By Ron Paul
Billions of dollars were recently lost in the collapse of Bernie Madoff’s self-described Ponzi scheme, in which too-good-to-be-true returns on investments were not really returns at all, but the funds of defrauded new investors. The pyramid scheme collapsed dramatically when too many clients called in their accounts, and not enough new victims could be found to support these withdrawals. Bernie Madoff was running a blatant fraud operation. Fraud is already illegal, and he will be facing criminal consequences, which is as it should be, and should act as an appropriate deterrent to potential future criminals. But it seems every time someone breaks the law, politicians and pundits decide we need more laws, even though lack of laws was not the problem.
The government itself runs a fraud much bigger than Madoff’s. Our Social Security system is the very definition of a Ponzi, or pyramid scheme. If the government truly had an interest in protecting people’s savings, they would allow people to opt out of Social Security altogether. We would cut wasteful spending, such as our overseas empire, to honor current obligations to seniors, and eventually phase the program out. Instead, as with Enron and Sarbanes Oxley, I expect new, unrelated legislation to be proposed that further damages freedom in the name of protecting us, amidst loud proclamations that they have made the world safe.
Merely passing a law does not fix any problems, just as throwing paper at a recession does not stop it. How can a government so complicit in mandatory public fraud effectively pre-empt private fraud? I see no reason to believe that any new law, or regulatory agency will solve anything. But I do see liberty slipping away every time Congress decides to “do something”. We already have an oversight agency, the SEC, which did a poor job overseeing and preventing this, but does a great job hamstringing honest, productive businesses and driving them overseas.
Total trust in government solutions only creates moral hazard, and amplifies risky behavior. Trust in government got us here. We trusted government to eliminate risk, but it just made risk more creative and dangerous. We trusted the Federal Reserve, a supra-governmental cabal of private banks, to know better than the free market what interest rates should be, and how to stabilize the business cycle, but like a spinning top that loses its balance, it has instead spun the business cycle and the economy wildly out of control.
No governmental activity can negate market forces or nullify the cardinal rule of caveat emptor. Government can however, use our fears against us and promise unrealistic outcomes as a means to consolidate power and erode our liberties. Liberty comes with risk. This is a fact of life. But life without liberty is not much of a life at all.
The only way the American people will get through these difficult times is through our own resilience and ingenuity. At best, the government is irrelevant in finding prosperity again. At worst, government can present a massive obstacle for the economy to overcome. If we do not wise up and rein government back in to its Constitutional limitations, bloated government could be a cumbersome unnecessary weight the economy will continually have to support to stay afloat.
Showing posts with label Government. Show all posts
Showing posts with label Government. Show all posts
Monday, December 22, 2008
Monday, December 15, 2008
Economic Freedom or Socialist Intervention?
By Ron Paul
The freedom to fail is an essential part of freedom. Government- provided financial security necessitates relinquishing the very essence of freedom. Last week, the big 3 American automakers came back to Capitol Hill with their hands out to the government. Congress spent this past week debating how much money to give them and what strings should be attached. Though the bailout plan for the auto industry has suffered what I would call a temporary setback in the Senate, other avenues for public funding are being explored through the Federal Reserve and the Treasury Department. I am afraid the American auto industry will soon learn that having billions rain down from Washington will not be the blessing one might expect.
The government, after it subsidizes an industry, tends to become a very demanding benefactor. Politicians may not have any real idea about how to build a car, run a bank, educate a child, heal the sick or build a road, but they are quite adept at using carrots and sticks to manipulate and threaten those who do. Most of the federal control over education, roads, healthcare, and now banking and soon auto manufacturing, is done through money, mandates and conditions. The bailout proposal we were considering would force automobile manufacturers to submit their business plans for the approval of a new federal "car czar." This bureaucrat would have the authority to approve the automakers’ restructuring plan, monitor implementation of the plan, and even stop certain transactions he determines are inconsistent with the companies’ long-term viability.
One could argue that if billions of taxpayer dollars are going to flow into a failing industry, then representatives of those taxpayers have "bought" a say in how that industry is run – which is precisely why bailouts are such a bad idea for both the industry and the taxpayers. The federal government has neither the competence nor the Constitutional authority to tell private companies, such as automakers, how to run their businesses. I would have thought that failed experiments with central planning and government control of business that caused so much harm in the last century would have taught my colleagues the folly of making businesses obey politicians and bureaucrats instead of heeding the wishes of consumers, employees, and stockholders. But the auto industry is in danger of learning for themselves one of the oldest lessons in politics: he who pays the fiddler calls the tune.
It is not the job of government to sustain business. The government should get out of the way, and instead examine excessive regulations, tax policy and red tape that have been hostile to manufacturing in this country. We should get back on a sustainable economic course in this country, or we are doomed to collapse, as the Soviets did, under the crushing burden of big government and a strangled economy that can no longer pay for it.
The freedom to fail is an essential part of freedom. Government- provided financial security necessitates relinquishing the very essence of freedom. Last week, the big 3 American automakers came back to Capitol Hill with their hands out to the government. Congress spent this past week debating how much money to give them and what strings should be attached. Though the bailout plan for the auto industry has suffered what I would call a temporary setback in the Senate, other avenues for public funding are being explored through the Federal Reserve and the Treasury Department. I am afraid the American auto industry will soon learn that having billions rain down from Washington will not be the blessing one might expect.
The government, after it subsidizes an industry, tends to become a very demanding benefactor. Politicians may not have any real idea about how to build a car, run a bank, educate a child, heal the sick or build a road, but they are quite adept at using carrots and sticks to manipulate and threaten those who do. Most of the federal control over education, roads, healthcare, and now banking and soon auto manufacturing, is done through money, mandates and conditions. The bailout proposal we were considering would force automobile manufacturers to submit their business plans for the approval of a new federal "car czar." This bureaucrat would have the authority to approve the automakers’ restructuring plan, monitor implementation of the plan, and even stop certain transactions he determines are inconsistent with the companies’ long-term viability.
One could argue that if billions of taxpayer dollars are going to flow into a failing industry, then representatives of those taxpayers have "bought" a say in how that industry is run – which is precisely why bailouts are such a bad idea for both the industry and the taxpayers. The federal government has neither the competence nor the Constitutional authority to tell private companies, such as automakers, how to run their businesses. I would have thought that failed experiments with central planning and government control of business that caused so much harm in the last century would have taught my colleagues the folly of making businesses obey politicians and bureaucrats instead of heeding the wishes of consumers, employees, and stockholders. But the auto industry is in danger of learning for themselves one of the oldest lessons in politics: he who pays the fiddler calls the tune.
It is not the job of government to sustain business. The government should get out of the way, and instead examine excessive regulations, tax policy and red tape that have been hostile to manufacturing in this country. We should get back on a sustainable economic course in this country, or we are doomed to collapse, as the Soviets did, under the crushing burden of big government and a strangled economy that can no longer pay for it.
Monday, December 8, 2008
Gun Control: Protecting Terrorists and Despots
By Ron Paul
Tragically, over the Thanksgiving holiday, the world was reminded how evil and cruel people can be. According to emerging accounts of the events in India, about a dozen well-armed and devastatingly well-trained terrorists laid siege on the city of Mumbai, killing almost two hundred people, and terrorizing thousands.
Regardless of the reasons, the indiscriminate shooting on masses of unarmed and defenseless people is chilling and reprehensible. How were these terrorists able to continue so long, relatively unchallenged, killing so many?
India’s gun laws are her business, of course. However, once the shock of these events and the initial reaction of fear passes, Americans should take away a valuable lesson about real homeland security and gun control from this tragedy.
Gun control advocates tell us that removing guns from society makes us safer. If that were the case why do the worst shootings happen in gun free zones, like schools? And while accidents do happen, aggressive, terroristic shootings like this are unheard of at gun and knife shows, or military bases. It bears repeating that an armed society truly is a polite society.
The fact is that firearm technology exists. It cannot be uninvented. As long as there is metalworking and welding capability, it matters not what gun laws are imposed upon law-abiding people. Those that wish to have guns, and disregard the law, will have guns. Gun control makes violence safer and more effective for the aggressive, whether the aggressor is a terrorist or a government.
History shows us that another tragedy of gun laws is genocide. Hitler, for example, knew well that in order to enact his “final solution,” disarmament was a necessary precursor. While it is not always the case that an unarmed populace WILL be killed by their government, if a government is going to kill its own people, it MUST disarm them first so they cannot fight back.
Disarmament must happen at a time when overall trust in government is high, and under the guise of safety for the people, or perhaps the children. Knowing that any government, no matter how idealistically started, can become despotic, the Founding Fathers enabled the future freedom of Americans by enacting the second amendment.
In our own country, we should be ever vigilant against any attempts to disarm the people, especially in this economic downturn. I expect violent crime to rise sharply in the coming days, and as states and municipalities are even more financially strained, the police will be even less able or willing to respond to crime. In many areas, local police could become more and more absorbed with revenue generating activities, like minor traffic violations and the asset forfeiture opportunities of non-violent drug offenses. Your safety has always, ultimately been your own responsibility, but never more so than now. People have a natural right to defend themselves. Governments that take that away from their people should be highly suspect.
Tragically, over the Thanksgiving holiday, the world was reminded how evil and cruel people can be. According to emerging accounts of the events in India, about a dozen well-armed and devastatingly well-trained terrorists laid siege on the city of Mumbai, killing almost two hundred people, and terrorizing thousands.
Regardless of the reasons, the indiscriminate shooting on masses of unarmed and defenseless people is chilling and reprehensible. How were these terrorists able to continue so long, relatively unchallenged, killing so many?
India’s gun laws are her business, of course. However, once the shock of these events and the initial reaction of fear passes, Americans should take away a valuable lesson about real homeland security and gun control from this tragedy.
Gun control advocates tell us that removing guns from society makes us safer. If that were the case why do the worst shootings happen in gun free zones, like schools? And while accidents do happen, aggressive, terroristic shootings like this are unheard of at gun and knife shows, or military bases. It bears repeating that an armed society truly is a polite society.
The fact is that firearm technology exists. It cannot be uninvented. As long as there is metalworking and welding capability, it matters not what gun laws are imposed upon law-abiding people. Those that wish to have guns, and disregard the law, will have guns. Gun control makes violence safer and more effective for the aggressive, whether the aggressor is a terrorist or a government.
History shows us that another tragedy of gun laws is genocide. Hitler, for example, knew well that in order to enact his “final solution,” disarmament was a necessary precursor. While it is not always the case that an unarmed populace WILL be killed by their government, if a government is going to kill its own people, it MUST disarm them first so they cannot fight back.
Disarmament must happen at a time when overall trust in government is high, and under the guise of safety for the people, or perhaps the children. Knowing that any government, no matter how idealistically started, can become despotic, the Founding Fathers enabled the future freedom of Americans by enacting the second amendment.
In our own country, we should be ever vigilant against any attempts to disarm the people, especially in this economic downturn. I expect violent crime to rise sharply in the coming days, and as states and municipalities are even more financially strained, the police will be even less able or willing to respond to crime. In many areas, local police could become more and more absorbed with revenue generating activities, like minor traffic violations and the asset forfeiture opportunities of non-violent drug offenses. Your safety has always, ultimately been your own responsibility, but never more so than now. People have a natural right to defend themselves. Governments that take that away from their people should be highly suspect.
Saturday, August 9, 2008
Nations of Eternal War...
By Shane Van Cleve
Most of you have probably heard about the start of war between Russia and Georgia. What should the United States do about it? Stay out. That's what. We should not be involved in other people's business. Our military was not made to fight for other countries. Our military was made to defend the United States of America. The founding fathers warned us about getting involved in other people's wars:
"I have ever deemed it fundamental for the United States never to take active part in the quarrels of Europe. Their political interests are entirely distinct from ours. Their mutual jealousies, their balance of power, their complicated alliances, their forms and principles of government, are all foreign to us. They are nations of eternal war. All their energies are expended in the destruction of the labor, property and lives of their people." ~Thomas Jefferson
"Peace, commerce and honest friendship with all nations--entangling alliances with none, I deem [one of] the essential principles of our government, and consequently [one of] those which ought to shape its administration." ~Thomas Jefferson
"The great rule of conduct for us in regard to foreign nations is in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop. Europe has a set of primary interests which to us have none; or a very remote relation. Hence she must be engaged in frequent controversies, the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves by artificial ties in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities. " ~George Washington
"...a passionate attachment of one nation for another produces a variety of evils. Sympathy for the favorite nation, facilitating the illusion of an imaginary common interest in cases where no real common interest exists, and infusing into one the enmities of the other, betrays the former into a participation in the quarrels and wars of the latter without adequate inducement or justification. It leads also to concessions to the favorite nation of privileges denied to others which is apt doubly to injure the nation making the concessions; by unnecessarily parting with what ought to have been retained, and by exciting jealousy, ill-will, and a disposition to retaliate, in the parties from whom equal privileges are withheld.....Against the insidious wiles of foreign influence (I conjure you to believe me, fellow-citizens) the jealousy of a free people ought to be constantly awake..." ~George Washington
The founding fathers warned us to not get involved in the wars and problems of Europe. But unfortunately, our leaders have forgotten their advice. We now have troops in over 130 countries around the world including Georgia.
You may have noticed that the founding fathers also said to have "alliances with none". Why did they say that? Just look at the World Wars. Take World War 1 for example. The murder of 1 man, Archduke Franz Ferdinand, let to a World War or the killings of 20 million people. Now I could justify finding and punishing the one who murdered him but a World War? How did that happen? It was because of alliances. Alliances say if you go to war, then I will go with you. Think of how many lives would have been saved if the war was only between Austria and Serbia. But because of the alliances, 20 million lives were lost.
Why then should we get involved in the conflict between Georgia and Russia? Let them settle the matter and let us concentrate on defending the United States. If we have all our troops in 130 countries around the world, who's going to defend us if an attack hits our homeland?
Let us stay out of the conflicts of Europe for they are "nations of eternal war".
Most of you have probably heard about the start of war between Russia and Georgia. What should the United States do about it? Stay out. That's what. We should not be involved in other people's business. Our military was not made to fight for other countries. Our military was made to defend the United States of America. The founding fathers warned us about getting involved in other people's wars:
"I have ever deemed it fundamental for the United States never to take active part in the quarrels of Europe. Their political interests are entirely distinct from ours. Their mutual jealousies, their balance of power, their complicated alliances, their forms and principles of government, are all foreign to us. They are nations of eternal war. All their energies are expended in the destruction of the labor, property and lives of their people." ~Thomas Jefferson
"Peace, commerce and honest friendship with all nations--entangling alliances with none, I deem [one of] the essential principles of our government, and consequently [one of] those which ought to shape its administration." ~Thomas Jefferson
"The great rule of conduct for us in regard to foreign nations is in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop. Europe has a set of primary interests which to us have none; or a very remote relation. Hence she must be engaged in frequent controversies, the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves by artificial ties in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities. " ~George Washington
"...a passionate attachment of one nation for another produces a variety of evils. Sympathy for the favorite nation, facilitating the illusion of an imaginary common interest in cases where no real common interest exists, and infusing into one the enmities of the other, betrays the former into a participation in the quarrels and wars of the latter without adequate inducement or justification. It leads also to concessions to the favorite nation of privileges denied to others which is apt doubly to injure the nation making the concessions; by unnecessarily parting with what ought to have been retained, and by exciting jealousy, ill-will, and a disposition to retaliate, in the parties from whom equal privileges are withheld.....Against the insidious wiles of foreign influence (I conjure you to believe me, fellow-citizens) the jealousy of a free people ought to be constantly awake..." ~George Washington
The founding fathers warned us to not get involved in the wars and problems of Europe. But unfortunately, our leaders have forgotten their advice. We now have troops in over 130 countries around the world including Georgia.
You may have noticed that the founding fathers also said to have "alliances with none". Why did they say that? Just look at the World Wars. Take World War 1 for example. The murder of 1 man, Archduke Franz Ferdinand, let to a World War or the killings of 20 million people. Now I could justify finding and punishing the one who murdered him but a World War? How did that happen? It was because of alliances. Alliances say if you go to war, then I will go with you. Think of how many lives would have been saved if the war was only between Austria and Serbia. But because of the alliances, 20 million lives were lost.
Why then should we get involved in the conflict between Georgia and Russia? Let them settle the matter and let us concentrate on defending the United States. If we have all our troops in 130 countries around the world, who's going to defend us if an attack hits our homeland?
Let us stay out of the conflicts of Europe for they are "nations of eternal war".
A Wise and Frugal Government = Good Government
A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government... ~Thomas Jefferson, First Inaugural Address.
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