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Military “Cuts”: Don’t Believe the Hype – Article by Ron Paul

Military “Cuts”: Don’t Believe the Hype – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
August 23, 2012
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Grover Norquist, the influential conservative activist, recently made some very frank and sobering remarks about the U.S. military budget.  Unlike many conservatives, Mr. Norquist understands that American national security interests are not served by the interventionist foreign policy mindset that has dominated both political parties in recent decades.  He also understands that there is nothing “conservative” about incurring trillions of dollars in debt to engage in hopeless nation building exercises overseas.

Speaking at the Center for the National interest last week, Norquist stated that “We can afford to have an adequate national defense which keeps us free and safe and keeps everybody afraid to throw a punch at us, as long as we don’t make some of the decisions that previous administrations have, which is to over extend ourselves overseas and think we can run foreign governments.”

He continued: “Bush decided to be the mayor of Baghdad rather than the president of the United States. He decided to occupy Iraq and Afghanistan rather than reform Fannie Mae and Freddie Mac. That had tremendous consequences… Richard Nixon said that America’s national defense needs are set in Moscow, meaning that we wouldn’t have to spend so much if they weren’t shooting at us.  The guys who followed didn’t notice that the Soviet Union disappeared.”

When a prominent DC conservative like Grover Norquist makes such bold statements, it shows that public support for a truly conservative foreign policy is growing.  The American people simply cannot stomach more wars and more debt, especially with our domestic economy in tatters.

The American people should reject the hype about so called defense “cuts” from both side of the political spectrum.  When the Obama administration calls for an 18% increase in 2013 military spending, those who propose a 20% increase portray this as a reduction!

Even the supposedly draconian cuts called for in the “sequestration” budget bill would keep military spending at 2006 levels when adjusted for inflation, which is about as high in terms of GDP as during World War II.  It’s also more than the top 13 foreign countries spend on defense combined.  Furthermore, sequestration only cuts military spending for one year after taking effect.  In future years Congress is free to reinstate higher military spending levels– so under sequestration the most drastic case would mean spending $5.2 trillion instead of $5.7 trillion over the next decade.

Is there any amount of money that would satisfy the Pentagon hawks? Even if we were to slash our military budget in half, America easily would remain the world’s dominant military power.  Our problems don’t result from a lack of spending. They result from a lack of vision and a profound misunderstanding of the single biggest threat to every American man, woman, and child: the federal debt.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website. 

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

The CBO Sees the Economic Cliff Ahead – Article by Ron Paul

The CBO Sees the Economic Cliff Ahead – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
June 19, 2012
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In early June 2012 the Congressional Budget Office (CBO) issued its annual long-term budget outlook report, and the 2012 numbers are not promising. In fact, the CBO estimates that federal debt will rise to 70% of GDP by the end of the year– the highest percentage since World War II. The report also paints a stark picture of entitlement spending, as retiring Baby Boomers will cause government spending on health care, Social Security, and Medicare to explode as a percentage of GDP in coming years.

While the mainstream media correctly characterized the CBO report as highly pessimistic, they also ignored longstanding errors of methodology in CBO estimates. And those errors tend to support arguments for higher taxes and government spending, when in fact America needs exactly the opposite.

As Paul Roderick Gregory explained in a recent Forbes column (http://tinyurl.com/cf746dl), CBO has always applied wrongheaded assumptions inherent in Keynesian economics when forecasting future deficits – no matter how many times both history and economic theory have proven such assumptions incorrect. In particular, CBO seems wedded to two enduring Keynesian myths: First, that higher taxes necessarily increase federal revenue and have no negative effect on the economy; and second, that lower government spending hurts the economy.  Neither is true, of course.

CBO also fails to factor in unexpected wars and expensive foreign entanglements, and we should not assign too much validity to predictive models based on peace. Judging from the actions and rhetoric coming from both parties in Washington, new military entanglements in Syria and Iran may well spike military spending in coming years.

Despite these sobering budget realities, the CBO report suggests that a solution is possible with merely a few minor adjustments in the way Congress handles economic issues. But what we need are not minor adjustments, but rather a fundamental shift in our philosophy of government.  If we could come to our senses about the proper role of government in America, and what level of government interference is appropriate in a free economy, we would quickly find that there is no reason for government to spend so much, borrow so much, and tax so much.

If we simply allowed markets to work free of governmental or Federal Reserve interference, bad debt would be liquidated relatively quickly and malinvestment would be curtailed. Scaled-back regulations would encourage businesses to expand. Lower taxes would jump start investment and spur job creation.

This is not rocket science, it is Economics 101. All it would take is for government to get out of the way. There would be some short term pain, of course, but only by allowing the bubble to burst and bad debt to liquidate can we ever hope to begin building a real economy again.

The CBO report was alarming to most simply because they know neither party will take the steps necessary to avoid eventual fiscal calamity. Instead, despite their rhetoric, both parties want to maintain the fantasy that “deficits don’t matter.” But the CBO report, combined with what is happening in Greece and the European Union, should finally make the undeniable case that economic realities apply even to industrialized first world economies. We must take concrete steps today to avoid having America become the next Greece.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website. 

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

Enduring Commitments Abroad – Article by Ron Paul

Enduring Commitments Abroad – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
May 10, 2012
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Last week President Obama made a surprise pre-dawn trip to Afghanistan to mark the one year anniversary of the killing of Osama bin Laden and to sign a document further extending the US presence in that country. The president said, “we’re building an enduring partnership…As you stand up, you will not stand alone.” What that means in practice is that the US will continue its efforts to prop up the government in Afghanistan for another ten years beyond the promised withdrawal date of 2014.

To those of us who believe the US should leave Afghanistan immediately, the president retorted, “We must give Afghanistan the opportunity to stabilize.” But how long will that take, when we have already fought the longest war in our nation’s history at incredible human and economic cost to the nation and no end is in sight?

There is little evidence of any sustained increase in stability in Afghanistan and, in fact, April saw the loss of 34 more American troops and an escalation of violence and upheaval. Within 90 minutes of the president’s departure, seven more people were killed in Kabul by a suicide bomber. It is clear that our presence in that country is not creating any real stability. With Osama bin Laden dead and the al Qaeda presence in Afghanistan virtually non-existent, we are reduced to nation-building in a nation where there is no real nation to build.

We should ask ourselves why Obama’s trip was a “surprise” visit rather than a normal state visit. The reason is that after ten years it is still far too dangerous to travel in or out of that country. Does that not speak much more loudly than the president’s optimistic words about the amazing progress we have made in Afghanistan?

What does our enduring commitment mean? Ask the South Koreans, where the United States has maintained an “enduring commitment” of US troops more than fifty years after hostilities ended. By some estimates the United States taxpayer is saddled with a 40 billion dollar annual price tag for our “enduring commitment” to maintaining a US military presence in Korea. Polls suggest that particularly younger Koreans are tired of the US military presence in their country and would prefer us to leave. The same is true for the residents of Okinawa, who have argued strongly and with some recent success for American troops to leave their island.

The Soviets believed the road to their goal for a universal form of government ran through Afghanistan. They were also wrong and paid an enormous price. However, after nine years and 15,000 Soviet lives lost, the communist regime in Moscow realized its mistake and withdrew from that country. The Soviet withdrawal was complete in early 1989. The Soviet Union by that time had further plunged into economic crisis, fueled in great part by its commitment to maintain a global empire of client states. Later that year, the Soviet world began crashing down, with first the collapse of Eastern European regimes and then the Soviet Union itself. That collapse produced an economic calamity for the successor states from which most have not yet fully recovered. It is not too late for the United States to learn what the Soviets discovered too late, back in 1989. Mr. President: the time to leave Afghanistan is today, not in 2024.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website. 

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.