.

Small Business and Infrastructure Jobs Tax Act of 2010

In March of 2010 the House voted to pass the Small Business and Infrastructure Jobs Tax Act of 2010 246-178. Ron Paul voted against passing the Small Business and Infrastructure Jobs Tax Act of 2010.

Ron Paul voted against passing the Small Business and Infrastructure Jobs Tax Act of 2010.

Wall Street Reform

In late 2009, the House passed the Wall Street Reform and Consumer Protection Act of 2009. The legislation consolidated many financial regulatory agencies, increased transparency in the derivatives market, regulation of credit rating agencies, and a "resolution regime" to resolve insolvent banks. Ron Paul voted against the Wall Street Reform Legislation.

Ron Paul voted against the Wall Street Reform Legislation.

The Stimulus

After the Senate passed the Stimulus package, the House voted on a passage of a conference bill to join the House and Senate versions. Ron Paul voted against the unified version of the Stimulus bill.

Ron Paul voted against the unified version of the Stimulus bill.

The Stimulus

The Stimulus bill (The American Recovery and Reinvestment Act of 2009) passed through the House on January 28, just days after President Obama\'s inauguration. The bill got no support from Republicans and 11 Democrats voted against it as well. Ron Paul voted against the Stimulus when it passed the House.

Ron Paul voted against the Stimulus when it passed the House.

Helping Families Save Their Homes Act of 2009

The Helping Families Save Their Homes Act of 2009 was a program designed to assist those who may be able to remain in their home with a modest amount of government assistance. The bill got wide bi-partisan support in the House and passed 367-54. Ron Paul voted against the Helping Families Save Their Homes Act of 2009.

Ron Paul voted against the Helping Families Save Their Homes Act of 2009.

Auto Industry Financing and Restructuring Act

In December of 2008 the US House voted to pass the Auto Industry Financing and Restructuring Act. The act provided a loan to GM through TARP funds and set up a plan to allow the company to receive more if they demonstrated a path back to viability. The act failed to pass the Senate, but was used as a guideline for the GM bailout for the Obama administration. Ron Paul voted against the Auto Industry Financing and Restructuring Act.

Ron Paul voted against the Auto Industry Financing and Restructuring Act.

Troubled Asset Relief Program (TARP)

The TARP program was designed to prevent the failure of large banks by purchasing their "troubled assets" and allowing them to move them off their records as liabilities. The vote on the legislation passed 263-171 Ron Paul voted against the TARP Program.

Ron Paul voted against the TARP Program.

The Bush Stimulus

In early 2008, the Recovery Rebates and Economic Stimulus for the American People Act of 2008 was passed in an attempt to stimulate the economy. Also known as the Bush Stimulus, the act consisted largely of checks sent to individuals. The bill received wide bipartisan support and passed the House 385-35. Ron Paul voted against the Bush Stimulus.

Ron Paul voted against the Bush Stimulus.

Bankruptcy Reform

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 completely redefined bankruptcy in the United States. The bill made it much more for people to walk away from unsecured debt, such as credit cards, and permitted the court to award some compensation to creditors in the event that a bankruptcy was awarded. The bill got moderate bipartisan support and passed 302-126. Ron Paul voted in favor of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Ron Paul voted in favor of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

American Jobs Creation Act

The American Jobs Creation Act was a Republican plan that was signed into law in the summer of 2004. The legislation ending some taxes in the agriculture industry, reduced corporate tax rates from 35% to 32%, reduced taxation on overseas income, and provisions to help companies invest in equipment. It passed the House 251-178. Ron Paul voted in favor of the American Jobs Act.

Ron Paul voted in favor of the American Jobs Act.

Sarbanes-Oxley

In response to Enron and other accounting scandals, Congress passed a bill which imposed a number of book-keeping and accounting regulations on several industries. The Sarbanes-Oxley Act of 2002 The bill received moderate bi-partisan support in the House and passed in a 334-90 vote. Ron Paul voted against Sarbanes-Oxley.

Ron Paul voted against Sarbanes-Oxley.

Financial Services Modernization Act of 1999

Also known as GRAMM-LEACH-BLILEY ACT, this legislation ended the Glass-Stegall rule that separated banking institutions from investment institutions. Ron Paul cast a "No Vote"

 

Sponsored and Cosponsored Legislation

Session-111; Bill Number-H R 5141; Small Business Paperwork Mandate Elimination Act - Cosponsor

Amends the Internal Revenue Code to repeal a provision (added by the Patient Protection and Affordable Care Act) that extends to corporations that are not tax-exempt the requirement to report payments of $600 or more.

Session-111; Bill Number-H R 4653; Accurate Accounting of Fannie Mae and Freddie Mac Act - Cosponsor

Requires the receipts and disbursements of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of: (1) the federal budget submitted by the President; (2) the congressional budget; or (3) the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). Requires the costs of purchases of mortgages, and mortgage-backed securities issued, by Fannie Mae and Freddie Mac to be calculated by adjusting a specified discount rate for market risks under the Credit Reform Act of 1990. Subjects to the statutory public debt limit the face amount of obligations issued by Fannie Mae and Freddie Mac and outstanding at one time.

User Comments