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Congress Fiddles While the Economy Burns – Article by Ron Paul

Congress Fiddles While the Economy Burns – Article by Ron Paul

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The New Renaissance HatRon Paul
September 14, 2015
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Reports that the official unemployment rate has fallen to 5.1 percent may appear to vindicate the policies of easy money, corporate bailouts, and increased federal spending. However, even the mainstream media has acknowledged that the official numbers understate the true unemployment rate. This is because the federal government’s unemployment figures do not include the 94 million Americans who have given up looking for work or who have settled for part-time employment. John Williams of Shadow Government Statistics estimates the real unemployment rate is between 23 and 24 percent.

Disappointingly, but not surprisingly, few in Washington, DC acknowledge that America’s economic future is endangered by excessive spending, borrowing, taxing, and inflating. Instead, Congress continues to waste taxpayer money on futile attempts to run the economy, run our lives, and run the world.

For example, Congress spent the majority of last week trying to void the Iranian nuclear agreement. This effort was spearheaded by those who think the US should waste trillions of dollars on another no-win Middle East war. Congressional war hawks ignore how America’s hyper-interventionist foreign policy feeds the growing rebellion against the dollar’s world reserve currency status. Of course, the main reason many are seeking an alternative to the dollar is their concern that, unless Congress stops creating — and the Federal Reserve stops monetizing — massive deficits, the US will experience a Greek-like economic crisis.

Despite the clear need to reduce federal spending, many Republicans are trying to cut a deal with the Democrats to increase spending. These alleged conservatives are willing to lift the “sequestration” limits on welfare spending if President Obama and congressional democrats support lifting the “sequestration” limits on warfare spending. Even sequestration’s minuscule, and largely phony, cuts are unbearable for the military-industrial complex and the rest of the special interests that control our federal government.

The only positive step toward addressing our economic crisis that the Senate may take this year is finally holding a roll call vote on the Audit the Fed legislation. Even if the audit legislation lacks sufficient support to overcome an expected presidential veto, just having a Senate vote will be a major step forward.

Passage of the Audit the Fed bill would finally allow the American people to know the full truth about the Fed’s operations, including its deals with foreign central banks and Wall Street firms. Revealing the full truth about the Fed will likely increase the number of Americans demanding that Congress end the Fed’s monetary monopoly. This suspicion is confirmed by the hysterical attacks on and outright lies about the audit legislation spread by the Fed and its apologists.

Every day, the American people see evidence that, despite the phony statistics and propaganda emanating from Washington, high unemployment and rising inflation plague the economy. Economic anxiety has led many Americans to support an avowed socialist’s presidential campaign. Perhaps more disturbingly, many other Americans are supporting the campaign of an authoritarian crony capitalist. If there is a major economic collapse, many more Americans — perhaps even a majority — will embrace authoritarianism. An economic crisis could also lead to mob violence and widespread civil unrest, which will be used to justify new police state measures and crackdowns on civil liberties.

Unless the people demand an end to the warfare state, the welfare state, and fiat money, our economy will continue to deteriorate until we are faced with a major crisis. This crisis can only be avoided by rejecting the warfare state, the welfare state, and fiat money. Those of us who know the truth must redouble our efforts to spread the ideas of liberty.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Headed Toward the 11th-Hour Compromise – Article by Ron Paul

Headed Toward the 11th-Hour Compromise – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
December 14, 2012
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As the year draws to an end, America faces yet another Congressionally manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more federal-government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste.

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar.  Even the language is predictably hysterical: if the federal government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.”  This is nonsense.

This rhetoric is based on the belief that federal spending sustains the economy, when in fact the opposite is true.  Every dollar the federal government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans.  Politicians who claim to support the free market and the lower and middle class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon’s budget.  This is unfortunate, because this is the easiest, most obvious place to start getting spending under control.  The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small-business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for federal spending being as high as it is, nor for taxes being as high as they are.  Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent.  Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances.  Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up.  But it is not cuts to spending or reduced federal-government “revenue” that will send us over the cliff, it is continued federal-government spending that will.  Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow the federal government, and Democrats caving on defense cuts in exchange for tax increases.  This is how the federal government has always grown: both sides will sacrifice their pro-liberty, small-government stances in certain areas in order to grow the federal government where they prefer.

Liberty always loses in the 11th hour.

Representative Ron Paul (R – TX), MD, was a three-time 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.

Election Analysis: “Show Me Your Papers!” – Article by Charles N. Steele

Election Analysis: “Show Me Your Papers!” – Article by Charles N. Steele

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The New Renaissance Hat
Charles N. Steele
November 11, 2012
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In my haste to let the religious right have it, I missed something important that suggests the GOP problem is deeper than just religious nuttery: the GOP has systematically refused to address immigration issues seriously.  Worse, they’ve adopted nativist hostility to immigrants and treat immigration as purely a law enforcement issue, one in which “suspicious-looking people” need to be ready to show their papers at any point.
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Hispanics voted almost 3 to 1 for Obama over Romney.  Anyone surprised by this wasn’t paying attention.  In a number of Republican forums this past year Hispanic politicians and party activists — all GOP members — voiced frustration that the primary campaigns were making it difficult for them to feel they had a place in the party.  Recall that the one and only intelligent thing Rick Perry said in his entire campaign was that children of illegal immigrants ought to be able to attend college at in-state tuition rates, since it was better that they be educated and productive rather than welfare cases.  It’s also the only thing for which conservatives raked him over the coals.
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Hispanics are about one sixth of the U.S. population and account for more than 50% of population growth.  Good luck selling them on the idea that Spanish accents and not-quite-white skin are cause for further police inquiries.

In fact, illegal immigration ought to be something conservatives support.  The primary reason people enter the country illegally is to work. Serious academic work dating at least to Julian Simon’s excellent book (available here for free!) have found that immigration, including illegal immigration, is on net beneficial for an economy.  Immigrants work harder and take less in government benefits.  Their work raises wages for non-immigrants.  They have higher rates of entrepreneurial activity.  In the recent financial crisis, illegal immigrants who were subprime borrowers had far lower rates of mortgage default than citizen subprime borrowers.  One would suppose that these would be the sort of people one would want to welcome, not drive away.  One would think these people would be prime constituents for a free-market message.

Certainly there are problems of crime, of crowding of public services, etc., associated with immigration, but many of these are at heart problems of the welfare state, rather than immigration.  Fixing these makes sense; fixating on immigration doesn’t.

If the nativists got everything they wanted on immigration — iron control over impervious borders, strict limits on who can enter, and deportation of 100% of all illegals — no important economic or social problem would be solved and the economic situation would be worse, not better.  But this wish list is impossible; economic forces cannot be legislated away, and neither can the human spirit.

The current Republican position on this issue is best described as stupidity, and one more reason they drove away potential voters.

Dr. Charles N. Steele is the Herman and Suzanne Dettwiler Chair in Economics and Associate Professor at Hillsdale College in Hillsdale, Michigan. His research interests include economics of transition and institutional change, economics of uncertainty, and health economics.  He received his Ph.D. from New York University in 1997, and has subsequently taught economics at the graduate and undergraduate levels in China, the Russian Federation, Ukraine, and the United States.  He has also worked as a private consultant in insurance design and review.

Dr. Steele also maintains a blog, Unforeseen Contingencies.

Illiberal Belief #5: Charity Must Be Enforced – Article by Bradley Doucet

Illiberal Belief #5: Charity Must Be Enforced – Article by Bradley Doucet

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The New Renaissance Hat
Bradley Doucet
October 13, 2012
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Some people feel that charity must be enforced and administered through government welfare programs because private charity would not suffice to meet the needs of the destitute and desperate. If people are not forced to give up half of their salaries to ensure a caring society, then they won’t do it and we will be left with a dog-eat-dog world in which the needy are left to suffer and die in the streets.It is undoubtedly true that very few people would give up anywhere in the neighbourhood of half of their earnings if they were not forced to do so. What is not true is that society as we know it would crumble as a result. Instead, it would flourish. Allowing people to keep more (dare we dream: all?) of their earnings would be a great incentive for people to work harder, because the extra effort would be fully rewarded. On the flipside, knowing that they will not be automatically taken care of is a great incentive for the unemployed who are able but unwilling to work to get off their butts already. As for those recipients of welfare programs who are truly unable to care for themselves, they would be able to rely on the voluntary charity of a society that will be even wealthier than the one we have right now and whose productive members will not feel that they “already gave at the office” to the tune of half of their earnings. There is simply no grounds for believing that the bulk of humanity is so uncaring as to let the truly needy suffer and die when helping them is readily within their reach.

Bradley Doucet is Le Quebecois Libré‘s English Editor. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness. He also writes for The New Individualist, an Objectivist magazine published by The Atlas Society, and sings.
Government Gifts from Heaven: The Illusions of Redistributive Taxation – Article by Kyrel Zantonavitch

Government Gifts from Heaven: The Illusions of Redistributive Taxation – Article by Kyrel Zantonavitch

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The New Renaissance Hat
Kyrel Zantonavitch
October 3, 2012
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Everybody wants something for nothing. But the problem is you can never actually get it. And virtually everyone quietly understands this.

Nothing is ever free, and there’s always a price to pay – even if you only pay it eventually, indirectly, or secretly. And usually the price for this “free” stuff is quite high. You’re almost always far better off paying for it directly and honestly rather than engaging in any type of amoral, unprincipled, dispiriting, and anxiety-ridden beggary or theft.

But when it comes to government, many people today really do pretty much think you can get something for nothing. Many people nowadays really do believe that the government can magically generate things out of thin air, and then give them to “the people” for free. They even commonly think that this is the people’s “right.”

And the more coercive the government, the better, some people think. The more tyrannical the state is, the more it has the power to repeal the laws of economics, physics, and reality. Then it can give “the people” all sorts of free goods and services!

And yet, in an odd way, this view is actually right, because it’s always the more authoritarian states that pretend to offer the most goodies and booty to their greedy citizenry. They’re the ones that always claim to feature the most “economic rights” or welfare-state give-aways.

Many people in the 21st century really do want – and even righteously demand – “free” schools and medical care. They want mandatory “free” paid vacations, sick days, and personal days. They want paid mandatory “free” maternity leave along with no-charge day care for the kids. And, of course, they fully expect “free” public roads, parks, libraries, fire departments, water supplies, etc.

But the problem with all this “free” stuff – as has already been stated – is you truly do pay for it. This happens via taxes. And no, you can’t steal from the rich, and make them pay your share. If you attempt it, they’ll probably just make you pay double. If a government is tyrannical, the rich and powerful can work its machinery far better than you.

Still, too many people try. They hope and dream – and then are easily deluded and duped.

The result of all this attempted robbery of the wealthy, and of the general public, is that while some people do get some “freebies” of a generally ugly and repellant type, the rest of the citizenry quietly raises the costs of everyone’s taxes thru the roof. And almost all the merchandise redistributed via taxation is invariably low in quality and high in cost. Now, maybe many don’t notice this. Defenders of Big Brother go to considerable trouble to disguise this reality from you. But it’s the truth.

Had you directly and honestly paid for all this apparent government windfall – utilizing your individual judgment, prudence, experience, and intelligence – you and your society would be far richer overall. The massive taxes you and the others end up paying are not at all worth it.

Ultimately, whether you know it or not, welfare-state redistribution of wealth results in its very advocates getting utterly conned and totally ripped off.

Kyrel Zantonavitch is the founder of The Liberal Institute  (http://www.liberalinstitute.com/) and a writer for Rebirth of Reason (http://www.rebirthofreason.com). He can be contacted at zantonavitch@gmail.com.