U.S. Rep. Ron Paul | market |
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State Of The Republic
28 January 1998 1998 Ron Paul 2:10
A Kuwaiti professor, amazingly, was quoted in a proper pro-government Kuwaiti newspaper as saying, “The U.S. frightens us with Saddam to make us buy weapons and sign contracts with American companies,” thus ensuring a market for American arms manufacturers and United States’ continued military presence in the Middle East.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:20
This referred to the success of major deals made by giant oil companies to build pipelines to carry oil out of the Caspian Sea while also delivering a strong message that, for these projects to be successful and further enhance foreign policy, it will require government subsidies to help pay the bill. Market development of the pipelines would be cheaper but would not satisfy our international government planners.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:59
There is a sense of relief the welfare state has received a reprieve. One can almost hear the sigh amplified by hearing of the problems in the Southeast Asia countries with their currency and stock market problems, not realizing it is the U.S. taxpayers and the dollar that will be called upon for the bailout of this financial crisis.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:61
The message is this: The politicians will never limit spending, but, eventually, the market will. It has already done so in Thailand, South Korea, the Philippines, Indonesia and Malaysia.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:73
Currency issues are serious and a much bigger problem than Congress realizes. Even the Fed has convinced itself it is quite capable of managing our fiat currency and our financial markets through any crisis. The money managers are every bit as powerful as the Congress, which taxes and spends, but the Federal Reserve’s actions are much less scrutinized.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:74
But when push comes to shove, the markets always win out. Interest rates are less than one percent in Japan, but have not prompted borrowers to come forth nor bankers to lend. The proposed $25 billion injection by the Bank of Japan will not solve the problem either. Even central bankers cannot push on a string.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:76
Eventually, everyone though is threatened by the political disruption that can ensue with a currency mishap. Our greatest concern should be for our loss of liberties that so often accompany a currency crisis. Congressional attitude toward monetary policy is not likely to change soon, so we can expect a lot more turmoil in the currency markets in the months ahead.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:100
Both types of welfare expenditures benefit from a monetary system that creates credit out of thin air in order to monetize congressional deficits when needed and manipulate interest rates downward to nonmarket levels to serve the interests of big borrowers and lenders. Federal Reserve policy is an essential element in serving the powerful special interests. Monetary mischief of this type will not likely be ended by congressional action, but will be eventually stopped by market forces, just as has recently occurred in the Far East.
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State Of The Republic
28 January 1998 1998 Ron Paul 2:135
When government’s sole purpose is to protect the lowliest of the minority, the individual, there will be no market for influence buying. Regulating the peddlers of graft will only make things worse for the rules will further undermine the right of the individual to petition and seek his own redress of grievances.
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Three Important Issues For America
11 February 1998 1998 Ron Paul 7:18
There was a Kuwaiti professor who was quoted in a pro-government Kuwaiti newspaper as saying, the U.S. frightens us with ads to make us buy weapons and sign contracts with American companies, thus, ensuring a market for American arms manufacturers and United States continued military presence in the Middle East. That is not my opinion; that is a Kuwaiti professor writing in a government newspaper in Kuwait.
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Three Important Issues For America
11 February 1998 1998 Ron Paul 7:65
We obviously knew the oil was important in the Persian Gulf War because it was said that we were going over there to protect our oil. Of course, it was Iraqi oil but some people believe sincerely that keeping this Iraqi oil off the market helps keep the prices higher and they do not need that to happen.
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Three Important Issues For America
11 February 1998 1998 Ron Paul 7:118
Foreign policy is very important because it is under the conditions of war; it is under the condition of foreign confrontation that people are so willing to give up their liberties at home because of the fear. We should avoid unnecessary confrontations overseas and we should concentrate on bettering the people here in this country, and it can best be done by guaranteeing property rights, free markets, sound money, and a sensible approach to our foreign policy.
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Millennium Bug
24 February 1998 1998 Ron Paul 13:7
Year 2000 issues with computers cause numerous headaches but by no means unsolvable problems. Solutions exist, and since we do exist in a relatively free market, we should allow it to work.
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Access To Energy
25 February 1998 1998 Ron Paul 19:8
The capital required to build these things was supplied by the savings of tens of millions of people, who set aside part of the money they had earned and invested it in the free market in hopes of making a profit. It was also built by the profits retained by the corporations themselves. Capital alone did not, however, build the industries — people did. These people were led by unusual individuals whose love of science and technology dominated their personal lives and drove them and those around them to ever greater accomplishments.
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Introduction Of The Rice Farmer Fairness Act
5 March 1998 1998 Ron Paul 23:3
As grain elevators, processors and others see a reduction in demand for their services because of the diminution of production permitted by this legislation they have a disincentive to continue to provide said services, services which must remain in place in order for those who remain in production to be able to bring to market the rice which they continue to produce. Thus, by way of the decimation of the infrastructure, this subsidy to non-producers comes at the expense of those who continue to produce rice. Therefore, the provisions of the Freedom to Farm Act which provide this subsidy actually amount to another form of federal welfare, taking from producers and giving to non-producers.
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Introduction Of The Rice Farmer Fairness Act
5 March 1998 1998 Ron Paul 23:5
America’s rice farmers are among the most efficient, effective producers of rice in the world despite the many hurdles erected by Washington. Our rice producers can compete with anyone absent such hurdles and this bill will help remove one. In order to enhance our competitive position, we should also end our embargoes of other nations which would like access to rice produced in America. Further we should eliminate the burdensome taxes regulations on America’s farmers to insure increased market access and a healthy farming community in the these United States.
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Credit Union Membership Access Act
1 April 1998 1998 Ron Paul 33:5
These regulations, under which the credit unions will now suffer a greater burden with the passage of this bill, impose a disproportionate burden on smaller institutions. These increased, and unfairly imposed, regulations will stifle the possibility of new entrants into the financial sector and contribute to a consolidation and fewer market participants of the industry. As the introduction of new entrants into the market becomes more costly, smaller institutions will face a marginally increased burden and will be more likely to consolidate. “The basic conclusion is similar for all of the studies of economies of scale: Average compliance costs for regulations are substantially greater for banks at low levels of output than for banks at moderate or high levels of output,” the Staff Study concludes.
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The Bubble
28 April 1998 1998 Ron Paul 39:4
Alan Greenspan took over the Fed a few months before the stock market crash of October, 1997. In the 10 years that Greenspan has headed the Fed, $2 trillion of new credit has been created as measured by M3. Banks threatened by bankruptcy in the early 1990s received generous assistance from the Fed policy of low interest rates and rapid credit expansion as a response to the recession of 1991. Fed fund rates were held at 3 percent for well over a year. This generous dose of Fed credit has fueled the 5-year superboom on Wall Street.
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The Bubble
28 April 1998 1998 Ron Paul 39:15
Think of this: Money can be borrowed in Japan at Depression-era rates of 1 percent and then reinvested here in the United States either in more treasury debt earning 5 or 6 percent, or reinvested in our stock market, which is currently climbing at a 20 percent annualized rate. This sounds like a perfect deal for today’s speculators, but there is nothing that guarantees this process will continue for much longer. Perfect situations never last forever.
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The Bubble
28 April 1998 1998 Ron Paul 39:25
There are probably several reasons why this current economic boom has lasted longer than most others. The elimination of the Soviet threat has allowed a feeling of optimism not felt in many decades, and there has subsequently been tremendous optimism placed on potential economic development of many world markets in this age of relative peace.
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The Bubble
28 April 1998 1998 Ron Paul 39:26
There is also very poor understanding regarding economic interventionism, the system most nations of the world accept today. Today’s interventionism is not close to a free market. The great Austrian economist Ludwig von Mises consistently pointed out that interventionism always leads to a form of socialism, which then eliminates the apparent benefits of interventionism.
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The Bubble
28 April 1998 1998 Ron Paul 39:27
A good example of how interventionism leads to the destruction of a market can be seen in the recent tobacco fiasco. First, the tobacco industry accepted subsidies and protectionism to build a powerful and wealthy industry. Then, having conceded this “nanny” role to the government, Big Tobacco had no defense when it was held liable for illnesses that befell some of the willing users of tobacco products. Now, the current plan of super taxation on tobacco users will allow the politicians to bail out the individual farmers who may be injured by reduced use of tobacco products (destruction of the market). This half-trillion-dollar tax proposal hardly solves the problem.
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The Bubble
28 April 1998 1998 Ron Paul 39:30
Even though Japan first recognized signs of difficulty nine years ago, their problems linger because they have not allowed the liquidation of debt, or the elimination of over capacity, or the adjustment for real estate prices that would occur if the market were permitted to operate free of government intervention. The U.S. did the same thing in the 1930s, and I suspect we will do exactly what Japan is doing once our problems become more pressing. With our own problems from the inflation of the last 15 years now becoming apparent, their only answer so far is to inflate even more.
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The Bubble
28 April 1998 1998 Ron Paul 39:36
THE END IN SIGHT? Reassurance that all is well is a strategy found at the end of a boom cycle. Government revenues are higher than anticipated, and many are feeling richer than they are. The more inflated the stock market is as a consequence of credit creation, the less, reliable these markets are at predicting future economic events. Stock markets can be good predictors of the future, but the more speculative they become, the less likely it is the markets will reveal what the world will be like next year.
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The Bubble
28 April 1998 1998 Ron Paul 39:40
Central bankers have also become more sophisticated in the balancing act between inflation and deflation. They are great technicians and are quite capable of interpreting events and striking a balance between these two horrors. This does not cancel out the basic flaw of a fiat currency; central bankers cannot replace the marketplace for determining interest rates and the proper amount of credit the economy needs.
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The Bubble
28 April 1998 1998 Ron Paul 39:43
Washington goes along because it is furtively, but definitely, acknowledged there that a free-market, high gold price would send a bad signal worldwide about the world financial system. Therefore, every effort is made to keep the price of gold low for as long as possible. It’s true the supply-siders have some interest in gold, but they are not talking about a gold standard, merely a price rule that encourages central-bank fixing of the price of gold. Most defenders of the free-enterprise system in Washington are Keynesians at heart and will not challenge interventionism on principle.
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The Bubble
28 April 1998 1998 Ron Paul 39:45
THE SOLUTION The solution to all of this is not complex. But no effort is going to be made to correct the problems that have allowed our financial bubble to develop, because Alan Greenspan has been practically declared a god by more than one Wall Street guru. Because Alan Greenspan himself understands Austrian free-market economics and the gold standard, it is stunning to see him participate in the bubble when he, deep down inside, knows big problems lurk around the corner. Without the motivation to do something, not much is likely to happen to our monetary system in the near future.
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The Bubble
28 April 1998 1998 Ron Paul 39:47
The key element to the financial system under which we are now living is the dollar. If confidence is lost in the dollar and a subsequent free-market price for gold develops, the whole financial system is threatened. Next year, with the European currency unit (ECU) coming on line, there could be some serious adjustments for the dollar. The success of the ECU is unpredictable, but now that they are indicating some gold will be held in reserve, it is possible that this currency will get off the ground.
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The Bubble
28 April 1998 1998 Ron Paul 39:52
No one has firmly assessed the Y2K problem, but it cannot bode well if a financial crisis comes near that time. Certainly a giant company like Citicorp and Travelers, who have recently merged, could really be hurt if the Y2K problem is real. Since the markets seem to be discounting this, I have yet to make up my own mind on how serious this problem is going to be.
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The Bubble
28 April 1998 1998 Ron Paul 39:58
Until we accept the free market principle that governments cannot create money out of thin air and that money must represent something of real value, we can anticipate a lot more confiscation of wealth through inflation.
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Support The National Right To Work Act
6 May 1998 1998 Ron Paul 48:4
Passage of the National Right to Work Act would be a major step forward in ending Congress’ illegitimate interference in the labor markets and liberating America’s economy from heavy-handed government intervention. Since Congress created this injustice, we have the moral responsibility to work to end it, Mr. Speaker.
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Higher Education Amendments of 1998
6 May 1998 1998 Ron Paul 49:13
This bill also contains a section authorizing special funding for programs in areas of so-called “national need” as designated by the Secretary of Education. This is little more than central planning, based on the fallacy that omnipotent “experts” can easily determine the correct allocation of education resources. However, basic economies teaches that a bureaucrat in Washington cannot determine “areas of national need.” The only way to know this is through the interaction of students, colleges, employers, and consumers operating in a free-market, where individuals can decide what higher education is deserving of expending additional resources as indicated by employer workplace demand.
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National Police State
12 May 1998 1998 Ron Paul 50:2
Our federal government is, constitutionally, a government of limited powers. Article one, Section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently. Of course, there will be those who will hang their constitutional “hats” on the interstate commerce general welfare clauses, both of which have been popular “headgear” since the FDR’s headfirst plunge into New Deal Socialism.
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National Police State
12 May 1998 1998 Ron Paul 50:9
It is important to be reminded of the benefits of federalism as well as the costs. There are sound reasons to maintain a system of smaller, independent jurisdictions — it is called competition and, yes, governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide values as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Yet, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.
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FDIC Problem
13 May 1998 1998 Ron Paul 51:2
There are two positions that one could take on this. We could have zero integration, which this amendment would do; or we could think about the market. The market would just allow it to exist.
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FDIC Problem
13 May 1998 1998 Ron Paul 51:3
Earlier, somebody quoted Hamilton as being opposed to an integration of commerce in banking. Well, of course, at that particular time in history we had the Jeffersonians, and they were strongly in support of the market and even against central banking.
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FDIC Problem
13 May 1998 1998 Ron Paul 51:6
We have to think about how we got here. In the 1920s, the Federal Reserve created a lot of credit. They created a boom and a booming stock market and good times. Then the Federal Reserve raised the interest rates and there was a stock market crash and a depression. And out of the depression came the desire to regulate banking and commerce. That caused the depression, which was erroneous, because the cause of the depression was excessive credit and then a deflated bubble, which should be all laid at the doorstep of the Federal Reserve.
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The Indonesia Crisis
19 May 1998 1998 Ron Paul 52:1
BACKGROUND Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei stock average is still down 60% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing Southeast Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stock market “crash” — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe and then to America should not be summarily dismissed.
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The Indonesia Crisis
19 May 1998 1998 Ron Paul 52:10
“Crony capitalism” was not the cause of Indonesia’s trouble. Inflationism and political corruption allows crony capitalism to exist. It would be better to call it economic interventionism for the benefit of special interests — a mild form of fascism — than to abuse the free market term of capitalism.
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The Indonesia Crisis
19 May 1998 1998 Ron Paul 52:15
Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989 and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, and establishing sound monetary policy has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out, that won’t work, is the worst policy of all for us to pursue.
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The Indonesia Crisis
19 May 1998 1998 Ron Paul 52:16
The Indonesian government had one idea worth considering under these very difficult circumstances. They wanted to replace their central bank with a currency board. It’s not the gold standard, but it would have been a wise choice under current conditions. But the United States and the IMF insisted that in order to qualify for IMF funding this idea had to be rejected outright and the new central bank for Indonesia had to be patterned after the Federal Reserve with, I’m sure, ties to it for directions from Greenspan and company. A currency board would allow a close linkage of the rupiah to the dollar, its value controlled by market forces, and would have prevented domestic Indonesia monetary inflation — the principle cause of the economic bubble now collapsed. The shortcoming of a currency board is that the Indonesian currency and economy would be dependent on dollar stability which is far from guaranteed.
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The Indonesia Crisis
19 May 1998 1998 Ron Paul 52:18
The philosophy of the free market, holds a lot of answers, yet the difference between free market capitalism and interventionist political cronyism has not been considered by any of the world banking and political leaders currently addressing the exploding Southeast Asian crisis.
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The Indonesia Crisis
22 May 1998 1998 Ron Paul 54:1
Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei (Tokyo) stock average is still down 57% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing East Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stocke market “crash” here — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe, and then to America, should not be summarily dismissed.
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The Indonesia Crisis
22 May 1998 1998 Ron Paul 54:10
“Crony capitalism” was not the cause of Indonesia’s trouble. Inflationism and political corruption allow crony capitalism to exist. It would be better to call it economic interventionism for the benefit of special interests — a mild form of fascism — than to abuse the free market term of capitalism.
market
The Indonesia Crisis
22 May 1998 1998 Ron Paul 54:15
Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989, and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, including the establishment of a sound monetary policy, has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out will work. It won’t work — it is the worst policy of all for us to pursue.
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The Indonesia Crisis
22 May 1998 1998 Ron Paul 54:16
The Indonesian Government had one idea worth considering under these very difficult circumstances. They wanted to replace their central bank with a currency board. It’s not as good as gold standard, but it would have been a wise choice under current conditions. But the United States and the IMF insisted that in order to qualify for IMF funding this idea had to be rejected outright and the new central bank for Indonesia had to be patterned after the Federal Reserve with, I’m sure, ties to it for directions from Federal Reserve Board Governor Alan Greenspan and company. A currency board would allow a close linkage of the rupiah to the dollar, with its value controlled by market forces, and would have prevented domestic Indonesia monetary inflation — the principle cause of the economic bubble now collapsed. The shortcoming of a currency board tied to the U.S. dollar is that the Indonesian currency and economy would be dependent on dollar stability which is far from guaranteed.
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The Indonesia Crisis
22 May 1998 1998 Ron Paul 54:18
The philosophy of the free market holds a lot of answers — yet the difference between free market capitalism and interventionist political cronyism has not been considered by any of the world banking and political leaders currently addressing the exploding East Asian crisis.
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Time To Reconsider Destructive Embargo Policies
17 June 1998 1998 Ron Paul 61:3
Mr. Speaker, I am proud to represent a very rural, agriculturally-based district. My constituents are well aware of the importance of opening export markets for America’s agricultural producers. Mr. Speaker, at this time I would like to place in the RECORD this story from the Farm Bureau News in hopes that people in the Administration, as well as in this Congress will begin to reconsider destructive embargo policies which only harm our nation’s farmers and other producers including my constituents.
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Time To Reconsider Destructive Embargo Policies
17 June 1998 1998 Ron Paul 61:6
President Clinton imposed sanctions against India and Pakistan after those countries detonated nuclear devices. House Agriculture Committee Chairman Bob Smith (R– Ore.) and ranking minority member Charlie Stenholm (D–Texas) have urged Clinton to exempt food and agricultural commodities from those sanctions. Pakistan is an important market for U.S. agricultural products, ranking third in purchases of U.S. wheat.
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Time To Reconsider Destructive Embargo Policies
17 June 1998 1998 Ron Paul 61:8
Warfield, a member of the American Farm Bureau Federation board of directors, told the panel that when sanctions are imposed, agriculture typically bears the brunt through lost sales and gains a reputation as an unreliable supplier. While American agriculture loses through sanctions and embargoes, its toughest competitors win by picking up those markets.
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Time To Reconsider Destructive Embargo Policies
17 June 1998 1998 Ron Paul 61:12
Warfield said Farm Bureau supports a bill (H.R. 3654) by Re. Tom Ewing (R–Ill.) that would prevent selective agricultural embargoes. The legislation, he said, would prevent useless embargoes that destroy American export markets while creating opportunities for other countries. Warfield said engagement with other nations, not sanctions and embargoes, should be the preferred option.
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Time To Reconsider Destructive Embargo Policies
17 June 1998 1998 Ron Paul 61:13
“The United States, as the leader in world trade, has an unprecedented opportunity to promote its values throughout the world by peaceful engagement through trade,” Warfield said, “Reaching out through engagement and trade, not withdrawing behind embargoes, is the best way to achieve positive change — not by denying ourselves access to the markets and creating opportunities for our competitors.”
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Every Currency Crumbles
24 June 1998 1998 Ron Paul 65:1
Mr. PAUL. Mr. Speaker, it has recently come to my attention that James Grant has made a public warning regarding monetary crises. In an Op-Ed entitled “Every Currency Crumbles” in The New York Times on Friday, June 19, 1998, he explains that monetary crises are as old as money. Some monetary systems outlive others: the Byzantine empire minted the bezant, the standard gold coin, for 800 years with the same weight and fineness. By contrast, the Japanese yen, he points out, is considered significantly weak at 140 against the U.S. dollar now to warrant intervention in the foreign exchange markets but was 360 as recently as 1971. The fiat U.S. dollar is not immune to the same fate as other paper currencies. As Mr. Grant points out, “The history of currencies is unambiguous. The law is, Ashes to ashes and dust to dust.”
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Every Currency Crumbles
24 June 1998 1998 Ron Paul 65:2
Mr. James Grant is the editor of Grant’s Interest Rate Observer, a financial publication, and editorial director of Grant’s Municipal Bond Observer and Grant’s Asia Observer. He has also authored several books including the biographical “Bernard Baruch: Adventures of a Wall Street Legend”, the best financial book of the year according to The Financial Times “Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken”, “Minding Mr. Market: Ten Years on Wall Street with Grant’s Interest Rate Observer” and “The Trouble with Prosperity: The Loss of Fear, the Rise of Speculation, and the Risk to American Savings”. He is a frequent guest on news and financial programs, and his articles appear in a variety of publications.
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Every Currency Crumbles
24 June 1998 1998 Ron Paul 65:7
It cannot undergird confidence that the monetary fires are becoming six- and seven-alarmers. Writing in 1993 about the crisis of the European Rate Mechanism (in which George Soros bested the Bank of England by correcting anticipating a devaluation of the pound), a central bankers’ organization commented: “Despite its geographical confinement to Europe, it is probably no exaggeration to say that the period from late 1991 to early 1993 witnessed the most severe and widespread foreign exchange market crisis since the breakdown of the Bretton Woods System 20 years ago.” But the European crisis has been handily eclipsed by the Asian one.
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Every Currency Crumbles
24 June 1998 1998 Ron Paul 65:9
Today, the unnamed successor to Bretton Woods is showing its years. The present-day system is also dollar-based, but it differs from Bretton Woods in that the dollar is no longer anchored to anything. It is defined as 100 cents and only as 100 cents. Its value is derived not from a specified weight of gold, as it was up until Aug. 15, 1971, but from the confidence of the market.
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Every Currency Crumbles
24 June 1998 1998 Ron Paul 65:10
For the moment, the market is highly confident. So is the world at large. In 1996, the Federal Reserve Board estimated that some 60 percent of all American currency in existence circulates overseas. The dollar has become the Coca-Cola of monetary brands.
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Child Custody Protection Act
15 July 1998 1998 Ron Paul 77:9
Our federal government is, constitutionally, a government of limited powers. Article one, Section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Exchange Stabilization Fund
16 July 1998 1998 Ron Paul 79:8
Yes, we can get into the currency markets to the tune of billions of dollars. They say, well, there is only 38; they might not be able to do any mischief. But my strong suspicion is that the line of credit to the Federal Reserve is endless in the time of crisis.
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Patient Protection Act of 1998
24 July 1998 1998 Ron Paul 84:6
Because this problem was created by distortions in the health care market that took control of the health care dollar away from the consumer, the best solution to this problem is to put control of the health care dollar back into the hands of the consumer. We also need to rethink the whole idea of first-dollar insurance coverage for every medical expense, no matter how inexpensive. Americans would be more satisfied with the health care system if they could pay for their routine expenses with their own funds, relying on insurance for catastrophic events, such as cancer.
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Banking Regulations
4 August 1998 1998 Ron Paul 93:3
I am a supporter of the free market, and I do not believe you can achieve equity by raising taxes and putting more regulations on those who do not have regulations and who do not have taxes.
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Banking Regulations
4 August 1998 1998 Ron Paul 93:10
These regulations add to the costs of operations of financial institutions. This cost is passed on to consumers in the form of higher interest rates and additional fees. These regulations impose a disproportionate burden on smallers institutions, stifles the possibility of new entrants into the financial sector, and contributes to a consolidation and fewer market participants of the industry. Consumers need additional choices, not congressionally-imposed limits on choices.
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Worldwide Financial Crisis
10 September 1998 1998 Ron Paul 97:1
Mr. PAUL. Mr. Speaker, the largest of all bubbles is now bursting. This is a worldwide phenomenon starting originally in Japan 9 years ago, spreading to East Asia last year, and now significantly affecting U.S. markets.
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Worldwide Financial Crisis
10 September 1998 1998 Ron Paul 97:4
All countries of the world have participated in this massive inflationary bubble with the dollar leading the way. Being a political and economic powerhouse, U.S. policy and the dollar has had a major influence throughout the world and, in many ways, has been the engine of inflation driving world financial markets for years.
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Worldwide Financial Crisis
10 September 1998 1998 Ron Paul 97:7
A crisis brought on by monetary inflation cannot be aborted by more monetary inflation or the IMF bailouts favored by the American taxpayer. It may at times delay the inevitable, but eventually, the market will demand liquidation of the malinvestment, excessive debt, and correction of speculative high prices as we have seen in the financial markets.
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Worldwide Financial Crisis
10 September 1998 1998 Ron Paul 97:9
The Federal Reserve hints at lower interest rates which means more easy credit. This may be construed as a positive for the market, but it only perpetuates a flawed monetary system.
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Revamping The Monetary System
24 September 1998 1998 Ron Paul 102:3
This is a hedge fund. Their capitalization is less than $100 billion, but, through the derivatives markets, they were able to buy and speculate in over $1 trillion worth of securities, part of the financial bubble that I have expressed concern about over the past several months.
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Revamping The Monetary System
24 September 1998 1998 Ron Paul 102:5
Yesterday also Greenspan announced that he would lower interest rates. I do not think this was an accident or not coincidental. It was coincidental that at this very same time they were meeting this crisis, Greenspan had to announce that, yes indeed, he would inflate our currency, he would expand the money supply, he would increase the credit, he would lower interest rates. At least that is what the markets interpreted his statement to mean. And the stock market responded favorably by going up 257 points.
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Don’t Fast-Track Free Trade Deal
25 September 1998 1998 Ron Paul 103:8
In truth, the bipartisan establishment’s fanfare of “free trade” fosters the opposite of genuine freedom of exchange. Whereas genuine free traders examine free markets from the perspective of the consumer (each individual), the mercantilist examines trade from the perspective of the power elite; in other words, from the perspective of the big business in concert with big government. Genuine free traders consider exports a means of paying for imports, in the same way that goods in general are produced in order to be sold to consumers. But the mercantilists want to privilege the government business elite at the expense of all consumers, be they domestic or foreign.
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World Financial Markets
1 October 1998 1998 Ron Paul 104:1
Mr. PAUL. Mr. Speaker, the world financial markets have been in chaos now for nearly a year and a half. The problem surrounding long-term capital investment is only one more item to add to the list. The entire process represents the unwinding of speculative investments encouraged by years of easy credit. By the way, Long Term Credit Management is not even an American corporation. It is registered in the Cayman Islands, I am sure for tax purposes.
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World Financial Markets
1 October 1998 1998 Ron Paul 104:5
Short-term benefits were enjoyed, it is clear now they were not worth the resulting chaos. We need not look for the cause which puts the dollar, our economy and our financial markets at risk. The previous boom supported by the illusion of wealth coming from money creation is the cause of current world events, and it guarantees further unwinding of the speculative orgy of the past decades.
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World Financial Markets
1 October 1998 1998 Ron Paul 104:8
Price fixing of interest rates contradicts the basic tenets of capitalism. Let it no more be said that today’s mess with financial markets is a result of capitalism’s shortcomings. Nothing is further from the truth. Allowing the market to operate even under today’s dangerous conditions is still the best option for dealing with hedge fund’s gambling mistakes, both current and future.
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Hedge Fund Bailout
2 October 1998 1998 Ron Paul 105:2
STATEMENT OF HON. GREG KAZA, MICHIGAN STATE REPRESENTATIVE, ADJUNCT PROFESSOR OF FINANCE, WALSH COLLEGE Derivatives are financial instruments broadly defined as any contract or convertible security that changes in value in concert with a related or underlying security, fixed-income instrument, future or other instrument, currency or index; or that obtains much of its value from price movements in a related or underlying instrument; or an option, swap, warrant, or debt instrument with one or more options embedded in or attached to it, the value of which contract or security is determined in whole or in part by the price of one or more underlying instruments or markets.
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Hedge Fund Bailout
2 October 1998 1998 Ron Paul 105:3
Although derivatives are a relatively recent development in financial markets, their use by corporations, pension and mutual funds, financial institutions, governments and those involved in money management are clearly ascendant, according to the Federal Reserve and other federal agencies. The issue is not whether the government should ban or in some way restrict the prudent use of derivatives to hedge risk. Rather, the issue is one of disclosure, i.e., how best to provide increased transparency as our complex international financial system enters the 21st Century.
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New Global Economic Plan
9 October 1998 1998 Ron Paul 117:2
The world economies have been built on generous credit expansion with each country inflating their currencies at different rates. Additionally, each country has had different political, tax, and regulatory policies leading to various degrees of trust and stability. Economies that have “enjoyed” inflationary booms, by their very nature, must undergo a market correction. The market demands deflation of all excesses, while the politicians and special interests agitate for continued credit inflation. Under these circumstances, financial assets may deflate in price but monetary inflation continues and the currency is further depreciated thus putting serious pressure on the dollar; as in the case of the United States.
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New Global Economic Plan
9 October 1998 1998 Ron Paul 117:3
Fluctuating fiat currencies, no matter how inefficient as compared to a world commodity monetary standard, function solely because exchange rates are allowed to fluctuate and currency movements across borders are freely permitted as capital seeks the most efficient market. This process provides an indication when host countries need to improve monetary and fiscal policy.
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New Global Economic Plan
9 October 1998 1998 Ron Paul 117:6
The proposal of the Group of 22 to regulate capital flows through a new “World Central Bank” prevents any effort to restore efficient market mechanisms and prevents any serious discussion for using gold as the money of choice.
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New Global Economic Plan
9 October 1998 1998 Ron Paul 117:13
Free markets and stable money should be our goal, not further institutionalizing of world economic planning and fiat money at the sacrifice of personal liberty. Indeed, we need a serious discussion of the current crisis but so far no one should be encouraged by the direction in which the Group of 22 is going. Our responsibility here in the Congress is to protect the dollar, not to sit idly by as it’s being deliberately devalued.
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Medicare Home Health And Veterans Health Care Improvement Act Of 1998
9 October 1998 1998 Ron Paul 118:2
I am pleased that Congress is at last taking action to address the problems created by the IPS. Unless the IPS is reformed, efficient home care agencies across the country may be forced to close. This would raise Medicare costs, as more seniors would be forced to enter nursing homes or forced to seek care from a limited number of home health care agencies. In fact, those agencies that survive the IPS will have been granted a virtual monopoly over the home care market. Only in Washington could punishing efficient businesses and creating a monopoly be sold as a cost-cutting measure!
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Monetary Policy
16 October 1998 1998 Ron Paul 120:4
A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in its turbulent and commodity-driven inflation of the 1970’s.
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Monetary Policy
16 October 1998 1998 Ron Paul 120:7
We must understand the serious flaw in the current system that is playing havoc with world markets. When license is given to central banks to inflate (debase) a currency, they eventually do so. Politicians love the central bank’s role as lender of last resort and their power to monetize the steady stream of public debt generated by the largesse that guarantees the politician’s reelection.
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Monetary Policy
16 October 1998 1998 Ron Paul 120:8
The constitutional or credit restraint of a commodity standard of money offers stability and non-inflationary growth but does not accommodate the special interests that demand benefits bigger and faster than normal markets permit. The only problem is the financial havoc that results when the unsound system is forced into a major correction which are inherent to all fiat systems.
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Monetary Policy
16 October 1998 1998 Ron Paul 120:11
But in time — and that time is now — it comes to an end. Even the beneficiaries suffer the inevitable consequences of a philosophy that teaches wealth comes from money creation and that central banks are acceptable central economic planners — even in countries such as the United States where many pay lip service to free markets and free trade.
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Monetary Policy
16 October 1998 1998 Ron Paul 120:17
Fourth, policy elsewhere must conform to free markets and free trade. Taxes, as well as government spending, should be lowered. Regulations should be greatly reduced, and all voluntary economic transactions in hiring practices should be permitted. No control on wages and prices should be imposed.
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Monetary Policy
16 October 1998 1998 Ron Paul 120:19
Short of a free market, sound money approach will guarantee a sustained attack on personal liberty as governments grow more authoritarian and militaristic.
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Education Debate
16 October 1998 1998 Ron Paul 121:4
This bill is the largest tax credit for education in the history of our great Republic and it returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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Education Debate
16 October 1998 1998 Ron Paul 121:5
Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the Federal Government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of Federal “educrats” while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with State control. Restoring parental control is the key to improving education.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:32
On another issue, privacy, privacy is the essence of liberty. Without it, individual rights cannot exist. Privacy and property are interlocked and if both are protected, little would need to be said about other civil liberties. If one’s home, church or business is one’s castle, and the privacy of one’s person, papers and effects are rigidly protected, all rights desired in a free society will be guaranteed. Diligently protecting the right to privacy and property guarantees religious, journalistic and political experience, as well as a free market economy and sound money. Once a careless attitude emerges with respect to privacy, all other rights are jeopardized.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:67
THE FINANCIAL BUBBLE On a third item, the financial bubble, a huge financial bubble engulfs the world financial markets. This bubble has been developing for a long time but has gotten much larger the last couple of years. Understanding this issue is critical to the economic security of all Americans that we all strive to protect.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:71
The Federal Reserve Board Chairman Alan Greenspan, when the Dow was at approximately 6,500, cautioned the Nation about irrational exuberance and for a day or two the markets were subdued. But while openly worrying about an unsustained stock market boom, he nevertheless accelerated the very credit expansion that threatened the market and created the irrational exuberance.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:73
When the foreign registered corporation long term capital management was threatened in 1998, that is, the market demanding a logical correction to its own exuberance with its massive $1 trillion speculative investment in the derivatives market, Greenspan and company quickly came to its rescue with an even greater acceleration of credit expansion.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:74
The pain of market discipline is never acceptable when compared to the pleasure of postponing hard decisions and enjoying for a while longer the short-term benefits gained by keeping the financial bubble inflated. But the day is fast approaching when the markets and Congress will have to deal with the attack on the dollar, once it is realized that exporting our inflation is not without limits.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:76
The conviction that stock prices will continue to provide extra cash and confidence in the economy has fueled wild consumer spending and personal debt expansion. The home refinance index between 1997 and 1999 increased 700 percent. Secondary mortgages are now offered up to 120 percent of a home’s equity, with many of these funds finding their way into the stock market. Generous credit and quasi-government agencies make these mortgage markets robust, but a correction will come when it is realized that the builders and the lenders have gotten ahead of themselves.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:85
But this, although helpful to banks lending overseas, has clearly failed, has cost a lot of money, and prevents the true market correction of liquidation of debt that must eventually come. The longer the delay and the more dollars used, the greater the threat to the dollar in the future.
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Federal Communications Commission
25 February 1999 1999 Ron Paul 9:2
Our federal government is, constitutionally, a government of limited powers. Article one, Section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently. Of course, there will be those who will hand their constitutional “hats” on the interstate commerce or general welfare clauses, both of which have been popular “headgear” since the plunge into New Deal Socialism.
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Federal Communications Commission
25 February 1999 1999 Ron Paul 9:5
It is important to be reminded of the benefits of federalism as well as the costs. There are sound reasons to maintain a system of smaller, independent jurisdictions—it is called competition and governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide values as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Yet, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.
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Introducing The Family Education Freedom Act
2 March 1999 1999 Ron Paul 11:2
The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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Introducing The Family Education Freedom Act
2 March 1999 1999 Ron Paul 11:3
Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the federal government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control.
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Consumer Protection Legislation
11 March 1999 1999 Ron Paul 19:5
The bill’s second provision prevents the FDA’s arbitrary removal of a product from the marketplace, absent finding a dietary supplement “presents a significant and unreasonable risk of illness or injury.” Current law allows the FDA to remove a supplement if it prevents a “significant or unreasonable” risk of disease. This standard has allowed the FDA to easily remove a targeted herb or dietary supplement since every food, herb, or dietary supplement contains some risk to at least a few sensitive or allergic persons. Under this bill, the FDA will maintain its ability to remove products from the marketplace under an expedited process if they determine the product causes an “imminent danger.”
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Consumer Protection Legislation
11 March 1999 1999 Ron Paul 19:8
In an attempt to protect the rights of network program creators and affiliate local stations, a federal court in Florida properly granted an injunction to prevent the satellite service industry from making certain programming available to its customers. This is programming for which the satellite service providers had not secured from the program creator-owners the right to rebroadcast. At the root of this problem, of course, is that we have a so-called marketplace fraught with interventionism at every level. Cable companies have historically been granted franchises of monopoly privilege at the local level. Government has previously intervened to invalidate “exclusive dealings” contracts between private parties, namely cable service providers and program creators, and have most recently assumed the role of price setter. The Library of Congress, if you can imagine, has been delegated the power to determine prices at which program suppliers must make their programs available to cable and satellite programming service providers.
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Consumer Protection Legislation
11 March 1999 1999 Ron Paul 19:9
It is, of course, within the constitutionally enumerated powers of Congress to “promote the Progress of Science and useful Arts by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.” However, operating a clearing-house for the subsequent transfer of such property rights in the name of setting a just price or “instilling competition” via “central planning” seems not to be an economically prudent nor justifiable action under this enumerated power. This process is one best reserved to the competitive marketplace.
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Consumer Protection Legislation
11 March 1999 1999 Ron Paul 19:10
Government’s attempt to set the just price for satellite programming outside the market mechanism is inherently impossible. This has resulted in competition among service providers for government privilege rather than consumer-benefits inherent to the genuine free market. Currently, while federal regulation does leave satellite programming service providers free to bypass the governmental royalty distribution scheme and negotiate directly with owners of programming for program rights, there is a federal prohibition on satellite service providers making local network affiliate’s programs available to nearby satellite subscribers. This bill repeals that federal prohibition and allows satellite service providers to more freely negotiate with program owners for programming desired by satellite service subscribers. Technology is now available by which viewers will be able to view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers.
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Consumer Protection Legislation
11 March 1999 1999 Ron Paul 19:11
Mr. Speaker, these two bills take a step toward restoring the right of free speech in the marketplace and restoring the American consumer’s control over the means by which they cast their “dollar votes.” In a free society, the federal government must not be allowed to prevent people from receiving information enabling them to make informed decisions about whether or not to use dietary supplements or eat certain foods. The federal government should also not interfere with a consumer’s ability to purchase services such as satellite or cable television on the free market. I, therefore, urge my colleagues to take a step toward restoring freedom by cosponsoring my Consumer Protection Package: the Consumer Health Free Speech Act and the Television Consumer Freedom Act.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:1
Mr. PAUL. Mr. Speaker, today we are faced with an unfortunate and false choice between two evils. The false choice is whether the government should ban voluntary exchange or regulate it — as though these were the only two options. More specifically, today’s choice is whether government should continue to maintain its ban on satellite provision of network programming to television consumers or replace that ban by expanding an anti-market, anti-consumer regulatory regime to the entire satellite television industry.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:2
H.R. 1554, the Satellite Copyright, Competition, and Consumer Protection Act of 1999, the bill before us today, repeals the strict prohibition of local network programming via satellite to local subscribers BUT in so doing is chock full of private sector mandates and bureaucracy expanding provisions. H.R. 1554, for example, requires Satellite carriers to divulge to networks lists of subscribers, expands the current arbitrary, anti-market, government royalty scheme to network broadcast programming, undermines existing contracts between cable companies and network program owners, violates freedom of contract principles, imposes anti-consumer “must-carry” regulations upon satellite service providers, creates new authority for the FCC to “re-map the country” and further empowers the National Telecommunications Information administration (NTIA) to “study the impact” of this very legislation on rural and small TV markets.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:3
This bill’s title includes the word “competition” but ignores the market processes’ inherent and fundamental cornerstones of property rights (to include intellectual property rights) and voluntary exchange unfettered by government technocrats. Instead, we have a so-called marketplace fraught with interventionism at every level. Cable companies are granted franchises of monopoly privilege at the local level. Congresses have previously intervened to invalidate exclusive dealings contracts between private parties (cable service providers and program creators), and have most recently assumed the role of price setter — determining prices at which program suppliers must make their programs available to satellite programing service providers under the “compulsory license.”
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:4
Unfortunately, this bill expands the government’s role to set the so-called just price for satellite programming. This, of course, is inherently impossible outside the market process of voluntary exchange and has, not surprisingly, resulted instead in “competition” among service providers for government favor rather than consumer-benefiting competition inherent to the genuine market.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:5
While it is within the Constitutionally enumerated powers of Congress to “promote the Progress of Science and useful Arts by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries,” operating a clearinghouse for the subsequent transfer of such property rights in the name of setting a just price or instilling competition seems not to be an economically prudent nor justifiable action under this enumerated power. This can only be achieved within the market process itself.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:6
I introduced what I believe is the most pro-consumer, competition-friendly legislation to address the current government barrier to competition in television program provision. My bill, the Television Consumer Freedom Act, would repeal federal regulations which interfere with consumers’ ability to avail themselves of desired television programming. It repeals that federal prohibition and allows satellite service providers to more freely negotiate with program owners for just the programming desired by satellite service subscribers. Technology is now available by which viewers will be able to view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers. Additionally, rather than imposing the burdensome and anti-consumer “must-carry” regulations on satellite service providers to “keep the playing field level,” my bill allows bona fide competition by repealing the must-carry from the already over-regulated cable industry.
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On Regulating Satellite TV
27 April 1999 1999 Ron Paul 32:7
Genuine competition is a market process and, in a world of scarce resources, it alone best protects the consumer. It is unfortunate that this bill ignores that option. It is also unfortunate that our only choice with H.R. 1554 is to trade one form of government intervention for another — “ban voluntarily exchange or bureaucratically regulate it?” Unfortunate, indeed.
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Pell Grants
4 May 1999 1999 Ron Paul 37:2
By taxing all Americans in order to provide limited aid to a few, federal higher education programs provide the federal government with considerable power to allocate access to higher education. Government aid also destroys any incentives for recipients of the aid to consider price when choosing a college. The result is a destruction of the price control mechanism inherent in the market, leading to ever-rising tuition. This makes higher education less affordable for millions of middle-class Americans who are ineligible for Pell Grants!
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:1
Mr. PAUL. Mr. Speaker, I rise today to enlist support for a bill I have introduced to repeal statutes which have now resulted in more than one hundred years of government intervention in the marketplace. In 1890, at the behest of Senator Sherman, the Sherman Antitrust Act was passed allowing the federal government to intervene in the process of competition, inter alia, whenever a firm captured market share by offering a better product at a lower price. The Market Process Restoration Act of 1999, H.R. 1789, will preclude such intervention.
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:2
Antitrust statutes governmentally facilitate interference in the voluntary market transactions of individuals. Evaluation of the antitrust laws has not proceeded from an analysis of their nature or of their necessary consequences, but from an impressionistic reaction to their announced gain.
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:5
One function of the Sherman Act was to divert public attention from the certain source of monopoly — Government’s grant of exclusive privilege. But, as George Reisman, Professor of Economics at Pepperdine University’s Graziadio School of Business and Management in Los Angeles, explains “everyone, it seems, took for granted the prevailing belief that the essential feature of monopoly is that a given product or service is provided by just one supplier. On this view of things, Microsoft, like Alcoa and Standard Oil before it, belongs in the same category as the old British East India Company or such more recent instances of companies with exclusive government franchises as the local gas or electric company or the U.S. Postal Service with respect to the delivery of first class mail. What all of these cases have in common, and which is considered essential to the existence of monopoly, according to the prevailing view, is that they all represent instances in which there is only one seller. By the same token, what is not considered essential, according to the prevailing view of monopoly, is whether the sellers position depends on the initiation of physical force or, to the contrary, is achieved as the result of freedom of competition and the choice of the market.”
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:6
Microsoft, Alcoa,and Standard Oil represent cases of a sole supplier, or at least come close to such a case. However, totally unlike the cases of exclusive government franchises, their position in the market is not (or was not) the result of the initiation of physical force but rather the result of their successful free competition. That is, they became sole suppliers by virtue of being able to produce products profitably at prices too low for other suppliers to remain in or enter the market, or to produce products whose performance and quality others simply could not match.
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:8
It is the dynamic model of competition under which only “free” entry is required that insures maximization of consumer welfare within the nature-given condition of scarcity and reconciles the ideal of pure liberty with that of economic efficiency. The free market in the world of production may be termed “free competition” or “free entry”, meaning that in a free society anyone is free to compete and produce in any field he chooses. “Free competition” is the application of liberty to the sphere of production: the freedom to buy, sell, and transform one’s property without violent interference by an external power.
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:9
As argued by Alan Greenspan, “the ultimate regulator of competition in a free economy is the capital market. So long as capital is free to flow, it will tend to seek those areas which offer the maximum rate of return.”
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Introduction of H.R. 1789
18 May 1999 1999 Ron Paul 49:10
The purpose of my bill is to restore the inherent benefits of the market economy by repealing the Federal body of statutory law which currently prevents efficiency-maximizing voluntary exchange.
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A Positive Spin On An Ugly War
7 June 1999 1999 Ron Paul 54:7
Number six, NATO’s war against Yugoslovia has made it clearly apparent that world leaders place relative value on human life. This is valuable information that should be helped to restore U.S. national sovereignty. According to NATO’s policy, the lives of the Kosovars are of greater value than the Serbs, Rwandans, Kurds, Tibetans, or East Timorans. Likewise, oil and European markets command more bloodshed in support of powerful financial interests than the suffering of millions in Asia and Africa. This knowledge of NATO’s hypocrisy should some day lead to a fair and more peaceful world.
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Campaign Finance Reform
14 June 1999 1999 Ron Paul 58:3
There is tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over $100 million per month trying to influence Congress. Taxpayers’ dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans and grants. Corporations and others are forced to participate in the process out of greed, as well as self defense, since that is the way the system works.
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Campaign Finance Reform
14 June 1999 1999 Ron Paul 58:16
There’s tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayers dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy, and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are “forced” to participate in the process out of greed as well as self defense— since that’s the way the system works. Equalizing competition and balancing power such as between labor and business is a common practice. As long as this system remains in place, the incentive to buy influence will continue.
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Child Custody Protection Act
30 June 1999 1999 Ron Paul 69:3
Our federal government is, constitutionally, a government of limited powers. Article one, Section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Salute To The City Of Yoakum, Texas
13 July 1999 1999 Ron Paul 73:3
In its early years, Anglo-Americans used Yoakum as a gathering site for thousands of bawling Texas Longhorns that were grouped into cattle drives and driven along the Chisolm Trail to market. Yoakum’s townsite was established in 1887 with the arrival of the San Antonio & Aransas Pass Railroad — the railroad of Yoakum’s history.
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Mail Receiving Agencies
15 July 1999 1999 Ron Paul 75:3
First, let me talk about the Post Office. The Post Office is a true monopoly. In the free market, there are no true monopolies. Only government can allow a true monopoly.
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Africa Growth And Opportunity Act
16 July 1999 1999 Ron Paul 77:10
In truth, the bipartisan establishment’s fan-fare of “free trade” fosters the opposite of genuine freedom of exchange. Whereas genuine free traders examine free markets from the perspective of the consumer (each individual), the mercantilist examines trade from the perspective of the power elite; in other words, from the perspective of the big business in concert with big government. Genuine free traders consider exports a means of paying for imports, in the same way that goods in general are produced in order to be sold to consumers. The mercantilists want to privilege the government business elite at the expense of all consumers — be they domestic or foreign.
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Africa Growth And Opportunity Act
16 July 1999 1999 Ron Paul 77:15
Until policy makers can learn enough about trade and voluntary exchange to distinguish them from taxpayer-funded aid to bolster corporate revenues, OPIC, Export-Import funding, Market Access Program, and other forms of market intervention (each of which are quite the opposite of genuine free trade), the free trade discussion will remain at worst, a delusional discussion, and, at best, a hollow one.
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Foreign Subsidies
2 August 1999 1999 Ron Paul 87:2
Mr. Chairman, I would like to point out that it is truly a subsidy to a foreign corporation, a foreign government. For Red China, corporations and governments are essentially identical. They are not really quite in the free market yet.
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Campaign Finance Reform
14 September 1999 1999 Ron Paul 97:3
There’s tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayers dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy, and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are ‘forced’ to participate in the process out of greed as well as self-defense — since that’s the way the system works. Equalizing competition and balancing power such as between labor and business is a common practice. As long as this system remains in place, the incentive to buy influence will continue.
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Unborn Victims Of Violence Act
30 September 1999 1999 Ron Paul 102:16
Nevertheless, our federal government is, constitutionally, a government of limited powers. Article one, section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Unborn Victims Of Violence Act
30 September 1999 1999 Ron Paul 102:21
It is important to be reminded of the benefits of federalism as well as the costs. There are sound reasons to maintain a system of smaller, independent jurisdictions — it is called competition and, yes, governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide value as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Curiously, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.
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Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:2
The M.D. degree grants no wisdom as to the correct solution to our managed-care mess. The most efficient manner to deliver medical services, as it is with all goods and services, is determined by the degree the market is allowed to operate. Economic principles determine efficiencies of markets, even the medical care market, not our emotional experiences dealing with managed care.
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Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:3
Contrary to the claims of many advocates of increased government regulation of health care, the problems with the health care system do not represent market failure. Rather, they represent the failure of government policies which have destroyed the health care market.
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Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:4
In today’s system, it appears on the surface that the interest of the patient is in conflict with the rights of the insurance companies and the Health Maintenance Organizations. In a free market, this cannot happen. Everyone’s rights are equal and agreements on delivering services of any kind are entered into voluntarily, thus satisfying both sides.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:6
No one can take a back seat to me regarding the disdain I hold for the HMO’s role in managed care. This entire unnecessary level of corporatism that rakes off profits and undermines care is a creature of government interference in health care. These non-market institutions and government could have only gained control over medical care through a collusion through organized medicine, politicians, and the HMO profiteers in an effort to provide universal health care. No one suggests that we should have universal food, housing, TV, computer and automobile programs; and yet, many of the poor do much better getting these services through the marketplace as prices are driven down through competition.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:7
We all should become suspicious when it is declared we need a new Bill of Rights, such as a taxpayers’ bill of rights, or now a patients’ bill of rights. Why do more Members not ask why the original Bill of Rights is not adequate in protecting all rights and enabling the market to provide all services? If over the last 50 years we had had a lot more respect for property rights, voluntary contracts, State jurisdiction, and respect for free markets, we would not have the mess we are facing today in providing medical care.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:8
The power of special interests influencing government policy has brought us to this managed-care monster. If we pursued a course of more government management in an effort to balance things, we are destined to make the system much worse. If government mismanagement in an area that the Government should not be managing at all is the problem, another level of bureaucracy, no matter how well intended, cannot be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the Nation’s psyche. The choice in actuality is government-provided medical care and its inevitable mismanagement or medical care provided by a market economy.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:13
Even with the distortions introduced by the tax code, the markets could have still sorted this all out, but in the 1960s government entered the process and applied post office principles to the delivery of medical care with predictable results. The more the government got involved the greater the distortion. Initially there was little resistance since payments were generous and services were rarely restricted. Doctors like being paid adequately for services than in the past were done at discount or for free. Medical centers, always willing to receive charity patients for teaching purposes in the past liked this newfound largesse by being paid by the government for their services. This in itself added huge costs to the nation’s medical bill and the incentive for patients to economize was eroded. Stories of emergency room abuse are notorious since “no one can be turned away.”
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:16
Of course, in a truly free market, HMOs and pre-paid care could and would exist — there would be no prohibition against it. The Kaiser system was not exactly a creature of the government as is the current unnatural HMO-government-created chaos we have today. The current HMO mess is a result of our government interference through the ERISA laws, tax laws, labor laws, and the incentive by many in this country to socialize medicine “American style”, that is the inclusion of a corporate level of management to rake off profits while draining care from the patients. The more government assumed the role of paying for services the more pressure there has been to managed care.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:17
The contest now, unfortunately, is not between free market health care and nationalized health care but rather between those who believe they speak for the patient and those believing they must protect the rights of corporations to manage their affairs as prudently as possible. Since the system is artificial there is no right side of this argument and only political forces between the special interests are at work. This is the fundamental reason why a resolution that is fair to both sides has been so difficult. Only the free market protects the rights of all persons involved and it is only this system that can provide the best care for the greatest number. Equality in medical care services can be achieved only by lowering standards for everyone. Veterans hospital and Medicaid patients have notoriously suffered from poor care compared to private patients, yet, rather than debating introducing consumer control and competition into those programs, we’re debating how fast to move toward a system where the quality of medicine for everyone will be achieved at the lowest standards. Since the problem with our medical system has not been correctly identified in Washington the odds of any benefits coming from the current debates are remote. It looks like we will make things worse by politicians believing they can manage care better than the HMO’s when both sides are incapable of such a feat.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:20
Because the market in medicine has been grossly distorted by government and artificially managed care, it is the only industry where computer technology adds to the cost of the service instead of lowering it as it does in every other industry. Managed care cannot work. Government management of the computer industry was not required to produce great services at great prices for the masses of people. Whether it is services in the computer industry or health care all services are best delivered in the economy ruled by market forces, voluntary contracts and the absence of government interference.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:21
Mixing the concept of rights with the delivery of services is dangerous. The whole notion that patient’s “rights” can be enhanced by more edicts by the federal government is preposterous. Providing free medication to one segment of the population for political gain without mentioning the cost is passed on to another segment is dishonest. Besides, it only compounds the problem, further separating medical services from any market force and yielding to the force of the tax man and the bureaucrat. No place in history have we seen medical care standards improve with nationalizing its delivery system. Yet, the only debate here in Washington is how fast should we proceed with the government takeover. People have no more right to medical care than they have a right to steal your car because they are in need of it. If there was no evidence that freedom did not enhance everyone’s well being I could understand the desire to help others through coercive means. But delivering medical care through government coercion means not only diminishing the quality of care, it undermines the principles of liberty. Fortunately, a system that strives to provide maximum freedom for its citizens, also supports the highest achievable standard of living for the greatest number, and that includes the best medical care.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:24
The most important thing Congress can do is to get market forces operating immediately by making Medical Savings Accounts (MSAs) generously available to everyone desiring one. Patient motivation to save and shop would be a major force to reduce cost, as physicians would once again negotiate fees downward with patients — unlike today where the government reimbursement is never too high and hospital and MD bills are always at maximum levels allowed. MSAs would help satisfy the American’s people’s desire to control their own health care and provide incentives for consumers to take more responsibility for their care.
market
Health Care Reform: Treat The Cause, Not The Symptom
4 October 1999 1999 Ron Paul 103:25
There is nothing wrong with charity hospitals and possibly the churches once again providing care for the needy rather than through government paid programs which only maximizes costs. States can continue to introduce competition by allowing various trained individuals to provide the services that once were only provided by licensed MDs. We don’t have to continue down the path of socialized medical care, especially in America where free markets have provided so much for so many. We should have more faith in freedom and more fear of the politician and bureaucrat who think all can be made well by simply passing a Patient’s Bill of Rights.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:1
Mr. PAUL. Mr. Speaker, as an MD, I know that when I advise on medical legislation I may be tempted to allow my emotional experience as a physician to influence my views, but nevertheless I am acting the role of legislator and politician. The MD degree grants no wisdom as to the correct solution to our managed care mess. The most efficient manner to deliver medical services, as it is with all goods and other services, is determined by the degree the market is allowed to operate. Economic principles determine efficiency of markets, even the medical care market; not our emotional experiences dealing with managed care.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:2
Contrary to the claims of many advocates of increased government regulation of health care, the problems with the health care system do not represent market failure, rather they represent the failure of government policies which have destroyed the health care market. In today’s system, it appears on the surface that the interest of the patient is in conflict with rights of the insurance companies and the Health Maintenance Organizations (HMOs). In a free market this cannot happen. Everyone’s rights are equal and agreements on delivering services of any kind are entered into voluntarily, thus satisfying both sides. Only true competition assures that the consumer gets the best deal at the best price possible, by putting pressure on the providers. Once one side is given a legislative advantage, in an artificial system, as it is in managed care, trying to balance government dictated advantages between patient and HMOs is impossible. The differences cannot be reconciled by more government mandates which will only makes the problem worse. Because we are trying to patch up an unworkable system, the impasse in Congress should not be a surprise.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:3
No one can take a back seat to me regarding the disdain I hold for the HMOs’ role in managed care. This entire unnecessary level of corporatism that rakes off profits and undermines care is a creature of government interference in health care. These non-market institutions and government could have only gained control over medical care through a collusion among organized medicine, politicians, and the HMO profiteers, in an effort to provide universal health care. No one suggests that we should have “universal” food, housing, TV, computer and automobile programs and yet many of the “poor” do much better getting these services through the marketplace as prices are driven down through competition.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:4
We all should become suspicious when it is declared we need a new “Bill of Rights” such as a Taxpayer’s Bill of Rights, or now a Patient’s Bill of Rights. Why don’t more Members ask why the original Bill of Rights is not adequate in protecting all rights and enabling the market to provide all services. If over the last fifty years we had a lot more respect for property rights, voluntary contracts, state jurisdiction and respect for free markets, we would not have the mess we’re facing today in providing medical care.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:5
The power of special interests influencing government policy has brought us this managed care monster. If we pursue the course of more government management — in an effort to balance things — we’re destined to make the problem much worse. If government mismanagement, in an area that the government should not be managing at all, is the problem, another level of bureaucracy — no matter how well intended — cannot be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the nation’s psyche. The choice in actuality is government provided medical care and it’s inevitable mismanagement or medical care provided by a market economy.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:8
Even with the distortions introduced by the tax code, the markets could have still sorted this all out, but in the 1960s government entered the process and applied post office principles to the delivery of medical care with predictable results. The more the government got involved the greater the distortion. Initially there was little resistance since payments were generous and services were rarely restricted. Doctors liked being paid adequately for services that in the past were done at discount or for free. Medical centers, always willing to receive charity patients for teaching purposes in the past liked this newfound largesse by being paid by the government for their services. This in itself added huge costs to the nation’s medical bill and the incentive for patients to economize was eroded. Stories of emergency room abuse are notorious since “no one can be turned away.”
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:11
Of course, in a truly free market, HMOs and pre-paid care could and would exist — there would be no prohibition against it. The Kaiser system was not exactly a creature of the government as is the current unnatural HMO-government-created chaos we have today. The current HMO mess is a result of our government interference through the ERISA laws, tax laws, labor laws, and the incentive by many in this country to socialize medicine “American style,” that is the inclusion of a corporate level of management to rake off profits while draining care from the patients. The more government assumed the role of paying for services the more pressure there has been to managed care.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:12
The contest now, unfortunately, is not between free market health care and nationalized health care but rather between those who believe they speak for the patient and those believing they must protect the rights of corporations to manage their affairs as prudently as possible. Since the system is artificial there is no right side of this argument and only political forces between the special interests are at work. This is the fundamental reason why a resolution that is fair to both sides has been so difficult. Only the free market protects the rights of all persons involved and it is only this system that can provide the best care for the greatest number. Equality in medical care services can be achieved only by lowering standards for everyone. Veterans hospital and Medicaid patients have notoriously suffered from poor care compared to private patients, yet, rather than debating introducing consumer control and competition into those programs, we’re debating how fast to move toward a system where the quality of medicine for everyone will be achieved at the lowest standards.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:16
Because the market in medicine has been grossly distorted by government and artificially managed care, it is the only industry where computer technology adds to the cost of the service instead of lowering it as it does in every other industry. Managed care cannot work. Government management of the computer industry was not required to produce great services at great prices for the masses of people. Whether it is services in the computer industry or health care all services are best delivered in the economy ruled by market forces, voluntary contracts and the absence of government interference.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:17
Mixing the concept of rights with the delivery of services is dangerous. The whole notion that patient’s “rights” can be enhanced by more edicts by the federal government is preposterous. Providing free medication to one segment of the population for political gain without mentioning the cost is passed on to another segment is dishonest. Besides, it only compounds the problem, further separating medical services from any market force and yielding to the force of the tax man and the bureaucrat. No place in history have we seen medical care standards improve with nationalizing its delivery system. Yet, the only debate here in Washington is how fast should we proceed with the government takeover. People have no more right to medical care than they have a right to steal your car because they are in need of it. If there was no evidence that freedom did not enhance everyone’s well being I could understand the desire to help others through coercive means. But delivering medical care through government coercion means not only diminishing the quality of care, it undermines the principles of liberty. Fortunately, a system that strives to provide maximum freedom for its citizens, also supports the highest achievable standard of living for the greatest number, and that includes the best medical care.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:20
The most important thing Congress can do is to get market forces operating immediately by making Medical Savings Accounts (MSAs) generously available to everyone desiring one. Patient motivation to save and shop would be a major force to reduce cost, as physicians would once again negotiate fees downward with patients — unlike today where the government reimbursement is never too high and hospital and MD bills are always at maximum levels allowed. MSAs would help satisfy the American’s people’s desire to control their own health care and provide incentives for consumers to take more responsibility for their care.
market
Quality Care For The Uninsured Act
6 October 1999 1999 Ron Paul 104:21
There is nothing wrong with charity hospitals and possibly the churches once again providing care for the needy rather than through government paid programs which only maximizes costs. States can continue to introduce competition by allowing various trained individuals to provide the services that once were only provided by licensed MDs. We don’t have to continue down the path of socialized medical care, especially in America where free markets have provided so much for so many. We should have more faith in freedom and more fear of the politician and bureaucrat who think all can be made well by simply passing a Patient’s Bill of Rights.
market
Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”)
21 October 1999 1999 Ron Paul 109:7
The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free society maximizes human happiness.
market
Pain Relief Promotion Act of 1999.
27 October 1999 1999 Ron Paul 112:11
Our federal government is, constitutionally, a government of limited powers. Article one, section eight, enumerates the legislative areas for which the U.S. Congress is allowed enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
market
Conference Report On S. 900, Gramm-Leach-Bliley Act
4 November 1999 1999 Ron Paul 113:8
Government regulations present the greatest threat to privacy and consumers’ loss of control over their own personal information. In the private sector, individuals protect their financial privacy as an integral part of the market process by providing information they regard as private only to entities they trust will maintain a degree of privacy of which they approve. Individuals avoid privacy violators by “opting out” and doing business only with such privacy-respecting companies.
market
Good Time For Congress To Reassess Antitrust Laws
8 November 1999 1999 Ron Paul 114:2
Under current law, collusion, negotiations, or even discussions about markets may be enough to find someone guilty of breaking these laws. Prices in one industry that are too high, too low, or all the same are suspect and could be used as evidence of monopoly practices.
market
Good Time For Congress To Reassess Antitrust Laws
8 November 1999 1999 Ron Paul 114:3
We must remember bigness in a free market is only achieved by the vote of consumers, supporting a company that gives them a good product at a low price.
market
Good Time For Congress To Reassess Antitrust Laws
8 November 1999 1999 Ron Paul 114:5
In a free market, the consumer is king, not the businessman. The regulators hate both and relish their role of making sure the market is fair according to their biased standards.
market
Good Time For Congress To Reassess Antitrust Laws
8 November 1999 1999 Ron Paul 114:10
Many big companies have achieved success with government subsidies, contracts, and special interest legislation. This type of bigness must be distinguished from bigness achieved in a free market by providing consumer satisfaction.
market
Statement on OSHA Home Office Regulations
January 28, 2000 2000 Ron Paul 1:2
Modern technology, such as e-mail and the Internet, allows employees to be productive members of the workforce without leaving their homes! The option of “telecommuting” is particularly valuable for women with young children or those caring for elderly parents. Using technology to work at home gives these Americans the chance to earn a living and have a fulfilling career while remaining at home with their children or elderly parents. Telecommuting also makes it easier for citizens with disabilities to become productive members of the job market. Any federal requirements holding employers liable for the conditions of a home office may well cause some employers to forbid their employees from telecommuting, thus shutting millions of mothers, persons caring for elderly parents, and disabled citizens out of the workforce!
market
Statement on OSHA Home Office Regulations
January 28, 2000 2000 Ron Paul 1:3
Federal polices discouraging telecommuting will harm the environment by forcing American workers out of their home and onto America’s already overcrowded roads. It is ironic that an administration, which has claimed that “protecting the environment” is one of its top priorities, would even consider policies that could undermine a market-created means of protecting the environment. Employers who continue to allow their employees to telecommute will be forced by any OSHA regulations on home offices to inspect their employees’ homes to ensure they are in compliance with any and all applicable OSHA regulations. This is a massive invasion of employees’ privacy. What employee would want their boss snooping around their living room, den, or bedroom to make sure their “home-based worksite” was OSHA compliant?
market
Statement on OSHA Home Office Regulations
January 28, 2000 2000 Ron Paul 1:4
Mr. Chairman, the fact that OSHA would even consider exercising regulatory authority over any part of a private home shows just how little respect OSHA has for private property. Private property, of course, was considered one of the bulwarks of liberty by our nation’s founding fathers, and has been seriously eroded in this country. While it is heartening that so many members of Congress have expressed their displeasure with OSHA over this issue, I am concerned that most of the debate has focused on the negative consequences of this regulation instead of on the question of whether OSHA has the constitutional authority to regulate any part of a private residence (or private business for that matter). The economic and social consequences of allowing federal bureaucrats to regulate home offices certainly should be debated. However, I would remind my colleagues that conceding the principle that the only way to protect worker safety is by means of a large bureaucracy with the power to impose a “one-size fits all” model on every workplace in America ensures that defenders of the free market will be always on the defensive, trying to reign in the bureaucracy from going “too far” rather than advancing a positive, pro-freedom agenda. Furthermore, many companies are experiencing great success at promoting worker safety by forming partnerships with their employees to determine how best to create a safe workplace. This approach to worker safety is both more effective, and constitutionally sound, than giving OSHA bureaucrats the power to, for example, force landscapers to use $200 gas cans instead of $5 cans or fining a construction company $7,000 dollars because their employees jumped in a trench to rescue a trapped man without first putting on their OSHA-approved hard hats; or fine a company because it failed to warn employees not to eat copier toner!
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:20
Government statistics are continuously reaffirming our great prosperity with evidence of high and rising wages, no inflation, and high consumer confidence and spending. The U.S. Government still enjoys good credit and a strong currency in relationship to most other currencies of the world. We have no trouble financing our public nor private debt. Housing markets are booming and interest rates remain reasonable by modern day standards. Unemployment is low.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:21
Recreational spending and time spent at leisure are at historic highs. Stock market profits are benefiting more families than ever in our history. Income, payroll, and capital gains taxes have been a windfall for politicians who lack no creative skills in figuring out how to keep the tax-and-spend policies in full gear. The American people accept the status quo and hold no grudges against our President.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:29
Yes, we can be grateful that the technological developments in the marketplace over the last 100 years have made our lives more prosperous and enjoyable. But any observant person must be annoyed by the ever-present Big Brother that watches and records our every move.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:65
No wonder lobbyists are willing to spend $125 million per month influencing Congress; it is a good investment. No amount of campaign finance reform or regulation of lobbyists can deal with this problem. The problem lies in the now accepted role for our Government. Government has too much control over people and the market, making the temptation and incentive to influence government irresistible and, to a degree, necessary.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:80
There is no indication that the trend toward government medicine will be reversed. Our problems are related to the direct takeover of medical care in programs like Medicare and Medicaid. But it has also been the interference in the free market through ERISA mandates related to HMOs and other managed care organizations, as well as our tax code, that have undermined the private insurance aspect of paying for medical care. True medical insurance is not available. The government dictates all the terms.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:81
In the early stages, patients, doctors and hospitals welcomed these programs. Generous care was available with more than adequate reimbursement. It led to what one would expect, abuse, overcharges and overuse. When costs rose, it was necessary through government rulemaking and bureaucratic management to cut reimbursement and limit the procedures available and personal choice of physicians. We do not have socialized medicine but we do have bureaucratic medicine, mismanaged by the government and select corporations who usurp the decisionmaking power from the physician. The way medical care is delivered today in the United States is a perfect example of the evils of corporatism and an artificial system that only politicians, responding to the special interests, could create. There is no reason to believe the market cannot deliver medical care in an efficient manner as it does computers, automobiles and televisions. But the confidence is gone and everyone assumes, just as in education, that only a Federal bureaucracy is capable of solving the problems of maximizing the number of people, including the poor, who receive the best medical care available. In an effort to help the poor, the quality of care has gone down for everyone else and the costs have skyrocketed.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:83
Government housing programs are no more successful than the Federal Government’s medical and education programs. In the early part of this century, government housing was virtually unheard of. Now the HUD budget commands over $30 billion each year and increases every year. Finances of mortgages through the Federal Home Loan Bank, the largest Federal Government borrower, is the key financial institution pumping in hundreds of billions of dollars of credit into the housing market, making things worse. The Federal Reserve has now started to use home mortgage securities for monetizing debt. Public housing has a reputation for being a refuge for drugs, crimes and filth, with the projects being torn down as routinely as they are built. There is every indication that this entitlement will continue to expand in size regardless of its failures. Token local control over these expenditures will do nothing to solve the problem.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:84
Recently, the Secretary of HUD, using public funds to sue gun manufacturers, claimed this is necessary to solve the problems of crime which government housing perpetuates. If a government agency, which was never meant to exist in the first place under the Constitution, can expand their role into the legislative and legal matters without the consent of the Congress, we indeed have a serious problem on our hands. The programs are bad enough in themselves but the abuse of the rule of law and ignoring the separation of powers makes these expanding programs that much more dangerous to our entire political system and is a direct attack on personal liberty. If one cares about providing the maximum best housing for the maximum number of people, one must consider a free market approach in association with a sound, nondepreciating currency. We have been operating a public housing program directly opposite to this and along with steady inflation and government promotion of housing since the 1960s, the housing market has been grossly distorted. We can soon expect a major downward correction in the housing industry prompted by rising interest rates.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:93
We will surely pay the price for this negligence. The relative soundness of our currency that we enjoy as we move into the 21st Century will not persist. The instability in world currency market because of the dollar’s acceptance for so many years as the world’s currency, will cause devastating adjustments that Congress will eventually be forced to address.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:99
It is also advantageous for the politicians to ignore the negative effects from such a monetary arrangement, since they tend to be hidden and disseminated. A paper money system attracts support from various economic groups. Bankers benefit from the float that they get with the fractional reserve banking that accompanies a fiat monetary system. Giant corporations who get to borrow large funds at below market interest rates enjoy the system and consistently call for more inflation and artificially low interest rates. Even the general public seems to benefit from the artificial booms brought about by credit creation, with lower interest rates allowing major purchases like homes and cars.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:103
There are other real costs as well that few are willing to believe are a direct consequence of Federal Reserve Board policy. Rampant inflation after World War I as well as the 1921 depression were a consequence of monetary policy during and following the war. The stock market speculation of the 1920s, the stock market collapse of 1929 and the depression of the 1930s causing millions to be unemployed, all resulted from Federal Reserve Board monetary mischief.
market
A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:120
But, inevitably, for every attempt to solve one problem, government creates two new ones. National politicians are not likely to volunteer a market or local government solution to a problem, or they will find out how unnecessary they really are.
market
The Hillory J. Farias Date Rape Prevention Drug Act of 1999
31 January 2000 2000 Ron Paul 3:2
Our federal government is, constitutionally, a government of limited powers. Article one, Section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
market
The Hillory J. Farias Date Rape Prevention Drug Act of 1999
31 January 2000 2000 Ron Paul 3:6
Additionally, this Act undermines the recently enacted Dietary Supplement Health & Education Act (DSHEA) at the expense of thousands of consumers who have safely used these natural metabolites of the amino acid GABA. According to practicing physician Ward Dean, West Point graduate and former Delta Force flight surgeon, HR 2130 appears to be a case of pharmaceutical-company-protectionism. Because the substances restricted under this act are natural, and hence, non-patentable, the pharmaceutical concerns lose market-share in areas for which GHB is a safer and less expensive means of treating numerous ailments. In a recent letter from Dr. Dean, he states:
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:32
One hundred years ago it was generally conceded that one extremely important function of government was to enforce contracts made voluntarily in the marketplace. Today, government notoriously interferes with almost every voluntary economic transaction. Consumerism, labor laws, wage standards, hiring and firing regulations, political political correctness, affirmative action, the Americans with Disability Act, the Tax Code, and others place a burden on the two parties struggling to transact business.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:37
The bureaucratic mindset is convinced that without the politicians’ effort, no one would be protected from anything, rejecting the idea of a free market economy out of ignorance or arrogance. This change in the 20th century has significantly contributed to the dependency of our poor on Government handouts, the recipients being convinced that they are entitled to help and that they are incapable of taking care of themselves. A serious loss of self-esteem and unhappiness results, even if the system in the short run seems to help them get by.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:61
Today, financial gurus are obsessed with speculation in the next initial public offering and express no interest in the cause of liberty without which markets cannot exist.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:63
There is no way to know if this problem is this bad in the general population, but these statistics indicate our young people do not trust our politicians or media. Trust has been replaced with a satisfaction in the materialism that speculative stock markets, borrowing money, and a spendthrift government can generate.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:87
It is argued that the United States and now the world have learned a third way, something between extreme socialism and mean-spirited capitalism. But this is a dream. The so-called friendly third way endorses 100 percent the principle that government authority can be used to direct our lives and the economy. Once this is accepted, the principle that man alone is responsible for his salvation and his life on Earth, which serves as the foundation for free market capitalism, is rejected.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:106
Ideas of liberty are a great threat to those who enjoy planning the economy and running other peoples’ lives. The good news is that our numbers are growing. More Americans than ever before are very much aware of what is going on in Washington and how, on a daily basis, their liberties are being undermined. There are more intellectual think tanks than ever before promoting the market economy, private property ownership, and personal liberty.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:110
These battles have just begun. If the civil libertarians and free market proponents do not win this fight to keep the Internet free and private, the tools for undermining authoritarian government will be greatly reduced. Victory for liberty will probably elude us for decades.
market
A Republic, If You Can Keep It – Part 2
2 February 2000 2000 Ron Paul 5:136
But more importantly, if left unchecked, this approach will destroy liberty by undermining the concept of private property ownership and free markets, the bedrock of economic prosperity.
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ON INTRODUCTION OF THE PHARMACEUTICAL FREEDOM ACT OF 2000
February 10, 2000 2000 Ron Paul 6:4
* In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the U.S. or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Mr. Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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INTRODUCING LEGISLATION CALLING FOR THE UNITED STATES TO WITHDRAW FROM THE WORLD TRADE ORGANIZATION
March 1, 2000 2000 Ron Paul 12:6
We all saw the recent demonstrations at the World Trade Organization meetings in Seattle. Although many of those folks who were protesting were indeed rallying against what they see as evils of free trade and capitalist markets, the real problem when it comes to the World Trade Organization is not free trade. The World Trade Organization is the furthest thing from free trade.
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INTRODUCING LEGISLATION CALLING FOR THE UNITED STATES TO WITHDRAW FROM THE WORLD TRADE ORGANIZATION
March 1, 2000 2000 Ron Paul 12:12
When our Founding Fathers drafted the Constitution, they placed the treaty-making authority with the President and the Senate, but the authority to regulate commerce with the House. The effects of this are obvious. The Founders left us with a system that made no room for agreements regarding international trade; hence, our Nation was to be governed not by protection, but rather, by market principles. Trade barriers were not to be erected, period.
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MINIMUM WAGE INCREASE ACT
March 9, 2000 2000 Ron Paul 15:2
* Economic principles dictate that when government imposes a minimum wage rate above the market wage rate, it creates a surplus ‘wedge’ between the supply of labor and the demand for labor, leading to an increase in unemployment. Employers cannot simply begin paying more to workers whose marginal productivity does not meet or exceed the law-imposed wage. The only course of action available to the employer is to mechanize operations or employ a higher-skilled worker whose output meets or exceeds the ‘minimum wage.’ This, of course, has the advantage of giving the skilled worker an additional (and government-enforced) advantage over the unskilled worker. For example, where formerly an employer had the option of hiring three unskilled workers at $5 per hour or one skilled worker at $16 per hour, a minimum wage of $6 suddenly leaves the employer only the choice of the skilled worker at an additional cost of $1 per hour. I would ask my colleagues, if the minimum wage is the means to prosperity, why stop at $6.65 — why not $50, $75, or $100 per hour?
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MINIMUM WAGE INCREASE ACT
March 9, 2000 2000 Ron Paul 15:4
* Furthermore, interfering in the voluntary transactions of employers and employees in the name of making things better for low wage earners violates citizens’ rights of association and freedom of contract as if to say to citizens ‘you are incapable of making employment decisions for yourself in the marketplace.’
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MINIMUM WAGE INCREASE ACT
March 9, 2000 2000 Ron Paul 15:10
* In conclusion, I would remind my colleagues that while it may make them feel good to raise the federal minimum wage, the real life consequences of this bill will be vested upon those who can least afford to be deprived of work opportunities. Therefore, rather than pretend that Congress can repeal the economic principles, I urge my colleagues to reject this legislation and instead embrace a program of tax cuts and regulatory reform to strengthen the greatest producer of jobs and prosperity in human history: the free market.
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NUCLEAR WASTE POLICY AMENDMENTS ACT OF 2000
March 22, 2000 2000 Ron Paul 17:7
* It should not be lost on those interested in this issue that the federal government actually encouraged development of this industry to a degree the market would have never “contemplated” by artificially and, again, illegitimately, imposing a federal cap on damages in liability suits. In order to fully weigh the benefits and costs of nuclear power, external costs must be internalized rather than ignored.
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CONGRATULATING THE PEOPLE OF TAIWAN FOR SUCCESSFUL CONCLUSION OF PRESIDENTIAL ELECTIONS AND REAFFIRMING UNITED STATES POLICY TOWARD TAIWAN AND PEOPLE’S REPUBLIC OF CHINA
March 28, 2000 2000 Ron Paul 18:1
* Mr. PAUL. Mr. Speaker, today with H. Con. Res. 292 Congress bestows well-deserved congratulations upon the people of Taiwan for the successful conclusion of presidential elections on March 18, 2000, and for their continuing efforts to develop and sustain a free republic that respects individual rights and embraces free markets. President Lee Teng-hui of Taiwan should also be praised for his significant contributions to freedom in Taiwan.
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CONGRATULATING THE PEOPLE OF TAIWAN FOR SUCCESSFUL CONCLUSION OF PRESIDENTIAL ELECTIONS AND REAFFIRMING UNITED STATES POLICY TOWARD TAIWAN AND PEOPLE’S REPUBLIC OF CHINA
March 28, 2000 2000 Ron Paul 18:6
* Again, my congratulations to the Taiwanese on their continuing efforts to develop and sustain a free republic that respects individual rights and embraces free markets and to President Lee Teng-hui for his contributions to that end.
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Manipulating Interest Rates
May 15, 2000 2000 Ron Paul 36:5
* The silly notion that money can be created at will by a printing press or through computer entries is eagerly accepted by the majority as an easy road to riches, while ignoring any need for austerity, hard work, saving, and a truly free market economy. Those who actively endorse this system equate money creation with wealth creation and see it as a panacea for the inherent political difficulty in raising taxes or cutting spending.
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Manipulating Interest Rates
May 15, 2000 2000 Ron Paul 36:6
* A central bank that has no restraints placed on it is always available to the politicians who spend endlessly for reelection purposes. When the private sector lacks its appetite to lend sufficiently to the government, the Federal Reserve is always available to buy treasury debt with credit created out of thin air. At the slightest hint that interest rates are higher than the Fed wants, its purchase of debt keeps interest rates in check; that is, they are kept lower than the market rate. Setting interest rates is an enormous undertaking. It’s price fixing and totally foreign to the principles of free market competition.
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Manipulating Interest Rates
May 15, 2000 2000 Ron Paul 36:10
* In a free market, economic growth would never be considered a negative and purposely discouraged. It is strange that so many established economists and politicians accept the notion of dampening economic growth for this purpose. Economic growth with sound money always lowers prices-it never raises them. Deliberately increasing rates actually increase the cost of all borrowing, and yet it’s claimed that this is necessary to stop rising costs. Obviously, there’s not much to the soundness of central economic planning through monetary policy of this sort.
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The Dollar And Our Current Account Deficit
May 16, 2000 2000 Ron Paul 37:5
* Although international trade imbalances are a predictable result of fiat money, the duration and intensity of the cycles associated with it are not. A reserve currency, such as is the dollar, is treated by the market quite differently than another fiat currency.
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The Dollar And Our Current Account Deficit
May 16, 2000 2000 Ron Paul 37:8
* Japan’s lethargy, the Asian crisis, the Mexican financial crisis, Europe’s weakness, the uncertainty surrounding the EURO, the demise of the Soviet system, and the ineptness of the Russian bailout, all contributed to the continued strength in the dollar and prolongation of our current account deficit. This current account deficit, which prompts foreigners to loan back dollars to us and to invest in our stock and bond markets, has contributed significantly to the financial bubble. The perception that the United States is the economic and military powerhouse of the world, helps perpetuate an illusion that the dollar is invincible and has encouraged our inflationary policies.
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The Dollar And Our Current Account Deficit
May 16, 2000 2000 Ron Paul 37:11
* Since cartels never work, OPEC does not deserve credit for getting oil prices above $30 per barrel. Demand for equivalent purchasing power for the sale of oil, can. Recent commodity and wage price increases signal accelerating price inflation is at hand. We are witnessing the early stages in a sea change regarding the dollar, inflation, the stock market as well as commodity prices.
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The Dollar And Our Current Account Deficit
May 16, 2000 2000 Ron Paul 37:12
* The nervousness in the stock and bond markets, and especially in the NASDAQ, indicates that the Congress may soon be facing an entirely different set of financial numbers regarding spending, revenues, interest costs on our national debt and the value of the US dollar. Price inflation of the conventional type will surely return, even if the economy slows.
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Permanent Normal Trade Relations
May 24, 2000 2000 Ron Paul 40:5
* In truth, the bipartisan establishment’s fanfare of ‘free trade’ fosters the opposite of genuine freedom of exchange. Whereas genuine free traders examine free markets from the perspective of the consumer (each individual), the merchantilist examines trade from the perspective of the power elite; in other words, from the perspective of the big business in concert with big government. Genuine free traders consider exports a means of paying for imports, in the same way that goods in general are produced in order to be sold to consumers. But the mercantilists want to privilege the government business elite at the expense of all consumers, be they domestic or foreign. This new PNTR bill, rather than lowering government imposed barriers to trade, has become a legislative vehicle under which the United States can more quickly integrate and cartelize government in order to entrench the interventionist mixed economy.
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WITHDRAWING APPROVAL OF UNITED STATES FROM AGREEMENT ESTABLISHING WORLD TRADE ORGANIZATION
June 21, 2000 2000 Ron Paul 45:16
Essentially no one here advocating trade, as managed through the WTO, supports me in my efforts to open the Cuban markets to our farm products. There’s a lot of talk regarding free trade and open markets but little action. The support by the WTO advocates is for international managed trade along with subsidies to their corporate allies.
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World Trade Organization
21 June 2000 2000 Ron Paul 51:3
Essentially no one here advocating trade, as managed through the WTO, supports me in my efforts to open the Cuban markets to our farm products. There’s a lot of talk regarding free trade and open markets but little action. The support by the WTO advocates is for international managed trade along with subsidies to their corporate allies.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:1
* Mr. Chairman, I am pleased to take this opportunity to lend my support to H.R. 1304, the Quality Health Care Coalition Act, which takes a first step towards restoring a true free-market in health care by restoring the rights of freedom of contract and association to health care professionals. Over the past few years, we have had much debate in Congress about the difficulties medical professionals and patients are having with Health Maintenance Organizations (HMOs). HMOs are devices used by insurance industries to ration health care. While it is politically popular for members of Congress to bash the HMOs and the insurance industry, the growth of the HMOs are rooted in past government interventions in the health care market though the tax code, the Employment Retirement Security Act (ERSIA), and the federal anti-trust laws. These interventions took control of the health care dollar away from individual patients and providers, thus making it inevitable that something like the HMOs would emerge as a means to control costs.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:2
* Many of my well-meaning colleagues would deal with the problems created by the HMOs by expanding the federal government’s control over the health care market. These interventions will inevitably drive up the cost of health care and further erode the ability of patents and providers to determine the best health treatments free of government and third-party interference. In contrast, the Quality Health Care Coalition Act addresses the problems associated with HMOs by restoring medical professionals’ freedom to form voluntary organizations for the purpose of negotiating contracts with an HMO or an insurance company.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:3
* As an OB-GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:5
* Under the United States Constitution, the federal government has no authority to interfere with the private contracts of American citizens. Furthermore, the prohibitions on contracting contained in the Sherman antitrust laws are based on a flawed economic theory: that federal regulators can improve upon market outcomes by restricting the rights of certain market participants deemed too powerful by the government. In fact, anti-trust laws harm consumers by preventing the operation of the free-market, causing prices to rise, quality to suffer, and, as is certainly the case with the relationship between the HMOs and medical professionals, favoring certain industries over others. In fact, Mr. Speaker, I would hope that my colleagues would see the folly of antitrust laws and support my Market Process Restoration Act (H.R. 1789), which repeals all federal antitrust laws.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:6
* By restoring the freedom of medical professionals to voluntarily come together to negotiate as a group with HMOs and insurance companies, this bill removes a government-imposed barrier to a true free market in health care. I am quite pleased that this bill does not infringe on the rights of health care professionals by forcing them to join a bargaining organization against their will. Contrary to the claims of some of its opponents, H.R. 1304 in no way extends the scourge of federally-mandated compulsory unionism to the health care professions. While Congress should protect the right of all Americans to join organizations for the purpose of bargaining collectively, Congress also has a moral responsibility to ensure that no worker is forced by law to join or financially support such an organization.
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Quality Health-Care Coalition Act of 2000
June 29, 2000 2000 Ron Paul 61:8
* In conclusion, Mr. Chairman, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to American’s health care professionals. Antitrust laws are no more legitimate or constitutional in the health care market than they are on the software market. Therefore, I hope my colleagues will not just pass this bill but will also support my Market Process Restoration Act and exempt all Americans from antitrust laws. I also urge my colleagues to join me in working to promote a true free-market in health care by putting patients back in charge of the health care dollar through means such as Medical Savings Accounts (MSAs) and individual health care tax credits.
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Minding Our Own Business Regarding Colombia Is In The Best Interest Of America
September 6, 2000 2000 Ron Paul 69:4
This foolhardy effort to settle the Colombian civil war has clearly turned out to be a diplomatic failure. The best evidence of a seriously flawed policy is the departure of capital. Watching money flows gives us a market assessment of policy; and by all indication, our policy spells trouble.
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FSC Repeal And Extra-Territorial Income Exclusion Act Of 2000
September 12, 2000 2000 Ron Paul 73:15
* The United States is now rotating the goods that are to receive the 100 to 200 percent tariff in order to spread the pain throughout the various corporations in Europe in an effort to get them to put pressure on their governments to capitulate to allow American beef and bananas to enter their markets. So far the products that we have placed high tariffs on have not caused Europeans to cave in. The threat of putting high tariffs on cashmere wool is something that the British now are certainly unhappy with.
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CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY
October 11, 2000 2000 Ron Paul 84:4
It should surprise no one that our financial markets are getting more volatile every day. Inflating a currency and causing artificially low interest rates always leads to malinvestment, overcapacity, excessive debt, speculation, and dangerous trade imbalances. We now live in a world awash in a sea of fiat currencies, with the dollar, the yen, and the Euro leading the way. The inevitable unwinding of the wild speculation, as reflected in the derivatives market, is now beginning.
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CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY
October 11, 2000 2000 Ron Paul 84:5
And what do we do here in the Congress? We continue to ignore our constitutional responsibility to maintain a sound dollar. Our monetary policy of the last 10 years has produced the largest financial bubble in all of history, with the good times paid for by borrowing and an illusion of wealth created in a speculative stock market. Our current account deficit, now running over $400 billion per year, and our $1.5 trillion foreign debt, has been instrumental in financing our extravagance. Be assured, the piper will be paid. The markets are clearly reflecting the excesses of the 1990s.
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CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY
October 11, 2000 2000 Ron Paul 84:6
Already we hear the pundits arguing over who is to be blamed if the markets crash or a recession hits. Some have given the current President credit for the good times we have enjoyed. If the crash comes before January, some will place the blame on him as well. If problems hit later, the next President will get the blame. But the truth is our Presidents deserve neither the credit for the good times nor the blame for the bad times.
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END-OF-SESSION ISSUES
October 11, 2000 2000 Ron Paul 85:5
Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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END-OF-SESSION ISSUES
October 11, 2000 2000 Ron Paul 85:6
Currently, consumers are less than sovereign in the education ‘market.’ Funding decisions are increasingly controlled by the federal government. Because ‘he who pays the piper calls the tune,’ public, and even private schools, are paying greater attention to the dictates of federal ‘educrats’ while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control. Restoring parental control is the key to improving education.
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WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY
October 12, 2000 2000 Ron Paul 86:2
Mr. Speaker, over the last 3 years to 4 years, I have come to the floor on numerous occasions trying to sound a warning about both our foreign policy and our monetary policy. Today our monetary policy and our foreign policy have clashed. We see now that we face serious problems, not only in the Middle East, but on our financial markets.
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WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY
October 12, 2000 2000 Ron Paul 86:4
Most good economists recognize that inflation is a consequence of monetary policy; as one increases the supply of money, it inflates the currency. This distorts interest rates, and it distorts the markets. Sometimes this goes into goods and services, and other times these excessive funds will go into marketplaces and distort the value of stocks and bonds.
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WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY
October 12, 2000 2000 Ron Paul 86:10
We have heard that the 1990s was a different decade, it was a new era, economy, exactly what we heard throughout the decade prior to the collapse of the markets in Japan. The markets have now been down more than 50 percent in Japan for more than 10 years, and there is no sign of significant recovery there.
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WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY
October 12, 2000 2000 Ron Paul 86:13
It is an illusion to believe that the new paradigm exists. Actually, the computer industry involves 5 percent of the economy; 95 percent is what they called the old economy. I ascribe to old economic laws, because the truth is, we cannot change economic laws. And if inflating a currency distorts the market and the boom leads to the bust, that cannot be repelled.
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WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY
October 12, 2000 2000 Ron Paul 86:15
Where did we borrow from? We borrowed from overseas. We have a current account deficit that requires over a billion dollars a day that we borrow from foreigners just to finance our current account deficit. We are now the greatest debtor in the world, and that is a problem. This is why the markets are shaky, and this is why the markets have been going down for 6 months, and this is why in a foreign policy crisis such as we are facing in the Middle East, we will accentuate these problems. Therefore, the foreign policy of military interventionism overseas is something that we should seriously question.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:1
* Mr. Speaker, the financial markets are now nervously watching the impasse now reached in the Presidential election. Many commentators have already claimed the most recent drop in the market is a consequence of the uncertainty about the outcome of the election. Although it would be a mistake to totally dismiss the influence of the election uncertainty as a factor in the economy, it must be made clear that the markets and the economy are driven by something much more basic. We know that the markets have been off significantly for the past several months, and this drop was not related in any way to the Presidential election.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:2
* Confidence is an important factor in the way markets work, and certainly the confusion in the Presidential election does not convey confidence to investors and to the rest of the world.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:4
* Even though it is argued that there are huge budget surpluses in Washington, instead of budget compromise, a stalemate results. Each side wants even a greater share of the loot being distributed by the politicians. Even with the windfall revenues, no serious suggestion is made in Washington for cuts in spending. Instead of moving toward a market economy and less dependency on the federal government in the midst of this so-called ‘prosperity,’ we continue to go World Trade Organization, the International Monetary Fund, and the World Bank. Although in the early stages of interventionism and government planning, especially when a great deal of wealth is available for redistribution, it seems to enhance prosperity while prolonging the financial bubble on which the economy is dependent. The monetary system, both our domestic system as well as the international fiat system, plays a key role in the artificial prosperity based on inflated currencies as well as debt and speculation.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:5
* The pretended goal of the economic planners has been economic fairness through redistribution of wealth, politically correct social consciousness, and an all-intrusive government which becomes a responsibility for personal safety, health and education while personal responsibility is diminished. The goal of liberty has long been forgotten. The concentrated effort has been to gain power through the control of wealth with a scheme that pretends to treat everybody fairly. An impasse was destined to come, and already signs are present in our system of welfarism. This election in many ways politically demonstrates this economic reality. The political stalemate reflects the stalemate that is developing in the economy. Both will eventually cause deep division and hardship. The real problem-preserving of the free market and private property rights- if ignored, will only make things worse, because the only solution that will be offered in Washington will be more government intervention, increased spending, increase in monetary inflation, more debt, greater military activity throughout the world, and priming the economic pump with more expenditures for weapons we do not need.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:7
* Government statistics continue to tell us that price inflation is not a problem, and when an inflation statistic comes out it does not like, it drops out food and energy and claims the number is totally benign. Ask any housewife, and they will tell you that the cost of living is going up steadily and much more rapidly than the government will admit. We in the Congress should be prepared for lower revenues in the future since the revenues received in the last couple of years were artificially created by a stock market that had skyrocketed due to the credit expansion by the Federal Reserve. These capital gains tax revenues will soon disappear. The savings rates of the American people are now negative. Without savings, true capital investment cannot be maintained. Creation of credit out of thin air by the Fed was the original problem, so it surely can’t be the solution.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:9
* Rising interest rates in the high yield bond market is giving us an indication that a serious problem is just around the bend. Commercial debt was but $50 billion in 1994 and is now ten times higher now at $551 billion. The money supply is now growing at greater than a 10% rate and the derivatives market, although difficult to calculate, probably exceeds $75 trillion. We also have consumer debt, which is at record highs and has not yet shown signs of slowing. The Dow Jones Industrial Average stocks are now 5 times book value, the highest in over a hundred years. There will come a day when most people come to realize the fraud associated with Social Security and the inability for it to continue as currently managed. Rising oil and natural gas prices, it is argued, are not inflationary, yet they are playing havoc with the pocketbooks of most Americans. The economies of Asia, and in particular Japan, will not offer any assistance in dealing with the approaching storm in this country. Our foreign policy, which continues to obligate our support around the world, shows no signs of changing and will contribute to the crisis and possibly our bankruptcy.
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ECONOMIC PROBLEMS AHEAD
November 13, 2000 2000 Ron Paul 93:10
* What must we do? We should develop more sensible priorities. We must restore confidence in freedom and recognize how free markets can solve our problems . We must have more respect for the Rule of Law and demand that Congress, the Courts, and the President live within the Rule of Law and stop arbitrarily flaunting the Constitution. If the Constitution is to be changed, it should be changed slowly and deliberately as is permitted, but never by fiat. We must eventually reconsider the notion of the original constitutional Republic as designed by our Founders. The monolithic centralized state was not the design nor is it supported by the Constitution. We were meant to have loose knit individual states, with the states themselves managing their own affairs.
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FSC Repeal and Extraterritorial Income Exclusion Act of 2000
14 November 2000 2000 Ron Paul 94:13
The United States is now rotating the goods that are to receive the 100 to 200 percent tariff in order to spread the pain throughout the various corporations in Europe in an effort to get them to put pressure on their governments to capitulate to allow American beef and bananas to enter their markets. So far the products that we have placed high tariffs on have not caused Europeans to cave in. The threat of putting high tariffs on cashmere wool is something that the British now are certainly unhappy with.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:11
* The reason we should be concerned about this more so than we are is the fact that, when we are in a recession, revenues go crashing down. The inflation that occurred over these past 10 years, which was artificially created, giant revenues from capital gains from this artificially high stock market. Well that is all being reversed now, so revenues are going to go down now, and we will have to deal with this in the next Congress.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:14
* We will soon be hearing a lot about interest rates. There will be a loud clamor from all quarters for the Fed to lower interest rates. It will be argued that it is necessary in order to help stop the stock market slide/crash and also to stimulate a sagging economy.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:16
* And yet, depending on many variables, a deliberate attempt by the Federal Reserve to lower interest rates may instead lead to higher interest rates and precipitate a period of accelerating price inflation. Instead of boosting the stock market, this effort can do the opposite by producing conditions that will lower the stock market and do nothing to avert the economic slump that more people are now worried about.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:21
* The explanation was that economic growth, when not controlled, leads to price inflation and therefore the economy had to be “cooled.” A healthy free market economy should never have to be cooled, it should only be encouraged.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:23
* Signs of economic slowdown are now all around with the seriously slumping stock market being the most visible and eliciting the most concern. As the slowdown spreads and accelerates the politicians will be anxious to advise the Chairman of the Federal Reserve, Alan Greenspan. Politicians from both sides of the aisle will become deeply and especially concerned when the evidence is clear that the revenues are plummeting and the “surplus” is disappearing. Since this will challenge the ability of the politician to continue the spending spree many will become deeply and vocally concerned.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:24
* The big debate already started in the financial and political circles is when, how much, and how quickly the Federal Reserve should lower interest rates. Indeed all will clamor to lower rates to revive the economy again. With the signs of rising prices in many sectors, especially energy, and in spite of the weak economy we can expect the Federal Reserve chairman to issue precautionary statements. He will reiterate that he must watch out for the resurgence of (price) inflation. In spite of his statements about concerns for inflation, if the stock market slumps and the economic slowdown is significant enough, we can be certain of one thing, the money supply will continue to grow rapidly in an attempt to keep interest rates low. But Mr. Greenspan will never admit that inflating is exactly what he’s been generously doing for the past 13 years.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:25
* A short time after Chairman Greenspan took over the reigns of the Federal Reserve the stock market crash of 1987 prompted him to alleviate concerns with a heavy dose of monetary inflation. Once again, in the slump of 1991 and 1992, he again re-ignited the financial bubble by more monetary inflation. There was no hesitation on Mr. Greenspan’s part to inflate as necessary to alleviate the conditions brought about by the Mexican financial crisis, the Asian crisis, the Russian ruble crisis, and with the Long-Term Capital Management crisis. Just one year ago the non-existent Y2K crisis prompted huge, unprecedented monetary inflation by the Federal Reserve. All these efforts kept interest rates below the market rate and contributed to the financial bubble that is now starting to deflate. But, there is no doubt that this monetary inflation did maintain an economy that seemed like it would never quit growing. Housing markets thrived, the stock market and bond market thrived, and in turn, the great profits made in these areas, especially gains made by stock market transactions, produced profits that inflated greatly the revenues that flowed into the Treasury. The serious problem that we now face, a collapsing stock market and a rapidly weakening economy, was caused by inflating the money supply along with artificially low interest rates. More inflation and continuing the policy of artificially low interest rates can’t possibly be the solution to the dilemma we face.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:28
* Congress definitely should be concerned about these matters. Budgetary planning will get more difficult as the revenues spiral downward and spending does the opposite. Interest on the national debt will continue and will rise as interest rates rise. The weak dollar, lower stock markets and inflation can affect every fixed income citizen, especially the Social Security beneficiaries. We can expect the World Trade Organization=s managed trade war will actually get much worse under these conditions. Military conflict is not out of the question under the precarious conditions that are developing. Oil supplies are obviously not secure, as we have already seen the run up of prices to dangerously high levels.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:32
* Congress does have responsibility for maintaining a sound dollar and a free market and not much else. Unfortunately this responsibility that is clearly stated in the Constitution is ignored.
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INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL
Wednesday, January 31, 2001 2001 Ron Paul 3:2
* The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty”. Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL
Wednesday, January 31, 2001 2001 Ron Paul 3:3
* Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the federal government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:8
The effort always is to soften the image of the authoritarians who see a need to run the economy and regulate people’s lives, while pretending not to give up any of the advantages of the free market or the supposed benefits that come from a compassionate-welfare or a socialist government. It’s nothing more than political have-your-cake-and-eat-it-too deception. Many insecure and wanting citizens cling to the notion that they can be taken care of through government benevolence without sacrificing the free market and personal liberty. Those who anxiously await next month’s government check prefer not to deal with the question of how goods and services are produced and under what political circumstances they are most efficiently provided. Sadly, whether personal freedom is sacrificed in the process is a serious concern for only a small number of Americans.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:9
The Third Way , a bipartisan compromise that sounds less confrontational and circumvents the issue of individual liberty, free markets, and production is an alluring, but dangerous, alternative. The harsh reality is that it is difficult to sell the principles of liberty to those who are dependent on government programs. And this includes both the poor beneficiaries as well as the self-serving wealthy elites who know how to benefit from government policies. The authoritarian demagogues are always anxious to play on the needs of people made dependent by a defective political system of government intervention while perpetuating their own power. Anything that can help the people to avoid facing the reality of the shortcomings of the welfare/warfare state is welcomed. Thus our system is destined to perpetuate itself until the immutable laws of economics bring it to a halt at the expense of liberty and prosperity.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:13
The argument that this bipartisan approach is a reasonable compromise between the total free-market or local-government approach and that of a huge activist centralized government approach may appeal to some, but it is fraught with great danger. Big government clearly wins; limited government and the free market lose. Any talk of a Third Way is nothing more than propaganda for big government. It’s no compromise at all. The principle of federal government control is fully endorsed by both sides, and the argument that the Third Way might slow the growth of big government falls flat. Actually, with bipartisan cooperation, government growth may well accelerate.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:36
There are reasons to be optimistic that the principles of the Republic, the free market, and respect for private property can be restored. However, there remains good reason as well to be concerned that we must confront the serious political and economic firestorm seen on the horizon before that happens.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:40
For several years, we’ve heard the endless nostrum of a technology and productivity-driven new paradigm that would make the excesses of the 1990s permanent and real. Arguments that productivity increases made the grand prosperity of the last six years possible were accepted as conventional wisdom, although sound free-market analysts warned otherwise. We are now witnessing an economic downturn that will, in all likelihood, be quite serious. If our economic planners pursue the wrong course, they will surely make it much worse and prolong the recovery.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:45
In an economic downturn, a large majority of our political leaders believe that the ill effects of recession can be greatly minimized by monetary and fiscal policy. Although cutting taxes is always beneficial, spending one’s way out of a recession is no panacea. Even if some help is gained by cutting taxes or temporary relief given by an increase in government spending, they distract from the real cause of the downturn: previously pursued faulty monetary policy. The consequences of interest-rate manipulation in a recession-along with tax and spending changes-are unpredictable and do not always produce the same results each time they’re used. This is why interest rates of less than 1% and massive spending programs have not revitalized Japan’s economy or her stock market. We may well be witnessing the beginning of a major worldwide economic downturn, making even more unpredictable the consequence of conventional western-style central bank tinkering.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:50
This is true, even to this day. The dollar still represents approximately 77% of all world central-bank reserves. This means that the United States has license to steal. We print the money and spend it overseas, while world trust continues because of our dominant economic and military power. This results in a current account and trade deficit so large that almost all economists agree that it cannot last. The longer and more extensive the distortions in the international market, the greater will be the crisis when the market dictates a correction. And that’s what we’re starting to see.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:55
During the past 30 years in the post-Bretton Woods era, worldwide sentiment has permitted us to inflate our money supply and get others to accept the dollar as if it were as good as gold. This convenient arrangement has discouraged savings, which are now at an historic low. Savings in a capitalist economy are crucial for furnishing capital and establishing market interest rates. With negative savings and with the FED fixing rates by creating credit out of thin air and calling it capital, we have abandoned a necessary part of free-market capitalism, without which a smooth and growing economy is sustainable.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:57
The most recent new era of the 1990s appeared to be an answer to all politicians’ dreams: a good economy, low unemployment, minimal price inflation, a skyrocketing stock market, with capital gains tax revenues flooding the Treasury, thus providing money to accommodate every special-interest demand. But it was too good to be true. It was based on an inflated currency and massive corporate, personal, and government borrowing. A recession was inevitable to pay for the extravagance that many knew was an inherent part of the new era, understanding that abundance without a commensurate amount of work was not achievable.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:58
The mantra now is for the FED to quickly lower short-term interest rates to stimulate the economy and alleviate a liquidity crisis. This policy may stimulate a boom and may help in a mild downturn, but it doesn’t always work in a bad recession. It actually could do great harm since it could weaken the dollar, which in turn would allow market forces instead to push long-term interest rates higher. Deliberately lowering interest rates isn’t even necessary for the dollar to drop, since our policy has led to a current-account deficit of a magnitude that demands the dollar eventually readjust and weaken.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:59
A slumping stock market will also cause the dollar to decline and interest rates to rise. Federal Reserve Board central planning through interest-rate control is not a panacea. It is instead the culprit that produces the business cycle. Government and FED officials have been reassuring the public that no structural problems exists, citing no inflation and a gold price that reassures the world that the dollar is indeed still king.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:60
The FED can create excess credit, but it can’t control where it goes as it circulates throughout the economy; nor can it dictate value either. Claiming that a subdued government-rigged CPI and PPI proves that no inflation exists is pure nonsense. It is well established that, under certain circumstances, new credit inflation can find its way into the stock or real estate market, as it did in the 1920s, while consumer prices remain relatively stable. This does not negate the distortion inherit in a system charged with artificially low interest rates. Instead it allows the distortion to last longer and become more serious, leading to a bigger correction.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:62
From 1945 to 1971, the United States literally dumped nearly 500 million ounces of gold at $35 an ounce in an effort to do the same thing by continuing the policy of printing money at will, with the hopes that there would be no consequences to the value of the dollar. That all ended in 1971 when the markets overwhelmed the world central banks.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:64
Recent deterioration of the junk-bond market indicates how serious the situation is. Junk bonds are now paying 9% to 10% more than short-term government securities. The quality of business loans is suffering, while more and more corporate bonds are qualifying for junk status. The FED tries to reassure us by attempting to stimulate the economy with low short-term FED fund rates at the same time interest rates for businesses and consumers are rising. There comes a time when FED policy is ineffective, much to everyone’s chagrin.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:68
Much else related to artificially low interest rates goes unnoticed. An overpriced stock market, overcapacity in certain industries, excesses in real-estate markets, artificially high bond prices, general mal-investments, excessive debt, and speculation all result from the generous and artificial credit the Federal Reserve pumps into the financial system. These distortions are every bit, if not more, harmful than rising prices. As the economy soars from the stimulus effect of low interest rates, growth and distortions compound themselves. In a slump the reverse is true, and the pain and suffering is magnified as the adjustment back to reality occurs.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:69
The extra credit in the 1990s has found its way especially into the housing market like never before. GSEs, in particular Freddie Mac and Fannie Mae, have gobbled up huge sums to finance a booming housing market. GSE securities enjoy implicit government guarantees, which have allowed for a generous discount on most housing loans. They have also been the vehicles used by consumers to refinance and borrow against their home equity to use these funds for other purposes, such as investing in the stock market. This has further undermined savings by using the equity that builds with price inflation that homeowners enjoy when money is debased. In addition, the Federal Reserve now buys and holds GSE securities as collateral in their monetary operations. These securities are then literally used as collateral for printing Federal Reserve notes; this is a dangerous precedent.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:70
If monetary inflation merely raised prices, and all prices and labor costs moved up at the same rate, and it did not cause dis-equilibrium in the market, it would be of little consequence. But inflation is far more than rising prices. Creating money out of thin air is morally equivalent to counterfeiting. It’s fraud and theft, because it steals purchasing power from the savers and those on fixed incomes. That in itself should compel all nations to prohibit it, as did the authors of our Constitution.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:75
Without the central bank creating money out of thin air, our welfare state and worldwide imperialism would have been impossible to finance. Attempts at economic fine-tuning by monetary authorities would have been impossible without a powerful central bank. Propping up the stock market as it falters would be impossible as well.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:142
Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for a while, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes, and inflation.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:146
But we have good reason to be concerned for our future. Prosperity can persist, even after the principles of a sound market economy have been undermined, but only for a limited period of time.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:151
Inflation, the erosion of the dollar, is always worse than the government admits. It may be that more Americans are suffering than is generally admitted. Government intrusion in our lives is commonplace. Some unemployed aren’t even counted. Lower-middle-class citizens have not enjoyed an increase in the standard of living many others have. The fluctuation in the stock market may have undermined confidence.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:159
Basic morality, free markets, sound money, living within the rule of law, and adhering to the fundamental precepts that made the American Republic great are what we need. And it’s worth the effort.
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POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:89
Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for awhile, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes and inflation.
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POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:92
We have good reason to be concerned for our future. Prosperity can persist, even after the principles of a sound market economy have been undermined; but only for a limited period of time.
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POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:97
Inflation, the erosion of the dollar, is always worse than the government admits. It may be that more Americans are suffering than generally admitted. Government intrusion in our lives is commonplace. Some unemployed are not even counted. Lower middle-class citizens have not enjoyed an increase in the standard of living others have. The fluctuation in the stock market may have undermined confidence.
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POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:104
Basic morality, free markets, sound money, and living within the rule of law, while clinging to the fundamental precepts that made the American Republic great, are what we need. And it is worth the effort. END
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The Economy
February 13, 2001 2001 Ron Paul 13:1
Mr. Speaker: Many government and Federal Reserve officials have repeatedly argued that we have no inflation to fear. Yet those who claim this, define inflation as rising consumer and producer prices. Although inflation frequently leads to price increases we must remember that the free market definition of inflation is the increase in the supply of money and credit. Monetary inflation is seductive in that it can cause great harm without significantly affecting government price indices. The excess credit may well go into stock market and real estate speculation with consumer price increases limited to such things as energy, repairs, medical care and other services. One should not conclude, as so many have in the past decade, that we have no inflation to worry about. Imbalances did develop with the 1990’s monetary inflation but were ignored. They are now becoming readily apparent as sharp adjustments take place—such as we have seen in the past year in the NASDAQ.
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The Economy
February 13, 2001 2001 Ron Paul 13:2
When one is permitted to use “rising prices” as the definition for inflation it is followed by a nonsensical assumption that a robust economy is the cause for rising prices. Foolish conclusions of this sort lead our economic planners and Federal Reserve officials to attempt to “solve ” the problem of price or labor-cost inflation by precipitating an economic slowdown. Such a deliberate policy is anathema to a free market economy. It’s always hoped that the planned economic slowdown will never do serious harm, but this is never the case. The recession with rising prices still comes. And that’s what we are seeing today.
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The Economy
February 13, 2001 2001 Ron Paul 13:5
And what’s happening to employment conditions? They’re deteriorating rapidly. Economist Ed Hyman, reported that 270,000 people lost their jobs in January, a 678% increase over a year ago. A growing number of economists are now doubtful that productivity growth will save us from the correction that many free market economists predicted would come as an inevitable consequence of the interest rate distortions that Federal Reserve policy causes.
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The Economy
February 13, 2001 2001 Ron Paul 13:7
Between 1995 and today, the Greenspan Fed increased the money supply as measured by (MZM) by $1.9 trillion or a 65% increase. There is no reason to look any further for the explanation of why the economy is slipping with labor costs rising, energy costs soaring, and medical and education costs skyrocketing, while the stock market is disintegrating. Until we look at the unconstitutional monopoly power the Federal Reserve has over money and credit we can expect a continuation of our problems. Demanding lower interest rates is merely insisting the Federal Reserve deliberately create even more credit, which caused the problem in the first place. We cannot restore soundness to the dollar by debasing the dollar—which is what lowering interest rates is all about—printing more money.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:2
* Mr. PAUL. Mr. Speaker, I highly recommend the attached article, “Blame Congress for HMOs” by Twila Brase, a registered nurse and President of the Citizens’ Council on Health Care, to my colleagues. Ms. Brase demolishes the myth that Health Maintenance Organizations (HMOs), whose power to deny Americans the health care of their choice has been the subject of much concern, are the result of an unregulated free-market. Instead, Ms. Brase reveals how HMOs were fostered on the American people by the federal government for the express purpose of rationing care.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:3
* The story behind the creation of the HMOs is a classic illustration of how the unintended consequences of government policies provide a justification for further expansions of government power. During the early seventies, Congress embraced HMOs in order to address concerns about rapidly escalating health care costs. However, it was Congress which had caused health care costs to spiral by removing control over the health care dollar from consumers and thus eliminating any incentive for consumers to pay attention to costs when selecting health care. Because the consumer had the incentive to control health care cost stripped away, and because politicians where unwilling to either give up power by giving individuals control over their health care or take responsibility for rationing care, a third way to control costs had to be created. Thus, the Nixon Administration, working with advocates of nationalized medicine, crafted legislation providing federal subsidies to HMOs, preempting state laws forbidding physicians to sign contracts to deny care to their patients, and mandating that health plans offer an HMO option in addition to traditional fee-for-service coverage. Federal subsidies, preemption of state law, and mandates on private business hardly sounds like the workings of the free market. Instead, HMOs are the result of the same Nixon-era corporatist, Big Government mindset that produced wage-and-price controls.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:4
* Mr. Speaker, in reading this article, I am sure many of my colleagues will think it ironic that many of the supporters of Nixon’s plan to foist HMOs on the American public are today promoting the so-called “patients’ rights” legislation which attempts to deal with the problem of the HMOs by imposing new federal mandates on the private sector. However, this is not really surprising because both the legislation creating HMOs and the Patients’ Bill of Rights reflect the belief that individuals are incapable of providing for their own health care needs in the free market, and therefore government must control health care. The only real difference between our system of medicine and the Canadian “single payer” system is that in America, Congress contracted out the job of rationing health care resources to the HMOs.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:5
* As Ms. Brase, points out, so-called “patients’ rights” legislation will only further empower federal bureaucrats to make health care decisions for individuals and entrench the current government-HMO complex. Furthermore, because the Patient’s Bill of Rights will increase health care costs, thus increasing the number of Americans without health insurance, it will result in pleas for yet another government intervention in the health care market!
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:7
* In conclusion, Mr. Speaker, I hope all my colleagues will read this article and take its lesson to heart. Government-managed care, whether of the socialist or corporatist variety, is doomed to failure. Congress must instead restore a true free-market in health care if we are serious about creating conditions under which individuals can receive quality care free of unnecessary interference from third-parties and central planners.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:26
To accomplish this goal, public officials had to ensure that HMOs developed the size and stability necessary to take on the financial risks of capitated government health-care programs. This required that HMOs capture a significant portion of the private insurance market. Once Medicare and Medicaid recipients began to enroll in HMOs, the organizations would have the flexibility to pool their resources, redistribute private premium dollars, and ration care across their patient populations.
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Blame Congress for HMOs
February 27, 2001 2001 Ron Paul 15:28
To bring the privately insured into HMOs, Congress forced employers with 25 or more employees to offer HMOs as an option — a law that remained in effect until 1995. Congress then provided a total of $373 million in federal subsidies to fund planning and startup expenses, and to lower the cost of HMO premiums. This allowed HMOs to undercut the premium prices of their insurance competitors and gain significant market share.
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The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:3
Efforts to achieve peaceful globalist goals are quickly abandoned when the standard of living drops, unemployment rises, stock markets crash and artificially high wages are challenged by market forces. When tight budgets threaten spending cuts, cries for expanding the welfare state drown out any expression of concern for rising deficits.
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The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:4
The effort in recent decades to unify government surveillance over all world trade and international financial transactions through the UN, IMF, World Bank, WTO, ICC, the OECD, and the Bank of International Settlements can never substitute for a peaceful world based on true free trade, freedom of movement, a single but sound market currency, and voluntary contracts with private property rights.
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The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:13
But the excess credit created by the Fed found its way into the stock market- especially the NASDAQ, and was ignored. This set the stage for the stock market collapse, now ongoing. Likewise ignored has been the excess capacity, mal-investment, and debt that permeates the world economy.
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The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:15
The collapse of the Soviet system and the emergence of United States military and economic preeminence, throughout the world, have permitted the dollar-driven financial bubble to last longer than anticipated. But instead of a glorious New Era, as promised, we ended up with a huge financial bubble and an artificially integrated world economy dominated by an unstable dollar. But instead of a single commodity currency driving a healthy world economy, we have an economy that has numerous imbalances generated by the US dollar, unsustainable trade agreements and total instability in the currency markets.
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The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:16
Sure we have enjoyed cheap imports and they have raised our standard of living and our foreign debt. We have on the short run benefited from our trade and current account deficits since the world has been only too eager to gobble up our inflated dollars and loan them back to us. But soon the countries of the world will decide that enough is enough and they will recognize the bad deal it is for them to continue to accept our dollars. The mal-investment, already becoming apparent, will prompt even more radical adjustments in all markets.
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The Medical Privacy Protection Resolution
March 15, 2001 2001 Ron Paul 19:1
* Mr. PAUL. Mr. Speaker, I rise to introduce the Medical Privacy Protection Resolution, which uses the Congressional Review Act to repeal the so-called Medical Privacy regulation. Many things in Washington are misnamed, however, this regulation may be the most blatant case of false advertising I have come across in all my years in Congress. Rather than protect an individual right to medical privacy, these regulations empower government officials to determine how much medical privacy an individual “needs.” This “one-size-fits-all” approach ignores the fact that different people may prefer different levels of privacy. Certain individuals may be willing to exchange a great deal of their personal medical information in order to obtain certain benefits, such as lower-priced care or having information targeted to their medical needs sent to them in a timely manner. Others may forgo those benefits in order to limit the number of people who have access to their medical history. Federal bureaucrats cannot possibly know, much less meet, the optimal level of privacy for each individual. In contrast, the free market allows individuals to obtain the level of privacy protection they desire.
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Manipulation Of Interest Rates Cause Economic Problems
20 March 2001 2001 Ron Paul 22:2
It was anticipated that he would, and he did. He lowered the interest rates by 50 basis points. The stock market promptly went down 236 points. So obviously just lowering interest rates is not the solution to the problems we face. As a matter of fact, I believe it is the problem.
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Manipulation Of Interest Rates Cause Economic Problems
20 March 2001 2001 Ron Paul 22:4
In a free market economy, you do not have a central bank pretending it has knowledge it does not have, that it knows exactly what the money supply should be and what interest rate should be. That is a prescription for disaster; and it leads to booms and busts, speculations in the stock markets, crashes in the stock markets. This is a wellknown phenomenon. It has been with us since 1913, since we have had the Federal Reserve. We have seen it in the speculation in the 1920s and the depression of the 1930s. It is ongoing.
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Manipulation Of Interest Rates Cause Economic Problems
20 March 2001 2001 Ron Paul 22:8
Take a look at what is happening in Japan today. Japan lowered their interest rates, too. They have been doing this for a long time. They are down to 0 percent, and nothing seems to be happening. Their stock market is at a level it was 16 years ago. We have to decide whether or not we may be moving into a similar situation. I think it is a very serious problem.
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Manipulation Of Interest Rates Cause Economic Problems
20 March 2001 2001 Ron Paul 22:11
The most important aspect of that is the instability it creates in the marketplace. It does not always lead to a CPI increasing at 10 or 15 percent. Our CPI is rising significantly. We have other prices going up significantly, like education costs and medical care costs, housing costs. So there is a lot of inflation even when one measures it by prices.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:1
Mr. PAUL. Mr. Speaker, the markets today are reeling. The financial markets are indeed in big trouble. This could mean a couple of things to all of us. First, it could mean economic hardship for many of our citizens. It also could mean that our budget figures will be completely changed here in the nottoo- distant future, and we should be paying attention.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:2
Some people claim that they are not quite sure why markets go up and all of a sudden crash; and others say if only Alan Greenspan would just print more money, inflate the currency faster, lower the interest rates, all would be well. But I do not think it is that simple.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:3
It is very clear that we have these cycles and these booms coming from a monetary system that is pure fiat. Fiat money means that the money is created out of thin air, and the characteristic of a fiat monetary system is that you have overspeculation, you have stock market booms, you have stock market crashes, and you have a business cycle. This comes from the mismanagement of money, mainly because man, in his efforts to plan, to have economic central planning through monetary policy, is incapable of providing the information necessary that a free market is supposed to have.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:4
Only a free market can tell us what interest rates should be or what the money supply should be. But we have become dependent on a Federal Reserve system that pretends to know all these things, and we have allowed Alan Greenspan to believe that he can regulate the entire economy as well as the stock market by the Open Market Committee.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:6
This is what is happening. Right now we are increasing the money supply as measured by MZM at the rate of 20 percent per year. This means that, ultimately, that dollar that we use to purchase goods and services will go down in value. And yet the only thing that we hear about is the cry to the Federal Reserve, just print more money, faster, because that will save us all. It will raise the stock market; it will make sure that the economy does not go down and go into a downturn.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:8
This can be very serious. Just in the last year there has been $4 trillion of value lost in the stock market. Of course, it was artificially high, and now it is going to be artificially low, and these sudden changes reflect the disequilibrium built into the system once we have a monetary system of this sort.
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Addressing Monetary Problems
22 March 2001 2001 Ron Paul 23:9
In 1996, the chairman of the Federal Reserve Board talked about the exuberance, the irrational exuberance in the stock market; and yet I think he knew, I certainly knew, and others knew, that there was irrational exuberance, because even at that time we were printing money like crazy. There was overspeculation.
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Free Trade
April 24, 2001 2001 Ron Paul 24:2
* Professor Lemieux seems to grasp quite well what few in Congress have come to understand — that is, “The primary rationale for free trade is not that exporters should gain larger markets, but that consumers should have more choice — even if the former is a consequence of the latter.” Mr. Lemieux went on to point out that the leaders of the 34 participating states in the recent Quebec summit “are much keener on managed trade than on free trade and more interested in income redistribution and regulation than in the rooting out of trade restrictions.”
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Free Trade
April 24, 2001 2001 Ron Paul 24:5
* In truth, the bipartisan establishment’s fanfare of “free trade” (and the impending request for fast track authority) fosters the opposite of genuine freedom of exchange. Whereas genuine free traders examine free markets from the perspective of the consumer (each individual), the mercantilist examines trade from the perspective of the power elite; in other words, from the perspective of the big business in concert with big government. Genuine free traders consider exports a means of paying for imports, in the same way that goods in general are produced in order to be sold to consumers. But the mercantilists want to privilege the government business elite at the expense of all consumers, be they domestic or foreign.
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Free Trade
April 24, 2001 2001 Ron Paul 24:12
What of the “no passport” world celebrated by Keynes? In Quebec, as at other international trade meetings, state representatives behaved as agents of their country’s exporters. You give us this “concession,” they intone, and we will allow your exporters to enter our markets in return. Yet this misrepresents grossly the nature of trade and a free economy.
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Free Trade
April 24, 2001 2001 Ron Paul 24:13
The primary rationale for free trade is not that exporters should gain larger markets, but that consumers should have more choice — even if the former is a consequence of the latter. By presenting themselves as members of an exporters’ club, trade negotiators lay themselves open to attack by those who claim that free trade only works to the benefit of corporations.
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Repeal of the Selective Service Act
April 26, 2001 2001 Ron Paul 28:8
[Page: E648] GPO’s PDF doing alternative service. The only difference is that he would be getting a reasonable salary for his work. The conscription system forces conscripts to provide the same service for less pay. By comparison, an outstanding female with a PhD in electrical engineering can get paid according to her market value because she does not have to do military service. NVhy should we use a conscription system to provide cheap labor to corporations?
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Repeal of the Selective Service Act
April 26, 2001 2001 Ron Paul 28:13
As for the question of not finding enough recruits, this should not be a problem as long as the Ministry of National Defense offers competitive salaries. If serving in the military simply means loafing around, then such service may be worth less than NT$10,000 a month. But there should be no such “profession.” If being a soldier is a high-risk profession, there should be a high salary to compensate for that risk. That may increase expenditures for the government, but it must be remembered that only people who can freely enter various professions on the job market can maximize their value.
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Unborn Victims Of Violence Act
26 April 2001 2001 Ron Paul 29:4
Nevertheless, our Federal Government is, constitutionally, a government of limited powers. Article one, section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the Federal Government lacks any authority or consent of the governed and only the State governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our Nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Unborn Victims Of Violence Act
26 April 2001 2001 Ron Paul 29:9
It is important to be reminded of the benefits of federalism as well as the cost. There are sound reasons to maintain a system of smaller, independent jurisdictions — it is called competition and, yes, governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide value as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Curiously, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.
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Inflation Is Still With Us
3 May 2001 2001 Ron Paul 30:6
Although the economy is now slowing, and fuel prices are skyrocketing for the airlines, Delta pilots are receiving salary increases of between 24 and 34%. Other evidence of labor cost increases is now available even with the large and growing number of announced layoffs. Wage prices pressure is more often than not a consequence of monetary policy, not a tight labor market.
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Inflation Is Still With Us
3 May 2001 2001 Ron Paul 30:8
Mismanaging world fiat currencies and working to iron out the trade imbalances that result, through a worldwide managed trade organization, will not suffice. We must one day address the subject of sound money and free market interest rates, where interest rates are not set by the central banks of the world.
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Inflation Is Still With Us
3 May 2001 2001 Ron Paul 30:10
But this is an expected consequence of monetary debasement, which generally leads to social unrest. But, blaming capitalism and freedom for the harm done by inflationism, special interest corporatism, and interventionism presents a danger to us all, since the case for commodity money and individual liberty is lost in the shouting. Unless this message is heard and distinguished from the current system, freedom and prosperity will be lost. Leaders of the current worldwide system that has evolved since the collapse of the Soviet empire pay lip service to free trade and free markets, but tragically they are moving us toward a fascist system of partnerships with government, big businesss, and international banking at the expense of the middle class and the poor.
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Statement on the Congressional Education Plan
May 22, 2001 2001 Ron Paul 38:11
The Family Education Freedom Act returns the fundamental principle of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free society maximizes human happiness.
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Sudan Peace Act
13 June 2001 2001 Ron Paul 40:13
There is more, however. Buried deep within the bill in Section 9 we find what may be the real motivation for the intervention — Oil. It seems the bill also tasks the Secretary of State with generating a report detailing “a description of the sources and current status of Sudan’s financing and construction of infrastructure and pipelines for oil exploitation, the effects of such financing and construction on the inhabitants of the regions in which the oil fields are located.” Talk about corporate welfare and the ability to socialize the costs of foreign competitive market research on the U.S. taxpayer!
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“Postal Service Has Its Eye On You”
27 June 2001 2001 Ron Paul 47:29
Gillum says the postal service is very strict that the reports only can be seen by law-enforcement officials and not used for other purposes such as marketing. A spokeswoman for the consulting company Information Builders stated in an e-mail to Insight, “Information Builders personnel do not have access to this system.”
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Re-Importation of Pharmaceuticals
11 July 2001 2001 Ron Paul 50:1
Mr. PAUL. Mr. Chairman, I rise in support of the amendment offered by the gentleman from Vermont. As I am sure I need not remind my colleagues, many Americans are concerned about the high prices of prescription drugs. The high prices of prescription drugs particularly effect low-income senior citizens since many seniors have a greater than-average need for prescription drugs. One of the reasons prescription drug prices are high is because of government policies which give a few powerful companies a monopoly position in the prescription drug market. One of the most egregious of those policies are those restricting the importation of quality pharmaceuticals. If members of Congress are serious about lowering prescription drug prices they should support this amendment.
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REIMPORTATION OF FDA-APPROVED PHARMACEUTICALS -- HON. RON PAUL
July 17, 2001 2001 Ron Paul 51:2
* I appreciate the opportunity to explain why I supported these amendments. As my colleagues are aware, many Americans are concerned about the high cost of prescription drugs. These high prices particularly affect low-income senior citizens because many seniors have a greater than average need for prescription drugs and lower than average income. One of the reasons prescription drug prices are high is government policies which give a few powerful companies a monopoly position in the prescription drug market, such as those restricting the importation of quality pharmaceuticals. Therefore, all members of Congress who are serious about lowering prescription drug prices should have supported these amendments.
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REIMPORTATION OF FDA-APPROVED PHARMACEUTICALS -- HON. RON PAUL
July 17, 2001 2001 Ron Paul 51:6
* In conclusion, Mr. Speaker, I once again wish to express my regret for missing the votes on the amendments by the gentlemen from Vermont and Minnesota and urge my colleagues to show they are serious about lowering the prices of prescription drugs and that they trust the people to do what is in their best interest, by supporting future efforts to establish a true free market in pharmaceuticals.
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Prosecuting Milosevic
18 July 2001 2001 Ron Paul 55:5
There is an alternative to a single world government, and that is individual governments willing to get along; open and free trade as much as possible, free travel, people having a unified free market currency where we do not have currency devaluations and poverty throughout the world. There is a lot that can be done with freedom, rather than always depending, whether it is here in the United States or at the international level, on more government.
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Banning U.S. Contributions To United Nations
18 July 2001 2001 Ron Paul 57:11
We have given up a tremendous amount, and I believe it is time we stood up for the American people and the American taxpayer and say we ought to defend America, but we can deal with the problems of the world in a much different manner; not by militarizing and controlling it the best we can, the military operations of the United Nations, but pursuing the spreading of our values and our beliefs and the free market in a much different manner than by further taxation of the American people.
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Statement on the Community Solutions Act of 2001
July 19, 2001 2001 Ron Paul 60:12
Instead of expanding the unconstitutional welfare state, Congress should focus on returning control over welfare to the American people. As Marvin Olaksy, the “godfather of compassionate conservatism,” and others have amply documented, before they were crowded out by federal programs, private charities did an exemplary job at providing necessary assistance to those in need. These charities not only met the material needs of those in poverty but helped break many of the bad habits, such as alcoholism, taught them “marketable” skills or otherwise engaged them in productive activity, and helped them move up the economic ladder.
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Export-Import Bank
24 July 2001 2001 Ron Paul 61:3
This is just a small effort to rein in the power of the special interests, the powerful special interests. It has been mentioned that jobs could be lost. In the debate, there has been emphasis on jobs, and the truth is that it may happen. Jobs could be lost. But what Members fail to realize is that the jobs lost are special interest jobs. If my colleagues take that same funding, and we never talk about what would happen to that $75 billion line of credit of the Export- Import Bank if it were allowed to remain in the economy. Other jobs would be created, so my colleagues cannot argue half of the case. We have to look at the whole picture. Special interest jobs would be lost. True market jobs would be increased.
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Export-Import Bank Amendment
24 July 2001 2001 Ron Paul 62:12
We are certainly losing jobs to Red China, Mexico, and other places. I do not mind it if that is a market consequence, but when it is done at the expense of the American taxpayer and it hurts us, we should not do it.
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LIFT THE UNITED STATES EMBARGO ON CUBA — HON. RON PAUL
July 26, 2001 2001 Ron Paul 66:6
* Second, sanctions simply hurt American industries, particularly agriculture. Every market we close to our nation’s farmers is a market exploited by foreign farmers. China, Russia, the middle east, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed trade restrictions that prevent our farmers from selling to the billions of people in these ares. The department of Agriculture estimates that Iraq alone represents a $1 billion market for American farm goods. Given our status as one of the world’s largest agricultural producers, why would we ever choose to restrict our exports? The only beneficiaries of our sanctions policies are our foreign competitors.
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LIFT THE UNITED STATES EMBARGO ON CUBA — HON. RON PAUL
July 26, 2001 2001 Ron Paul 66:13
Whereas, Agriculture is the second-largest industry in Texas, and this state ranks among the top five states in overall value of agricultural exports at more than $3 billion annually; thus, Texas is ideally positioned to benefit from the market opportunities that free trade with Cuba would provide; rather than depriving Cuba of agricultural products, the United States embargo succeeds only in driving sales to competitors in other countries that have no such restrictions; and
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:3
* In his article, Mr. McTeer highlights the life of Frederic Bastiat, a member of the French Chamber of Deputies during the 19th century who made great contributions to both individual liberty and free markets with clear, simple and humorous observations and arguments. Bastiat was a pioneer in the field of economics who fought against the protectionist fallacies and absurdities that persisted in his day and indeed continue to haunt us today.
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:10
Claude Frédéric Bastiat was born in Bayonne, in the southwest of France, 200 years ago last Friday. This week, I kicked off a conference in nearby Dax, France, celebrating Bastiat’s contributions to individual liberty and free markets.
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:11
The whole world should be celebrating the birthday of this pioneer of free-market capitalism.
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:12
Bastiat’s output was prodigious, especially in the last five years of his life. Through his writing and speeches, and as a member of the French Chamber of Deputies, Bastiat fought valiantly against the protectionism and socialism of his time. He proselytized for free trade, free markets and individual liberty. His weapons were wit and satire; his method was the reductio ad absurdum. More than any other person before or since, he exposed economic fallacies with a clarity, simplicity and humor that left opponents with no place to hide.
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:13
The most famous example of Bastiat’s satire was his petition to the French parliament on behalf of candlemakers and related industries. He was seeking relief from “ruinous competition of a foreign rival who works under conditions so far superior to our own for the production of light that he is flooding the domestic market with it at an incredibly low price.” The foreign rival was the sun. The relief sought was a law requiring the closing of all blinds to shut out the sunlight and stimulate the domestic candle industry.
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A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
July 26, 2001 2001 Ron Paul 67:23
I was cautioned that most of the participants in the Bastiat conference would probably be from other countries, since Bastiat’s free-market views aren’t highly regarded in France. That reminded me of my visit to Adam Smith’s grave in Scotland a couple of years ago. I went into a souvenir shop about a block away and asked what kind of Adam Smith souvenirs they had. They not only didn’t have any, they’d never even had a request for one before. What a shame!
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Crazy For Kazakhstan
1 August 2001 2001 Ron Paul 69:7
[From the Washington Times, July 30, 2001] CRAZY FOR KAZAKHSTAN (By Bill Richardson) As secretary of energy and ambassador to the United Nations during the Clinton administration, I traveled three times to Kazakhstan to underscore the importance of this key Central Asian country to U.S. interests. Of all the countries rising from the ashes of the Soviet Union, few offer the promise of Kazakhstan. In terms of both economic potential and political stability, Kazakhstan is critical to the long-term success of the Central Asian nations. The Bush administration should continue our policy of engaging Kazakhstan to ensure that this key country moves towards the Western orbit and adopts continued market and political reforms.
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Crazy For Kazakhstan
1 August 2001 2001 Ron Paul 69:10
In the center of this conflict and instability Kasakhstan has begun to prosper by working to build a modern economy, developing its vast natural resources and providing a base of stability in a very uncertain part of the world. With the discovery of the massive Kashagan oil field in the Kazak portion of the Caspian Sea, Kazakhstan is poised to become a major supplier of petroleum to the Western World and a competitor to Organization of Petroleum Exporting Countries (OPEC). It is critical that we continue to facilitate western companies’ investment in Kazakhstan and the establishment of secure, east-west pipeline routes for Kazak oil. This is the only way for Kazakhstan to loosen its dependence on Russia for transit rights for its oil and gas and secure additional, much needed, oil for the world market.
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Crazy For Kazakhstan
1 August 2001 2001 Ron Paul 69:12
There are many challenges ahead for Kazakhstan, but there are enormous opportunities for economic and political progress. Mr. Nazarbayev has taken advantage of Kazakhstan’s stability to begin transforming its economy from the old Soviet form giant, state-owned industries and collective grain farms into a modern, market-based economy. We have much at stake in this development. Will Kazakhstan become a true market- oriented democracy, or will it slip into economic stagnation and ethnic violence like so many of its neighbor? The stability of Central Asia and the Caucasus depends on how Kazakhstan chooses to move forward. The United States must do its part to enhance U.S.-Kazakhstancooperation and encourage prosperity and stability for the entire region.
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TRUTH IN EMPLOYMENT ACT -- HON. RON PAUL
Thursday, August 2, 2001 2001 Ron Paul 71:3
* Thanks to unconstitutional interference in the nation’s labor markets by Congress, small businesses targeted by union salts often must acquiesce to union bosses’ demands that they force their workers to accept union “representation” and pay union dues. If an employer challenges a salt, the salt may file (and win) an unfair labor practice charge against the employer!
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PRESCRIPTION DRUG AFFORDABILITY ACT -- HON. RON PAUL
Thursday, August 2, 2001 2001 Ron Paul 72:6
* In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the US or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Mr. Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:1
Mr. PAUL. Mr. Chairman, I appreciate the opportunity to explain why I oppose all versions of the Patients’ Bill of Rights. Once again Congress is staging a phony debate over which form of statism to embrace, instead of asking the fundamental question over whether Congress should be interfering in this area at all, much less examine how previous interferences in the health care market created the problems which these proposals claim to address.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:3
The M.D. degree grants no wisdom as to the correct solution to our managed-care mess. The most efficient manner to deliver medical services, as it is with all goods and services, is through the free market. Economic principles determine efficiencies of markets, even the health care market, not our emotional experiences dealing with managed care.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:4
The fundamental economic principle is that true competition assures that the consumer gets the best deal at the best price possible by putting pressure on the providers. This principle applies equally to health care as it does to other goods and services. However, over the past fifty years, Congress has systematically destroyed the market in health care. HMOs themselves are the result of conscious government policy aimed at correcting distortions in the health care market caused by Congress. The story behind the creation of the HMOs is a classic illustration of how the unintended consequences of government policies provide a justification for further expansions of government power. During the early seventies, Congress embraced HMOs in order to address concerns about rapidly escalating health care costs.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:5
However, it was previous Congressional action which caused health care costs to spiral by removing control over the health care dollar from consumers and thus eliminating any incentive for consumers to pay attention to prices when selecting health care. Because the consumer had the incentive to monitor health care prices stripped away and because politicians were unwilling to either give up power by giving individuals control over their health care or take responsibility for rationing care, a third way to control costs had to be created. Thus, the Nixon Administration, working with advocates of nationalized medicine, crafted legislation providing federal subsidies to HMOs and preempting state laws forbidding physicians to sign contracts to deny care to their patients. This legislation also mandated that health plans offer an HMO option in addition to traditional fee-for-service coverage. Federal subsidies, preemption of state law, and mandates on private business hardly sound like the workings of the free market. Instead, HMOs are the result of the same Nixon-era corporatist, big government mindset that produced wage-and-price controls.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:7
No one can take a back seat to me regarding the disdain I hold for the HMO’s role in managed care. This entire unnecessary level of corporatism that rakes off profits and undermines care is a creature of government interference in health care. These non-market institutions and government could have only gained control over medical care through a collusion of organized medicine, politicians, and the HMO profiteers in an effort to provide universal health care. No one suggests that we should have universal food, housing, TV, computer and automobile programs; and yet, many of the poor to much better getting these services through the marketplace as prices are driven down through competition.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:8
We all should become suspicious when it is declared we need a new Bill of Rights, such as a Taxpayers’ Bill of Rights, or now a Patients’ Bill of Rights. Why do more Members not ask why the original Bill of Rights is not adequate in protecting all rights and enabling the market to provide all services? In fact, if Congress respected the Constitution we would not even be debating this bill, and we would have never passed any of the special-interest legislation that created and empowered the HMOs in the first place!
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:10
Disregard for constitutional limitations on government, ignorance of the basic principles of economics combined with the power of special interests influencing government policy has brought us this managed-care monster. If we pursue a course of more government management in an effort to balance things, we are destined to make the system much worse. If government mismanagement in an area that the government should not be managing at all is the problem, another level of bureaucracy, no matter how well intended, will not be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the Nation’s psyche. The choice in actually is government-provided medical care and its inevitable mismanagement or medical care provided by a market economy.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:16
Of course, in a truly free market, HMOs and pre-paid care could and would exist — there would be no prohibition against it. The Kaiser system was not exactly a creature of the government as it the current unnatural HMO-government- created chaos we have today.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:18
While none of the proposed “Patients’ Bill of Rights” addresses the root cause of the problems in our nation’s health care system, the amendment offered by the gentleman from Kentucky does expend individual control over health care by making Medical Savings Accounts (MSAs) available to everyone. This is the most important thing Congress can do to get market forces operating immediately and improve health care. When MSAs make patient motivation to save and shop a major force to reduce cost, physicians would once again negotiate fees downward with patients — unlike today where the reimbursement is never too high and hospital and MD bills are always at the maximum levels allowed. MSAs would help satisfy the American’s people’s desire to control their own health care and provide incentives for consumers to take more responsibility for their care.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:19
There is nothing wrong with charity hospitals and possibly the churches once again providing care for the needy rather than through government paid programs which only maximizes costs. States can continue to introduce competition by allowing various trained individuals to provide the services that once were only provided by licensed MDs. We don’t have to continue down the path of socialized medical care, especially in America where free markets have provided so much for so many.
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Patients’ Bill Of Rights
2 August 2001 2001 Ron Paul 74:20
In conclusion, Mr. Chairman, I urge my colleagues to reject the phony Patients’ Bill of Rights which will only increase the power of the federal government, cause more Americans to lose their health care or receive substandard care, and thus set the groundwork for the next round of federal intervention. Instead. I ask my colleagues to embrace an agenda of returning control over health care to the American people by putting control over the health care dollar back into the hands of the individual and repealing those laws and regulations which distort the health care market. We should have more faith in freedom and more fear of the politicians and bureaucrats who think all can be made well by simply passing a Patients’ Bill of Rights.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:4
We are now witnessing the effects of the accumulated problems of thirty years of fiat money-not only the dollar but also all the world currencies-something the world has never before experienced. Exactly how it plays out is yet unknown. Its severity will be determined by future monetary management- especially by the Federal Reserve. The likelihood of quickly resolving the deeply ingrained and worldwide imbalances built up over thirty years is remote. Yielding to the addiction of credit creation (as has been the case with every market correction over the past thirty years) remains irresistible to the central bankers of the world. Central planners, who occupy the seats of power in every central bank around the world, refuse to accept the fact that markets are more powerful and smarter than they are.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:9
The monetary inflation of the 1900s produced welcomed profits of $145 billion for the NASDAQ companies over the five years between 1996 and 2000. Astoundingly this entire amount was lost in the past year. This doesn’t even address the trillions of dollars of paper losses in stock values from its peak in early 2000. Congress has expressed concern about the staggering stock-market losses but fails to see the connection between the bubble economy and the monetary inflation generated by the Federal Reserve.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:10
Instead, Congress chooses to blame the analysts for misleading investors . The analysts may not be entirely blameless , but their role in creating the bubble is minimal compared to the misleading information that the Federal Reserve has provided, with artificially low interest rates and a financial market made flush with generous new credit at every sign of a correction over the past ten years.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:11
By preventing the liquidation of bad debt and the elimination of mal-investment and overcapacity, the Federal Reserve’s actions have kept the financial bubble inflated. Of course it’s an easy choice on the short run. Who would deliberately allow the market tendency to deflate back to stability? That would be politically unacceptable.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:13
But if the Fed and its chairman, Alan Greenspan, have been able to guide us out of every potential crisis all the way back to the stock market crash of 1987, why shouldn’t we expect the same to happen once again? Mainly because there’s a limit to how long the monetary charade can be perpetuated. Now it looks like the international financial system built on paper money is coming to an end.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:19
Current concerns are expressed by worries about meeting the criteria for a government-declared recession and whether a weaker dollar would help. The first is merely academic, because if you are one of the many thousands who have been laid off, you’re already in a recession. The second doesn’t make a lot of sense unless one asks “compared to what?” The dollar has been on a steady course of devaluation for thirty years, against most major currencies and against gold. Its purchasing power in general has been steadily eroded. The fact that the dollar has been strong against third-world currencies and against most major currencies for the past decade doesn’t cancel out the fact that the Federal Reserve has systematically eroded the dollar’s value by steadily expanding the money supply. Recent reports of a weakening dollar on international exchange markets have investment implications but do not reflect a new policy designed to weaken the dollar. This is merely the market adjusting to thirty years of systematic monetary inflation.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:20
Regardless of whether the experts demand a weak dollar or a strong dollar, each inevitably demands lower interest rates, hoping to spur the economy and save the stock market from crashing. But one must remember that the only way the Federal Reserve can lower interest rates is to inflate the currency by increasing the money supply and by further debasing the currency. In the long term, the dollar is always weakened, even if the economy is occasionally stimulated on a short-run basis.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:21
Economic growth can hide the ill effects of monetary inflation by holding some prices in check. But it can’t prevent the over-capacity and mal-investment which causes the economic downturn. Of course, the central bankers cling to the belief that they can somehow prevent the ugly corrections known as recessions. Economic growth, when artificially stimulated by monetary growth and low interest rates, generates the speculation we’ve seen in the stock, bond and real estate markets, along with excessive debt. Once the need for rectifying the over-capacity is recognized by the market, these imbalances are destined to be wiped out. Prolonging the correction phase with the Fed’s efforts to re-inflate by diligently working for a soft landing, or even to prevent a recession, only postpones the day the economy can return to sustained growth. This is a problem the United States had in the 1930s and one that Japan has experienced for more than a decade, with no end in sight.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:22
The next recession, from which I’m sure we’re already suffering, will be even more pervasive worldwide than the one in the 1930s due to the artificial nature of modern globalism, with world paper money and international agencies deeply involved in the economy of every nation. We have witnessed the current and recent bailouts in Mexico, Argentina, Brazil, Turkey and the Far East. While resisting the market’s tendency for correction, faith in government deficits and belief in paper money inflation will surely prolong the coming worldwide crisis.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:24
But where is the money going? Some of it probably has helped to prop up the staggering stock market, but that can’t last forever. Plenty went into consumption and to finance extravagant living.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:25
The special nature of the dollar, as the reserve currency of the world, has permitted the bubble to last longer and to be especially beneficial to American consumers. But in the meantime, understandable market and political forces have steadily eroded our industrial base, while our service sector has thrived. Consumers enjoyed having even more funds to spend as the dollars left manufacturing. In a little over a year, one million industrial production jobs were lost while saving rates sank to zero and capital investments plummeted. Foreigners continue to grab our dollars, permitting us to raise our standard of living, but unfortunately it’s built on endless printing of fiat money and self -limiting personal debt.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:27
The GSEs, made up of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank, have managed to keep the housing market afloat, in contrast to the more logical slowdown in hotel and office construction. This spending through the GSEs has also served as a vehicle for consumption spending. This should be no surprise, considering the special status that GSEs enjoy, since their implied line of credit to the US Treasury keeps interest rates artificially low. The Clinton administration encouraged growth in housing loans that were financed through this system.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:30
Refinancing especially helped the consumers to continue spending even in a slowing economy. It isn’t surprising for high credit-card debt to be frequently rolled into second mortgages, since interest on mortgage debt has the additional advantage of being tax-deductible. When financial conditions warrant it, leaving financial instruments (such as paper assets), and looking for hard assets (such as houses), is commonplace and is not a new phenomenon. Instead of the newly inflated money being directed toward the stock market, it now finds its way into the rapidly expanding real-estate bubble. This, too, will burst as all bubbles do. The Fed, the Congress, or even foreign investors can’t prevent the collapse of this bubble, any more than the incestuous Japanese banks were able to keep the Japanese “miracle” of the 1980s going forever.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:31
Concerned Federal Reserve economists are struggling to understand how the wealth effect of the stock market and real estate bubble affect economic activity and consumer spending. It should be no mystery, but it would be too much to expect the Fed to look to itself and its monetary policy for an explanation and assume responsibility for engineering the entire financial mess we’re in.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:32
A major problem still remains. Ultimately the market determines all value including all currencies. With the current direction of the dollar certainly downward, the day of reckoning is fast approaching. A weak dollar will prompt dumping of GSE securities before treasuries, despite the Treasury’s and the Fed’s attempt to equate them with government securities. This will threaten the whole GSE system of finance, because the challenge to the dollar and the GSEs will hit just when the housing market turns down and defaults rise. Also a major accident can occur in the derivatives markets where Fannie Mae and Freddie Mac are deeply involved in hedging their interest-rate bets. Rising interest rates that are inherent with a weak currency will worsen the crisis.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:34
Pseudo-free trade, managed poorly and driven by fiat money, is no substitute for true free trade in a world with a stable commodity currency, such as gold. Managed trade and fiat money, historically, have led to trade wars, which the international planners pretend to abhor. Yet the trade war is already gearing up. The WTO, purported to exist to lower tariffs, is actually the agency that grants permission for tariffs to be applied when complaints of dumping are levied. We are in the midst of banana, textile, steel, lumber, and tax wars, all managed by the WTO. When cheap imports hit our markets, it’s a good deal for consumers, but our manufacturers are the first to demand permission to place protective tariffs on imports. If this is already occurring in an economy that has been doing quite well, one can imagine how strong the protectionists’ sentiments will be in a worldwide slowdown.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:44
If, heaven forbid, the economy sinks as low and for as long as many free market economists believe, what policy changes must we consider? Certainly the number one change ought to be to reject the ideas that created the crisis. But rejecting old ways that Congress and the people are addicted to is not easy. Many people believe that government programs are free. The clamor for low interest rates, (more monetary inflation) by virtually all public officials and prominent business and banking leaders is endless. And, the expectation for government to do something for every economic malady-even if ill-advised government policy has created the problem-drives this seductive system of centralized planning that ultimately undermines prosperity. A realization that we cannot continue our old ways may well be upon us, and, the inflating, taxing, regulating, and centralized planning programs of the last thirty years must come to an end.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:46
But we must also reject the notion that one man, Alan Greenspan, or any other chairman of the Federal Reserve Board, can know what the proper money supply and interest rates ought to be- only the market can determine that. This must happen if we ever expect to avoid continuous and deeper recessions and to get the economy growing in a healthy and sustainable fashion. It also must happen if we want to preserve free-market capitalism and personal liberty.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:47
The longer the delay in establishing a free market and a commodity currency, even with interrupted blips of growth, the more unstable the economy and the moredifficult the task becomes. Instead it will result in what no one wants- more poverty and political turmoil.
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Defense Production Act
10 September 2001 2001 Ron Paul 76:2
This bill’s entire existence rests on the presumption that its supporters have absolutely no confidence whatsoever in either freedom or the market process. In a time of crisis, you don’t need an “industrial policy” and you don’t need some fascist or corporatist variety of socialism. What one needs more than ever in a time of crisis is the market — deviation from the market process is the worst thing an economy can do. Oftentimes, it’s the “industrial policy” which is the very cause of the economic crisis one hopes to remedy with yet another round of “industrial policy” intervention.
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Defense Production Act
10 September 2001 2001 Ron Paul 76:3
We have an energy crisis in California created by the bureaucrats and the politicians. As prices skyrocket and a crisis is declared, it is later said that prices are now down and there’s less of a shortage or crisis. But it’s the market process that worked because the prices skyrocketed rather than skyrocketing prices becoming the justification for abandoning the market process.
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Defense Production Act
10 September 2001 2001 Ron Paul 76:5
Mr. Speaker, I encourage the members of this body to begin thinking about the amount of false hope they place in the centralization of power in the hands of a central-planners and reconsider their apparent lack of confidence in the market process and a free society. I encourage a strict adherence to market principles and strongly oppose H.R. 2510.
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:8
At the 2000 peak of the titanic bull market, as shares in companies with no visible means of support commanded high prices, the value of all stocks as a percentage of the American gross domestic product reached 183 percent, more than twice the level before the crash in 1929. Were investors out of their minds? Wall Street analysts were happy to reassure them on this point: No, they were the privileged financiers of the new economy. Digital communications were like the wheel or gunpowder or the internal combustion engine, only better. The Internet would revolutionize the conveyance of human thought. To quibble about the valuation of companies as potentially transforming as any listed on the Nasdaq stock market was seen almost as an act of ingratitude. The same went for questioning the integrity of the companies’ reports of lush profits.
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:9
In markets all things are cyclical, even the idea that markets are not cyclical. The notion that the millennial economy was in some way “new” was an early portent of confusion. Since the dawn of the industrial age, technology has been lightening the burden of work and industrial age, technology has been lightening the burden of work and driving the pace of economic change. In 1850, as the telegraph was beginning to anticipate the Internet, about 65 percent of the American labor force worked on farms. In 2000, only 2.4 percent did. The prolonged migration of hands and minds from the field to the factor, office and classroom is all productivity growth — the same phenomenon the chairman of the Federal Reserve Board rhapsodizes over. It’s true, just as Alan Greenspan says, that technological progress is the bulwark of the modern economy. Then again, it has been true for most of the past 200 years.
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:12
Booms not only precede busts; they also cause them. When capital is so cheap that it might as well be free, entrepreneurs make marginal investments. They build and hire expecting the good times to continue to roll. Optimistic bankers and steadily rising stock prices shield new businesses from having to show profits any sooner than “eventually.” Then, when the stars change alignment and investors decide to withhold new financing, many companies are cash-poor and must retrench or shut down. It is the work of a bear market to reduce the prices of the white elephants until they are cheap enough to interest a new class of buyers.
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:14
Less and less, however, are we bold and irrepressible Americans willing to suffer the tearing-down phase of the cycle. After all, it has seemed increasingly unnecessary. With a rising incidence of federal intervention in financial markets, expansions have become longer and contractions shorter. And year in and year out, the United States is allowed to consume more of the world’s goods than it produces (the difference being approximately defined as the trade deficit, running in excess of $400 billion a year).
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:17
The financial historian Max Winkler concluded his tale of the fantastic career of the swindler-financier Ivar Kreguer, the “Swedish match king,” with the ancient epigram “Mundus vult decipi; ergo decipiatur”: The world wants to be deceived; let it therefore be deceived. The Romans might have added, for financial context, that the world is most credulous during bull markets. Prosperity makes it gullible.
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Foreign Interventionism
September 25, 2001 2001 Ron Paul 80:38
The same results can be better achieved by the marketplace. Passenger IDs voluntarily issued by the airlines could be counterfeit-proof; and loss or theft of an ID could be immediately reported to the proper authorities. An ID, fingerprints, birth certificates, or any other information can be required without any violations of anyone’s personal liberty. This delicate information would not be placed in the hands of the government agents but could be made available to law enforcement officers like any other information obtained with probable cause and a warrant.
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Statement on Counter-Terrorism Proposals and Civil Liberties
October 12, 2001 2001 Ron Paul 87:13
H.R. 3108 may actually reduce security as private cities may not take necessary measures to protect their safety because “the government is taking care of our security.” In a free market, private owners have great incentives to protect their private property and the lives of their customers. That is why industrial plants in the United States enjoy reasonably good security. They are protected not by the local police but by owners putting up barbed wire fences, hiring guards with guns, and requiring identification cards to enter. All this, without any violation of anyone’s civil liberties. In a free society private owners have a right, if not an obligation, to “profile” if it enhances security.
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A SAD STATE OF AFFAIRS --
October 25, 2001 2001 Ron Paul 90:27
It is both annoying and sad that there is so little interest by anyone in Washington in free market solutions to the world’s economic problems. True private ownership of property without regulation and abusive taxation is a thing of the past. Few understand how the Federal Reserve monetary policy causes the booms and the busts that, when severe, as now, only serve to enhance the prestige of the money managers- while most politicians and Wall Streeters demand that the Fed inflate the currency at an even more rapid rate. Today’s conditions give license to the politicians to spend our way out of recession, they hope.
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Statement on Funding for the Export- Import Bank
October 31, 2001 2001 Ron Paul 91:5
Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living!
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Statement on Funding for the Export- Import Bank
October 31, 2001 2001 Ron Paul 91:9
In conclusion, Mr. Chairman, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use them to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject HR 2871, the Export-Import Bank Reauthorization Act.
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Foolishness Of Fiat
31 October 2001 2001 Ron Paul 92:2
Fiat money is paper money that gets its value from a government edict and compulsory legal tender laws. Honest money, something of real value, like a precious metal, gets its value from the market and through voluntary exchange. The world today is awash in fiat money like never before, and we face a financial crisis like never before, conceived many decades before the 9–11 crisis hit.
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Foolishness Of Fiat
31 October 2001 2001 Ron Paul 92:3
Fiat money works as long as trust in the currency lasts. But eventually trust is always withdrawn from paper money. Fiat money evolves out of sound money, which always originates in the market, but paper money inevitably fails no matter how hard the beneficiaries try to perpetuate the fraud. We are now witnessing the early stages of the demise of a worldwide financial system built on the fiction that wealth can come out of a printing press or a computer at our central banks.
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Foolishness Of Fiat
31 October 2001 2001 Ron Paul 92:4
Japan, failing to understand this, has tried for more than a decade to stimulate her economy and boost her stock market by printing money and increasing government spending, and it has not worked. Argentina, even with the hopes placed in its currency board, is nevertheless facing default on its foreign debt and a crisis in confidence. More bailouts from the IMF and U.S. dollar may temper the crisis for a while, but ultimately it will only hurt the dollar and the U.S. taxpayers.
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Foolishness Of Fiat
31 October 2001 2001 Ron Paul 92:9
Since the Federal Reserve first panicked in early January, it has created $830 billion of fiat money out of thin air. The country is no richer. The economy is weaker. The stock market has continued downward, and unemployment has skyrocketed. Returning to deficit spending, as we already have, will not help us any more than it helped Japan, which continues to sink into economic morass.
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The War On Terrorism
November 29, 2001 2001 Ron Paul 98:47
Granting bailouts is not new for Congress, but current conditions have prompted many takers to line up for handouts. There has always been a large constituency for expanding federal power for whatever reason, and these groups have been energized. The military-industrial complex is out in full force and is optimistic. Union power is pleased with recent events and has not missed the opportunity to increase membership rolls. Federal policing powers, already in a bull market, received a super shot in the arm. The IRS, which detests financial privacy, gloats, while all the big spenders in Washington applaud the tools made available to crack down on tax dodgers. The drug warriors and anti-gun zealots love the new powers that now can be used to watch the every move of our citizens. “Extremists” who talk of the Constitution, promote right-to-life, form citizen militias, or participate in non-mainstream religious practices now can be monitored much more effectively by those who find their views offensive. Laws recently passed by the Congress apply to all Americans- not just terrorists. But we should remember that if the terrorists are known and identified, existing laws would have been quite adequate to deal with them.
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The War On Terrorism
November 29, 2001 2001 Ron Paul 98:63
In his speech to the joint session of Congress following the September 11th attacks, President Bush reminded all of us that the United States outlasted and defeated Soviet totalitarianism in the last century. The numerous internal problems in the former Soviet Union- its centralized economic planning and lack of free markets, its repression of human liberty and its excessive militarization- all led to its inevitable collapse. We must be vigilant to resist the rush toward ever-increasing state control of our society, so that our own government does not become a greater threat to our freedoms than any foreign terrorist.
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Statement on Terrorism Reinsurance Legislation
November 30, 2001 2001 Ron Paul 99:2
Under HR 3210, taxpayers are responsible for paying 90% of the costs of a terrorist incident when the total cost of that incident exceeds a certain threshold. While insurance companies technically are responsible under the bill for paying back monies received from the Treasury, the administrator of this program may defer repayment of the majority of the subsidy in order to “avoid the likely insolvency of the commercial insurer,” or avoid “unreasonable economic disruption and market instability.” This language may cause administrators to defer indefinitely the repayment of the loans, thus causing taxpayers to permanently bear the loss. This scenario is especially likely when one considers that terms such as “likely insolvency,” “unreasonable economic disruption”, and “market instability” are highly subjective, and that any administrator who attempts to enforce a strict repayment schedule likely will come under heavy political pressure to be more “flexible” in collecting debts owed to the taxpayers.
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Statement on Terrorism Reinsurance Legislation
November 30, 2001 2001 Ron Paul 99:6
Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally-funded insurance are avoided.
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Statement Opposing Unconstitutional “Trade Promotion Authority”
December 6, 2001 2001 Ron Paul 103:4
Congress can promote true free trade without violating the Constitution. We can lift the trade embargo against Cuba, end Jackson-Vanik restrictions on Kazakhstan, and repeal sanctions on Iran. These markets should be opened to American exporters, especially farmers. We can reduce our tariffs unilaterally- taxing American consumers hardly punishes foreign governments. We can unilaterally end the subsidies that international agreements purportedly seek to reduce. We can simply repeal protectionist barriers to trade, so-called NTB’s, that stifle economic growth.
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H.R. 3054
16 December 2001 2001 Ron Paul 106:4
H.R. 3054 violates fundamental principles of fiscal responsibility by giving the Secretary of the Treasury almost unquestioned authority to determine who can and cannot receive a gold medal. Official estimates are that implementation of this bill will cost approximately 3.9 million dollars, however the terms of the bill suggest that the costs incurred by the United States taxpayer could be much higher. Furthermore, unlike previous legislation authorizing gold medals, H.R. 3054 does not instruct the Secretary of the Treasury to use profits generated by marketing bronze duplicates of the medal to reimburse the taxpayer for the costs of producing the medal. Unfortunately, because this bill was moved to the suspension calender without hearings or a mark-up there was no opportunity for members of the Financial Services Committee such as myself to examine these questions.
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The Case For Defending America
24 January 2002 2002 Ron Paul 1:39
Our presence in the Persian Gulf is not necessary to provide for America’s defense. Our presence in the region makes all Americans more vulnerable to attacks and defending America much more difficult. The real reason for our presence in the Persian Gulf, as well as our eagerness to assist in building a new Afghan government under U.N. authority, should be apparent to us all. Stuart Eizenstat, Under Secretary of Economics, Business and Agricultural Affairs for the previous administration, succinctly stated U.S. policy for Afghanistan testifying before the Senate Foreign Relations Trade Committee October 13, 1997. He said, “One of five main foreign policy interests in the Caspian region is to continue support for U.S. companies and the least progress has been made in Afghanistan, where gas and oil pipeline proposals designed to carry Central Asian energy to world markets have been delayed indefinitely pending establishment of a broad-based, multiethnic government.”
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:1
Mr. Chairman, the collapse of Enron has so far been the cause of numerous hearings, as well as calls for increased federal control over the financial markets and the accounting profession. For example, legislation has been introduced to force all publicly traded companies to submit to federal audits.
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:3
In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated economy, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk.
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:4
The SEC, like all government agencies, is not immune from political influence or conflicts of interest. In fact, the new SEC chief used to represent the very accounting companies now under SEC scrutiny. If anything, the Enron failure should teach us to place less trust in the SEC. Yet many in Congress and the media characterize Enron’s bankruptcy as an example of unbridled capitalism gone wrong. Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluation: Fed expansion of money and credit.
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:5
The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level of the markets.
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:9
Enron similarly benefited from another federal boondoggle, the Overseas Private Investment Corporation. OPIC operates much like the Ex-Im Bank, providing taxpayer-funded loan guarantees for overseas projects, often in countries with shaky governments and economies. An OPIC spokesman claims the organization paid more than one billion dollars for 12 projects involving Enron, dollars that now may never be repaid. Once again, corporate welfare benefits certain interests at the expense of taxpayers. The point is that Enron was intimately involved with the federal government. While most of my colleagues are busy devising ways to “save” investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to DC-based politicians of both parties. It’s a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils.
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Statement before the House Capital Markets Subcommittee
Monday, February 4, 2002 2002 Ron Paul 3:10
This does not mean Enron is to be excused. There seems to be little question that executives at Enron deceived employees and investors, and any fraudulent conduct should of course be fully prosecuted. However, Mr. Chairman, I hope we will not allow criminal fraud in one company, which constitutionally is a matter for state law, to justify the imposition of burdensome new accounting and stock regulations. Instead, we should focus on repealing those monetary and fiscal policies that distort the market and allow the politically powerful to enrich themselves at the expense of the American taxpayer.
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Statement on the Argentine crisis
February 6 2002 2002 Ron Paul 4:2
In the last several months, too many commentators and policy makers have pointed the finger of blame for Argentina’s economic crisis at deregulation, free markets, and free trade. The logical conclusion of this analysis is that Argentina should embrace protectionism, increased welfare spending, regulation, and maybe even return to the days when all major industry in the country was nationalized. However, those familiar with the economic history of the twentieth century will find this analysis shocking- after all, if state control of the economy was the path to prosperity, then Cuba and North Korea would be the world’s richest countries and leading economies!
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Statement on the Argentine crisis
February 6 2002 2002 Ron Paul 4:8
IMF policies ultimately are based on a flawed philosophy that says the best means of creating economic prosperity is government-to-government transfers. Such programs cannot produce growth, because they take capital out of private hands, where it can be allocated to its most productive use as determined by the choices of consumers in the market, and place it in the hands of politicians. Placing economic resources in the hands of politicians and bureaucrats inevitably results in inefficiencies, shortages, and an economic crisis, as even the best intentioned politicians cannot know the most efficient use of resources.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:9
In recessions, to remain solvent, consumers ought to tighten their belts, pay off debt, and save. In a free market, this would lower market interest rates to once again make investments attractive. The confusing aspect of today’s economy is that consumers and even businesses continue profligate borrowing, in spite of problems on the horizon. Interest rates, instead of rising, are pushed dramatically downward by the Federal Reserve, creating massive amounts of new credit.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:10
This new credit, according to economic law, must in time push the value of the dollar down and general prices up. When this happens and the dollar is threatened on exchange markets, the cost of living is pushed sharply upward. The central bank is then forced to raise interest rates, as they did in 1979 when the rates hit 21%.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:11
But even before any need to tighten, interest rates may rise or not fall as expected. This has just happened in 2001. Even with Fed fund rates at 40-year lows, the 10 and 30-year rates have not fallen accordingly. Many corporate-bond rates have stayed high, and credit-card rates have stayed in double digits. This happens because the market discounts for debt quality and future depreciation of the dollar.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:14
For over a year, the Fed has been massively inflating the money supply, and there is no evidence that it has done much good. This continuous influx of new credit instead delays the correction that must eventually come- the liquidation of bad debt, and the reduction of overcapacity. This is something Japan has not accomplished in 12 years of interest rates around 1%. The market must be left to eliminate the misdirected investments and allow the sound investments to survive.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:16
We should not expect any of this to happen unless the people and the Congress decide that free-market capitalism and sound money are preferable to a welfare state and fiat money. Whether this downturn is the one that will force that major decision upon us is not known, but eventually we will have to make it. Welfarism and our expanding growing foreign commitments, financed seductively through credit creation by the Fed, are not viable options.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:18
Sadly lacking in the Congress is a conviction that free markets- that is truly free markets- and sound money can provide the highest standard of living for the greatest number of people. Instead, we operate with a system that compromises free markets and causes economic injury to a growing number of people, while rewarding special interests and steadily undermining the principles of liberty. Unfortunately, the policy of monetary inflation is most harmful to the poor and the middle class, especially in the early stages.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:20
Instead of moving in that direction of freer markets, the more problems the western countries face, the more government programs are demanded. If one looks at Europe, the United States, or even Japan as their economies weaken, government involvement in the economy increases. But in China and Russia, the horrible conditions that communism causes, ironically, made these two countries move toward freer markets when they encountered serious troubles. Even the central banks of these two countries today are accumulating gold, while western central banks are selling.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:22
But this is a myth. One can only justify intervention in the market on principle or argue against it. There’s always the hope that government will be prudent and limit its intrusion in the economy with low taxes, minimal regulations, a little inflation, and only a few special interest favors. Yet the record is clear. Any sign of distress prompts government action for any and every conceivable problem. Since each action by the government not only fails in its attempt to solve the problem it addresses, it creates several new problems in addition while prompting even more government intervention.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:27
Very few in Washington, however, recognize the dire consequences to economic prosperity that welfarism, warfarism, and inflationism cause. Most believe that the occasional recession can be easily handled by government programs and a Federal Reserve policy designed to stimulate growth. It’s happened many times already, and almost everyone believes that in a few months our economy and stock market will be roaring once again.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:30
Bigger government with more monetary debasement and deficit spending means a steady erosion of the free market and personal freedoms. This is not tolerated, because the people enjoy or even endorse higher taxes, more regulations and fewer freedoms. It’s tolerated because most people believe that their financial and economic security is the responsibility of the government. They believe they are better off with government assistance in facilitating the free market, having been taught for decades that it is necessary for government to put a human face on capitalism. Extreme capitalism, i.e. freedom, we have been told is just as dangerous as extreme socialism. As long as this belief prevails, our system will continue in its inexorable march toward fascist-type socialism.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:32
This is a fallacy because more freedom will be lost than is expected, and the productivity of the market will suffer more than anticipated. Once this realization occurs, it will suddenly be discovered that the apparent wealth of the nation is a lot less than calculated.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:36
This special status of the dollar only makes the problem of the illusion of wealth much worse. Since our bubble can last longer due to our perceived military and economic strength, it appears that our wealth is much greater than it actually is. Because of our unique position as the economic powerhouse of the world, we’re able to borrow more than anyone else. Foreigners loan us exorbitant sums, as our current account deficit soars out of sight. The U.S. now has a foreign debt of over $2 trillion. Perceptions and illusions and easy credit allow our consumers to spend, even in recessions, by rolling up even more debt in a time when market forces are saying that borrowing should decrease and the debt burden lessen. Our corporations follow the same pattern, keeping afloat with more borrowing.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:45
It’s possible this recession may end in a few months as the optimists predict, but if it does, our problems are only delayed. The fundamental correction will still be necessary to preserve the productivity of a market economy. If we do not change our ways, the financial bubble will just go back to inflating again. The big correction, like that which Argentina is now experiencing with rapid disappearance of paper wealth, will eventually hit our economy. The longer the delay, the bigger will be the bust and greater the threat to our freedoms and institutions.
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So-Called “Campaign Finance Reform” is Unconstitutional
February 13, 2002 2002 Ron Paul 7:8
There is a tremendous incentive for every special interest group to influence government. Every individual, bank, or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayer dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are “forced” to participate in the process out of greed as well as self-defense- since that’s the way the system works. Equalizing competition and balancing power- such as between labor and business- is a common practice. As long as this system remains in place, the incentive to buy influence will continue.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:2
Federal dealings in the gold market have the potential to seriously disrupt the free market by either artificially inflating or deflating the price of gold. Given gold’s importance to America’s (and the world’s) monetary system, any federal interference in the gold market will have ripple effects through the entire economy. For example, if the government were to intervene to artificially lower the price of gold, the result would be to hide the true effects of an inflationary policy until the damage was too severe to remain out of the public eye.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:3
By artificially deflating the price of gold, federal intervention in the gold market can reduce the values of private gold holdings, adversely affecting millions of investors. These investors rely on their gold holdings to protect them from the effects of our misguided fiat currency system. Federal dealings in gold can also adversely affect those countries with large gold mines, many of which are currently ravished by extreme poverty. Mr. Speaker, restoring a vibrant gold market could do more than any foreign aid program to restore economic growth to those areas.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:4
While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action Committee (GATA) has uncovered evidence suggesting that the Federal Reserve and the Treasury, operating through the Exchange-Stabilization Fund and in cooperation with major banks and the International Monetary Fund, have been interfering in the gold market with the goal of lowering the price of gold. The purpose of this policy has been to disguise the true effects of the monetary bubble responsible for the artificial prosperity of the 1990s, and to protect the politically-powerful banks that are heavy invested in gold derivatives. GATA believes federal actions to drive down the price of gold help protect the profits of these banks at the expense of investors, consumers, and taxpayers around the world.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:6
Mr. Speaker, in order to allow my colleagues to learn more about this issue, I am enclosing “All that Glitters is Not Gold” by Kelly Patricia O’Meara, an investigative reporter from Insight magazine. This article explains in detail GATA’s allegations of federal involvement in the gold market.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:7
Mr. Speaker, while I certainly share GATA’s concerns over the effects of federal dealings in the gold market, my bill in no way interferes with the ability of the federal government to buy or sell gold. It simply requires that before the executive branch engages in such transactions, Congress has the chance to review it, debate it, and approve it.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:8
Given the tremendous effects on the American economy from federal dealings in the gold market, it certainly is reasonable that the people’s representatives have a role in approving these transactions, especially since Congress has a neglected but vital constitutional role in overseeing monetary policy. Therefore, I urge all my colleagues to stand up for sound economics, open government, and Congress’ constitutional role in monetary policy by cosponsoring the Monetary Freedom and Accountability Act.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:14
In recent years Morgan Chase has invested much of its capital in derivatives, including gold and interest-rate derivatives, about which very little information is provided to shareholders. Among the information that has been made available, however, is that as of June 2000, J.P. Morgan reported nearly $30 billion of gold derivatives and Chase Manhattan Corp., although merged with J.P. Morgan, still reported separately in 2000 that it had $35 billion in gold derivatives. Analysts agree that the derivatives have exploded at this bank and that both positions are enormous relative to the capital of the bank and the size of the gold market.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:15
It gets worse. J.P. Morgan’s total derivatives position reportedly now stands at nearly $29 trillion, or three times the U.S. annual gross domestic product. Wall Street insiders speculate that if the gold market were to rise, Morgan Chase could be in serious financial difficulty because of its “short positions” in gold. In other words, if the price of
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:16
gold were to increase substantially, Morgan Chase and other bullion banks that are highly leveraged in gold would have trouble covering their liabilities. One financial analyst, who asked not to be identified, explained the situation this way: “Gold is borrowed by Morgan Chase from the Bank of England at 1 percent interest and then Morgan Chase sells the gold on the open market, then reinvests the proceeds into interest-bearing vehicles at maybe 6 percent.
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:19
According to Murphy, “The price of gold always has been a barometer used by many to determine the financial health of the United States. A steady gold price usually is associated by the public and economic analysts as an indication or a reflection of the stability of the financial system. Steady gold; steady dollar. Enron structured a financial system that put the company at risk and eventually took it down. The same structure now exists at Morgan Chase with their own interest-rate/gold-derivatives position. There is very little information available about its position in the gold market and, as with the case of Enron, it could easily bring them down.”
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:28
Robert Maltbie, chief executive officer of www.stockjock.com and an independent analyst, long has followed Morgan Chase. He tells Insight that “there are a lot of things going on in these companies, but we don’t know for sure because much of what they’re doing is off the balance sheet. The market is scared and crying out to see what’s under the hood. Like Enron, much of what the banks are doing is off the balance sheet, and it’s a time bomb ticking as we speak.”
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Introduction of the Monetary Freedom and Accountability Act
February 13, 2002 2002 Ron Paul 8:29
Just what would happen if a bank the size of Morgan Chase were unable to meet its financial obligations? “It’s tough to go there,” Maltbie says, “because it could shake the financial markets to the core.”
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Statement on Ending US Membership in the IMF
February 27, 2002 2002 Ron Paul 10:6
IMF policies ultimately are based on a flawed philosophy that says the best means of creating economic prosperity is through government-to-government transfers. Such programs cannot produce growth, because they take capital out of private hands, where it can be allocated to its most productive use as determined by the choices of consumers in the market, and place it in the hands of politicians. Placing economic resources in the hands of politicians and bureaucrats inevitably results in inefficiencies, shortages, and economic crises, as even the best intentioned politicians cannot know the most efficient use of resources.
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Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003”
February 28, 2002 2002 Ron Paul 12:1
Supporters of limited, constitutional government and free markets will find little, if anything, to view favorably in the Financial Services committee’s “Views and Estimates for Fiscal Year 2003.” Almost every policy endorsed in this document is unconstitutional and a threat to the liberty and prosperity of the American people.
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Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003”
February 28, 2002 2002 Ron Paul 12:3
The committee also expresses unqualified support for programs such as the Export-Import Bank (EX-IM) which use taxpayer dollars to subsidize large, multinational corporations. Ex-Im exists to subsidize large corporations that are quite capable of paying the costs of their own export programs! Ex-Im also provides taxpayer funding for export programs that would never obtain funding in the private market. As Austrian economists Ludwig Von Mises and F.A. Hayek demonstrated, one of the purposes of the market is to determine the highest value of resources. Thus, the failure of a project to receive funding through the free market means the resources that could have gone to that project have a higher-valued use. Government programs that take funds from the private sector and use them to fund projects that cannot get market funding reduce economic efficiency and lower living standards. Yet Ex-Im actually brags about its support for projects rejected by the market!
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Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003”
February 28, 2002 2002 Ron Paul 12:4
Finally, the committee’s views support expanding the domestic welfare state, particularly in the area of housing. This despite the fact that federal housing subsidies distort the housing market by taking capital that could be better used elsewhere, and applying it to housing at the direction of politicians and bureaucrats. Housing subsidies also violate the constitutional prohibitions against redistributionism. The federal government has no constitutional authority to abuse its taxing power to fund programs that reshape the housing market to the liking of politicians and bureaucrats.
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Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003”
February 28, 2002 2002 Ron Paul 12:5
Rather than embracing an agenda of expanded statism, I hope my colleagues will work to reduce government interference in the market that only benefits the politically powerful. For example, the committee could take a major step toward ending corporate welfare by holding hearings and a mark-up on my legislation to withdrawal the United States from the Bretton Woods Agreement and end taxpayer support for the International Monetary Fund (IMF). The Financial Services committee can also take a step toward restoring Congress’ constitutional role in monetary policy by acting on my Monetary Freedom and Accountability Act (HR 3732), which requires Congressional approval before the federal government buys or sells gold.
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Steel Protectionism
Wednesday, March 13, 2002 2002 Ron Paul 15:1
Mr. Speaker, I am disheartened by the administration’s recent decision to impose a 30 percent tariff on steel imports. This measure will hurt far more Americans than it will help, and it takes a step backwards toward the protectionist thinking that dominated Washington in decades past. Make no mistake about it, these tariffs represent naked protectionism at its worst, a blatant disregard of any remaining free-market principles to gain the short-term favor of certain special interests. These steel tariffs also make it quite clear that the rhetoric about free trade in Washington is abandoned and replaced with talk of “fair trade” when special interests make demands. What most Washington politicians really believe in is government-managed trade, not free trade. True free trade, by definition, takes place only in the absence of government interference of any kind, including tariffs. Government-managed trade means government, rather than competence in the marketplace, determines what industries and companies succeed or fail.
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Steel Protectionism
Wednesday, March 13, 2002 2002 Ron Paul 15:2
We’ve all heard about how these tariffs are needed to protect the jobs of American steelworkers, but we never hear about the jobs that will be lost or never created when the cost of steel rises 30 percent. We forget that tariffs are taxes, and that imposing tariffs means raising taxes. Why is the administration raising taxes on American steel consumers? Apparently no one in the administration has read Henry Hazlitt’s classic book, Economics in one Lesson . Professor Hazlitt’s fundamental lesson was simple: We must examine economic policy by considering the long-term effects of any proposal on all groups. The administration instead chose to focus only on the immediate effects of steel tariffs on one group, the domestic steel industry. In doing so, it chose to ignore basic economics for the sake of political expediency. Now I grant you that this is hardly anything new in this town, but it’s important that we see these tariffs as the political favors that they are. This has nothing to do with fairness. The free market is fair; it alone justly rewards the worthiest competitors. Tariffs reward the strongest Washington lobbies.
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Steel Protectionism
Wednesday, March 13, 2002 2002 Ron Paul 15:6
Mr. Speaker, it’s always amazing to me that Washington gives so much lip service to free trade while never adhering to true free trade principles. Free trade really means freedom- the freedom to buy and sell goods and services free from government interference. Time and time again, history proves that tariffs don’t work. Even some modern Keynesian economists have grudgingly begun to admit that free markets allocate resources better than centralized planning. Yet we cling to the idea that government needs to manage trade, when it really needs to get out of the way and let the marketplace determine the cost of goods. I sincerely hope that the administration’s position on steel does not signal a willingness to resort to protectionism whenever special interests make demands in the future.
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Export-Import Reauthorization Act
19 March 2002 2002 Ron Paul 17:6
Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use. Eximbank actually costs Americans jobs and reduces America’s standard of living!
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Export-Import Reauthorization Act
19 March 2002 2002 Ron Paul 17:10
In conclusion, Mr. Speaker, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use them to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject S. 2019.
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Do Not Initiate War On Iraq
March 20, 2002 2002 Ron Paul 19:11
What do we need? We need a clear understanding and belief in a free society, a true republic that protects individual liberty, private property, free markets, voluntary exchange and private solutions to social problems, placing strict restraints on government meddling in the internal affairs of others.
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H.R. 476
17 April 2002 2002 Ron Paul 23:3
Our federal government is, constitutionally, a government of limited powers, Article one, Section eight, enumerates the legislative area for which the U.S. Congress is allowed to act or enact legislation. For every other issues, the federal government lacks any authority or consent of the governed and only the state governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:2
So ingrained is the idea that new Federal regulations will prevent future Enrons, that today’s debate will largely be between CARTA’s supporters and those who believe this bill does not provide enough Federal regulation and control. I would like to suggest that before Congress imposes new regulations on the accounting profession, perhaps we should consider whether the problems the regulations are designed to address were at least in part caused by prior government interventions into the market. Perhaps Congress could even consider the almost heretical idea that reducing Federal control of the markets is in the public’s best interest. Congress should also consider whether the new regulations will have costs which might outweigh any (marginal) gains. Finally, Mr. Speaker, Congress should contemplate whether we actually have any constitutional authorization to impose these new regulations, instead of simply stretching the Commerce Clause to justify the program de jour.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:3
CARTA establishes a new bureaucracy with enhanced oversight authority of accounting firms, as well as the authority to impose new mandates on these firms. CARTA also imposes new regulations regarding investing in stocks and enhances the power of the Securities and Exchange Commission (SEC). However, Mr. Speaker, companies are already required by Federal law to comply with numerous mandates, including obtaining audited financial statements from certified accountants. These mandates have enriched accounting firms and may have given them market power beyond what they could obtain in a free market. These laws also give corrupt firms an opportunity to attempt to use political power to gain special treatment for Federal lawmakers and regulators at the expense of their competitors and even, as alleged in the Enron case, their employees and investors.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:7
In truth, investing carries risk, and it is not the role of the Federal Government to bail our every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there if for truly independent evaluations of investment risk.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:8
Increased Federal interference in the market could also harm consumers by crippling innovative market mechanisms to hold corporate managers accountable to their shareholders. Ironically, Mr. Chairman, current SEC regulations make it difficult for shareholders to challenge management decisions. Thus government regulations encourage managers to disregard shareholder interests!
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:9
Unfortunately, the Federal Government has a history of crippling market mechanisms to protect shareholders. As former Treasury official Bruce Bartlett pointed out in a recent Washington Times column, during the 1980s, so-called corporate raiders helped keep corporate management accountable to shareholders through devices such as the “junk” bond, which made corporate takeovers easier. Thanks to the corporate raiders, managers knew they had to be responsive to shareholders needs or they would become a potential target for a takeover.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:11
If left alone by Congress, the market is perfectly capable of disciplining businesses who engage in unsound practices. After all, before the government intervened, Arthur Andersen and Enron had already begun to pay a stiff penalty, a penalty delivered by individual investors acting through the market. This shows that not only can the market deliver punishment, but it can also deliver this punishment swifter and more efficiently than the government. We cannot know what efficient means of disciplining companies would emerge from a market process but we can know they would be better at meeting the needs of investors than a top-down regulatory approach.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:12
Of course, while the supporters of increased regulation claim Enron as a failure of “ravenous capitalism,” the truth is Enron was a phenomenon of the mixed economy, rather than the operations of the free market. Enron provides a perfect example of the dangers of corporate subsidies. The company was (and is) one of the biggest beneficiaries of Export- Import (Ex-Im) Bank and Overseas Private Investment Corporation (OPIC) subsidies. These programs make risky loans to foreign governments and businesses for projects involving American companies. While they purport to help developing nations, Ex-Im and OPIC are in truth nothing more than naked subsidies for certain politically-favored American corporations, particularly corporations like Enron that lobby hard and give huge amounts of cash to both political parties. Rather than finding ways to exploit the Enron mess to expand Federal power, perhaps Congress should stop aiding corporations like Enron that pick the taxpayer’s pockets through Ex-Im and OPIC.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:14
Congress should also examine the role the Federal Reserve played in the Enron situation. Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet, what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluations: Fed expansion of money and credit.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:15
The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market — not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:16
Finally, Mr. Chairman, I would remind my colleagues that Congress has no constitutional authority to regulate the financial markets or the accounting profession. Instead, responsibility for enforcing laws against fraud are under the jurisdiction of the state and local governments. This decentralized approach actually reduces the opportunity for the type of corruption referred to above — after all, it is easier to corrupt one Federal official than 50 State Officials.
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Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA)
24 April 2002 2002 Ron Paul 24:17
In conclusion, the legislation before us today expands Federal power over the accounting profession and the financial markets. By creating new opportunities for unscrupulous actors to maneuver through the regulatory labyrinth, increasing the costs of investing, and preempting the market’s ability to come up with creative ways to hold corporate officials accountable, this legislation harms the interests of individual workers and investors. Furthermore, this legislation exceeds the constitutional limits on Federal power, interfering in matters the 10th amendment reserves to state and local law enforcement. I therefore urge my colleagues to reject this bill. Instead, Congress should focus on ending corporate welfare programs which provide taxpayer dollars to large politically-connected companies, and ending the misguided regulatory and monetary policies that helped create the Enron debacle.
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Statement Opposing Taxpayer Funding of Multinational Development Banks
May 1, 2002 2002 Ron Paul 28:4
In conclusion, HR 2604 authorizes the continued taking of taxpayer funds for unconstitutional and economically destructive programs. I therefore urge my colleagues to reject this bill, return the money to the American taxpayers, and show the world that the United States Congress is embracing the greatest means of generating prosperity: the free market.
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International Fund For Agricultural Development
1 May 2002 2002 Ron Paul 29:4
In conclusion, HR 2604 authorizes the continued taking of taxpayer funds for unconstitutional and economically destructive programs. I therefore urge my colleagues to reject this bill, return the money to the American taxpayers, and show the world that the United States Congress is embracing the greatest means of generating prosperity: the free market.
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Statement Opposing Export-Import Bank Subsidies
May 1, 2002 2002 Ron Paul 30:4
What we are trying to do is make it fair to everyone so that the little guy who is competing for these same funds can compete on a level playing field and not give the advantage to the big guys. What happens so often when government gets involved is there are unintended consequences. The original intent was to boost exports and jobs. After 70 years, there are unintended consequences. The world is a more world market. I am not opposed to that. I believe in free trade; but I think this is more protectionism. This is so minor and so modest that anybody who wants to be on record for fairness into curtailing the political power of the Export-Import Bank, has to vote for this. This will be a little bit of help to a few people in order to say to these corporations that if they are going to get tax subsidies for their loans, and they start laying off people, they better lay them off someplace else other than here. That is pretty modest. I have no interest in ever telling a corporation to do this if they were not getting the special benefits from government. That makes the big difference.
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Statement Opposing Export-Import Bank Subsidies
May 1, 2002 2002 Ron Paul 30:5
Mr. Chairman, there is a market allocation of credit and there is credit allocation by politicians, and that is what we are talking about here. We have credit allocation, and we have mal-investment and over capacity which causes the conditions to exist for the recession. Of course, a lot of this comes from what the Federal Reserve does in artificially lowering interest rates; but this is a compounding problem when government gets in and allocates credit at lower rates. It causes more distortions. This is why allocations to companies like Enron contributes to the bubble that ends up in a major correction.
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Statement Opposing Export-Import Bank Corporate Welfare
May 1, 2002 2002 Ron Paul 31:6
Enron provides a perfect example of how Eximbank provides politically-powerful corporations competitive advantages they could not obtain in the free market. According to journalist Robert Novak, Enron has received over $640 million in taxpayer-funded “assistance” from Eximbank. This taxpayer-provided largesse no doubt helped postpone Enron’s inevitable day of reckoning.
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Statement Opposing Export-Import Bank Corporate Welfare
May 1, 2002 2002 Ron Paul 31:13
Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living!
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Statement Opposing Export-Import Bank Corporate Welfare
May 1, 2002 2002 Ron Paul 31:15
In conclusion, Mr. Chairman, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use it to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject H.R. 2871, the Export-Import Bank Reauthorization Act.
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Statement on New Internet Regulations and Expanded Federal Wiretap Powers
May 21, 2002 2002 Ron Paul 44:3
The market is already creating solutions to many of these problems through the development of filtering software that responsible parents can use to protect their children from inappropriate materials. The best way to address this problem is by allowing this market process to develop, not by creating new government regulations.
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Beware Dollar Weakness
June 5, 2002 2002 Ron Paul 52:1
Mr. Speaker, I have for several years come to the House floor to express my concern for the value of the dollar. It has been, and is, my concern that we in the Congress have not met our responsibility in this regard. The constitutional mandate for Congress should only permit silver and gold to be used as legal tender and has been ignored for decades and has caused much economic pain for many innocent Americans. Instead of maintaining a sound dollar, Congress has by both default and deliberate action promoted a policy that systematically depreciates the dollar. The financial markets are keenly aware of the minute-by-minute fluctuations of all the fiat currencies and look to these swings in value for an investment advantage. This type of anticipation and speculation does not exist in a sound monetary system.
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Beware Dollar Weakness
June 5, 2002 2002 Ron Paul 52:8
There are a lot of reasons the market is pushing down the value of the dollar at this time. But only one is foremost. Current world economic and political conditions lead to less trust in the dollar’s value. Economic strength here at home is questionable and causes concerns. Our huge foreign debt is more than $2 trillion, and our current account deficit is now 4 percent of GDP and growing. Financing this debt requires borrowing $1.3 billion per day from overseas. But these problems are ancillary to the real reason that the dollar must go down in value. For nearly 7 years the U.S. has had the privilege of creating unlimited amounts of dollars with foreigners only too eager to accept them to satisfy our ravenous appetite for consumer items. The markets have yet to discount most of this monetary inflation. But they are doing so now; and for us to ignore what is happening, we do so at the Nation’s peril. Price inflation and much higher interest rates are around the corner.
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Beware Dollar Weakness
June 5, 2002 2002 Ron Paul 52:10
Trust in paper is difficult to measure and anticipate, but long-term value in gold is dependable and more reliably assessed. Printing money and creating artificial credit may temporarily lower interest rates, but it also causes the distortions of malinvestment, overcapacity, excessive debt and speculation. These conditions cause instability, and market forces eventually overrule the intentions of the central bankers. That is when the apparent benefits of the easy money disappear, such as we dramatically have seen with the crash of the dot-coms and the Enrons and many other stocks.
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BAD TAX POLICY SENDS COMPANIES OVERSEAS
June 11, 2002 2002 Ron Paul 55:19
Expatriation helps control government waste. High-tax California can’t stop companies from moving to low-tax Nevada. Knowing this helps deter the big-spenders in the state capitol from wasting even more money. The politicians in Massachusetts must exercise some restraint because they know local businesses can flee to low-tax New Hampshire. Nations also should be subject to market discipline. This is why Washington politicians shouldn’t stop companies from escaping bad U.S. tax law.
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H.R. 4954
27 June 2002 2002 Ron Paul 63:3
However, Mr. Speaker, at the heart of this legislation is a fatally flawed plan that will fail to provide seniors access to the pharmaceuticals of their choice. H.R. 4954 requires seniors to enroll in a prescription benefit management company (PBM), which is the equivalent of an HMO. Under this plan, the PBM will have the authority to determine which pharmaceuticals are available to seniors. Thus, in order to get any help with their prescription drug costs, seniors have to relinquish their ability to choose the type of prescriptions that meet their own individual needs! The inevitable result of this process will be rationing, as PBM bureaucrats attempt to control costs by reducing the reimbursements paid to pharmacists to below-market levels (thus causing pharmacists to refuse to participate in PBM plans), and restricting the type of pharmacies seniors may use in the name of “cost effectiveness.” PBM bureaucrats may even go so far as to forbid seniors from using their own money to purchase Medicare-covered pharmaceuticals. I remind my colleagues that today the federal government prohibits seniors from using their own money to obtain health care services which differ from those “approved” of by the Medicare bureaucracy!
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H.R. 4954
27 June 2002 2002 Ron Paul 63:6
As a representative of an area near the Texas-Mexican border, I often hear from angry constituents who cannot purchase inexpensive quality imported pharmaceuticals in their local drug store. Some of these constituents regularly travel to Mexico on their own to purchase pharmaceuticals. It is an outrage that my constituents are being denied the opportunity to benefit from a true free market in pharmaceuticals by their own government.
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Is America a Police State?
June 27, 2002 2002 Ron Paul 64:33
Efforts to convict Bill Gates and others like him of an economic crime are astounding, considering his contribution to economic progress, while sources used to screen out terrorist elements from our midst are tragically useless. If business people are found guilty of even the suggestion of collusion in the marketplace, huge fines and even imprisonment are likely consequences.
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Is America a Police State?
June 27, 2002 2002 Ron Paul 64:34
Price fixing is impossible to achieve in a free market. Under today’s laws, talking to, or consulting with, competitors can be easily construed as “price fixing” and involve a serious crime, even with proof that the so-called collusion never generated monopoly-controlled prices or was detrimental to consumers.
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Is America a Police State?
June 27, 2002 2002 Ron Paul 64:65
What if the al Qaeda is telling the truth and we ignore it? If we believe only the official line from the administration and proceed to change our whole system and undermine our constitutional rights, we may one day wake up to find that the attacks have increased, the numbers of those willing to commit suicide for their cause have grown, our freedoms are diminished, and all this has contributed to making our economic problems worse. The dollar cost of this “war” could turn out to be exorbitant, and the efficiency of our markets can be undermined by the compromises placed on our liberties.
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Is America a Police State?
June 27, 2002 2002 Ron Paul 64:123
But it does mean government has a proper role in guaranteeing free markets, protecting voluntary and religious choices and guaranteeing private property ownership, while punishing those who violate these rules – whether foreign or domestic.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:1
It is now commonplace and politically correct to blame what is referred to as the excesses of capitalism for the economic problems we face, and especially for the Wall Street fraud that dominates the business news. Politicians are having a field day with demagoguing the issue while, of course, failing to address the fraud and deceit found in the budgetary shenanigans of the federal government- for which they are directly responsible. Instead, it gives the Keynesian crowd that run the show a chance to attack free markets and ignore the issue of sound money.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:2
So once again we hear the chant: "Capitalism has failed; we need more government controls over the entire financial market." No one asks why the billions that have been spent and thousands of pages of regulations that have been written since the last major attack on capitalism in the 1930s didn’t prevent the fraud and deception of Enron, WorldCom, and Global Crossings. That failure surely couldn’t have come from a dearth of regulations.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:6
But what is not discussed is the actual cause and perpetration of the excesses now unraveling at a frantic pace. This same response occurred in the 1930s in the United States as our policymakers responded to the very similar excesses that developed and collapsed in 1929. Because of the failure to understand the problem then, the depression was prolonged. These mistakes allowed our current problems to develop to a much greater degree. Consider the failure to come to grips with the cause of the 1980s bubble, as Japan’s economy continues to linger at no-growth and recession level, with their stock market at approximately one-fourth of its peak 13 years ago. If we’re not careful- and so far we’ve not been- we will make the same errors that will prevent the correction needed before economic growth can be resumed.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:8
Ignorance, as well as disapproval for the natural restraints placed on market excesses that capitalism and sound markets impose, cause our present leaders to reject capitalism and blame it for all the problems we face. If this fallacy is not corrected and capitalism is even further undermined, the prosperity that the free market generates will be destroyed.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:9
Corruption and fraud in the accounting practices of many companies are coming to light. There are those who would have us believe this is an integral part of free-market capitalism. If we did have free-market capitalism, there would be no guarantees that some fraud wouldn’t occur. When it did, it would then be dealt with by local law-enforcement authority and not by the politicians in Congress, who had their chance to "prevent" such problems but chose instead to politicize the issue, while using the opportunity to promote more Keynesian useless regulations.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:11
To condemn free-market capitalism because of anything going on today makes no sense. There is no evidence that capitalism exists today. We are deeply involved in an interventionist-planned economy that allows major benefits to accrue to the politically connected of both political spectrums. One may condemn the fraud and the current system, but it must be called by its proper names- Keynesian inflationism, interventionism, and corporatism.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:19
We cannot depend on government to restore trust to the markets; only trustworthy people can do that. Actually, the lack of trust in Wall Street executives is healthy because it’s deserved and prompts caution. The same lack of trust in politicians, the budgetary process, and the monetary system would serve as a healthy incentive for the reform in government we need.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:20
Markets regulate better than governments can. Depending on government regulations to protect us significantly contributes to the bubble mentality.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:22
Capitalism didn’t give us this crisis of confidence now existing in the corporate world. The lack of free markets and sound money did. Congress does have a role to play, but it’s not proactive. Congress’ job is to get out of the way.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:1
Mr. Speaker, I rise to introduce the Free Housing Market Enhancement Act. This legislation restores a free market in housing by repealing special privileges for housing-related government sponsored enterprises (GSEs). These entities are the Federal National Mortgage Association (Fannie), the Federal Home Loan Mortgage Corporation (Freddie), and the National Home Loan Bank Board (HLBB). According to the Congressional Budget Office, the housing-related GSEs received $13.6 billion worth of indirect federal subsidies in fiscal year 2000 alone.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:3
The Free Housing Market Enhancement Act also repeals the explicit grant of legal authority given to the Federal Reserve to purchase the debt of housing-related GSEs. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:4
Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie, Freddie, and HLBB have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:5
However, despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:6
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts.
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Free Housing Market Enhancement Act
July 16, 2002 2002 Ron Paul 70:8
Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act.
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Hard Questions for Federal Reserve Chairman Greenspan
July 17, 2002 2002 Ron Paul 71:3
"You have in your testimony expressed concern about the greed factor which obviously is there. And you implied that this has come out from the excessive capitalization/excessive valuations, which may be true. But I believe where you have come up short is in failing to explain why we have financial bubbles. I think when you have fiat money and excessive credit you create financial bubbles and you also undermine the value of the dollar and now we are facing that consequence. We see the disintegration of some of these markets. At the same time we have potential real depreciation of the value of our dollar. And we have pursued rampant inflation of the money supply. Since you have been Chairman of the Federal Reserve we have literally created $4.7 trillion worth of new money in M-3. Even in this last year with this tremendous burst of inflation of the money supply has gone up since last January over $1 trillion. You can’t have anything but lower value of that unit of account if you keep printing and creating new money.
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Hard Questions for Federal Reserve Chairman Greenspan
July 17, 2002 2002 Ron Paul 71:7
"My questions are two fold relating to gold. One, I have been trying to desperately to find out the total amount of gold either dumped and sold on to the markets by all the central banks of the world or loaned by the central banks of the world. And this is in hundreds and hundreds of tons. But those figures are not available to me. Maybe you can help me find this. I think it would be important to know since all central banks still deal with and hold gold whether they are dumping, or loaning or buying for that matter.
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Hard Questions for Federal Reserve Chairman Greenspan
July 17, 2002 2002 Ron Paul 71:8
"But along this line, I have a bill that would say that our government, our Treasury could not deal in gold and could not be involved in the gold market unless the Congress knows about it. Now that to me seems like such a reasonable approach and reasonable request. But they say they don’t use it (gold) so we don’t need the bill. But if they are not trading in gold, what would be the harm in the Congress knowing about handling and dealing about this asset, gold?"
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Before the House Ways and Means Committee
July 23, 2002 2002 Ron Paul 72:8
The impact of U.S. tax rules on the international competitiveness of U.S. multinationals is much more significant an issue than it was forty years ago. Today, foreign markets provide an increasing amount of the growth opportunities for U.S. businesses. At the same time, competition from multinationals headquartered outside of the United States is becoming greater. Of the world’s 20 largest corporations, the number headquartered in the United States has declined from 18 in 1960 to just 8 in 1996. Around the world, 21,000 foreign affiliates of U.S. multinationals compete with about 260,000 foreign affiliates of foreign multinationals.
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Before the House Ways and Means Committee
July 23, 2002 2002 Ron Paul 72:9
If U.S. rules for taxing foreign source income are more burdensome than those of other countries, U.S. businesses will be less successful in global markets, with negative consequences for exports and jobs at home. I think a fair comparison of U.S. international tax rules and those of other nations shows that American businesses are increasingly put at a competitive disadvantage in the world marketplace.
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Treasury And General Government Appropriations Act, 2003
23 July 2002 2002 Ron Paul 74:5
Mr. Chairman, finally and importantly, I strongly oppose sanctions for the simple reason that they hurt American industries, particularly agriculture. Every time we shut our own farmers out of foreign markets, they are exploited by foreign farmers. China, Russia, the Middle East, North Korea, and Cuba all represent huge potential for our farm products, yet many in Congress favor trade restrictions that prevent our farmers from selling to the billions of people in these areas. We are one of the world’s largest agricultural producers — why would we ever choose to restrict our exports? Why would we want to do harm to our domestic producers by pursuing a policy that does not work? The only beneficiaries of our sanctions policies are our foreign competitors; the ones punished are our own producers. It is time to end restrictions on Cuba travel and trade.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:1
Mr. PAUL. Mr. Speaker, as the attached article (“A Classic Hayekian Hangover”) by economists Roger Garrison and Gene Callahan makes clear, much of the cause for our current economic uneasiness is to be found in the monetary expansion over most of the past decade. In short, expansion of the money supply as made possible by the policy of fiat currency, leads directly and inexorably to the kind of problems we have seen in the financial markets of late. Moreover, if we do not make the necessary policy changes, we will eventually see similar problems throughout the entire economy.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:3
In the current instance, the fact that there has been nearly a decade of significant increases in the seasonally adjusted money supply, as measured by MZM (as shown by the chart included with the article), serves as a direct explanation for the over capitalization and excess confidence which we have seen recently leaving financial markets. In short, as this article shows, the Austrian theory alone understands the causes for what has been termed “irrational exuberance” in the financial markets.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:4
Mr. Speaker, I wish to commend the authors of this fine article as well as to call it to the attention of my colleagues in hopes that we will not merely understand its implications but also that we find the courage to change monetary policy so that we will not see a repeat performance of this year’s market volatility.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:7
The metaphorical drinking age is set by — and periodically changed by — the Federal Reserve. In our Fed-centric mixed economy, the understanding that “the Fed sets interest rates” has become widely accepted as a simple institutional fact. But unlike an actual drinking age, which has an inherent degree of arbitrariness about it, the interest rate cannot simply be “set” by some extramarket authority. With market forces in play, it has a life of its own.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:8
The interest rate is a price. It’s the price that brings into balance our eagerness to consume now and our willingness to save and invest for the future. The more we save, the lower the market rate. Our increased saving makes more investment possible; the lower rate makes investments more future oriented. In this way, the market balances current consumption and economic growth.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:9
Price fixing foils the market. Government mandated ceilings on apartment rental rates, for instance, create housing shortages, as is well known by anyone who has gone apartment hunting in New York City. Similarly, a legislated interest-rate ceiling would cause a credit shortage: The volume of investment funds demanded would exceed people’s actual willingness to save.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:10
But the Fed can do more than simply impose a ceiling on credit markets. Setting the interest rate below where the market would have it is accomplished not by decree but by increasing the money supply, temporarily masking the discrepancy between supply and demand. This papering over of the credit shortage hides a problem that would otherwise be obvious, allowing it to fester beneath a binge of investment spending.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:12
Save more, and we get a market process that plays itself out as economic growth. Pump new money through credit markets, and we get a market process of a very different kind: It doesn’t play itself out; it does itself in. The investment binge is followed by a hangover. This is the Austrian theory in a nutshell. (Ironically, it is the theory that Alan Greenspan presented forty years ago when he lectured for the Nathaniel Branden Institute.) We believe that there is strong evidence that the United States is now in the hangover phase of a classic Mises-Hayek business cycle.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:15
Sean Corrigan, a principal in Capital Insight, a UK-based financial consultancy, has recently detailed the consequences of the expansion that came in “. . . autumn 1998, when the world economy, still racked by the problems of the Asian credit bust over the preceding year, then had to cope with the Russian default and the implosion of the mighty Long-Term Capital Management.” Corrigan goes on: “Over the next eighteen months, the Fed added $55 billion to its portfolio of Treasuries and swelled repos held from $6.5 billion to $22 billion . . . [T]his translated into a combined money market mutual fund and commercial bank asset increase of $870 billion to the market peak, of $1.2 trillion to the industrial production peak, and of $1.8 trillion to date — twice the level of real GDP added in the same interval” (http://www.mises.org/ fullarticle.asp?control=754).
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25 July 2002
Monetary Practices 2002 Ron Paul 78:16
The party was in full swing, and the Fed kept the good times rolling by cutting the fed funds rate a whole basis point between June 1998 and January 1999. The rate on 30- year Treasuries dropped from a high of over 7% to a low of 5%. Stock markets soared. The NASDAQ composite went from just over 1000 to over 5000 during the period, rising over 80% in 1999 alone. With abundant credit being freely served to Internet start-ups, hordes of corporate managers, who had seemed married to their stodgy blue-chip companies, suddenly were romancing some sexy dot-com that had just joined the party.
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25 July 2002
Monetary Practices 2002 Ron Paul 78:19
The business plans for many of the startups involved negative cash flows for the first 10 or 15 years, while they “built market share.” To keep the atmosphere festive, they needed the host to keep filling the punch bowl. But fears of inflation led to Federal Reserve tightening in late 1999, which helped bring MZM growth back into the single digits (8.5% for the 1999–2000 period). As the punch bowl emptied, the hangover — and the dot-com bloodbath — began. According to research from Webmergers.com, at least 582 Internet companies closed their doors between May 2000 and July of this year. The plunge in share price of many of those still alive has been gut wrenching. The NASDAQ retraced two years of gains in a little over a year.
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The Price Of War
5 September 2002 2002 Ron Paul 83:42
A successful and prosperous society comes from such a policy and is impossible without a sound free-market economy, one not controlled by a central bank. Avoiding trade wars, devaluations, inflations, deflations, and disruption of free trade with protectionist legislation are impossible under a system of international trade dependent on fluctuating fiat currencies controlled by world central banks and influenced by powerful financial interests. Instability in trade is one of the prime causes of creating conditions leading to war.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:7
In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our Nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:16
There is no getting away from it: investor markets have memories of the days when gold was money. In fact, in the whole history of civilization, gold has served as the basic money of all people wherever it’s been available. Other precious metals have been valued and coined, but gold always emerged on top in the great competition for what constitutes the most valuable commodity of all.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:17
There is nothing intrinsic about gold that makes it money. It has certain properties that lend itself to monetary use, like portability, divisibility, scarcity, durability, and uniformity. But these are just descriptors of certain qualities of the metal, not explanations as to why it became money. Gold became money for only one reason: because that’s what the markets chose.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:18
Why isn’t gold money now? Because governments destroyed the gold standard. Why? Because they regarded it as too inflexible. To be sure, monetary inflexibility is the friend of free markets. Without the ability to create money out of nothing, governments tend to run tight financial ships. Banks are more careful about the lending when they can’t rely on a lender of last resort with access to a money-creation machine like the Fed.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:19
A fixed money stock means that overall prices are generally more stable. The problems of inflation and business cycles disappear entirely. Under the gold standard, in fact, increased market productivity causes prices to generally decline over time as the purchasing power of money increases. In 1967, Alan Greenspan once wrote an article called Gold and Economic Freedom. He wrote that:
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Rent-To-Own Contracts
18 september 2002 2002 Ron Paul 88:5
In addition to exceeding Congress’s constitutional authority, H.R. 1701, like all federal regulatory schemes, could backfire and harm the very people it was intended to help. This is because any regulation inevitably raises the cost of doing business. These higher costs are passed along to the consumer in the form of either higher prices or fewer choices. The result of this is that marginal customers are priced out of the market. These consumers may prefer to sign contracts that do not meet federal standards as opposed to not having access to any rent-to-own contracts, but the Congress will deny them that option. According to the proponents of H.R. 1701, if people cannot obtain desired goods and services under terms satisfactory to the government, they are better off being denied those goods and services. Mr. Chairman, this type of “government knows best” legislation represents the worst type of paternalism and is totally inappropriate for a free society.
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Can We Afford this War?
September 24, 2002 2002 Ron Paul 89:1
Mr. Speaker, a casual analysis of the world economy shows it rapidly deteriorating into recession, with a possible depression on the horizon. Unemployment is sharply rising with price inflation rampant, despite official government inflationary reports. The world’s stock markets continue to collapse, even after trillions of dollars in losses have been recorded in the past 2 years. These losses already have set historic records.
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Statement on Medical Malpractice Legislation
September 26, 2002 2002 Ron Paul 90:10
Congress could also help physicians lower insurance rates by passing legislation that removes the antitrust restrictions preventing physicians from forming professional organizations for the purpose of negotiating contracts with insurance companies and HMOs. These laws give insurance companies and HMOs, who are often protected from excessive malpractice claims by ERISA, the ability to force doctors to sign contracts exposing them to excessive insurance premiums and limiting their exercise of professional judgment. The lack of a level playing field also enables insurance companies to raise premiums at will. In fact, it seems odd that malpractice premiums have skyrocketed at a time when insurance companies need to find other sources of revenue to compensate for their recent losses in the stock market.
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Introduction of the Television Consumer Freedom Act
October 1, 2002 2002 Ron Paul 93:3
It is, of course, within the constitutionally enumerated powers of Congress to "promote the progress of science and useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries." However, operating a clearing-house for the subsequent transfer of such property rights in the name of setting a just price or "instilling competition" via "central planning" seems not to be an economically prudent nor justifiable action under this enumerated power. This process is one best reserved to the competitive marketplace.
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Introduction of the Television Consumer Freedom Act
October 1, 2002 2002 Ron Paul 93:4
Government’s attempt to set the just price for satellite programming outside the market mechanism is inherently impossible. This has resulted in competition among service providers for government privilege rather than the consumer benefits inherent to the genuine free market. Currently, while federal regulation does leave satellite programming service providers free to bypass the governmental royalty distribution scheme and negotiate directly with owners of programming for program rights, there is a federal prohibition on satellite service providers making local network affiliates’ programs available to nearby satellite subscribers. This bill repeals that federal prohibition and allows satellite service providers to more freely negotiate with program owners for programming desired by satellite service subscribers. Technology is now available by which viewers will be able to view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers.
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Introduction of the Television Consumer Freedom Act
October 1, 2002 2002 Ron Paul 93:6
Mr. Speaker, the federal government should not interfere with a consumer’s ability to purchase services such as satellite or cable television in the free market. I therefore urge my colleagues to take a step toward restoring freedom by cosponsoring my Television Consumer Freedom Act.
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Statement Opposing the use of Military Force against Iraq
October 8, 2002 2002 Ron Paul 96:25
Three years ago, during Iraq’s six-month occupation of Kuwait, there had been an outcry when a teen-age Kuwaiti girl testified eloquently and effectively before Congress about Iraqi atrocities involving newborn infants. The girl turned out to be the daughter of the Kuwaiti Ambassador to Washington, Sheikh Saud Nasir al-Sabah, and her account of Iraqi soldiers flinging babies out of incubators was challenged as exaggerated both by journalists and by human-rights groups. ( Sheikh Saud was subsequently named Minister of Information in Kuwait, and he was the government official in charge of briefing the international press on the alleged assassination attempt against George Bush .) In a second incident, in August of 1991, Kuwait provoked a special session of the United Nations Security Council by claiming that twelve Iraqi vessels, including a speedboat, had been involved in an attempt to assault Bubiyan Island, long-disputed territory that was then under Kuwaiti control. The Security Council eventually concluded that, while the Iraqis had been provocative, there had been no Iraqi military raid, and that the Kuwaiti government knew there hadn’t. What did take place was nothing more than a smuggler-versus-smuggler dispute over war booty in a nearby demilitarized zone that had emerged, after the Gulf War, as an illegal marketplace for alcohol, ammunition, and livestock.
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The Shrimp Importation Financing Fairness Act
October 8, 2002 2002 Ron Paul 97:3
Given the importance of a strong shrimping industry to so many Americans, it seems strange that the federal government continues to burden shrimpers with excessive regulations. For example, the federal government has imposed costly regulations on this industry dealing with usage of items such as by catch reduction devices and turtle excluder devices (TEDS). The mandatory use of these devices results in a significant reduction in the amount of shrimp caught by domestic shrimpers, thus damaging their competitive position and market share.
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The Shrimp Importation Financing Fairness Act
October 8, 2002 2002 Ron Paul 97:8
Many of the countries in question do not have free-market economics. Thus, the participation of these countries in United States-supported international financial regimes amounts to a direct subsidy by American shrimpers to their international competitors. In any case, providing aid to any of these countries indirectly grants benefits to foreign shrimpers because of the fungibility of money.
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Shrimp Importation Financing Fairness Act
7 January 2003 2003 Ron Paul 3:3
Given the importance of a strong shrimping industry to so many Americans, it seems strange that the federal government continues to burden shrimpers with excessive regulations. For example, the federal government has imposed costly regulations, dealing with usage of items such as by catch reduction devices and turtle excluder devices (TEDS), on the industry. The mandatory use of these devices results in a significant reduction in the amount of shrimp caught by domestic shrimpers, thus damaging their competitive position and market share.
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Shrimp Importation Financing Fairness Act
7 January 2003 2003 Ron Paul 3:8
Many of the countries in question do not have free-market economics. Thus, the participation of these countries in United States-supported international financial regimes amounts to a direct subsidy by American shrimpers to their international competitors. In any case, providing aid to any of these countries indirectly grants benefits to foreign shrimpers because of the fungibility of money.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:17
The marketplace, driven by voluntary cooperation, private property ownership, and sound money was severely undermined with the acceptance of the principles of true democracy. Unfortunately, too many people confused the democratic elections of leaders in a Republic for democracy by accepting the rule of majority opinion in all affairs. For majorities to pick leaders is one thing. It is something quite different for majorities to decide what rights are, to redistribute property, to tell people how to manage their personal lives, and to promote undeclared, unconstitutional wars.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:45
As the wealth of the nation dwindles, competition between the special interest groups grows more intense and becomes the dominant goal of all political action. Restoration of liberty, the market, and personal responsibilities are of little interest and are eventually seen as impractical. Power and public opinion become crucial factors in determining the direction of all government expenditures.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:74
Facing this problem of paying for past and present excess spending, the borrowing and inflating of the money supply has already begun in earnest. Many retirees, depending on their 401(k) funds and other retirement programs, are suffering the ill effects of the stock market crash, a phenomenon that still has a long way to go. Depreciating the dollar by printing excessive money, like the Fed is doing, will eventually devastate the purchasing power of those retirees who are dependent on Social Security. Government cost-ofliving increases will never be able to keep up with the loss. The elderly are already unable to afford the inflated cost of medical care, especially the cost of pharmaceuticals.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:87
In a free society with totally free markets, the votes by consumers through their purchases or refusal to purchase determine which businesses survive and which fail. This is freechoice democracy, and it is a powerful force in producing and bringing about economic efficiency. In today’s democracy by decree, government laws dictate who receives the benefit and who gets shortchanged. Conditions of employment and sales are taxed and regulated at varying rates, and success or failure is too often dependent on government action than by consumers’ voting in the marketplace by their spending habits. Individual consumers by their decisions should be in charge, not governments armed with mandates from the majority.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:88
Even a system of free market money, a redeemable gold coin standard, functions through the principle of consumers always voting or withholding support for that currency. A gold standard can only work when freely converted into gold coins, giving every citizen a right to vote on a daily basis for or against the government’s money.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:107
It is not a coincidence that in the times of rapid monetary debasement, the middle class suffers the most from the inflation and the job losses that monetary inflation brings. When inflation is severe, which it will become, the middle class can be completely wiped out. The stock market crash gives us a hint as to what is likely to come as this country is forced to pay for the excesses sustained over the past 30 years while operating under a fiat monetary system.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:115
We as a Nation have lost our understanding of how the free market provides the greatest prosperity for the greatest number. Not only have most of us forgotten about the invisible hand of Adam Smith, few have ever heard of Mises and Hayek and Rothbart, the individuals who understood exactly why all economic ups and downs in the 20th century occurred, as well as the cause of the collapse of the Soviet Union.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:118
The rule of law in a republic protects free-market activity and private property ownership and provides for equal justice under the law. It is this respect for law and rights over government power that protects the mainspring of human progress from the enemies of liberty. Communists and other Socialists have routinely argued that the law is merely a tool of the powerful capitalists.
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The Family Education Freedom Act
February 5, 2003 2003 Ron Paul 13:2
The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty”. Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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The Family Education Freedom Act
February 5, 2003 2003 Ron Paul 13:3
Currently, consumers are less than sovereign in the education market. Funding decisions are increasingly controlled by the federal government. Because “He who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control. Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system.
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Prescription Drug Affordability Act
February 11, 2003 2003 Ron Paul 17:3
Mr. Speaker, I do wish to clarify that this tax credit is intended to supplement the efforts to reform and strengthen the Medicare system to ensure seniors have the ability to use Medicare funds to purchase prescription drugs. I am a strong supporter of strengthening the Medicare system to allow for more choice and consumer control, including structural reforms that will allow seniors to use Medicare funds to cover the costs of prescription drugs. In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the US or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Mr. Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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Do-Not-Call Implementation Act
12 February 2003 2003 Ron Paul 20:2
In addition to exceeding Congress’ constitutional authority, legislation to regulate telemarketing would allow the government to intrude further into our personal lives. Our country’s founders recognized the genius of severely limiting the role of government and reserving to the people extensive liberties, including the freedom to handle problems like this on the local level and through private institutions. The fact that the privately-run Direct Marketing Association is operating its own “do-not-call” list is evidence that consumers need not rely upon the national government to address the problems associated with telemarketers. Furthermore, many state public utility commissions have imposed regulations on telemarketers. Further regulation at the federal level will only result in a greater loss of liberty. Therefore, I urge my colleagues to take the constitutional course and oppose the Do-No- Call Implementation Act.
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The Financial Services Committee’s Terrible Blueprint for 2004
February 28, 2003 2003 Ron Paul 27:1
Supporters of limited, constitutional government and free markets will find little, if anything, to view favorably in the Financial Services Committee’s “Views and Estimates for Fiscal Year 2004.” Almost every policy endorsed in this document is unconstitutional and a threat to the liberty and prosperity of the American people.
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The Financial Services Committee’s Terrible Blueprint for 2004
February 28, 2003 2003 Ron Paul 27:4
The committee also expresses unqualified support for programs such as the Export-Import Bank (Ex-Im), which use taxpayer dollars to subsidize large multinational corporations. Ex-Im exists to subsidize corporations that are quite capable of paying the costs of their own export programs! Ex-Im also provides taxpayer funding for export programs that would never obtain funding in the private market. As Austrian economists Ludwig Von Mises and F.A. Hayek demonstrated, one of the purposes of the market is to determine the highest value of resources. Thus, the failure of a project to receive funding through the free market means the resources that could have gone to that project have a higher-valued use. Government programs that take funds from the private sector and use them to fund projects that cannot get market funding reduce economic efficiency and lower living standards. Yet Ex-Im actually brags about its support for projects rejected by the market!
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The Financial Services Committee’s Terrible Blueprint for 2004
February 28, 2003 2003 Ron Paul 27:5
Finally, the committee’s views support expanding the domestic welfare state, particularly in the area of housing. This despite the fact that federal housing subsidies distort the housing market by taking capital that could be better used elsewhere, and applying it to housing at the direction of politicians and bureaucrats. Housing subsidies also violate the constitutional prohibitions against redistributionism. The federal government has no constitutional authority to abuse its taxing power to fund programs that reshape the housing market to the liking of politicians and bureaucrats.
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The Financial Services Committee’s Terrible Blueprint for 2004
February 28, 2003 2003 Ron Paul 27:6
Rather than embracing an agenda of expanded statism, I hope my colleagues will work to reduce government interference in the market that only benefits the politically powerful. For example, the committee could take a major step toward ending corporate welfare by holding hearings and a mark-up on my legislation to withdraw the United States from the Bretton Woods Agreement and end taxpayer support for the International Monetary Fund (IMF). The Financial Services Committee can also take a step toward restoring Congress’ constitutional role in monetary policy by passing legislation requiring congressional approval before the federal government buys or sells gold.
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The Myth of War Prosperity
March 4, 2003 2003 Ron Paul 28:7
During wartime, trade is much more difficult; and so if a war comes, we can expect that even our trade balances might get much worse. There are a lot of subjective problems during wartime too. The first thing that goes is confidence. Right now there is less confidence in the stock market and literally hundreds of billions of dollars lost in the stock market in the last year or two, again, due to other reasons; but the possibility of war contributes to this negative sentiment toward the stock market.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:1
Mr. PAUL. Mr. Speaker, I am pleased to introduce the Quality Health Care Coalition Act, which takes a first step towards restoring a true free market in health care by restoring the rights of freedom of contract and association to health care professionals. Over the past few years, we have had much debate in Congress about the difficulties medical professionals and patients are having with Health Maintenance Organizations (HMOs). HMOs are devices used by insurance industries to ration health care. While it is politically popular for members of Congress to bash the HMOs and the insurance industry, the growth of the HMOs are rooted in past government interventions in the health care market though the tax code, the Employment Retirement Security Act (ERSIA), and the federal anti-trust laws. These interventions took control of the health care dollar away from individual patients and providers, thus making it inevitable that something like the HMOs would emerge as a means to control costs.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:2
Many of my well-meaning colleagues would deal with the problems created by the HMOs by expanding the federal government’s control over the health care market. These interventions will inevitably drive up the cost of health and further erode the ability of patents and providers to determine the best health treatments free of government and third-party interference. In contrast, the Quality Health Care Coalition Act addresses the problems associated with HMOs by restoring medical professionals’ freedom to form voluntary organizations for the purpose of negotiating contracts with an HMO or an insurance company.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:3
As an OB–GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:5
Under the United States Constitution, the federal government has no authority to interfere with the private contracts of American citizens. Furthermore, the prohibitions on contracting contained in the Sherman antitrust laws are based on a flawed economic theory which holds that federal regulators can improve upon market outcomes by restricting the rights of certain market participants deemed too powerful by the government. In fact, anti-trust laws harm consumers by preventing the operation of the free-market, causing prices to rise, quality to suffer, and, as is certainly the case with the relationship between the HMOs and medical professionals, favoring certain industries over others.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:6
By restoring the freedom of medical professionals to voluntarily come together to negotiate as a group with HMOs and insurance companies, this bill removes a government-imposed barrier to a true free market in health care. Of course, this bill does not infringe on the rights of health care professionals by forcing them to join a bargaining organization against their will. While Congress should protect the rights of all Americans to join organizations for the purpose of bargaining collectively, Congress also has a moral responsibility to ensure that no worker is forced by law to join or financially support such an organization.
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Quality Health Care Coalition Act
12 March 2003 2003 Ron Paul 32:8
In conclusion, Mr. Chairman, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to America’s health care professionals. I also urge my colleagues to join me in working to promote a true free market in health care by putting patients back in charge of the health care dollar by supporting my Comprehensive Health Care Reform Act.
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Freedom from Unnecessary Litigation Act (H.R. 1249)
13 March 2003 2003 Ron Paul 34:9
Congress could also help physicians lower insurance rates by passing legislation, such as my Quality Health Care Coalition Act (H.R. 1247), that removes the antitrust restrictions preventing physicians from forming professional organizations for the purpose of negotiating contracts with insurance companies and HMOs. These laws give insurance companies and HMOs, who are often protected from excessive malpractice claims by ERISA, the ability to force doctors to sign contracts exposing them to excessive insurance premiums and limiting their exercise of professional judgment. The lack of a level playing field also enables insurance companies to raise premiums at will. In fact, it seems odd that malpractice premiums have skyrocketed at a time when insurance companies need to find other sources of revenue to compensate for their losses in the stock market.
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Rice Farmers Fairness Act
2 April 2003 2003 Ron Paul 45:3
As grain elevators, processors and others see a reduction in demand for their services because of the diminution of production permitted by federal law, they have a disincentive to continue to provide said services, services which must remain in place in order for those who remain in production to be able to bring to market the rice which they continue to produce. Thus, by way of the decimation of the infrastructure, this subsidy to non-producers comes at the expense of those who continue to produce rice. Therefore, the provisions of federal law which provide this subsidy actually amount to another form of federal welfare, taking from producers and giving to nonproducers. These destructive government policies have particularly pernicious effect in Texas, where rice farming, and the related industries, are a major sector of the economy in many towns along the Texas coast.
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United States Embargo On Cuba
9 April 2003 2003 Ron Paul 48:5
Second, sanctions simply hurt American industries, particularly agriculture. Every market we close to our nation’s farmers is a market exploited by foreign farmers. China, Russia, the middle east, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed trade restrictions that prevent our farmers from selling to the billions of people in these countries. The Department of Agriculture estimates that Iraq alone represents a $1 billion market for American farm goods. Given our status as one of the world’s largest agricultural producers, why would we ever choose to restrict our exports? The only beneficiaries of our sanctions policies are our foreign competitors.
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Repeal the So-Called “Medical Privacy Rule”
April 9, 2003 2003 Ron Paul 49:3
The dangers to liberty inherent in the “uniform health identifier” are magnified by the so-called “medical privacy” regulation. Many things in Washington are misnamed, however, this regulation may be the most blatant case of false advertising I have come across in all my years in Congress. Rather than protecting the individual’s right to medical privacy, these regulations empower government officials to determine how much medical privacy an individual “needs.” This one-size-fits-all approach ignores the fact that different people may prefer different levels of privacy. Some individuals may be willing to exchange a great deal of their personal medical information in order to obtain certain benefits, such as lower-priced care or having information targeted to their medical needs sent to them in a timely manner. Others may forgo those benefits in order to limit the number of people who have access to their medical history. Federal bureaucrats cannot possibly know, much less meet, the optimal level of privacy for each individual. In contrast, the free market allows individuals to obtain the level of privacy protection they desire.
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Genetically Modified Agricultural Products
10 June 2003 2003 Ron Paul 65:2
I oppose this bill because at its core it is government intervention — both in our own markets and in the affairs of foreign independent nations. Whether European governments decide to purchase American products should not be a matter for the U.S. Congress to decide. It is a matter for European governments and the citizens of European Union member countries. While it may be true that the European Union acts irrationally in blocking the import of genetically-modified products, the matter is one for European citizens to decide.
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Genetically Modified Agricultural Products
10 June 2003 2003 Ron Paul 65:3
Also, this legislation praises U.S. efforts to use the World Trade Organization to force open European markets to genetically-modified products. The WTO is an unelected world bureaucracy seeking to undermine the sovereignty of nations and peoples. It has nothing to do with free trade and everything to do with government- and bureaucrat-managed trade. Just as it is unacceptable when the WTO demands — at the behest of foreign governments — that the United States government raise taxes and otherwise alter the practices of American private enterprise, it is likewise unacceptable when the WTO makes such demands to others on behalf of the United States. This is not free trade.
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Medicare Funds For Prescription Drugs
26 June 2003 2003 Ron Paul 71:4
Thus, in order to get any help with their prescription drug costs, seniors have to relinquish their ability to choose the type of prescriptions that meet their own individual needs! The inevitable result of this process will be rationing, as Medicare and/or HMO bureaucrats attempt to control costs by reducing the reimbursements paid to pharmacists to below-market levels (thus causing pharmacists to refuse to participate in Medicare), and restricting the type of pharmacies seniors may use in the name of “cost effectiveness.” Bureaucrats may even go so far as to forbid seniors from using their own money to purchase Medicarecovered pharmaceuticals. I remind may colleagues that today the federal government prohibits seniors from using their own money to obtain health care services that differ from those “approved” of by the Medicare bureaucracy!
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Medicare Funds For Prescription Drugs
26 June 2003 2003 Ron Paul 71:11
As a representative of an area near the Texas-Mexico border, I often hear from angry constituents who cannot purchase inexpensive quality imported pharmaceuticals in their local drug store. Some of these constituents regularly travel to Mexico on their own to purchase pharmaceuticals. It is an outrage that my constituents are being denied the opportunity to benefit from a true free market in pharmaceuticals by their own government.
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Medicare Funds For Prescription Drugs
26 June 2003 2003 Ron Paul 71:12
Supporters of H.R. 1 claim that this bill does liberalize the rules governing the importation of prescription drugs. However, H.R. 1’s importation provision allows the Secretary of Health and Human Services to arbitrarily restrict the ability of American consumers to import prescription drugs — and HHS Secretary Thompson has already gone on record as determined to do all he can to block a free trade in pharmaceuticals! Thus, the importation language in H.R. 1 is a smokescreen designed to fool the gullible into thinking Congress is acting to create a free market in pharmaceuticals.
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Neo – CONNED !
July 10, 2003 2003 Ron Paul 73:12
The remnant’s instincts were correct, and the politicians placated them with talk of free markets, limited government, and a humble, non-nation-building foreign policy. However, little concern for civil liberties was expressed in this recent quest for less government. Yet, for an ultimate victory of achieving freedom, this must change. Interest in personal privacy and choices has generally remained outside the concern of many conservatives—especially with the great harm done by their support of the drug war. Even though some confusion has emerged over our foreign policy since the breakdown of the Soviet empire, it’s been a net benefit in getting some conservatives back on track with a less militaristic, interventionist foreign policy. Unfortunately, after 9-ll, the cause of liberty suffered a setback. As a result, millions of Americans voted for the less-than-perfect conservative revolution because they believed in the promises of the politicians.
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Neo – CONNED !
July 10, 2003 2003 Ron Paul 73:53
Communism surely lost a lot with the breakup of the Soviet Empire, but this can hardly be declared a victory for American liberty, as the Founders understood it. Neoconservatism is not the philosophy of free markets and a wise foreign policy. Instead, it represents big-government welfare at home and a program of using our military might to spread their version of American values throughout the world. Since neoconservatives dominate the way the U.S. government now operates, it behooves us all to understand their beliefs and goals. The breakup of the Soviet system may well have been an epic event but to say that the views of the neocons are the unchallenged victors and that all we need do is wait for their implementation is a capitulation to controlling the forces of history that many Americans are not yet ready to concede. There is surely no need to do so.
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Neo – CONNED !
July 10, 2003 2003 Ron Paul 73:60
The conflict of the ages has been between the state and the individual: central power versus liberty. The more restrained the state and the more emphasis on individual liberty, the greater has been the advancement of civilization and general prosperity. Just as man’s condition was not locked in place by the times and wars of old and improved with liberty and free markets, there’s no reason to believe a new stage for man might not be achieved by believing and working for conditions of peace. The inevitability and so-called need for preemptive war should never be intellectually justified as being a benefit. Such an attitude guarantees the backsliding of civilization. Neocons, unfortunately, claim that war is in man’s nature and that we can’t do much about it, so let’s use it to our advantage by promoting our goodness around the world through force of arms. That view is anathema to the cause of liberty and the preservation of the Constitution. If it is not loudly refuted, our future will be dire indeed.
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Neo – CONNED !
July 10, 2003 2003 Ron Paul 73:80
There’s no serious opposition to the expanding welfare state, with rapid growth of the education, agriculture and medical-care bureaucracy. Support for labor unions and protectionism are not uncommon. Civil liberties are easily sacrificed in the post 9-11 atmosphere prevailing in Washington. Privacy issues are of little concern, except for a few members of Congress. Foreign aid and internationalism—in spite of some healthy criticism of the UN and growing concerns for our national sovereignty—are championed on both sides of the aisle. Lip service is given to the free market and free trade, yet the entire economy is run by special-interest legislation favoring big business, big labor and, especially, big money.
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Legislation To Prohibit The Federal Government From Imposing A “Carry Tax”
17 July 2003 2003 Ron Paul 78:2
Proposals to punish people if their economic behavior meets with the disapproval of government officials form the foundation of the type of central planning which caused so much misery in the last century. The carry tax proposal is obviously incompatible with a free market. This proposal is also a major threat to personal and financial privacy and thus individual liberty. In order to enforce the carry tax, the government would need a means of monitoring how long each piece of currency has been in circulation and how many hands it passed through before coming into the possession of the person on whom the tax is assessed. Thus, enforcing this tax would also give the government the power to monitor the transactions of individual Americans. The Federal Government should not abuse the authority granted it by our current monetary system and legal tender laws as a backdoor means of prying into the private economic transactions of American citizens. That is why my legislation also forbids the Federal Government from placing any information storage capacity on any Federal Reserve notes.
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Legislation To Prohibit The Federal Government From Imposing A “Carry Tax”
17 July 2003 2003 Ron Paul 78:3
The carry tax was proposed as a measure to counteract the perceived risk of deflation. Yet, the problems this carry tax is intended to solve are caused by our government’s boomand- bust monetary policy. Any perceived deflation in the American economy is the result of the end of the inflationary period of the nineties that created the stock market bubble. When the bubble burst, there was the inevitable process of liquidating bad investments caused by the misallocation of credit as a result of the Federal Reserve monetary policy. In fact, this liquidation is necessary for the economy to recover from the economic misallocations caused by the Federal Reserve’s monetary policy.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:2
Federal dealings in the gold market have the potential to seriously disrupt the free market by either artificially inflating or deflating the price of gold. Given gold’s importance to America’s (and the world’s) monetary system, any federal interference in the gold market will have ripple effects through the entire economy. For example, if the government were to intervene to artificially lower the price of gold, the result would be to hide the true effects of an inflationary policy until the damage was too severe to remain out of the public eye.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:3
By artificially deflating the price of gold, federal intervention in the gold market can reduce the values of private gold holdings, adversely affecting millions of investors. These investors rely on their gold holdings to protect them from the effects of our misguided fiat currency system. Federal dealings in gold can also adversely affect those countries with large gold mines, many of which are currently ravished by extreme poverty. Mr. Speaker, restoring a vibrant gold market could do more than any foreign aid program to restore economic growth to those areas.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:4
While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action Committee (GATA) has uncovered evidence suggesting that the Federal Reserve and the Treasury, as detailed in the attached article. GATA alleges that the Treasury, operating through the Exchange- Stabilization Fund and in cooperation with major banks and the International Monetary Fund, has been interfering in the gold market with the goal of lowering the price of gold. The purpose of this policy has been to disguise the true effects of the monetary bubble responsible for the artificial prosperity of the 1990s, and to protect the politically-powerful banks that are heavy invested in gold derivatives. GATA believes federal actions to drive down the price of gold help protect the profits of these banks at the expense of investors, consumers, and taxpayers around the world.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:6
Mr. Speaker, while I certainly share GATA’s concerns over the effects of federal dealings in the gold market, my bill in no way interferes with the ability of the federal government to buy or sell gold. It simply requires that before the executive branch engages in such transactions, Congress has the chance to review it, debate it, and approve it.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:7
Given the tremendous effects on the American economy from federal dealings in the gold market, it certainly is reasonable that the people’s representatives have a role in approving these transactions, especially since Congress has a neglected but vital constitutional role V in overseeing monetary policy. Therefore, I urge all my colleagues to stand up for sound economics, open government, and Congress’ constitutional role in monetary policy by cosponsoring the Monetary Freedom and Accountability Act.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:8
[From Insight Magazine, July 8, 2003] PANIC IS NEAR IF “THE GOLD IS GONE” (By Kelly Patricia O Meara) Gold. It’s been called a barbarous relic, and those who focus on its historic role as a standard of value frequently are labeled “lunatic fringe.” Given the recent highs in the gold market, it looks like the crazies have been having a hell of a year. With the stock market taking its third yearly loss, gold returned nearly 30 percent to investors, moving from $255 an ounce to six-year highs of $380.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:12
What the Bank of Portugal revealed in its 2001 annual report is that 433 tonnes [metric tons] of gold — some 70 percent of its gold reserve — either have been lent or swapped into the market. According to Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA), a nonprofit organization that researches and studies the gold market and reports its findings at www.LeMetropoleCafe.com: “This gold is gone — and it lends support to our years of research that the central banks do not have the 32,000 tonnes of gold in reserve that they claim. The big question is: How many other central banks are in the same predicament as the Portuguese?”
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:13
Murphy explains: “The essence of the rigging of the gold market is that the bullion banks borrowed central-bank gold from various vaults and flooded the market with supply, keeping the price down. The GATA camp has uncovered information that shows that around 15,000 to 16,000 tonnes of gold have left the central banks, leaving the centralbank reserves with about half of what is officially reported.”
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:17
The gold bugs appear to be basing their identification of a world gold shortage on industry data, much of which has been summarized in two papers prepared by four different gold analysts at different times using separate methods. The first paper was written by governmental investment adviser Frank Veneroso and his associate, mining analyst Declan Costelloe. Titled Gold Derivatives, Gold Lending: Official Management of the Gold Price and the Current State of the Gold Market, it was presented at the 2002 International Gold Symposium in Lima, Peru, and estimates the gold deficit of the central banks at between 10,000 and 15,000 tonnes. The second paper, Gold Derivatives: Moving Towards Checkmate, by Mike Bolser, a retired businessman, and Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, estimates the alleged shortage of central-bank gold at between 15,000 and 16,000 tonnes — nearly a decade’s worth of mine production.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:18
George Milling-Stanley, manager of goldmarket analysis for the World Gold Council (WGC), a private organization made up of leading gold-mining companies that promotes the acquisition and retention of gold, is aware of these papers and shortage numbers but tells Insight that “there are no official [gold-reserve] reports.” That is, “The central banks are under no obligation to report what they lend into the market, what they place on deposit and what they do with their swaps, so there’s a conventional-wisdom view, and a couple of different bodies have done some fairly serious research in[to] this and have come up with a figure [of] around 4,500 to 5,000 tonnes.”
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:19
Stanley’s estimate is based on data provided by so-called “serious” researchers, including Londonbased Gold Fields Mineral Services (GFMS), one of the world’s foremost precious-metals consultants, and a report titled Gold Derivatives: The Market View, commissioned by the WGC to London-based Virtual Metals Consultancy. While these two groups appear to be the research choice of the official gold world, there are in fact no “official” figures, and both studies, like the Veneroso/Costelloe and Bolser/Howe reports, are based on interviews, data analysis and other research generally available to the industry.
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:25
John Embry, the manager of last year’s best-performing North American gold fund and manager of the Royal Precious Metals Fund for the Royal Bank of Canada, says he is putting his and his clients’ money on the “lunatic fringe” in this dispute: “I’ve examined all the evidence gathered by GATA and everyone else, and I think these guys are anything but lunatics. They’ve done their homework and have unearthed a lot of interesting stuff. The problem, though, is that the market is sufficiently opaque that there is really no way to know who is right and who is wrong.”
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The Monetary Freedom And Accountability Act
17 July 2003 2003 Ron Paul 79:27
Embry says, “I’ve made a fortune for my clients investing in gold and gold stocks because I have operated on the premise that the Veneroso/Howe reports are right — that gold was significantly undervalued in the daily quote and that it was going a lot higher. The circumstantial evidence, and I bet my clients’ money on it, was very much in favor of the guys who said a great deal more central-bank gold had entered the market and driven the price down far too low. GATA has had this story from day one. I think that they’re right and that officialdom doesn’t want this exposed. GATA is willing to have a public debate but the gold world won’t debate. I think there is a tacit admission of anyone who has an IQ above that of a grapefruit that Veneroso and Howe have a pretty good point. I’m an analyst who has looked at both sides of the issue and I bet my money on GATA. So far they’ve been right.”
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Bring Back Honest Money
17 July 2003 2003 Ron Paul 82:2
Absent legal tender laws, individuals acting through the markets, rather than government dictates, determine what is to be used as money. Historically, the free-market choice for money has been some combination of gold and silver, whenever they were available. As Dr. Edwin Vieira, the nation’s top expert on constitutional money, states: “A free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that’s being used.”
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Bring Back Honest Money
17 July 2003 2003 Ron Paul 82:7
The advantages given banks and other financial institutions by our fiat monetary system, which is built on a foundation of legal tender laws, allow them to realize revenues that would not be available to these institutions in a free market. This represents legalized plunder of ordinary people. Legal tender laws thus enable the redistribution of wealth from those who produce it, mostly ordinary working people, to those who create and move around our irredeemable paper-ticket electronic money which is, in essence, just scrip.
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Bring Back Honest Money
17 July 2003 2003 Ron Paul 82:8
The drafters of the Constitution were well aware of how a government armed with legal tender powers could ravage the people’s liberty and prosperity. That is why the Constitution does not grant legal tender power to the federal government, and the states are empowered to make legal tender only out of gold and silver (see Article 1, Section 10). Instead, Congress was given the power to regulate money against a standard, i.e., the dollar. When Alexander Hamilton wrote the Coinage Act of 1792, he simply made into law the market-definition of a dollar as equaling the silver content of the Spanish milled dollar (371.25 grains of silver), which is the dollar referred to in the Constitution. This historical definition of the dollar has never been changed, and cannot be changed any more than the term “inch,” as a measure of length, can be changed. It is a gross misrepresentation to equate our irredeemable paper-ticket or electronic money to “dollars.”
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Bring Back Honest Money
17 July 2003 2003 Ron Paul 82:12
Repeal of legal tender laws will help restore constitutional government and protect the people’s right to a medium of exchange chosen by the market, thereby protecting their current purchasing power as well as their pensions, savings, and other promises of future payment. Because honest money serves the needs of ordinary people, instead of fiat irredeemable paper-ticket electronic money that improperly transfers the wealth of society to a small specially privileged financial elite along with other special interests, I urge my colleagues to cosponsor the Honest Money Act.
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Abolishing The Federal Reserve
17 July 2003 2003 Ron Paul 83:8
In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.
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Abolishing The Federal Reserve
17 July 2003 2003 Ron Paul 83:13
Currently the annual inflation rate is about 2.5%. Thus, the risk free rate (the real rate-2% — plus the inflation premium) on savings deposits and money market funds should be about 4.5%. For Americans who seek the safety of savings accounts and money market funds for their hard-earned money, the current average yield of 0.7% on money market funds is well below the current risk free rate. In addition, savers who own short-term U.S. Treasury debt are receiving slightly more than 1.1 % annually. What’s going on? How can savers be receiving about 3.5% less than the risk free rate on their money market accounts and savings accounts?
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Abolishing The Federal Reserve
17 July 2003 2003 Ron Paul 83:18
To put this in dollars and cents, there are $2.2 trillion in money market funds, with an average annual yield of 0.7%. The income from these funds is about $15 billion a year. If interest rates were 4.5%, savers would have nearly one hundred billion dollars in income or $85 billion more than they are currently receiving.
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Legislation To Withdraw The United States From The Bretton Woods Agreement
17 July 2003 2003 Ron Paul 84:6
IMF policies ultimately are based on a flawed philosophy that says the best means of creating economic prosperity is through government- to-government transfers. Such programs cannot produce growth, because they take capital out of private hands, where it can be allocated to its most productive use as determined by the choices of consumers in the market; and place it in the hands of politicians. Placing economic resources in the hands of politicians and bureaucrats inevitably results in inefficiencies, shortages, and economic crises, as even the best-intentioned politicians cannot know the most efficient use of resources.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:6
Mr. Speaker, I am pleased to be an original cosponsor of H.R. 2427, the Pharmaceutical Market Access Act, because I believe it is an important bill that will benefit all Americans. As my colleagues are aware, many Americans are concerned about the high cost of prescription drugs. These high prices particularly affect senior citizens who have a greater than average need for prescription drugs and a lower than average income. Of course, some of these seniors may soon have at least part of their prescription drug costs covered by Medicare.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:7
However, the fact that Medicare, that is already on shaky financial ground, will soon be subsidizing prescription drug costs makes it more important than ever that Congress address the issue of prescription drug costs. Of course, Congress’s actions should respect our constitutional limits and not further expand the role of government in the health care market.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:8
Fortunately, there are a number of marketoriented policies Congress can adopt to lower the prices of prescription drugs. This is because the main reason prescription drug prices are high is government policies, that give a few powerful companies monopoly power. For example, policies restricting the importation of quality pharmaceuticals enable pharmaceutical companies to charge abovemarket prices for their products. Therefore, all members of Congress who are serious about lowering prescription drug prices should support H.R. 2427.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:11
Other opponents of this bill have charged that creating a free market in pharmaceuticals will impose Canadian style price controls on prescription drugs. This is nonsense. Nothing in H.R. 2427 gives the government any additional power to determine pharmaceutical prices. H.R. 2427 simply lowers trade barriers, thus taking a step toward ensuring that Americans pay a true market price for prescription drugs. This market price will likely be lower than the current price because current government policies raise the price of prescription drugs above what it would be in the market.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:12
Today, Americans enjoy access to many imported goods which are subject to price controls, and even receive government subsidies, in their countries of origin. Interestingly, some people support liberalized trade with Communist China, which is hardly a free economy, while opposing H.R. 2427! American policy has always been based on the principle that our economy is strengthened by free trade even when our trading partners engage in such market distorting policies as price controls and industrial subsidies. There is no good reason why pharmaceuticals should be an exception to the rule.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:13
Finally, Mr. Speaker, I wish to express my disappointment with the numerous D.C.-based “free-market” organizations that are opposing this bill. Anyone following this debate could be excused for thinking they have entered into a Twilight Zone episode where “libertarian” policy wonks argue that the Federal Government must protect citizens from purchasing the pharmaceuticals of their choice, endorse protectionism, and argue that the Federal Government has a moral duty to fashion policies designed to protect the pharmaceutical companies’ profit margins. I do not wish to speculate on the motivation behind this deviation from free-market principles among groups that normally uphold the principles of liberty. However, I do hope the vehemence with which these organizations are attacking this bill is motivated by sincere, if misguided, principle, and not by the large donations these organizations have received from the pharmaceutical industry. If the latter is the case, then these groups have discredited themselves by suggesting that their free-market principles can be compromised when it serves the interests of their corporate donors.
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H.R. 2427, the Pharmaceutical Market Access Act
24 July 2003 2003 Ron Paul 91:14
In conclusion, Mr. Speaker, I once again urge my colleagues to show that they are serious about lowering the prices of prescription drugs and that they trust the people to do what is in their best interests by supporting H.R. 2427, the Pharmaceutical Market Access Act.
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Stop Subsidizing Foreign Shrimpers
July 25, 2003 2003 Ron Paul 92:2
Unfortunately, the federal government is strangling this vital industry with excessive regulations. For example, the federal government mandates catch reduction devices and turtle excluder devices (TEDS) on the industry. Our shrimpers’ foreign competitors operate without such regulations, placing them at a distinct advantage. The mandatory use of these devices also results in a significant reduction in the amount of shrimp caught by domestic shrimpers, thus damaging their competitive position and market share.
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Stop Subsidizing Foreign Shrimpers
July 25, 2003 2003 Ron Paul 92:5
Many of the countries in question do not have free-market economies. Thus, the participation of these countries in United States-supported international financial regimes amounts to American shrimpers directly subsidizing their international competitors. In any case, providing aid to any of these countries indirectly benefits foreign shrimpers because of the fungibility of money.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:2
Alan Greenspan, years before he became Federal Reserve Board Chairman in charge of flagrantly debasing the U.S. dollar, wrote about this connection between sound money, prosperity, and freedom. In his article “Gold and Economic Freedom” ( The Objectivist, July 1966), Greenspan starts by saying: “An almost hysterical antagonism toward the gold standard is an issue that unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Further he states that: “Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.” Astoundingly, Mr. Greenspan’s analysis of the 1929 market crash, and how the Fed precipitated the crisis, directly parallels current conditions we are experiencing under his management of the Fed. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.” Greenspan concluded his article by stating: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” He explains that the “shabby secret” of the proponents of big government and paper money is that deficit spending is simply nothing more than a “scheme for the hidden confiscation of wealth.” Yet here we are today with a purely fiat monetary system, managed almost exclusively by Alan Greenspan, who once so correctly denounced the Fed’s role in the Depression while recognizing the need for sound money.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:5
But this human trait of seeking wealth and comfort with the least amount of effort is often abused. It leads some to believe that by certain monetary manipulations, wealth can be made more available to everyone. Those who believe in fiat money often believe wealth can be increased without a commensurate amount of hard work and innovation. They also come to believe that savings and market control of interest rates are not only unnecessary, but actually hinder a productive growing economy. Concern for liberty is replaced by the illusion that material benefits can be more easily obtained with fiat money than through hard work and ingenuity. The perceived benefits soon become of greater concern for society than the preservation of liberty. This does not mean proponents of fiat money embark on a crusade to promote tyranny, though that is what it leads to, but rather they hope they have found the philosopher’s stone and a modern alternative to the challenge of turning lead into gold.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:12
Money is a moral, economic, and political issue. Since the monetary unit measures every economic transaction, from wages to prices, taxes, and interest rates, it is vitally important that its value is honestly established in the marketplace without bankers, government, politicians, or the Federal Reserve manipulating its value to serve special interests. Money As a Moral Issue
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:35
There are also many conservatives who do not endorse central economic planning as those on the left do, but nevertheless concede this authority to the Federal Reserve to manipulate the economy through monetary policy. Only a small group of constitutionalists, libertarians, and Austrian free-market economists reject the notion that central planning, through interest-rate and money-supply manipulation, is a productive endeavor.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:36
Many sincere politicians, bureaucrats, and bankers endorse the current system, not out of malice or greed, but because it’s the only system they have know. The principles of sound money and free market banking are not taught in our universities. The overwhelming consensus in Washington, as well as around the world, is that commodity money without a central bank is no longer practical or necessary. Be assured, though, that certain individuals who greatly benefit from a paper money system know exactly why the restraints that a commodities standard would have are unacceptable.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:40
But where’s the hitch? This process, which seems to be a creative way of paying off debt, eventually undermines the capitalist structure of the economy, thus making it difficult to produce wealth, and that’s when the whole process comes to an end. This system causes many economic problems, but most of them stem from the Fed’s interference with the market rate of interest that it achieves through credit creation and printing money.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:42
Though generally accepted by most modern economists and politicians, there is little hesitancy in accepting the omnipotent wisdom of the Federal Reserve to know the “price” of money – the interest rate – and its proper supply. For decades, and especially during the 1990s – when Chairman Greenspan was held in such high esteem, and no one dared question his judgment or the wisdom of the system- this process was allowed to run unimpeded by political or market restraints. Just as we must eventually pay for our perpetual deficits, continuous manipulation of interest and credit will also extract a payment.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:43
Artificially low interest rates deceive investors into believing that rates are low because savings are high and represent funds not spent on consumption. When the Fed creates bank deposits out of thin air making loans available at below-market rates, mal-investment and overcapacity results, setting the stage for the next recession or depression. The easy credit policy is welcomed by many: stock-market investors, home builders, home buyers, congressional spendthrifts, bankers, and many other consumers who enjoy borrowing at low rates and not worrying about repayment. However, perpetual good times cannot come from a printing press or easy credit created by a Federal Reserve computer. The piper will demand payment, and the downturn in the business cycle will see to it. The downturn is locked into place by the artificial boom that everyone enjoys, despite the dreams that we have ushered in a “new economic era.” Let there be no doubt: the business cycle, the stagflation, the recessions, the depressions, and the inflations are not a result of capitalism and sound money, but rather are a direct result of paper money and a central bank that is incapable of managing it.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:44
Our current monetary system makes it tempting for all parties, individuals, corporations, and government to go into debt. It encourages consumption over investment and production. Incentives to save are diminished by the Fed’s making new credit available to everyone and keeping interest rates on saving so low that few find it advisable to save for a rainy day. This is made worse by taxing interest earned on savings. It plays havoc with those who do save and want to live off their interest. The artificial rates may be 4, 5, or even 6% below the market rate, and the savers- many who are elderly and on fixed incomes- suffer unfairly at the hands of Alan Greenspan, who believes that resorting to money creation will solve our problems and give us perpetual prosperity.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:58
The long-term philosophic problem with this is that the central bank and the fiat monetary system are not blamed; instead free market capitalism is. This is what happened in the 1930s. The Keynesians, who grew to dominate economic thinking at the time, erroneously blamed the gold standard, balanced budgets, and capitalism instead of tax increases, tariffs, and Fed policy. This country cannot afford another attack on economic liberty similar to what followed the 1929 crash that ushered in the economic interventionism and inflationism which we have been saddled with ever since. These policies have brought us to the brink of another colossal economic downturn and we need to be prepared.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:62
Our current economic problems are directly related to the monetary excesses of three decades and the more recent efforts by the Federal Reserve to thwart the correction that the market is forcing upon us. Since 1998, there has been a sustained attack on corporate profits. Before that, profits and earnings were inflated and fictitious, with WorldCom and Enron being prime examples. In spite of the 13 rate cuts since 2001, economic growth has not been restored.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:63
Paper money encourages speculation, excessive debt, and misdirected investments. The market, however, always moves in the direction of eliminating bad investments, liquidating debt, and reducing speculative excesses. What we have seen, especially since the stock market peak of early 2000, is a knock-down, drag-out battle between the Fed’s effort to avoid a recession, limit the recession, and stimulate growth with its only tool, money creation, while the market demands the elimination of bad investments and excess debt. The Fed was also motivated to save the stock market from collapsing, which in some ways they have been able to do. The market, in contrast, will insist on liquidation of unsustainable debt, removal of investment mistakes made over several decades, and a dramatic revaluation of the stock market. In this go-around, the Fed has pulled out all the stops and is more determined than ever, yet the market is saying that new and healthy growth cannot occur until a major cleansing of the system occurs. Does anyone think that tariffs and interest rates of 1% will encourage the rebuilding of our steel and textile industries anytime soon? Obviously, something more is needed.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:65
In recent years, there has been a coordinated effort by the world central bankers to keep the gold price in check by dumping part of their large horde of gold into the market. This has worked to a degree, but just as it could not be sustained in the 1960s, until Nixon declared the Bretton Woods agreement dead in 1971, this effort will fail as well.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:66
The market price of gold is important because it reflects the ultimate confidence in the dollar. An artificially low price for gold contributes to false confidence and when this is lost, more chaos ensues as the market adjusts for the delay.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:67
Monetary policy today is designed to demonetize gold and guarantee for the first time that paper can serve as an adequate substitute in the hands of wise central bankers. Trust, then, has to be transferred from gold to the politicians and bureaucrats who are in charge of our monetary system. This fails to recognize the obvious reason that market participants throughout history have always preferred to deal with real assets, real money, rather than government paper. This contest between paper and honest money is of much greater significance than many realize. We should know the outcome of this struggle within the next decade.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:73
It’s now admitted that the deficit is out of control, with next year’s deficit reaching over one-half trillion dollars, not counting the billions borrowed from “trust funds” like Social Security. I’m sticking to my prediction that within a few years the national debt will increase over $1 trillion in one fiscal year. So far, so good, no big market reactions, the dollar is holding its own and the administration and congressional leaders are not alarmed. But they ought to be.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:2
I hope this committee spends some time examining the special privileges provided to GSEs by the federal government. According to the Congressional Budget Office, the housing-related GSEs received 13.6 billion worth of indirect federal subsidies in fiscal year 2000 alone. Today, I will introduce the Free Housing Market Enhancement Act, which removes government subsidies from the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:4
The Free Housing Market Enhancement Act also repeals the explicit grant of legal authority given to the Federal Reserve to purchase GSE debt. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:5
The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports of mismanagement occurring at Fannie and Freddie. After all, if Fannie and Freddie were not underwritten by the federal government, investors would demand Fannie and Freddie provide assurance that they follow accepted management and accounting practices.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:6
Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:7
Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policy of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:8
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts.
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Fannie Mae and Freddie Mac Subsidies Distort the Housing Market
September 10, 2003 2003 Ron Paul 95:10
Mr. Chairman, I would like to once again thank the Financial Services Committee for holding this hearing. I would also like to thank Secretaries Snow and Martinez for their presence here today. I hope today’s hearing sheds light on how special privileges granted to GSEs distort the housing market and endanger American taxpayers. Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. I therefore hope this committee will soon stand up for American taxpayers and investors by acting on my Free Housing Market Enhancement Act.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:1
Mr. PAUL. Mr. Speaker, I rise to introduce the Free Housing Market Enhancement Act. This legislation restores a free market in housing by repealing special privileges for the housing-related government sponsored enterprises (GSE). These entities are the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board. According to the Congressional Budget Office, the housing-related GSEs received 13.6 billion worth of indirect Federal subsidies in Fiscal Year 2000 alone.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:3
The Free Housing Market Enhancement Act also repeals the explicit grant of legal authority given to the Federal Reserve to purchase the debt of GSE. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetarize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:4
The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports of mismanagement occurring at Fannie and Freddie. After all, if investors did not have reason to believe that Fannie and Freddie were underwritten by the Federal government then investors would demand Fannie and Freddie provided assurance they were following accepted management and accounting practices before investing in Fannie and Freddie.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:5
Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market This is because the special privileges of Fannie and Freddie have distorted the housing marketing by allowing Fannie, Freddie and the home loan bank board to attract capital they could not attract under pure market conditions. As a result, capitol is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:6
Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially- created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:7
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSE’s debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts.
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Introducing Free Housing Market Enhancement Act
10 September 2003 2003 Ron Paul 96:9
Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act.
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Introduction Of The Steel Financing Fairness Act
10 September 2003 2003 Ron Paul 97:3
One of the problems facing America’s domestic steel industry is that it must compete with foreign industries that receive subsidies from their governments. Some of these subsidies are explicitly intended to provide these companies with a non-market advantage over American steel producers. The U.S. Government further compounds the damage caused by these subsidies by forcing the domestic steel producers to support their major competitors through taxpayer-funded programs.
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Thrift Savings Improvement Act
16 September 2003 2003 Ron Paul 99:5
Recent gains aside, precious metals have a number of features that make them a sound part of a prudent investment strategy. In particular, inflation does not erode the value of precious metals is not eroded over time. Thus, precious metals can serve as a valuable “inflation hedge.” Precious metals also maintain, or even increase, their value during times of stock market instability, such as what the country is currently experiencing. Thus, investments in precious metals can help ensure that an investment portfolio maintains its value during times of economic instability.
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Tribute To Larry Reed
25 september 2003 2003 Ron Paul 102:3
In addition to running Mackinac, Larry is a prolific author. He has written over 800 newspaper columns and articles, 200 radio commentaries, dozens of articles in magazines and journals in the United States and abroad. Larry is also the author of five books including Lessons From the Past: The Silver Panic of 1893 and Private Cures for Public Ills: The Promise of Privatization. All of Larry’s writings reflect his unswerving commitment to limited government and the free market as the best way to promote human happiness.
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Tribute To Larry Reed
25 september 2003 2003 Ron Paul 102:4
Larry has also found time to deliver more than 700 speeches, traveling to 40 states and 10 foreign countries to spread the freedom philosophy. Larry also promotes liberty as a member and past chairman of the Board of Trustees of the Foundation for Economic Education (FEE), the nation’s oldest free-market educational institution.
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Are Vouchers the Solution for Our Failing Public Schools?
September 30, 2003 2003 Ron Paul 103:2
The basic reason supporters of parental control of education should view Federal voucher programs with a high degree of skepticism is that vouchers are a creation of the government, not the market. Vouchers are a taxpayer-funded program benefiting a particular group of children selected by politicians and bureaucrats. Therefore, the Federal voucher program supported by many conservatives is little more than another tax-funded welfare program establishing an entitlement to a private school education. Vouchers thus raise the same constitutional and moral questions as other transfer programs. Yet, voucher supporters wonder why middle-class taxpayers, who have to sacrifice to provide a private school education to their children, balk at being forced to pay more taxes to provide a free private education for another child.
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Are Vouchers the Solution for Our Failing Public Schools?
September 30, 2003 2003 Ron Paul 103:3
It may be argued that vouchers are at least a more efficient welfare program than continuing to throw taxpayer money at public schools. However, the likely effect of a voucher program is to increase spending on new programs for private schools while continuing to increase spending on programs for public schools. For example, Mr. Speaker, during the debate on the DC voucher program, voucher proponents vehemently denied that any public schools would lose any Federal funding. Some even promised to support increased Federal spending on DC’s public and charter schools. Instead of reducing funding for failed programs, Congress simply added another 10 million dollars (from taxes or debt) to the bill to pay for the vouchers without making any offsetting cuts. In a true free market, failing competitors are not guaranteed a continued revenue stream.
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Are Vouchers the Solution for Our Failing Public Schools?
September 30, 2003 2003 Ron Paul 103:14
Mr. Speaker, proponents of vouchers promise these programs advance true market principles and thus improve education. However, there is a real danger that Federal voucher programs will expand the welfare state and impose government “standards” on private schools, turning them into “privatized” versions of public schools. A superior way of improving education is to return control of the education dollar directly to the American people through tax cuts and tax credits. I therefore hope all supporters of parental control of education will support my Family Education Freedom Act and Education Improvement Tax Cut Act.
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American Dream Downpayment Act
1 October 2003 2003 Ron Paul 104:2
H.R. 1276 not only warps the true meaning of the American dream, but also exceeds Congress’ constitutional boundaries and interferes with and distorts the operation of the free market. Instead of expanding unconstitutional federal power, Congress should focus its energies on dismantling the federal housing bureaucracy so the American people can control housing resources and use the free market to meet their demands for affordable housing.
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American Dream Downpayment Act
1 October 2003 2003 Ron Paul 104:3
As the great economist Ludwig Von Mises pointed out, questions of the proper allocation of resources for housing and other goods should be determined by consumer preference in the free market. Resources removed from the market and distributed according to the preferences of government politician and bureaucrats are not devoted to their highest-valued use. Thus, government interference in the economy results in a loss of economic efficiency and, more importantly, a lower standard of living for all citizens.
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American Dream Downpayment Act
1 October 2003 2003 Ron Paul 104:4
H.R. 1276 takes resources away from private citizens, through confiscatory taxation, and uses them for the politically favored cause of expanding home ownership. Government subsidization of housing leads to an excessive allocation of resources to the housing market. Thus, thanks to government policy, resources that would have been devoted to education, transportation, or some other good desired by consumers, will instead be devoted to housing. Proponents of this bill ignore the socially beneficial uses the monies devoted to housing might have been put to had those resources been left in the hands of private citizens.
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American Dream Downpayment Act
1 October 2003 2003 Ron Paul 104:7
H.R. 1276 distorts the economy and violates constitutional prohibitions on income redistribution. A better way of guaranteeing an efficient housing market where everyone could meet their own needs for housing would be for Congress to repeal taxes and programs that burden the housing industry and allow housing needs to be met by the free market. Therefore, I urge my colleagues to reject this bill and instead develop housing policies consistent with constitutional principles, the laws of economics, and respect for individual rights.
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Defense Production Reauthorization Act
15 October 2003 2003 Ron Paul 107:4
The wide grant of unchecked power to the Executive runs counter to the intent of the drafters of the Constitution. The Founders carefully limited the executive power because they recognized that an executive with unfettered power was a threat to liberty. In recent years we have seen administrations of both parties undermine the Constitutional separation of powers via enhanced reliance on executive orders and unilateral decision-making. The Defense Production Reauthorization Act provides Constitutional blessing to this usurpation of power, and not just in areas clearly related to national defense. For example, the DPA has been used to justify federal interference in the energy market. It is an open question what other exercise of federal power could be justified as related to defense. For example, federal education programs has been justified on the grounds that an educated population is vital to national defense, so perhaps a future president will use DPA to impose a national curriculum!
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Misguided Policy Of Nation Building In Iraq
17 October 2003 2003 Ron Paul 111:46
If we want Iraq and other countries to act more like we do, it can be done; and that should be a goal. But there is a difference. There are two different ways we can do it. One, we can force people to do things and the other way is we can try to talk them into doing it in a voluntary fashion. If we did an exceptionally good job and we had a truly prosperous economy, which I believe a free market would achieve, which we do not have, where the greatest number of people would have the greatest benefits, truly set an example, have democratic elections but obey a constitution that is designed to protect liberty and protect minorities, if we set an example, then I sincerely believe others then would be more inclined to emulate us and to see us as an example.
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Misguided Policy Of Nation Building In Iraq
17 October 2003 2003 Ron Paul 111:60
It has to be personalized. Because if it is just, oh, we are willing to pay. Where does the money come from? We are flat-out broke. We have had the biggest deficit ever. Our dollar is going down on the market, and we are now assuming more liabilities. When we spend $87 billion in Iraq, that is literally taken out of our economy. Imagine how many jobs and how much improvement on the standard of living of Americans could occur with $87 billion, and at the same time believe sincerely that a policy of nonintervention would be the best policy for peace and prosperity.
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Congress Shouldn’t Censor Foreign Leaders
28 October 2003 2003 Ron Paul 113:7
I strongly believe that we need to get out of the business of threatening people over what they think and say and instead trust that our own principles, freedom and liberty, can win out in the marketplace of ideas over bigotry and hate. When the possibility of persuasion is abandoned, the only recourse for the aggrieved is violence. Haven’t we seen enough of this already?
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Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms
29 october 2003 2003 Ron Paul 115:4
China, in fact, has done very well with a fixed measurement of value. China’s economic growth rate is high; China is also exporting many products into our market while our domestic producers are suffering. Therefore, China makes a good scapegoat for our economic problems. Demanding that the Chinese government adjust its currency is a convenient distraction from addressing the real economic problems facing our country.
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Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms
29 october 2003 2003 Ron Paul 115:5
Instead of having fluctuating currency exchange rates and the inevitable instability that accompanies them, we should be working to establish a gold-backed currency whose value is determined by the market. This would provide an objective measurement of the value of economic goods and services and thus strengthen the economy by freeing it from the negative effects of our unstable monetary policy.
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Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms
29 october 2003 2003 Ron Paul 115:12
In conclusion, Mr. Speaker, I remind my colleagues that stability in currencies is something we should seek, not something we should condemn Instead of urging China to adopt a floating rate, Congress should be working to adopt a stable, commodity-backed currency whose value is determined by the market and encourage other countries to also adopt a market-based currency. This will benefit American workers, entrepreneurs, and consumers. Congress should also strengthen America’s economy by reducing taxes and repealing unnecessary and unconstitutional regulations and stop forcing American taxpayers to subsidize their foreign competitors.
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Best Energy Policy Is The Free Market
18 November 2003 2003 Ron Paul 118:2
The best energy policy is the free market! Energy is no different than any other commodity — free market, competition produces the most efficient allocation of resources. In a true free market, conservation of scarce energy resources occurs naturally. When coal, natural gas, or other nonrenewable sources are depleted, the price goes up. When alternative energy sources like wind and solar become economically feasible, demand for such sources arises naturally. There is always a natural market for clean and cheap energy. Only an unregulated free market creates the environment that allows critical technological innovation to flourish, innovation that holds the key to cheaper and cleaner energy.
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Best Energy Policy Is The Free Market
18 November 2003 2003 Ron Paul 118:3
The approach we take today, however, distorts the market and favors certain industries and companies at the expense of American taxpayers.
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Best Energy Policy Is The Free Market
18 November 2003 2003 Ron Paul 118:4
It’s always the same old story in Washington: instead of allowing the free market to work, Congress regulates, subsidizes, and taxes an industry, and when inevitable problems arise, the free market is blamed! The solution is always more Federal intervention; no one suggests that too much Federal involvement created the problems in the first place.
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Best Energy Policy Is The Free Market
18 November 2003 2003 Ron Paul 118:6
Mr. Speaker, this conference report represents the usual pork, subsidies, protectionism, and regulations that already distort our energy markets. I strongly urge my colleagues to vote “no” on this terrible bill.
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Conference Report On H.R. 2417 Intelligence Authorization Act For Fiscal year 2004
20 November 2003 2003 Ron Paul 121:4
I am also concerned that our scarce resources are again being squandered pursuing a failed drug war in Colombia, as this bill continues to fund our disastrous Colombia policy. Billions of dollars have been spent in Colombia to fight this drug war, yet more drugs than ever are being produced abroad and shipped into the United States — including a bumper crop of opium sent by our new allies in Afghanistan. Evidence in South America suggests that any decrease in Colombian production of drugs for the US market has only resulted in increased production in neighboring countries. As I have stated repeatedly, the solution to the drug problem lies not in attacking the producers abroad or in creating a militarized police state to go after the consumers at home, but rather in taking a close look at our seemingly insatiable desire for these substances. Until that issue is addressed we will continue wasting billions of dollars in a losing battle.
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A Wise Consistency
February 11, 2004 2004 Ron Paul 2:3
Communism was dependent on firm, consistent, and evil beliefs. Authoritarian rule was required to enforce these views, however. Allowing alternative views to exist, as they always do, guarantees philosophic competition. For instance, the views in Hong Kong eventually won out over the old communism of the Chinese mainland. But it can work in the other direction. If the ideas of socialism, within the context of our free society, are permitted to raise their ugly head, it may well replace what we have, if we do not consistently and forcefully defend the free market and personal liberty.
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A Wise Consistency
February 11, 2004 2004 Ron Paul 2:11
Trade as an issue of personal liberty is totally ignored. But simply put, one ought to have the right to spend one’s own money any way one wants. Buying cheap foreign products can have a great economic benefit for our citizens and serve as an incentive to improve production here at home. It also puts pressure on us to reassess the onerous regulations and tax burdens placed on our business community. Monopoly wages that force wage rates above the market also are challenged when true free trade is permitted. And this, of course, is the reason free trade is rejected. Labor likes higher-than-market wages, and business likes less competition. In the end, consumers — all of us — suffer. Ironically, the free traders in Congress were the most outspoken opponents of drug reimportation, with a convoluted argument claiming that the free-trade position should prohibit the reimportation of pharmaceuticals. So much for a wise consistency!
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A Wise Consistency
February 11, 2004 2004 Ron Paul 2:13
Paper Money, Inflation, and Economic Pain : Paper money and inflation have never provided long-term economic growth, nor have they enhanced freedom. Yet the world, led by the United States, lives with a financial system awash with fiat currencies and historic debt as a consequence. No matter how serious the problems that come from central-bank monetary inflations — the depressions and inflation, unemployment, social chaos, and war — the only answer has been to inflate even more. Except for the Austrian free-market economists, the consensus is that the Great Depression was prolonged and exacerbated by the lack of monetary inflation. This view is held by Alan Greenspan, and reflected in his January 2001 response to the stock market slump and a slower economy — namely a record monetary stimulus and historically low interest rates. The unwillingness to blame the slumps on the Federal Reserve’s previous errors, though the evidence is clear, guarantees that greater problems for the United States and the world economy lie ahead. Though there is adequate information to understand the real cause of the business cycle, the truth and proper policy are not palatable. Closing down the engine of inflation at any point does cause short-term problems that are politically unacceptable. But the alternative is worse, in the long term. It is not unlike a drug addict demanding and getting a fix in order to avoid the withdrawal symptoms. Not getting rid of the addiction is a deadly mistake. While resorting to continued monetary stimulus through credit creation delays the pain and suffering, it inevitably makes the problems much worse. Debt continues to build in all areas — personal, business, and government. Inflated stock prices are propped up, waiting for another collapse. Mal-investment and overcapacity fail to correct. Insolvency proliferates without liquidation. These same errors have been prolonging the correction in Japan for 14 years, with billions of dollars of non-performing loans still on the books. Failure to admit and recognize that fiat money, mismanaged by central banks, gives us most of our economic problems, along with a greater likelihood for war, means we never learn from our mistakes. Our consistent response is to inflate faster and borrow more, which each downturn requires, to keep the economy afloat. Talk about a foolish consistency! It’s time for our leaders to admit the error of their ways, consider the wise consistency of following the advice of our Founders, and reject paper money and central bank inflationary policies.
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A Wise Consistency
February 11, 2004 2004 Ron Paul 2:15
FDA and Legal Drugs—For Our Own Protection : Our laws and attitudes regarding legal drugs are almost as harmful. The FDA supposedly exists to protect the consumer and patients. This conclusion is based on an assumption that consumers are idiots and all physicians and drug manufacturers are unethical or criminals. It also assumes that bureaucrats and politicians, motivated by good intentions, can efficiently bring drugs onto the market in a timely manner and at reasonable cost. These same naïve dreamers are the ones who say that in order to protect the people from themselves, we must prohibit them from being allowed to re-import drugs from Canada or Mexico at great savings. The FDA virtually guarantees that new drugs come online slower and cost more money. Small companies are unable to pay the legal expenses, and don’t get the friendly treatment that politically connected big drug companies receive. If a drug seems to offer promise, especially for a life-threatening disease, why is it not available, with full disclosure, to anyone who wants to try it? No, our protectors say that no one gets to use it, or make their own decisions, until the FDA guarantees that each drug has been proven safe and effective. And believe me, the FDA is quite capable of making mistakes, even after years of testing. It seems criminal when cancer patients come to our congressional offices begging and pleading for a waiver to try some new drug. We call this a free society! For those who can’t get a potentially helpful drug but might receive a little comfort from some marijuana, raised in their own back yard legally in their home state, the heavy hand of the DEA comes down hard, actually arresting and imprisoning ill patients. Federal drug laws blatantly preempt state laws, adding insult to injury.
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A Wise Consistency
February 11, 2004 2004 Ron Paul 2:24
-Our goal in international affairs ought to be to promote liberty and the private-property/free-market order — through persuasion and example, and never by force of arms, clandestine changes, or preemptive war.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:2
This document claims that “investor confidence” was boosted by the Sarbanes-Oxley Act, which imposed new federal regulations on capital markets, including mandating new duties for board members and dictating how companies must structure their boards of directors. One of Sarbanes-Oxley’s most onerous provisions makes every member of a company’s board of directors, as well as the company’s chief executive officer, criminally liable if they fail to catch accounting errors.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:6
While the committee’s “Views and Estimates” devote considerable space to discussing Government Sponsored Enterprises (GSEs), it makes no mention of the billions of dollars in subsidies Congress has given to GSEs. These subsidies distort the market, create a short-term boom in housing, and endanger the economy by allowing GSEs to attract capital they could not attract under pure market conditions.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:9
However, according to the Committee on Financial Services, the problem with GSEs is not taxpayer subsidizes but a lack of proper regulation! Therefore, the only GSE reform recommended by this document is to create a new regulator to oversee GSEs. In fact, new regulators, or new regulations, will not do anything to correct the market distortions caused by government support of GSEs.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:10
Instead of reorganizing the deck chairs of the GSEs’ looming fiscal Titanic, the Committee should pass HR 3071, the Free Housing Market Enhancement Act. This act repeals government subsidies for the housing-related GSEs — Fannie Mae, Freddie Mac, and the National Home Loan Bank Board.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:12
The committee also expresses unqualified support for programs such as the Export-Import Bank (Ex-Im) that use taxpayer dollars to subsidize large multinational corporations. Ex-Im exists to subsidize large corporations that are quite capable of paying the costs of their own export programs! Ex-Im also provides taxpayer funding for export programs that would never obtain funding in the private market. As Austrian economists Ludwig Von Mises and F.A. Hayek demonstrated, one of the purposes of the market is to determine the highest value uses of resources. Thus, the failure of a project to receive funding through the free market means the resources that could have gone to that project have a higher-valued use. Government programs that take funds from the private sector and use them to fund projects that cannot obtain market funding reduce economic efficiency and decrease living standards. Yet, Ex-Im actually brags about its support for projects rejected by the market!
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:13
Rather than embracing an agenda of expanded statism, I hope my colleagues will work to reduce government interference in the market that only benefits the politically powerful. For example, the committee could take a major step toward ending corporate welfare by holding hearings and a mark-up on my legislation to withdraw the United States from the Bretton Woods Agreement and end taxpayer support for the International Monetary Fund. If the committee is not going to defund programs such as Ex-Im, it should at least act on legislation Mr. Sanders will introduce denying corporate welfare to industries that move a substantial portion of their workforce overseas. It is obscene to force working Americans to subsidize their foreign competitors.
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The Financial Services Committees “Views and Estimates for 2005”
February 26, 2004 2004 Ron Paul 7:14
Finally, the committee’s views support expanding the domestic welfare state in the area of housing, despite the fact that federal subsidies distort the housing market by taking capital that could be better used elsewhere and applying it to housing at the direction of politicians and bureaucrats. Housing subsidies also violate the constitutional prohibitions against redistributionism. The federal government has no constitutional authority to abuse its taxing power to fund programs that reshape the housing market to the liking of politicians and bureaucrats.
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Unborn Victims Of Violence Act
26 February 2004 2004 Ron Paul 8:4
Nevertheless, our Federal Government is constitutionally, a government of limited powers. Article one, section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the Federal Government lacks any authority or consent of the governed and only the State governments, their designees, or the people in their private market actions enjoy such rights to governance. The 10th amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our Nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Unborn Victims Of Violence Act
26 February 2004 2004 Ron Paul 8:9
It is important to be reminded of the benefits of federalism as well as the cost. There are sound reasons to maintain a system of smaller, independent jurisdictions — it is called competition and, yes, governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide value as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Curiously, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.
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Federalizing Tort Law
10 March 2004 2004 Ron Paul 15:6
In conclusion, while I share the concern over the lawsuits against the food industry that inspired H.R. 339, this bill continues the disturbing trend of federalizing tort law. Enhancing the power of the federal government is in no way in the long-term interests of defenders of the free market and Constitutional liberties. Therefore, I must oppose this bill.
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Providing For Consideration Of H.R. 3717, Broadcast Decency Enforcement Act Of 2004
11 March 2004 2004 Ron Paul 17:1
Mr. PAUL. Mr. Chairman, Americans are right to be outraged at much of the content of broadcast television and radio today. Too many television and radio programs regularly mock the values of millions of Americans and feature lude, inappropriate conduct. It is totally legitimate and even praiseworthy for people to use market forces, such as boycotts of the sponsors of the offensive programs, to pressure networks to remove objectionable programming. However, it is not legitimate for Congress to censor broadcast programs.
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Providing For Consideration Of H.R. 3717, Broadcast Decency Enforcement Act Of 2004
11 March 2004 2004 Ron Paul 17:3
Furthermore, there was no economic justification for Congress determining who is, and is not, allowed to access the broadcast spectrum. Instead of nationalizing the spectrum, the Federal Government should have allowed private parties to homestead parts of the broadcast spectrum and settle disputes over ownership and use through market processes, contracts, and, if necessary, application of the common law of contracts and torts. Such a market-based solution would have provided a more efficient allocation of the broadcast spectrum than has government regulation.
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Providing For Consideration Of H.R. 3717, Broadcast Decency Enforcement Act Of 2004
11 March 2004 2004 Ron Paul 17:13
H.R. 3717 should also be rejected because it is unnecessary. Major broadcasters’ profits depend on their ability to please their audiences and thus attract advertisers. Advertisers are oftentimes “risk adverse,” that is, afraid to sponsor anything that might offend a substantial portion of the viewing audience, who they hope to turn into customers. Therefore, networks have a market incentive to avoid offending the audience. It was fear of alienating the audience, and thus losing advertising revenue, that led to CBS’s quick attempt at “damage control” after the Super Bowl. Last year, we witnessed a remarkable demonstration of the power of private citizens when public pressure convinced CBS to change plans to air the movie “The Reagans,” which outraged conservatives concerned about its distortion of the life of Ronald Reagan.
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Providing For Consideration Of H.R. 3717, Broadcast Decency Enforcement Act Of 2004
11 March 2004 2004 Ron Paul 17:15
Mr. Chairman, H.R. 3717 is the latest in an increasing number of attacks on free speech. For years, those who wanted to regulate and restrict speech in the commercial marketplace relied on the commercial speech doctrine that provides a lower level of protection to speech designed to provide a profit to the speaker. However, this doctrine has no Constitutional authority because the plain language of the First Amendment does not make any exceptions for commercial speech!
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Opposing H.R. 557
17 March 2004 2004 Ron Paul 19:11
Pursuant to the Reagan administration’s policy of increasing support for Iraq, the State Department advises Under Secretary of State for Political Affairs Lawrence Eagleburger to urge the U.S. Export-Import Bank to provide Iraq with financial credits. Eagleburger signs a letter to Eximbank saying that since Saddam Hussein had complied with U.S. requests, and announced the end of all aid to the principal terrorist group of concern to the U.S., and expelled its leader (Abu Nidal), “The terrorism issue, therefore, should no longer be an impediment to EXIM financing for U.S. sales to Iraq.” The financing is to signal U.S. belief in Iraq’s future economic viability, secure a foothold in the potentially large Iraqi market, and “go far to show our support for Iraq in a practical, neutral context.”
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Opposing H.R. 557
17 March 2004 2004 Ron Paul 19:13
Article 14 of the new constitution grants the Iraqi people the “right” to “security, education, health care, and social security,” and affirms that “the Iraqi state . . . shall strive to provide prosperity and employment opportunities to the people.” This sounds more like the constitution of the old USSR than that of a free and market-oriented society. Further, this constitution declares that Iraqi citizens “shall not be permitted to possess, bear, buy, or sell arms” except by special license — denying the right of self defense to the Iraqi people just as their security situation continues to deteriorate. The Iraqi constitution also sets up a quota system for the Iraqi electoral system, stating that women should “constitute no less than one-quarter of the members of the National Assembly.” Is this kind of social engineering in Iraq on very left-liberal lines really appropriate? Are we doing the Iraqi people any favors with this approach?
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Don’t Let the FDA Block Access to Needed Health Care Information
March 22, 2004 2004 Ron Paul 20:2
Claims that could threaten public safety, or that are marketed without a disclaimer, would have to be reviewed by an independent review board, comprised of independent scientific experts randomly chosen by the FDA. Anyone who is (or has been) on the FDA’s payroll is disqualified from serving on the board. The FDA is forbidden from exercising any influence over the review board. If the board recommends approval of a health claim, then the FDA must approve the claim.
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North American Development Bank
24 March 2004 2004 Ron Paul 21:1
Mr. PAUL. Mr. Speaker, H.R. 254 expands the authority of the North American Development Bank (NAD), which was created in the allegedly free-trade NAFTA agreement, to make below-market loans. H.R. 254 also expands the geographic area in which the NAD bank operates. This bill is economically unsound and blatantly unconstitutional and I hope my colleagues will reject it.
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The Television Consumer Freedom Act
24 March 2004 2004 Ron Paul 22:2
My office has received numerous calls from rural satellite and cable TV customers who are upset because their satellite or cable service providers have informed them that they will lose access to certain network and cable programming. The reason my constituents cannot obtain their desired satellite and cable services is that the satellite and cable “marketplace” is fraught with government interventionism at every level. Local governments have historically granted cable companies franchises of monopoly privilege. Government has previously intervened to invalidate “exclusive dealings” contracts between private parties, namely cable service providers and program creators, and has most recently imposed price controls. The Library of Congress has even been delegated the power to determine prices at which program suppliers must make their programs available to cable and satellite programming service providers.
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The Television Consumer Freedom Act
24 March 2004 2004 Ron Paul 22:3
It is, of course, within the constitutionally enumerated powers of Congress to “promote the progress of Science and Useful Arts by securing for limited Times to Authors and Inventors the Exclusive Right to their respective Writings and Discoveries.” However, operating a clearing-house for the subsequent transfer of such property rights in the name of setting a just price or “instilling competition” via “central planning” seems to be neither economically prudent nor justifiable under this enumerated power. This process is one best reserved to the competitive marketplace.
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The Television Consumer Freedom Act
24 March 2004 2004 Ron Paul 22:4
It is impossible for the government to set the just price for satellite programming. Over regulation of the cable industry has resulted in competition among service providers for government privilege rather than free market competition among providers to offer a better product at a lower price. While federal regulation does leave satellite programming service providers free to bypass the governmental royalty distribution scheme and negotiate directly with owners of programming for program rights, there is a federal prohibition on satellite service providers making local network affiliates’ programs available to nearby satellite subscribers. This bill repeals that federal prohibition so satellite service providers may freely negotiate with program owners for programming desired by satellite service subscribers. Technology is now available by which viewers could view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers.
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The Television Consumer Freedom Act
24 March 2004 2004 Ron Paul 22:6
The Television Consumer Freedom Act also repeals federal regulations that mandate that all TVs sold in the United States contain “digital technology.” In complete disregard of all free market and constitutional principles, the FCC actually plans to forbid consumers from buying TVs, after 2006 that are not equipped to carry digital broadcasts. According to Stephen Moore of the CATO Institute, this could raise the price of a TV by as much as $250 dollars. While some television manufactures and broadcasters may believe they will benefit from this government-imposed price increase, they will actually lose business as consumers refrain from purchasing new TVs because of the government mandated price increase.
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The Television Consumer Freedom Act
24 March 2004 2004 Ron Paul 22:7
Mr. Speaker, the federal government should not interfere with a consumer’s ability to purchase services such as satellite or cable television in the free market. I therefore urge my colleagues to take a step toward restoring freedom by cosponsoring my Television Consumer Freedom Act.
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The Lessons of 9/11
April 22, 2004 2004 Ron Paul 27:8
Though we hear much about the so-called “benefits” we have delivered to the Iraqi people and the Middle East, we hear little talk of the cost to the American people: lives lost, soldiers maimed for life, uncounted thousands sent home with diseased bodies and minds, billions of dollars consumed, and a major cloud placed over U.S. markets and the economy. Sharp political divisions, reminiscent of the 1960s, are arising at home.
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The Lessons of 9/11
April 22, 2004 2004 Ron Paul 27:41
Regardless of one’s enthusiasm or lack thereof for the war and the general policy of maintaining American troops in more than 130 countries, one cold fact soon must be recognized by all of us in Congress. The American people cannot afford it, and when the market finally recognizes the over commitment we’ve made, the results will not be pleasing to anyone.
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In Support Of The Gutierrez-Paul Bill
28 April 2004 2004 Ron Paul 30:2
Expanding the jurisdiction of OCC necessarily infringes on the ability of State lawmakers to determine their own consumer protection standards. One-size-fits-all policies crafted in Washington cannot serve the 50 diverse States well. Different States and markets have different needs that are better understood by State and local legislators. Congressional conservatives, in particular, should not endorse an expansion of the Federal regulatory power at the expense of States’ rights. The Tenth Amendment is clear: regulatory powers not specifically granted to Congress remain with the States. Congress should stop usurping State authority and leave consumer protection laws to those with far more experience and expertise.
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Reject the Millennium Challenge Act
May 19, 2004 2004 Ron Paul 35:6
MCA is a waste of taxpayer money. Countries that pursue sound economic policies will find that international financial markets provide many times the investment capital necessary for economic growth. MCA funds will not even be a drop in the bucket compared to what private capital can bring to bear in an economy with promise and potential. And this capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whim of government bureaucrats.
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The Same Old Failed Policies in Iraq
June 3, 2004 2004 Ron Paul 37:18
Instead of the incessant chant about us forcing democracy on others, why not read our history and see how thirteen nations joined together to form a loose-knit republic with emphasis on local self-government. Part of the problem with our effort to re-order Iraq is that the best solution is something we have essentially rejected here in the United States. It would make a lot more sense to concentrate on rebuilding our Republic, emphasizing the principles of private property, free markets, trade, and personal liberty here at home rather then pursuing war abroad. If this were done, we would not be a militaristic state spending ourselves into bankruptcy, and government benefits to the untold thousands of corporations and special interest would be denied.
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Mourning The Death Of Ronald Reagan
9 June 2004 2004 Ron Paul 38:2
I was one of the millions attracted to Ronald Reagan by his strong support for limited government and the free-market. I felt affinity for a politician who based his conservative philosophy on “. . . a desire for less government interference or less centralized authority or more individual freedom . . .” I wish more of today’s conservative leaders based their philosophy on a desire for less government and more freedom.
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Millennium Challenge Account — Part 1
15 July 2004 2004 Ron Paul 57:5
The strongest argument of those who endorse foreign aid is a humanitarian argument: We are rich, they are poor, we have empathy, we must help, it is our moral obligation. For the most part, people go along with that. But I have a humanitarian argument, also. Mine is that it does not work and that, if we indeed care about people, we ought to be encouraging free markets and individual liberty, and that is when countries become more prosperous.
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Millennium Challenge Account — Part 1
15 July 2004 2004 Ron Paul 57:7
Now, it may be said by those who have promoted the Millennium Challenge Account, that is exactly what we are trying to address. We want to reward countries that are moving in the direction of free markets. Now, that is a nice notion, but it cannot work. It is impossible because when we give money to a government, it is politicized. It becomes bureaucratic, and it has to be handed out to special interests.
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Millennium Challenge Account — Part 2
15 July 2004 2004 Ron Paul 59:2
Let me follow up on the point I made earlier about the good intentions of a program like this to promote free market changes in certain countries, but, unfortunately, this backfires because once the money gets in the hands of the government we then require them to develop partnerships or alliances with businesses, which is exactly the opposite of free markets. This is closer to crony capitalism or fascism when we combine government money with business interests.
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Millennium Challenge Account — Part 2
15 July 2004 2004 Ron Paul 59:3
At the same time, we know that our corporations will also participate in these programs. So the money once again leaves the people of this country, many times the poor, and goes to these foreign aid programs which subsidize certain governments, solidifying powers of certain politicians, which then allows fungibility of their other funds to do other things and then encourage business partnerships between government and business which is not free markets, which literally is undermining the move that I think is intended and that is to improve the conditions of other countries.
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Financing Operations, Export Financing, And Related Programs Appropriations Act, 2005
15 July 2004 2004 Ron Paul 60:2
Libertarians support this as well and for a precise reason. A free market libertarian does not believe in welfare for anybody, let alone the rich, and it is particularly gnawing to see the subsidies go to the very wealthy.
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Financing Operations, Export Financing, And Related Programs Appropriations Act, 2005
15 July 2004 2004 Ron Paul 60:7
What it does is it distorts the market and causes people to do the wrong thing, and some individuals do not get the credit is obviously the case, but what we need to do is to have a much more oriented free market. When we direct it this way, even those companies may do more than they ordinarily would, and that participates in the economic bubble that occurs, of course, for other reasons as well. Then there has to be corrections. But if one is in a powerful position in a place where they can qualify, and 80 percent of this goes to the very, very large companies, although there are a lot of companies that receive the big bucks, and big countries like China.
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Honoring Phil Crane
November 17, 2004 2004 Ron Paul 78:1
Mr. Speaker, I am pleased to take this opportunity to pay tribute to my friend and colleague Phil Crane. During his 35 years in Congress, Phil has been one of the House’s most consistent defenders of low taxes, free-markets, limited government, and individual liberty. I count myself among the numerous elected officials and activists in the free-market movement who have been inspired by his example.
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Honoring Phil Crane
November 17, 2004 2004 Ron Paul 78:2
As a conservative professor, author, and activist, Phil was already a nationally known conservative leader before he ran for Congress. Two of his books, “The Democrat’s Dilemma” and “The Sum of Good Government” stand out as conservative classics that educated and motivated many conservative activists. Among the attributes that have made Phil a hero to the free-market movement is his understanding of sound economics. Phil is one of the few members of Congress who is well versed in the teachings of great free-market teachers such as Ludwig von Misses. This country would be much better off if more representatives understood economics as well as Phil Crane.
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Honoring Phil Crane
November 17, 2004 2004 Ron Paul 78:3
When Phil Crane came to Congress in the late sixties, there were only a handful of members supporting free-markets. This was a time when a “conservative” president imposed wage and price controls and “conservative” representatives and senators called for balancing the budget with tax increases rather than spending cuts. Thanks in large part to Phil’s effort; the political and intellectual climate of the nation became more receptive to free-market ideas. Phil’s work with groups such as the American Conservative Union, the Free Congress Foundation, and the Republican Study Committee (which he founded) played a major role in growing the movement for individual liberty. Phil’s service as an advisor to Young Americans for Freedom and as a director of the Intercollegiate Studies Institute, Hillsdale College, and the Ashbrook Center helped inspire new generations of young people to become active in the movement for liberty.
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Honoring Phil Crane
November 17, 2004 2004 Ron Paul 78:5
As the number of representatives committed to free-markets and low taxes increased, Phil’s status as a congressional leader and accomplished legislator grew. Thanks in large part to Phil’s leadership; Congress has provided tax relief to American families and businesses during each of the last four years.
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Honoring Phil Crane
November 17, 2004 2004 Ron Paul 78:6
As his distinguished congressional career draws to a close, I hope all who value free-markets, individual liberty, and limited government will join me in thanking Phil Crane for his work on behalf of freedom.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:16
The immediate market reaction to the reelection of President Bush was interesting. The stock market rose significantly, led by certain segments thought to benefit from a friendly Republican administration such as pharmaceuticals, HMO’s, and the weapons industry. The Wall Street Journal summed up the election with a headline the following day: “Winner is Big Business.” The stock market rally following the election likely will be short-lived, however, as the fundamentals underlying the bear market that started in 2000 are still in place.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:17
More important was the reaction of the international exchange markets immediately following the election. The dollar took a dive and gold rose. This indicated that holders of the trillions of dollars slushing around the world interpreted the results to mean that even with conservatives in charge, unbridled spending will not decrease and will actually grow. They also expect the current account deficit and our national debt to increase. This means the economic consequence of continuing our risky fiscal and monetary policy is something Congress should be a lot more concerned about.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:18
One Merrill Lynch money manager responded to the election by saying, “Bush getting reelected means a bigger deficit, a weaker dollar, and higher gold prices.” Another broker added, “Four more years of Bush is a gift to the gold markets — more war, more deficits, more division.”
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:23
One cannot expect the needed changes to occur soon, considering that these options were not even considered or discussed in the campaign. But just because they weren’t part of the campaign, and there was no disagreement between the two candidates on the major issues, doesn’t distract from their significance nor disqualify these issues from being crucial in the years to come. My guess is that in the next four years little legislation will be offered dealing with family and moral issues. Foreign policy and domestic spending, along with the ballooning deficit, will be thrust into the forefront and will demand attention. The inability of our Congress and leaders to change direction, and their determination to pursue policies that require huge expenditures, will force a financial crisis upon us as the dollar is further challenged as the reserve currency of the world on international exchange markets.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:34
There are even more reasons to believe the current government status quo is unsustainable. As a nation dependent on the willingness of foreigners to loan us the money to finance our extravagance, we now are consuming 80% of the world’s savings. Though the Fed does its part in supplying funds by purchasing Treasury debt, foreign central banks and investors have loaned us nearly twice what the Fed has, to the tune of $1.3 trillion. The daily borrowing needed to support our spending habits cannot last. It can be argued that even the financing of the Iraq war cannot be accomplished without the willingness of countries like China and Japan to loan us the necessary funds. Any shift, even minor, in this sentiment will send chills through the world financial markets. It will not go unnoticed, and every American consumer will be affected.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:36
Few in Washington comprehend the nature of the crisis. But liberal Lawrence Summers, Clinton’s Secretary of the Treasury and now president of Harvard, perceptively warns of the danger that is fast approaching. He talks of, “A kind of global balance of financial terror” that we should be concerned about. He goes on to say: “there is surely something off about the world’s greatest power being the world’s greatest debtor. In order to finance prevailing levels of consumption and investment, must the United States be as dependent as it is on the discretionary acts of what are inevitably political entities in other countries?” An economist from the American Enterprise Institute also expressed concern by saying that foreign central banks “now have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.”
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America’s Foreign Policy Of Intervention
26 January 2005 2005 Ron Paul 6:42
What if democracy is deeply flawed and, instead, we should be talking about liberty, property rights, free markets, the rule of law, localized government, weak centralized government, and self-determination promoted through persuasion, not force?
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Family Education Freedom Act
26 January 2005 2005 Ron Paul 9:2
The Family Education Freedom Act returns the fundamental principle of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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Family Education Freedom Act
26 January 2005 2005 Ron Paul 9:3
Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the federal government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an ever greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control. Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system.
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Harmful And Counterproductive United States Embargo On Cuba
2 February 2005 2005 Ron Paul 16:4
Second, sanctions hurt American industries, particularly agriculture. Sanctions destroy American jobs. Every market we close to our Nation’s farmers is a market exploited by foreign farmers. China, Russia, the Middle East, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed trade restrictions that prevent our farmers from selling to the billions of people in these countries. Given our status as one of the world’s largest agricultural producers, why would we ever choose to restrict our exports? The only beneficiaries of our sanctions policies are our foreign competitors.
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Introduction Of The Prescription Drug Affordability Act
2 February 2005 2005 Ron Paul 18:3
In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the United States or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Mr. Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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Regulating The Airwaves
16 February 2005 2005 Ron Paul 22:1
Mr. PAUL. Mr. Speaker, Americans are right to be outraged at much of the content of broadcast television and radio today. Too many television and radio programs regularly mock the values of millions of Americans and feature lewd, inappropriate conduct. It is totally legitimate and even praiseworthy for people to use market forces, such as boycotts of the sponsors of the offensive programs, to pressure networks to remove objectionable programming. However, it is not legitimate for Congress to censor broadcast programs.
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Regulating The Airwaves
16 February 2005 2005 Ron Paul 22:3
Furthermore, there was no economic justification for Congress determining who is, and is not, allowed to access the broadcast spectrum. Instead of nationalizing the spectrum, the Federal Government should have allowed private parties to homestead parts of the broadcast spectrum and settle disputes over ownership and use through market processes, contracts, and, if necessary, application of the common law of contracts and torts. Such a market-based solution would have provided a more efficient allocation of the broadcast spectrum than has government regulation.
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Regulating The Airwaves
16 February 2005 2005 Ron Paul 22:13
H.R. 310 should also be rejected because it is unnecessary. Major broadcasters’ profits depend on their ability to please their audiences and thus attract advertisers. Advertisers are oftentimes “risk adverse,” that is, afraid to sponsor anything that might offend a substantial portion of the viewing audience, who they hope to turn into customers. Therefore, networks have a market incentive to avoid offending the audience. It was fear of alienating the audience, and thus losing advertising revenue, that led to CBS’s quick attempt at “damage control” after the last year’s Super Bowl. Shortly before the 2004 Super Bowl, we witnessed a remarkable demonstration of the power of private citizens when public pressure convinced CBS to change plans to air the movie “The Reagans,” which outraged conservatives concerned about its distortion of the life of Ronald Reagan.
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Regulating The Airwaves
16 February 2005 2005 Ron Paul 22:15
Mr. Speaker, H.R. 310 is the latest in an increasing number of attacks on free speech. For years, those who wanted to regulate and restrict speech in the commercial marketplace relied on the commercial speech doctrine that provides a lower level of protection to speech designed to provide a profit to the speaker. However, this doctrine has no constitutional authority because the plain language of the first amendment does not make any exceptions for commercial speech.
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The Deficit
16 March 2005 2005 Ron Paul 33:4
And the gentleman from Pennsylvania rightly pointed out the concerns this might have in the financial markets. I am hoping that his optimism pans out because, indeed, if they do not, there could be some ramifications from these expanding deficits and what it means to our dollar.
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The Deficit
16 March 2005 2005 Ron Paul 33:15
And that is why the gentleman from Pennsylvania is quite correct that we should be concerned about how the financial markets look at what we do. And hopefully we will be able to deal with this in a budgetary way and institute some restraints. But quite frankly I am a bit pessimistic about that. This program that we follow and this philosophy we followed prompted our Federal Reserve to create $620 billion in order to finance the system. That is the reason that the dollar becomes less valuable, because we just print too many to accommodate the politicians and the people who enjoy the excessive spending.
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Hypocrisy and the Ordeal of Terri Schiavo
April 6, 2005 2005 Ron Paul 34:7
Free-market medicine is not perfect, but it’s the best system to sort out these difficult problems-- and it did so for years.
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Repeal Sarbanes-Oxley!
April 14, 2005 2005 Ron Paul 39:1
Mr. Speaker, I rise to introduce the Due Process and Economic Competitiveness Restoration Act, which repeals Section 404 of the Sarbanes-Oxley Act. Sarbanes-Oxley was rushed into law in the hysterical atmosphere surrounding the Enron and WorldCom bankruptcies, by a Congress more concerned with doing something than doing the right thing. Today, American businesses, workers, and investors are suffering because Congress was so eager to appear “tough on corporate crime.” Sarbanes-Oxley imposes costly new regulations on the financial services industry. These regulations are damaging American capital markets by providing an incentive for small US firms and foreign firms to deregister from US stock exchanges. According to a study by the prestigious Wharton Business School, the number of American companies deregistering from public stock exchanges nearly tripled during the year after Sarbanes-Oxley became law, while the New York Stock Exchange had only 10 new foreign listings in all of 2004.
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Repeal Sarbanes-Oxley!
April 14, 2005 2005 Ron Paul 39:6
The US Constitution does not give the federal government authority to regulate the accounting standards of private corporations. These questions should be resolved by private contracts between a company and its shareholders, and by state and local regulations. Let me remind my colleagues who are skeptical of the ability of markets and local law enforcement to protect against fraud: the market passed judgment on Enron, in the form of declining stock prices, before Congress even held the first hearing on the matter. My colleagues also should keep in mind that certain state attorneys general have been very aggressive in prosecuting financial crimes
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Repeal Sarbanes-Oxley!
April 14, 2005 2005 Ron Paul 39:7
Section 404 of the Sarbanes-Oxley Act has raised the costs of doing business, thus causing foreign companies to withdraw from American markets and retarding economic growth. By criminalizing inadvertent mistakes and exceeding congressional authority, Section 404 also undermines the rule of law and individual liberty. I therefore urge my colleagues to cosponsor the Due Process and Economic Competitiveness Restoration Act.
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Federalizing Abortion Law
27 April 2005 2005 Ron Paul 42:3
Our Federal government is, constitutionally, a government of limited powers, article I, section 8, enumerates the legislative area for which the U.S. Congress is allowed to act or enact legislation. For every other issues, the Federal Government lacks any authority or consent of the governed and only the State governments, their designees, or the people in their private market actions enjoy such rights to governance. The 10th amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our Nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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United States Should Leave World Trade Organization
9 June 2005 2005 Ron Paul 57:11
Now the President of the Ludwig von Mises Institute, a free market think tank, from Auburn, Alabma said, “The World Trade Organization is supposed to be the great apparatus to push the world to greater economic integration. In reality, it was nothing but the resurrection of the old central planning fallacy that the world needs a central authority to manage it. The WTO has ended up politicizing trade by putting the stamp of officialdom on some very bad policy.”
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United States Should Leave World Trade Organization
9 June 2005 2005 Ron Paul 57:12
So my message is to appeal to those who believe in limited government, free markets, free trade and the Constitution. I appeal to those who want to use tariffs in a protective way because they defend the process. But I am really appealing to the conservatives who claim they believe in free trade, because I do not believe what we have here is truly free trade.
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The Hidden Cost of War
June 14, 2005 2005 Ron Paul 58:30
Being the issuer of the world’s premier currency allows for a lot more abuse than a country would have otherwise. World businesses, governments, and central banks accept our dollars as if they are as good as gold. This is a remnant of a time when the dollar was as good as gold. That is no longer the case. The trust is still there, but it’s a misplaced trust. Since the dollar is simply a paper currency without real value, someday confidence will be lost and our goose will no longer be able to lay the golden egg. That’s when reality will set in and the real cost of our extravagance, both domestic and foreign, will be felt by all Americans. We will no longer be able to finance our war machine through willing foreigners, who now gladly take our newly printed dollars for their newly produced goods and then loan them back to us at below market interest rates to support our standard of living and our war effort.
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The Hidden Cost of War
June 14, 2005 2005 Ron Paul 58:39
A free society produces more wealth for more people than any other. That wealth for many years can be confiscated to pay for the militarism advocated by those who promote preemptive war. But militarism and its costs undermine the very market system that provided the necessary resources to begin with. As this happens, productivity and wealth is diminished, putting pressure on authorities to ruthlessly extract even more funds from the people. For what they cannot collect through taxes they take through currency inflation-- eventually leading to an inability to finance unnecessary and questionable warfare and bringing the process to an end. It happened to the Soviets and their military machine collapsed. Hitler destroyed Germany’s economy, but he financed his aggression for several years by immediately stealing the gold reserves of every country he occupied. That, too, was self-limited and he met his military defeat. For us it’s less difficult since we can confiscate the wealth of American citizens and the savers of the world merely by printing more dollars to support our militarism. Though different in detail, we too must face the prospect that this system of financing is seriously flawed, and our expensive policy of worldwide interventionism will collapse. Only a profound change in attitudes regarding our foreign policy, our fiscal policy, and our monetary policy will save us from ourselves.
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The Hidden Cost of War
June 14, 2005 2005 Ron Paul 58:40
If we did make these changes, we would not need to become isolationists, despite what many claim. Isolationism is not the only alternative to intervention in other nations’ affairs. Freedom works! Free markets supported by sound money, private property, and respect for all voluntary contracts can set an example for the world-- since the resulting prosperity would be significant and distributed more widely than any socialist system. Instead of using force to make others do it our way, our influence could be through the example we set that would motivate others to emulate us. Trade, travel, exchange of ideas, and friendly relationships with all those who seek friendship are a far cry from a protectionist closed border nation that would serve no one’s interest.
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Introduction of the Industrial Hemp Farming Act
June 22, 2005 2005 Ron Paul 70:7
It is unfortunate that the federal government has stood in the way of American farmers, including many who are struggling to make ends meet, competing in the global industrial hemp market. Indeed the founders of our nation, some of who grew hemp, surely would find that federal restrictions on farmers growing a safe and profitable crop on their own land are inconsistent with the constitutional guarantee of a limited, restrained federal government. Therefore, I urge my colleagues to stand up for American farmers and cosponsor the Industrial Hemp Farming Act.
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Introducing The Comprehensive Health Care Act
27 June 2005 2005 Ron Paul 75:3
Furthermore, the predominance of third- party payers means there is effectively no market for individual health insurance policies, thus those whose employers cannot offer them health benefits must either pay exorbitant fees for health insurance or do without health insurance. Since most health care providers cater to those with health insurance, it is very difficult for the uninsured to find health care that meets their needs at an affordable price. The result is many of the uninsured turn to government-funded health care systems, or use their local emergency room as their primary care physician. The result of this is declining health for the uninsured and increased burden on taxpayer-financed health care system.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:1
Mr. PAUL. Mr. Speaker, I am pleased to introduce the Quality Health Care Coalition Act, which takes a first step towards restoring a true free market in health care by restoring the rights of freedom of contract and association to health care professionals. Over the past few years, we have had much debate in Congress about the difficulties medical professionals and patients are having with Health Maintenance Organizations (HMOs). HMOs are devices used by insurance industries to ration health care. While it is politically popular for members of Congress to bash the HMOs and the insurance industry, the growth of the HMOs are rooted in past government interventions in the health care market though the tax code, the Employment Retirement Security Act (ERSIA), and the federal anti-trust laws. These interventions took control of the health care dollar away from individual patients and providers, thus making it inevitable that something like the HMOs would emerge as a means to control costs.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:2
Many of my well-meaning colleagues would deal with the problems created by the HMOs by expanding the federal government’s control over the health care market. These interventions will inevitably drive up the cost of health care and further erode the ability of patents and providers to determine the best health treatments free of government and third-party interference. In contrast, the Quality Health Care Coalition Act addresses the problems associated with HMOs by restoring medical professionals’ freedom to form voluntary organizations for the purpose of negotiating contracts with an HMO or an insurance company.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:3
As an OB–GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:5
Under the United States Constitution, the Federal government has no authority to interfere with the private contracts of American citizens. Furthermore, the prohibitions on contracting contained in the Sherman antitrust laws are based on a flawed economic theory which holds that Federal regulators can improve upon market outcomes by restricting the rights of certain market participants deemed too powerful by the government. In fact, anti- trust laws harm consumers by preventing the operation of the free-market, causing prices to rise, quality to suffer, and, as is certainly the case with the relationship between the HMOs and medical professionals, favoring certain industries over others.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:6
By restoring the freedom of medical professionals to voluntarily come together to negotiate as a group with HMOs and insurance companies, this bill removes a government-imposed barrier to a true free market in health care. Of course, this bill does not infringe on the rights of health care professionals by forcing them to join a bargaining organization against their will. While Congress should protect the rights of all Americans to join organizations for the purpose of bargaining collectively, Congress also has a moral responsibility to ensure that no worker is forced by law to join or financially support such an organization.
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Introducing The Quality Health Care Coalition Act
27 June 2005 2005 Ron Paul 78:8
In conclusion, Mr. Chairman, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to America’s health care professionals. I also urge my colleagues to join me in working to promote a true free market in health care by putting patients back in charge of the health care dollar by supporting my Comprehensive Health Care Reform Act.
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Congress Lacks Authority To Sell Unocal
30 June 2005 2005 Ron Paul 82:3
If in the United States a private company does not have the right to be sold on the free market, should we really be criticizing the lack of freedom in China? Many conservatives who have decried the recent Supreme Court decision that severely undermines the principle of private property in the United States are now on the other side, cheering this blatant Congressional attempt to do something that may be even worse than Kelo vs. New London.
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Henry Lamb- A Great Freedom Fighter Documents how your Dietary Supplements are Under Attack
July 11, 2005 2005 Ron Paul 83:10
Of immediate concern is the ongoing effort to bring dietary supplements in America under the control of standards set by this commission. Dietary supplements generate a $17 billion industry in the United States, which affects more than 150 million consumers, according to Congressional findings (H.R. 2485). Proposed procedures and standards could virtually destroy this market and deprive millions of Americans of the supplements they want to use.
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Introducing The Rice Farmers Fairness Act
6 September 2005 2005 Ron Paul 93:3
As grain elevators, processors and others see a reduction in demand for their services because of the diminution of production permitted by Federal law, they have a disincentive to continue to provide said services, services which must remain in place in order for those who remain in production to be able to bring to market the rice which they continue to produce. Thus, by way of the decimation of the infrastructure, this subsidy to non-producers comes at the expense of those who continue to produce rice. Therefore, the provisions of Federal law which provide this subsidy actually amount to another form of Federal welfare, taking from producers and giving to non-producers. These destructive government policies have particularly pernicious effect in Texas, where rice farming, and the related industries, are a major sector of the economy in many towns along the Texas coast.
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Why We Fight
September 8, 2005 2005 Ron Paul 95:36
Those who argue that it’s legitimate to protect “our oil” someday must realize that it’s not our oil, no matter how strong and sophisticated our military is. We know the war so far has played havoc with oil prices, and the market continues to discount problems in the region for years to come. No end is in sight regarding the uncertainty of Middle East oil production caused by this conflict.
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Introduction Of The Affordable Gas Price Act
6 October 2005 2005 Ron Paul 99:3
Unfortunately, many proposals to address the problem of higher energy prices involve increasing government interference in the market through policies such as price controls. These big government solutions will, at best, prove ineffective and, at worst, bring back the fuel shortages and gas lines of the seventies.
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Staying or Leaving
October 7, 2005 2005 Ron Paul 102:10
We contained the USSR and her thousands of nuclear warheads without military confrontation, leading to the collapse and disintegration of a powerful Soviet empire. Today we trade with Russia and her neighbors, as the market economy spreads throughout the world without the use of arms.
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Staying or Leaving
October 7, 2005 2005 Ron Paul 102:13
It’s amazing what ending military intervention in the affairs of others can achieve. Setting an example of how a free market economy works does wonders.
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Personal Responsibility In Food Consumption Act
19 October 2005 2005 Ron Paul 105:6
In conclusion, while share the concern over the lawsuits against the food industry that inspired H.R. 554, this bill continues the disturbing trend of federalizing tort law. Enhancing the power of the Federal government is in no way in the long-term interests of defenders of the free market and Constitutional liberties. Therefore, I must oppose this bill.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:4
The connection between the GSEs and the government helps isolate the GSEs’ managements from market discipline. This isolation from market discipline is the root cause of the mismanagement occurring at Fannie and Freddie. After all, if investors did not believe that the Federal Government would bail out Fannie and Freddie if the GSEs faced financial crises, then investors would have forced the GSEs to provide assurances that the GSEs are following accepted management and accounting practices before investors would consider Fannie and Freddie to be good investments.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:6
Mr. Chairman, H.R. 1461 compounds these problems by further insulating the GSEs from market discipline. By creating a “world-class” regulator, Congress would send a signal to investors that investors need not concern themselves with investigating the financial health and stability of Fannie and Freddie since a “world-class” regulator is performing that function.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:7
However, one of the forgotten lessons of the financial scandals of a few years ago is that the market is superior at discovering and punishing fraud and other misbehavior than are government regulators. After all, the market discovered, and began to punish, the accounting irregularities of Enron before the government regulators did.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:12
Ironically, by transferring the risk of widespread mortgage defaults to the taxpayers through government subsidies and convincing investors that all is well because a “world- class” regulator is ensuring the GSEs’ soundness, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie and Freddie have distorted the housing market by allowing Fannie and Freddie to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive uses into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:13
Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policy of diverting capital into housing creates a short-term boom in housing. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have been had government policy not actively encouraged over-investment in housing.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:14
H.R. 1461 further distorts the housing market by artificially inflating the demand for housing through the creation of a national housing trust fund. This fund further diverts capital to housing that, absent government intervention, would be put to a use more closely matching the demands of consumers. Thus, this new housing program will reduce efficacy and create yet another unconstitutional redistribution program.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:15
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSEs’ debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary and painful market corrections will only deepen the inevitable fall. The more people are invested in the market, the greater the effects across the economy when the bubble bursts.
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:16
Instead of addressing government polices encouraging the misallocation of resources to the housing market, H.R. 1461 further introduces distortion into the housing market by expanding the authority of Federal regulators to approve the introduction of new products by the GSEs. Such regulation inevitability delays the introduction of new innovations to the market, or even prevents some potentially valuable products from making it to the market. Of course, these new regulations are justified in part by the GSEs’ government subsidies. We once again see how one bad intervention in the market (the GSEs’ government subsidies) leads to another (the new regulations).
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Government Sponsored Enterprises
26 October 2005 2005 Ron Paul 108:17
In conclusion, H.R. 1461 compounds the problems with the GSEs and may increases the damage that will be inflicted by a bursting of the housing bubble. This is because this bill creates a new unaccountable regulator and introduces further distortions into the housing market via increased regulatory power. H.R. 1461 also violates the Constitution by creating yet another unaccountable regulator with quasi-executive, judicial, and legislative powers. Instead of expanding unconstitutional and market distorting government bureaucracies, Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bailout investors who were misled by foolish government interference in the market.
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Amendment No. 6 Offered By Mr. Paul — Part 1
26 October 2005 2005 Ron Paul 109:3
Mr. PAUL. Mr. Chairman, my amendment is straightforward. It cuts off a line of credit to the Treasury. The GSEs have a line of credit of $2 billion. It is said that it is not important because they never use it. The answer really to that is if they never use it, why leave it on the books. But we do know they indirectly use it. It has been described as a subsidy, because the GSEs can go into the market and get a discount on their loan costs; therefore, they can out-compete the private sector. My amendment merely eliminates that line of credit, puts a greater burden on the marketplace to regulate the GSEs rather than depending on regulation.
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Amendment No. 6 Offered By Mr. Paul — Part 1
26 October 2005 2005 Ron Paul 109:7
Of course, there are other things that contribute to the housing bubble, something that we cannot deal with today, but the fact that there is easy credit and low interest rates, interest rates below the market level, that is then directed into the housing market. This also contributes to the size and the scope of the borrowing capacity of the GSEs.
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Amendment No. 6 Offered By Mr. Paul — Part 1
26 October 2005 2005 Ron Paul 109:9
This housing bubble, a housing program that we are starting up, how do we finance it? Well, we tax the GSEs. Instead of arguing the case for the marketplace and letting people earn money legitimately without subsidies, what we do, we keep allowing the system to continue. They do make profits, and then we tax them. We are talking about an additional tax, and this might very well be the reason the administration has come out against this bill, because of this new tax.
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Amendment No. 6 Offered By Mr. Paul — Part 2
26 October 2005 2005 Ron Paul 110:3
I see one attempt is to deal with this problem that we face. Another attempt is we are deciding that we need more money directed into the housing industry, and of course your building friends like this, too. And those are Republican allies as well. The builders love this because we will pump more money into the market so they can make more profits. So it is another government housing project. From a market viewpoint, this is not good because we want the money in the market to be allocated purely by the market and not by government direction.
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Amendment No. 6 Offered By Mr. Paul — Part 2
26 October 2005 2005 Ron Paul 110:5
I see this as an opportunity to talk about the marketplace, why we should move Fannie Mae and Freddie Mac into the market.
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Amendment No. 6 Offered By Mr. Paul — Part 2
26 October 2005 2005 Ron Paul 110:6
A lot of people complained about the problems we had with Enron, and we needed that as an excuse to pass a lot more regulation. The truth is the market dealt with Enron. Enron was dealt with rather cruelly by the marketplace before the regulators got there. What we need to do is not, and especially as Republicans and conservatives, talk about a world-class regulator and that it is going to solve all of these problems.
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Free Speech and Dietary Supplements
November 10, 2005 HON. RON PAUL OF TEXAS 2005 Ron Paul 118:7
This legislation also addresses the FTC’s violations of the First Amendment. Under traditional First Amendment jurisprudence, the federal government bears the burden of proving an advertising statement false before censoring that statement. However, the FTC has reversed the standard in the case of dietary supplements by requiring supplement manufactures to satisfy an unobtainable standard of proof that their statement is true. The FTC’s standards are blocking innovation in the marketplace.
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Statement on So-Called "Deficit Reduction Act"
November 18, 2005 2005 Ron Paul 123:7
I also question the priorities of singling out programs, such as Medicaid and food stamps, that benefit the neediest Americans, while continuing to increase spending on corporate welfare and foreign aid. Just two weeks ago, Congress passed a bill sending $21 billion overseas. That is $21 billion that will be spent this fiscal year, not spread out over five years. Then, last week, Congress passed, on suspension of the rules, a bill proposing to spend $130 million dollars on water projects--not in Texas, but in foreign nations! Meanwhile, the Financial Services Committee, on which I sit, has begun the process of reauthorizing the Export-Import Bank, which uses taxpayer money to support business projects that cannot attract capital in the market. Mr. Speaker, the Export-Import Bank’s biggest beneficiaries are Boeing and communist China. I find it hard to believe that federal funding for Fortune 500 companies and China is a higher priority for most Americans than Medicaid and food stamps.
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Terrorism Insurance Program
7 December 2005 2005 Ron Paul 125:4
As Congress considers extending this program, I renew my opposition to it for substantially the same reasons I stated 4 years ago. However, I do have a suggestion on how to improve the program. Since one claimed problem with allowing the private market to provide terrorism insurance is the difficulty of quantifying the risk of an attack, the taxpayers’ liability under the terrorism reinsurance program should be reduced for an attack occurring when the country is under orange or red alert. After all, because the point of the alert system is to let Americans know when there is an increased likelihood of an attack it is reasonable to expect insurance companies to demand that their clients take extra precautionary measures during periods of high alert. Reducing taxpayer subsidies will provide an incentive to ensure private parties take every possible precaution to minimize the potential damage from possible terrorists attack.
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Terrorism Insurance Program
7 December 2005 2005 Ron Paul 125:7
Under H.R. 3210, taxpayers are responsible for paying 90 percent of the costs of a terrorist incident when the total cost of that incident exceeds a certain threshold. While insurance companies technically are responsible under the bill for paying back monies received from the Treasury, the administrator of this program may defer repayment of the majority of the subsidy in order to “avoid the likely insolvency of the commercial insurer,” or avoid “unreasonable economic disruption and market instability.” This language may cause administrators to defer indefinitely the repayment of the loans, thus causing taxpayers to permanently bear the loss. This scenario is especially likely when one considers that “avoid . . . likely insolvency, unreasonable economic disruption, and market instability” are highly subjective standards, and that any administrator who attempts to enforce a strict repayment schedule likely will come under heavy political pressure to be more “flexible” in collecting debts owed to the taxpayers.
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Terrorism Insurance Program
7 December 2005 2005 Ron Paul 125:11
Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally funded insurance is avoided.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:3
Not only did gold facilitate exchange of goods and services, it served as a store of value for those who wanted to save for a rainy day. Though money developed naturally in the marketplace as governments grew in power, they assumed monopoly control over money. Sometimes governments succeeded in guaranteeing the quality and purity of gold; but in time, governments learned to outspend their revenues.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:22
It all ended on August 15, 1971, when Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency, and everyone recognized that some other monetary system had to be devised in order to bring stability to the markets. Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency, with no restraints placed on it, not even a presence of gold convertibility, none whatsoever.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:27
During the 1970s, the dollar nearly collapsed as oil prices surged and gold skyrocketed to $800 an ounce. By 1979, interest rates of 21 percent were required to rescue the system. The pressure on the dollar in the 1970s, in spite of the benefits accrued to it, reflected reckless budget deficits and monetary inflation during the 1960s. The markets were not fooled by LBJ’s claim that we could afford both guns and butter.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:30
In recent years, central banks and various financial institutions, all with vested interest in maintaining a workable fiat dollar standard, were not secretive about selling and maintaining large amounts of gold to the market, even while decreasing gold prices raised serious questions about the wisdom of such a policy. They never admitted to gold price fixing, but the evidence is abundant that they believed that if the gold price fell, it would convey a sense of confidence to the market, confidence that they, indeed, had achieved amazing success in turning paper into gold.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:32
Even during the Depression, one of Roosevelt’s first acts was to remove free-market pricing as an indication of a flawed monetary system by making it illegal for American citizens to own gold. Economic law eventually limited that effort, as it did in the early 1970s, when our Treasury and the IMF tried to fix the price of gold by dumping tons into the market to dampen the enthusiasm of those seeking a safe haven for a falling dollar after gold ownership was relegalized.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:33
Once again, the effort between 1980 and 2000 to fool the market as to the true value of the dollar proved unsuccessful. In the past 5 years, the dollar has been devalued in terms of gold by more than 50 percent. You just cannot fool all the people all the time, even with the power of the mighty printing press and the money-creating system of the Federal Reserve.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:35
In the short run, the issuer of a fiat reserve currency can accrue great economic benefits. In the long run, it poses a threat to the country issuing the world currency. In this case, that is the United States. As long as foreign countries take our dollars in return for real goods, we come out ahead. This is a benefit many in Congress fail to recognize as they bash China for maintaining a positive trade balance with us. But this leads to a loss of manufacturing jobs to overseas markets as we become more dependent on others and less self-sufficient. Foreign countries accumulate our dollars due to their high savings rates and graciously lend them back to us at low interest rates to finance our excessive consumption and our wars.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:39
Greenspan, in his first speech after leaving the Fed, said that gold prices were up because of concern about terrorism and not because of monetary concerns or because he created too many dollars during his tenure. Gold has to be discredited and the dollar propped up. Even when the dollar comes under serious attack by market forces, the central banks and the IMF will surely do everything conceivable to soak up the dollars in hope of restoring stability. Eventually, they will fail.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:52
For the most part, the true victims are not aware of how they pay the bills. The license to create money out of thin air allows the bills to be paid through price inflation. American citizens as well as average citizens of Japan and China and other countries suffer from price inflation, which represents the tax that pays the bills for our military adventures. That is, until the fraud is discovered and the foreign producers decide not to take dollars nor hold them very long in payment for those goods. Everything possible is done to prevent the fraud of the monetary system from being exposed to the masses who suffer from it. If oil markets replace dollars with euros, it would in time curtail our ability to continue to print, without restraint, the world’s reserve currency.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:97
But if the Federal Reserve did not pick up the slack and create huge amounts of new credit and money out of thin air, interest rates would rise and call a halt to the charade. The people who suffer from a depreciated dollar don’t understand why they suffer, while the people who benefit promote the corrupt system. The wealthy clean up on Wall Street and the unsophisticated buy in at the market tops. Wealth is transferred from one group to another, and it is all related to the system that allows politicians and the central banks to create money out of thin air. It is literally legalized counterfeiting.
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The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:107
Whether government programs are promoted for good causes, helping the poor, or bad causes, permitting a military industrial complex to capitalize on war profits, the principles of the market are undermined. Eventually, nearly everyone becomes dependent on the system of deficits, borrowing, printing press money, and the special interest budget process that distributes the loot by majority vote.
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Introduction Of The Treat Physicians Fairly Act
2 March 2006 2006 Ron Paul 7:4
Ironically, the perceived need to force doctors to provide medical care is itself the result of prior government interventions into the health care market. When I began practicing medicine, it was common for doctors to provide uncompensated care as a matter of charity. However, laws and regulations inflating the cost of medical services and imposing unreasonable liability standards on medical professionals even when they where acting in a volunteer capacity made offering free care cost prohibitive. At the same time, the increasing health care costs associated with the government- facilitated overreliance on third party payments priced more and more people out of the health care market. Thus, the government responded to problems created by its interventions by imposing the EMTALA mandate on physicians, in effect making health care professionals scapegoats for the harmful consequences of government health care polices.
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Introduction Of The Sunshine In Monetary Policy Act
7 March 2006 2006 Ron Paul 10:1
Mr. PAUL. Mr. Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1 (M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal (NOW) accounts, and similar interest-earning checking account balances) plus M2 (M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts) plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars.
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Introduction Of The Sunshine In Monetary Policy Act
7 March 2006 2006 Ron Paul 10:4
Whatever lack of interest policymakers are currently displaying in M3 is no doubt related to the mistaken perception that the Federal Reserve Board has finally figured out how to effectively manage a fiat currency. This illusion exists largely because the effects of the Fed’s inflationary polices are concentrated in malinvestments in specific sectors of the economy, leading to “bubbles” such as the one that occurred in the stock market in the late nineties and the bubble that many believe is occurring in the current real estate market. When monetary inflation is reflected in sector- specific bubbles, it is easier to pretend that the bubbles are caused by problems specific to those sectors, instead of reflecting the problems inherent in a fiat currency system. Once the damage to our economy done by our reliance on fiat currency becomes clear, I am certain that policymakers will once again take more interest in M3.
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College Access and Opportunity Act
30 March 2006 2006 Ron Paul 20:3
The Academic Bill of Rights is a response to concerns that federally funded institutions of higher learning are refusing to allow students to express, or even be exposed to, points of view that differ from those held by their professors. Ironically, the proliferation of “political correctness” on college campuses is largely a direct result of increased government funding of colleges and universities. Federal funding has isolated institutions of higher education from market discipline, thus freeing professors to promulgate their “politically correct” views regardless of whether this type of instruction benefits their students — who are, after all, the professors’ customers. Now, in a perfect illustration of how politicians use the problems created by previous interventions in the market as a justification for further interventions, Congress proposes to use the problem of “political correctness” to justify more Federal control over college classrooms.
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Iran, The Next Neocon Target
5 April 2006 2006 Ron Paul 21:62
The theory and significance of “peak oil” is believed to be an additional motivating factor for the United States and Great Britain wanting to maintain firm control over the oil supplies in the Middle East. The two nations have been protecting our oil interests in the Middle East for nearly 100 years. With diminishing supplies and expanding demands, the incentive to maintain a military presence in the Middle East is quite strong. Fear of China and Russia moving in to this region to consume more control alarms those who don’t understand how a free market can develop substitutes to replace diminishing resources. Supporters of the military efforts to maintain control over large regions of the world to protect oil fail to count the real cost of energy once the DOD budget is factored in. Remember, invading Iraq was costly and oil prices doubled. Confrontation in Iran may evolve differently, but we can be sure it will be costly and oil prices will rise significantly.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:4
The rise in gold prices, from $250 per ounce in 2001 to over $600 today has drawn investors and speculators into precious metals markets. Though many already have made handsome profits, buying gold, per se, should not be touted as a good investment. After all, gold earns no interest, and its quality never changes. It is static and does not grow as sound investments should.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:8
One of the characteristics of commodity money, one that originated naturally in the marketplace, is that it must serve as a store of value. Gold and silver meet the test; paper does not. Because of this profound difference, the incentive and wisdom of holding emergency funds in the form of gold becomes attractive when the official currency is being devalued. It is more attractive than trying to save wealth in the form of a fiat currency, even when earning some nominal interest.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:14
This, they argue, removes the problem of obtaining gold to back the currency and hence frees the politician from the rigid discipline a gold standard imposes. Many central bankers in the last 15 years became so confident they had achieved this milestone that they sold off large hordes of their gold reserves. At other times they tried to prove that paper works better than gold by artificially propping up the dollar by suppressing the market price of gold.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:20
The number of dollars created by the Federal Reserve and through the fractional reserve banking system is crucial in determining how the market assesses the relationship of the dollar and gold.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:28
Though M3 is the most helpful statistic to track Fed activity, it by no means tells us everything we need to know about trends in monetary policy. Total bank credit, still available to us, gives us indirect information reflecting the Fed’s inflationary policies. But ultimately the markets will figure out exactly what the Fed is up to, and then individuals, financial institutions, governments and other central bankers will act accordingly.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:29
The fact that our money supply is rising significantly cannot be hidden from the markets. The response in time will drive the dollar down while driving interest rates and commodity prices up.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:32
Denying us statistical information, manipulating interest rates, and artificially trying to keep gold prices in check won’t help in the long run. If the markets are fooled only on the short term, it only means the adjustments will be much more dramatic later on, and in the meantime other market imbalances develop.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:33
The Fed tries to keep the consumer spending spree going, not through hard work and savings, but by creating artificial wealth in stock market bubbles and housing bubbles. When these distortions run these courses and are discovered, the corrections will be quite painful as was witnessed with the collapse of the NASDAQ bubble. Likewise a fiat monetary system encourages speculation and unsound borrowing.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:40
In the past, companies like Lockheed and Chrysler benefited as well. But what the Fed cannot do is guarantee the market will maintain trust in the worthiness of the dollar. Current policy guarantees that the integrity of the dollar will be undermined. Exactly when this will occur, and the extent of the resulting damage to the financial system, cannot be known for sure, but it is coming. There are plenty of indications already on the horizon.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:51
Gold or any acceptable market commodity money is required to preserve liberty. Monopoly control by government of a system that creates fiat money out of thin air guarantees the loss of liberty. No matter how well intended our militarism is portrayed or how happily the promises of wonderful programs for the poor are promoted, inflating the money supply to pay these bills makes government bigger.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:53
Whether it is war or welfare payments, it always means higher taxes, inflation and debt. Whether it is the extraction of wealth from the productive economy, the distortion of the market by interest rate manipulation or spending for war and welfare, it can’t happen without infringing upon personal liberty.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:60
It is a mistake to blame high gasoline and oil prices on price gouging. If we impose new taxes or fix prices while ignoring monetary inflation, corporate subsidies and excessive regulations, shortages will result. The market is the only way to determine the best price for any commodity. The law of supply and demand cannot be repealed. The real problems arise when government planners give subsidies to energy companies and favor one form of energy over another.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:61
Energy prices are rising for many reasons: inflation, increased demand from China and India, decreased supply resulting from our invasion into Iraq, anticipated disruption of supplies as we push regime change in Iran, regulatory restrictions on gasoline production, government interference in the free market development of alternative fuels, and subsidies to Big Oil, such as free leases and grants for research and development.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:63
When problems arise under conditions that exist today, it is a serious error to blame the little bit of the free market that still functions. Last summer, the market worked efficiently after Katrina. Gasoline hit $3 a gallon, but soon supplies increased, usage went down, and the price returned to $2. In the 1980s, market forces took oil from $40 a barrel down to $10 a barrel, and no one cried for the oil companies that went bankrupt. Today’s increases are for the reasons mentioned above. It is natural for labor to seek its highest wage and businesses to strive for the greatest profits. That is the way the market works. When the free market is allowed to work, it is the consumer who ultimately determines price and quality, with labor and businesses accommodating consumer choices. Once this process is distorted by government, prices rise excessively, labor costs and profits are negatively affected, and problems emerge.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:65
Since keeping interest rates below market levels is synonymous with new money creation by the Fed, the resulting business cycle, higher cost of living and job losses all can be laid at the doorstep of the Fed. This burden hits the poor the most, making Fed taxation by inflation the worst of all regressive taxes. Statistics about revenues generated by the income tax are grossly misleading. In reality, much harm is done by our welfare-warfare system supposedly designed to help the poor and tax the rich. Only sound money can rectify the blatant injustice of this destructive system.
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Plan Colombia
25 April 2006 2006 Ron Paul 24:18
Part of the problem is that coca is often grown in remote jungles and mountains that are controlled by Marxist guerrillas, contain few roads or markets, and have almost no government presence. Thus, even as crop- dusters have killed off record amounts of coca, farmers stay a step ahead of the spray planes by pushing deeper into the wilderness to grow more.
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What To Do About Soaring Oil Prices
2 May 2006 2006 Ron Paul 32:9
Exploding deficits due to runaway entitlement spending and the cost of dangerous militarism create pressure for the Fed to inflate the money supply. This contributes greatly to the higher prices we all claim to oppose. If we want to do something about gas prices, we should demand and vote for greatly reduced welfare and military spending, a balanced budget, and fewer regulations that interfere with the market development of alternative fuels. We also should demand a return to a sound commodity monetary standard. All subsidies and special benefits to energy companies should be ended; and, in the meantime, let’s eliminate Federal gas taxes at the pump.
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What To Do About Soaring Oil Prices
2 May 2006 2006 Ron Paul 32:10
Oil prices are at a level where consumers reduce consumption voluntarily. The market will work if we let it. But as great as the market economy is, it cannot overcome a foreign policy that is destined to disrupt oil supplies and threaten the world with an expanded and dangerous conflict in the Middle East.
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Amending Title 49, United States Code
6 June 2006 2006 Ron Paul 42:3
Some opponents of H.R. 5449 complain that the air traffic controllers are overpaid. However, since the air traffic control system is government controlled and government financed, the wages of air traffic controllers are not set by the market. Instead, these wages are set by political and bureaucratic fiat. Absent a market, it is imposable to say the air traffic controllers’ wages are too high or too low. In fact, given the importance of air traffic control, it is possible that, in a free market, some air traffic controllers may have higher incomes than they do now. One thing I can say for sure is that air traffic controllers would still have their jobs if the Federal government were limited to its constitutional functions since air traffic controllers perform a function that would be necessary in a free market.
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Introduction Of The Steel Financing Fairness Act
15 June 2006 2006 Ron Paul 44:2
One of the problems facing America’s domestic steel industry is that it must compete with foreign industries that receive subsidies from their governments. Some of these subsidies are explicitly intended to provide these companies with a non-market advantage over American steel producers. The U.S. Government further compounds the damage caused by these subsidies by forcing the domestic steel producers to support their major competitors through taxpayer-funded programs.
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Why Are Americans So Angry?
June 29, 2006 2006 Ron Paul 52:8
In the United States over the last century we have witnessed the coming and going of various intellectual influences by proponents of the free market, Keynesian welfarism, varieties of socialism, and supply-side economics. In foreign policy we’ve seen a transition from the founder’s vision of non-intervention in the affairs of others to internationalism, unilateral nation building, and policing the world. We now have in place a policy, driven by determined neo-conservatives, to promote American “goodness” and democracy throughout the world by military force — with particular emphasis on remaking the Middle East.
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Why Are Americans So Angry?
June 29, 2006 2006 Ron Paul 52:25
In all instances where fear is generated and used to expand government control, it’s safe to say the problems behind the fears were not caused by the free market economy, or too much privacy, or excessive liberty.
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Why Are Americans So Angry?
June 29, 2006 2006 Ron Paul 52:78
The solution to this mess is not complicated; but the changes needed are nearly impossible for political reasons. Sound free market economics, sound money, and a sensible foreign policy would all result from strict adherence to the Constitution. If the people desired it, and Congress was filled with responsible members, a smooth although challenging transition could be achieved. Since this is unlikely, we can only hope that the rule of law and the goal of liberty can be reestablished without chaos.
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H.R. 5068, the Export-Import Reauthorization Act
25 July 2006 2006 Ron Paul 69:13
Similarly, the beneficiaries of Eximbank are visible to all. What is not seen is the products that would have been built, the businesses that would have been started, and the jobs that would have been created had the funds used for the Eximbank been left in the hands of consumers. Leaving the resources in the private sector ensures the resources will be put to the use most highly valued by individual consumers. In contrast, when the government diverts resources into the public sector via programs such as the Eximbank, their use is determined by bureaucrats and politically powerful special interests, resulting in a distorted market and a misallocation of resources. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living!
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H.R. 5068, the Export-Import Reauthorization Act
25 July 2006 2006 Ron Paul 69:16
In conclusion, Mr. Speaker, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use it to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject H.R. 5068, the Export-Import Bank Reauthorization Act.
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Raising The Minimum Wage
28 July 2006 2006 Ron Paul 73:4
Economic principles dictate that when government imposes a minimum wage rate above the market wage rate, it creates a surplus “wedge” between the supply of labor and the demand for labor, leading to an increase in unemployment. Employers cannot simply begin paying more to workers whose marginal productivity does not meet or exceed the law- imposed wage. The only course of action available to the employer is to mechanize operations or employ a higher-skilled worker whose output meets or exceeds the “minimum wage.” This, of course, has the advantage of giving the skilled worker an additional (and government-enforced) advantage over the unskilled worker. For example, where formerly an employer had the option of hiring three unskilled workers at $5 per hour or one skilled worker at $16 per hour, a minimum wage of $6 suddenly leaves the employer only the choice of the skilled worker at an additional cost of $1 per hour. I would ask my colleagues, if the minimum wage is the means to prosperity, why stop at $6.65 — why not $50, $75, or $100 per hour?
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Raising The Minimum Wage
28 July 2006 2006 Ron Paul 73:6
Furthermore, interfering in the voluntary transactions of employers and employees in the name of making things better for low wage earners violates citizens’ rights of association and freedom of contract as if to say to citizens “you are incapable of making employment decisions for yourself in the marketplace.”
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Raising The Minimum Wage
28 July 2006 2006 Ron Paul 73:8
In conclusion, I would remind my colleagues that while it may make them feel good to raise the Federal minimum wage, the real life consequences of this bill will be vested upon those who can least afford to be deprived of work opportunities. Therefore, rather than pretend that Congress can repeal the economic principles, I urge my colleagues to reject this legislation and instead embrace a program of tax cuts and regulatory reform to strengthen the greatest producer of jobs and prosperity in human history: the free market.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:5
If solutions to American problems won’t be found in the frequent clamor for more government, it still is up to Congress to explain how our problems developed and how solutions can be found in an atmosphere of liberty, private property, and a free market order.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:7
Many things have contributed to the mess we are in. Bureaucratic management can never compete with the free market in solving problems.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:16
The Big Government nanny state is based on the assumption that free markets cannot provide the maximum good for the largest number of people. It assumes people are not smart or responsible enough to take care of themselves, and thus their needs must be filled through the government’s forcible redistribution of wealth.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:21
Huge omnibus spending bills introduced at the end of legislative years are passed without scrutiny. No one individual knows exactly what is in the bill. In the process, legitimate needs and constitutional responsibilities are frequently ignored. Respect for private property rights is ignored. Confidence in the free market is lost or misunderstood. Our tradition of self-reliance is mocked as archaic.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:31
One of the major reasons we have drifted from the Founders’ vision of liberty in the Constitution was the division of the concept of freedom into two parts. Instead of freedom being applied equally to social and economic transactions, it has come to be thought of as two different concepts. Some in Congress now protect economic liberty and market choices but ignore personal liberty and private choices. Others defend personal liberty but concede the realm of property and economic transaction to government control.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:35
They keep hoping there will be less harmful complications from the solution that they are currently supporting. Free market economics teaches us that for every government action to solve an economic problem, two new ones are created. The same unwanted results occur with foreign policy meddling. The law of opposites is just a variation of the law of unintended consequences. When we attempt to achieve a certain goal, like, say, make the world safe for democracy, a grandiose scheme of World War I, one can be sure the world will become less safe and less democratic regardless of the motivation. The First World War was sold to the American people as the war to end all wars.
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Big-Government Solutions Don’t Work
7 september 2006 2006 Ron Paul 74:92
A real solution to our problems will require a better understanding of and a greater dedication to free markets and private property rights. It can’t be done without restoring a sound asset- backed currency. If we hope to restore any measure of constitutional government, we must abandon the policy of policing the world and keeping troops in the four corners of the earth. Our liberties and our prosperity depend on it.
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Senior Citizens’ Improved Quality Of Life Act
19 September 2006 2006 Ron Paul 79:9
H.R. 5211 also lowers the price of pharmaceuticals by making two changes in the law to create a free market in pharmaceuticals. First, H.R. 5211 allows anyone wishing to import a drug to submit an application to the Food and Drug Administration, FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the U.S. or is adulterated or misbranded. Second, H.R. 5211 ensures that lawful internet pharmacies can continue to offer affordable prescription drugs free of Federal harassment.
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Military Personnel Financial Services Protection Act
20 September 2006 2006 Ron Paul 82:2
This is the first time in recent memory that this committee has ever proposed banning a product that is fully permissible under current law and that — again according to testimony received by the committee — is used by thousands of senior military officials to facilitate their financial security. Specifically, we were told that the clients of First Command Financial Planning, the Texas-based company principally involved in this market, has invested $734.4 million aggregate in these accounts in 2004. The sales charge on that amount was about $44 million, or about six percent. What is the basis for outlawing a product that over half a million individuals, including half the flag officers on active duty at the time, had freely chosen? Do we really believe that individuals charged with the deployment of billions of dollars of military equipment, are not sophisticated enough to make their own financial decisions?
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Overstepping Constitutional Authority
26 September 2006 2006 Ron Paul 86:3
Our Federal Government is, constitutionally, a government of limited powers, Article one, Section eight, enumerates the legislative area for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the Federal Government lacks any authority or consent of the governed and only the State governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our Nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.
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Statement In Support Of NAIS
26 September 2006 2006 Ron Paul 87:5
Bell Bellinger, vice-chairman of the Australian Beef Association, said of Australia’s National Livestock Identification System that “Financial costs like the NLIS . . . are seriously eroding our competitive advantage supplying an increasing contested world beef market.”
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Milton Friedman
6 December 2006 2006 Ron Paul 100:1
Mr. PAUL. Mr. Speaker, I am pleased to support H. Res. 1089, a resolution honoring Milton Friedman. Milton Friedman was one of America’s greatest champions of liberty. Launching a career as a public intellectual at a time when dissenters from the reigning Keynesian paradigm where viewed as the equivalent of members of the Flat Earth Society, Milton Friedman waged an oftentimes lonely intellectual battle on behalf of free markets and individual liberty in the fifties and sixties. As the economic crisis of the seventies caused by high taxes, high spending, and inflation vindicated Friedman’s critiques of interventionism, his influence grew — not because he moved to the mainstream but because the mainstream moved toward him. Friedman served as an advisor to Presidents Nixon and Ford and as a member of President Reagan’s Council of Economic Advisors. In 1976, Friedman was awarded the Nobel Prize in economics.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:3
Friedman’s work showed that inflation is not a result of markets but is, as he memorably put it, “always and everywhere a monetary phenomenon.” Friedman was the major originator and theoretician of monetarism. Friedman recommended restricting the Federal Reserve’s authority to increasing the quantity of money by a fixed yearly amount. While monetarism is far from the ideal free-market monetary system, Milton Friedman deserves credit for focusing the attention of economists on the Federal Reserve’s responsibility for inflation.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:4
While he is mainly known for his contributions to economic theory and his advocacy of free markets, Milton Friedman considered his advocacy against the draft, cumulating in his work as a member of President Nixon’s Commission on an All-Volunteer Force, his major policy achievement. Milton Friedman’s opposition to the draft was in part based on economic principles, but was mainly motivated by his moral commitment to freedom. I ask unanimous consent to insert the attached article, “Milton Friedman: A Tribute,” by David R. Henderson, which details Milton Friedman’s efforts against the draft, into the record.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:5
Unlike many free market economists who downplay their opposition to government of encroachments on personal liberty in order to appear “respectable,” Friedman never hesitated to take controversial stands in favor of liberty. Thus Friedman was one of the most outspoken critics of the federal war on drugs and an early critic of government licensing of professionals. Friedman also never allowed fear of losing access to power stop him from criticizing politicians who betrayed economic liberty. For example, his status as an advisor to President Richard Nixon did not stop him from criticizing Nixon’s imposition of wage and price controls.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:6
Milton Friedman’s greatest contribution to liberty may have been his work to educate the public about free market economics. Milton Friedman’s 1962 work Capitalism and Freedom, introduced millions of people to the freedom philosophy, and it remains one of the most popular, and influential, pro-freedom books in the world.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:7
In 1980, Milton Friedman collaborated with his wife Rose on a television series, Free to Choose. The series, and the accompanying best-selling book, remain among the best introductions to the benefits of economic liberty, and rivals Capitalism and Freedom in popularity. One of my favorite moments of the show is when Milton Friedman compares the robust free market economy of Hong Kong with the then stagnant economy of communist China.
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Milton Friedman
6 December 2006 2006 Ron Paul 100:8
On a personal note, I was honored to receive Milton Friedman’s endorsement of my congressional campaign in 1996. One particular quote from his endorsement exemplifies how Milton Friedman’s commitment to the free market was rooted in a recognition that a society that respects the dignity and worth of every individual is impossible without limited government, private property, and sound money: “We very badly need to have more Representatives in the House who understand in a principled way the importance of property rights and religious freedom for the preservation and extension of human freedom in general . . .”
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Introducing The Prescription Drug Affordability Act
4 January 2007 2007 Ron Paul 5:3
In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the U.S. or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Madam Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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Against Raising The Minimum Wage
10 January 2007 2007 Ron Paul 10:2
Economic principles dictate that when government imposes a minimum wage rate above the market wage rate, it creates a surplus “wedge” between the supply of labor and the demand for labor, leading to an increase in unemployment. Employers cannot simply begin paying more to workers whose marginal productivity does not meet or exceed the law- imposed wage. The only course of action available to the employer is to mechanize operations or employ a higher-skilled worker whose output meets or exceeds the “minimum wage.” This, of course, has the advantage of giving the skilled worker an additional (and government-enforced) advantage over the unskilled worker. For example, where formerly an employer had the option of hiring three unskilled workers at $5 per hour or one skilled worker at $16 per hour, a minimum wage of $6 suddenly leaves the employer only the choice of the skilled worker at an additional cost of $1 per hour. I would ask my colleagues, if the minimum wage is the means to prosperity, why stop at $6.65 — why not $50, $75, or $100 per hour?
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Against Raising The Minimum Wage
10 January 2007 2007 Ron Paul 10:4
Furthermore, interfering in the voluntary transactions of employers and employees in the name of making things better for low wage earners violates citizens’ rights of association and freedom of contract as if to say to citizens “you are incapable of making employment decisions for yourself in the marketplace.”
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Against Raising The Minimum Wage
10 January 2007 2007 Ron Paul 10:6
In conclusion, I would remind my colleagues that while it may make them feel good to raise the Federal minimum wage, the real life consequences of this bill will be vested upon those who can least afford to be deprived of work opportunities. Therefore, rather than pretend that Congress can repeal the economic principles, I urge my colleagues to reject this legislation and instead embrace a program of tax cuts and regulatory reform to strengthen the greatest producer of jobs and prosperity in human history: the free market.
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Reform Medicare To Give Seniors More Choice
12 January 2007 2007 Ron Paul 14:1
Mr. PAUL. Mr. Speaker, H.R. 4 gives the Secretary of Health and Human Services the authority to engage in direct negotiations with pharmaceutical companies regarding the prices the companies will charge Medicare when the companies provide drugs through the Part D program. Contrary to the claims of its opponents, this bill does not interfere with a free market by giving the government new power to impose price controls. Before condemning this bill for creating “price controls” or moving toward “socialized medicine,” my colleagues should keep in mind that there is not, and cannot be, a free market price for a government-subsidized good.
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Reform Medicare To Give Seniors More Choice
12 January 2007 2007 Ron Paul 14:2
Members concerned about preserving a free market in pharmaceuticals should have opposed the legislation creating Part D in 2003. It is odd to hear champions of the largest, and most expensive, federal entitlement program since the Great Society pose as defenders of the free market.
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Reform Medicare To Give Seniors More Choice
12 January 2007 2007 Ron Paul 14:3
The result of subsidizing the demand for prescription drugs through Part D was to raise prices above what they would be in a free market. This was easily foreseeable to anyone who understands basic economics. Direct negotiation is a means of ensuring that the increase in demand does not unduly burden taxpayers and that, pharmaceutical companies, while adequately compensated, they do not obtain an excessive amount of Medicare funds.
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Introduction Of The Industrial Hemp Farming Act
13 February 2007 2007 Ron Paul 25:7
It is unfortunate that the Federal Government has stood in the way of American farmers, including many who are struggling to make ends meet, competing in the global industrial hemp market. Indeed, the founders of our Nation, some of whom grew hemp, would surely find that Federal restrictions on farmers growing a safe and profitable crop on their own land are inconsistent with the constitutional guarantee of a limited, restrained Federal Government. Therefore, I urge my colleagues to stand up for American farmers and cosponsor the Industrial Hemp Farming Act.
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Introduction Of The Family Education Freedom Act
14 february 2007 2007 Ron Paul 29:2
The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty”. Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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Introduction Of The Family Education Freedom Act
14 february 2007 2007 Ron Paul 29:3
Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the federal government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an evergreater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control. Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:3
The role the Fed plays in the President’s secretive Working Group on Financial Markets goes unnoticed by members of Congress. The Federal Reserve shows no willingness to inform Congress voluntarily about how often the Working Group meets, what actions it takes that affect the financial markets, or why it takes those actions. But these actions, directed by the Federal Reserve, alter the purchasing power of our money. And that purchasing power is always reduced. The dollar today is worth only four cents compared to the dollar in 1913, when the Federal Reserve started. This has profound consequences for our economy and our political stability. All paper currencies are vulnerable to collapse, and history is replete with examples of great suffering caused by such collapses, especially to a nation’s poor and middle class. This leads to political turmoil.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:4
Even before a currency collapse occurs, the damage done by a fiat system is significant. Our monetary system insidiously transfers wealth from the poor and middle class to the privileged rich. Wages never keep up with the profits of Wall Street and the banks, thus sowing the seeds of class discontent. When economic trouble hits, free markets and free trade often are blamed, while the harmful effects of a fiat monetary system are ignored. We deceive ourselves that all is well with the economy, and ignore the fundamental flaws that are a source of growing discontent among those who have not shared in the abundance of recent years.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:7
Even if prices were held in check, in spite of our monetary inflation, concentrating on CPI distracts from the real issue. We must address the important consequences of Fed manipulation of interest rates. When interests rates are artificially low, below market rates, insidious mal-investment and excessive indebtedness inevitably bring about the economic downturn that everyone dreads.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:9
For example: Before the breakdown of the Bretton Woods system, CEO income was about 30 times the average worker’s pay. Today, it’s closer to 500 times. It’s hard to explain this simply by market forces and increases in productivity. One Wall Street firm last year gave out bonuses totaling $16.5 billion. There’s little evidence that this represents free market capitalism.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:15
Tell us exactly what the President’s Working Group on Financial Markets does and why.
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Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy”
15 February 2007 2007 Ron Paul 32:16
Explain how interest rates are set. Conservatives profess to support free markets, without wage and price controls. Yet the most important price of all, the price of money as determined by interest rates, is set arbitrarily in secret by the Fed rather than by markets! Why is this policy written in stone? Why is there no congressional input at least?
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The Scandal At Walter Reed
7 March 2007 2007 Ron Paul 34:16
Interventionism always leads to unanticipated consequences and blowback, like a weakened, demoralized military; exploding deficits; billions of dollars wasted; increased inflation; less economic growth; an unstable currency; painful stock market corrections; political demagoguery; lingering anger at home; and confusion about who is to blame.
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Shareholder Vote On Executive Compensation Act
18 April 2007 2007 Ron Paul 43:3
I am as outraged as anybody about a company that can hand out $16 billion in bonuses. But where my disagreement is, is that it is not as a result of free market capitalism; that it is the result of an economic system that we have today which is called economic interventionism, and it leads to these inequities.
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Shareholder Vote On Executive Compensation Act
18 April 2007 2007 Ron Paul 43:5
In a free market, shareholders who are concerned about CEO compensation are free to refuse to invest in corporations that do not provide sufficient information regarding how CEO salaries are set or do not allow shareholders to have a say in setting compensation packages.
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Shareholder Vote On Executive Compensation Act
18 April 2007 2007 Ron Paul 43:8
It is ironic to me that Congress would concern itself with high salaries in the private sector when, according to data collected by the CATO Institute, Federal employees on average make twice as much as their private sector counterparts. One of the examples of excessive compensation cited by the supporters of the bill is the multi-million dollar package paid to the former CEO of Freddie Mac. As a government- sponsored enterprise that, along with its counterpart Fannie Mae, received almost $20 billion worth of indirect Federal subsidies in fiscal year 2004 alone, Freddie Mac is hardly a poster child for the free market.
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Shareholder Vote On Executive Compensation Act
18 April 2007 2007 Ron Paul 43:14
Explosions in CEO salaries can be a sign of a Federal credit bubble, which occurs when Federal Reserve Board-created credit flows into certain sectors such as the stock market or the housing market. Far from being a sign of the health of capitalism, excessive CEO salaries in these areas often signal that a bubble is about to burst. When a bubble bursts, people at the bottom of the economic ladder bear the brunt of the bust.
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Shareholder Vote On Executive Compensation Act
18 April 2007 2007 Ron Paul 43:15
Instead of imposing new laws on private companies, Congress should repeal the laws that have weakened the ability of shareholders to discipline CEOs and boards of directors that do not run corporations according to the shareholders’ wishes. Congress should also examine how fiat money contributes to income inequality. I therefore request that my colleagues join me in opposing H.R. 1257 and instead embrace a pro-freedom, pro-shareholder, and pro-worker agenda of free markets and sound money.
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Introduction Of The health Freedom Protection Act
2 May 2007 2007 Ron Paul 49:7
This legislation also addresses the FTC’s violations of the First Amendment. Under traditional First Amendment jurisprudence, the Federal government bears the burden of proving an advertising statement false before censoring that statement. However, the FTC has reversed the standard in the case of dietary supplements by requiring supplement manufactures to satisfy an unobtainable standard of proof that their statement is true. The FTC’s standards are blocking innovation in the marketplace.
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Statement On Chinese Currency
9 May 2007 2007 Ron Paul 50:9
Financing deficits with monetary inflation is in itself a weak dollar policy in the long term. Trust in our currency due to our economic and military strength artificially props up the dollar on international exchange markets. Since these benefits come not from production or sound money policies, they only contribute to the instability and imbalances in international trade.
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Statement On Chinese Currency
9 May 2007 2007 Ron Paul 50:11
Our current account deficit and huge foreign indebtedness is a reflection of the world monetary system of fiat money. The longer the trade imbalances last, the more difficult the adjustment will be. The market will eventually force these adjustments on us.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:4
The connection between the GSEs and the Government helps isolate the GSEs’ managements from market discipline. This isolation from market discipline is the root cause of the mismanagement occurring at Fannie and Freddie. After all, if investors did not believe that the Federal Government would bail out Fannie and Freddie if the GSEs faced financial crises, then investors would have forced the GSEs to provide assurances that the GSEs are following accepted management and accounting practices before investors would consider Fannie and Freddie to be good investments.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:6
Mr. Chairman, H.R. 1427 compounds these problems by further insulating the GSEs from market discipline. By creating a “world-class” regulator, Congress would send a signal to investors that investors need not concern themselves with investigating the financial health and stability of Fannie and Freddie since a “world-class” regulator is performing that function.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:7
However, one of the forgotten lessons of the financial scandals of a few years ago is that the market is superior at discovering and punishing fraud and other misbehavior than are government regulators. After all, the market discovered, and began to punish, the accounting irregularities of Enron before the government regulators did.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:12
Ironically, by transferring the risk of widespread mortgage defaults to the taxpayers through Government subsidies and convincing investors that all is well because a “world- class” regulator is ensuring the GSEs’ soundness, the Government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie and Freddie have distorted the housing market by allowing Fannie and Freddie to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive uses into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:13
Despite the long-term damage to the economy inflicted by the Government’s interference in the housing market, the Government’s policy of diverting capital into housing creates a short-term boom in housing. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have been had government policy not actively encouraged overinvestment in housing.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:14
H.R. 1427 further distorts the housing market by artificially inflating the demand for housing through the creation of a national housing trust fund. This fund further diverts capital to housing that, absent Government intervention, would be put to a use more closely matching the demands of consumers. Thus, this new housing program will reduce efficacy and create yet another unconstitutional redistribution program.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:15
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSEs’ debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary and painful market corrections will only deepen the inevitable fall. The more people are invested in the market, the greater the effects across the economy when the bubble bursts.
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:16
Instead of addressing Government polices encouraging the misallocation of resources to the housing market, H.R. 1427 further introduces distortion into the housing market by expanding the authority of Federal regulators to approve the introduction of new products by the GSEs. Such regulation inevitability delays the introduction of new innovations to the market, or even prevents some potentially valuable products from making it to the market. Of course, these new regulations are justified in part by the GSEs’ government subsidies. We once again see how one bad intervention in the market (the GSEs’ government subsides) leads to another (the new regulations).
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Federal Housing Finance Reform Act Of 2007
17 May 2007 2007 Ron Paul 52:17
In conclusion, H.R. 1427 compounds the problems with the GSEs and may increase the damage that will be inflicted by a bursting of the housing bubble. This is because this bill creates a new unaccountable regulator and introduces further distortions into the housing market via increased regulatory power. H.R. 1427 also violates the Constitution by creating yet another unaccountable regulator with quasi-executive, judicial, and legislative powers. Instead of expanding unconstitutional and market distorting government bureaucracies, Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bailout investors who were misled by foolish Government interference in the market.
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The Affordable Gas Price Act
21 May 2007 2007 Ron Paul 54:3
Unfortunately, many proposals to address the problem of higher energy prices involve increasing government interference in the market through policies such as price controls. These big government solutions will, at best, prove ineffective and, at worst, bring back the fuel shortages and gas lines of the seventies.
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In The Name Of Patriotism (Who Are The Patriots?)
22 May 2007 2007 Ron Paul 55:11
Randolph Bourne said that, “War is the health of the state.” With war, he argued, the state thrives. Those who believe in the powerful state see war as an opportunity. Those who mistrust the people and the market for solving problems have no trouble promoting a “war psychology” to justify the expansive role of the state. This includes the role the Federal Government plays in our lives, as well as in our economic transactions.
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Opening Statement Committee on Financial Services World Bank Hearing
22 May 2007 2007 Ron Paul 56:3
What is most annoying about the World Bank are the criticisms alleging that the Bank and its actions demonstrate the negative side of free-market capitalism. Nothing could be further from the truth. The World Bank is not an organization devoted to capitalism, or to the free market, but to state-run corporate capitalism. Established and managed by a multitude of national governments, the World Bank promotes managed trade, by which politically connected individuals and corporation enrich themselves at the expense of the poor and middle class.
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Opening Statement Committee on Financial Services World Bank Hearing
22 May 2007 2007 Ron Paul 56:5
The World Bank has outlived its intended purpose. Capital markets are flush with money and well-developed enough to lend money not just to national governments but to local and regional development projects, at competitive market rates. In the aftermath of Mr. Wolfowitz's departure, much will be made of the question of his successor, when the questioning instead should be directed towards the phasing out of the organization.
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Unanticipated Good results (When We leave)
6 June 2007 2007 Ron Paul 57:16
No matter who ends up controlling the oil they will always have a need for western markets. Instead of oil prices soaring with our leaving, production may go up and prices fall A change in our foreign policy is overdue.
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Introduction Of The Honest Money Act
15 June 2007 2007 Ron Paul 64:2
Absent legal tender laws, individuals acting through the market will determine what is money. Historically, when individuals have been free to choose their money they have selected items that are portable, widely accepted, and have a stable value. Having the market, rather than the government, define money is integral to the functioning of a free economy. As Edwin Vieira, perhaps the Nation’s top expert on constitutional monetary policy says, “. . . a free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that’s being used.”
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Introduction Of The Honest Money Act
15 June 2007 2007 Ron Paul 64:7
The drafters of the Constitution were well aware of how a government armed with legal tender powers could ravage the people’s liberty and prosperity. This is why the Constitution does not grant legal tender powers to the federal government. Instead, Congress was given powers to establish standards regarding the value of money. In other words, in monetary matters the Congress was to follow the lead of the market. When Alexander Hamilton wrote the coinage act of 1792, he simply adopted the market-definition of a dollar as equaling the value of the Spanish milled silver coin.
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Introduction Of The Honest Money Act
15 June 2007 2007 Ron Paul 64:8
Legal tender laws have reversed that order to where the market follows the lead of Congress. Beginning in the 19th century, Federal politicians sought to enhance their power and enrich their cronies, by using legal tender powers to change the definition of a dollar from a silver-or-gold-backed unit whose value is determined by the market, to a piece of paper produced by the State. The “value” of this paper may be normally backed in part by gold or silver, but its ultimate backing is the power of the State, and its value is determined by the political needs of the State and the powerful special interests who influence monetary policy.
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Introduction Of The Honest Money Act
15 June 2007 2007 Ron Paul 64:11
Considering the growth of government since the Supreme Court joined Congress in disregarding the constitutional barriers to legal tender laws, can anyone doubt the accuracy of Justice Field’s words? Repeal of legal tender laws would restore constitutional government and protect the people’s right to use a currency chosen by the market because it serves the needs of the people, instead of having to use a currency chosen by the State because it serves the needs of power hungry politicians and special interests. Therefore, I urge my colleges to cosponsor the Honest Money Act.
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Introduction Of The Federal reserve Board Abolition Act
15 June 2007 2007 Ron Paul 65:6
In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our Nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.
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Introduction Of The Sunshine In Monetary Policy Act
15 June 2007 2007 Ron Paul 66:1
Mr. PAUL. Madam Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1, M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal, NOW, accounts, and similar interest-earning checking account balances; M2, M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts, plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars.
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Introduction Of The Sunshine In Monetary Policy Act
15 June 2007 2007 Ron Paul 66:4
Whatever lack of interest policymakers are currently displaying, in M3 is no doubt related to the mistaken perception that the Federal Reserve Board has finally figured out how to effectively manage a fiat currency. This illusion exists largely because the effects of the Fed’s inflationary polices are concentrated in malinvestments in specific sectors of the economy, leading to “bubbles” such as the one that occurred in the stock market in the late nineties and the bubble that many believe is occurring in the current real estate market. When monetary inflation is reflected in sector- specific bubbles, it is easier to pretend that the bubbles are caused by problems specific to those sectors, instead of reflecting the problems inherent in a fiat currency system. Once the damage to our economy done by our reliance on fiat currency becomes clear, I am certain that policymakers will once again take more interest in M3.
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Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing
17 June 2007 2007 Ron Paul 68:1
It is clear to most people that remittances provide a significant economic boost to many South American and Latin American countries. Remittance flows to some countries dwarf foreign direct investment and foreign aid and have a beneficial effect on economic development, enabling low-income families to better their situations. The effect of remittances on development showcases the beneficial effects of market-based interaction to improve peoples' lives.
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Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing
17 June 2007 2007 Ron Paul 68:2
Some legislative proposals would require wire transfer services and other money services businesses to comply with elements of the REAL ID Act. While often well-intentioned, such measures, aside from infringing constitutional liberties, would have the effect of creating a thriving black market financial system which would make it even more difficult for law enforcement to track truly criminal financial transfers.
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Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing
17 June 2007 2007 Ron Paul 68:3
Heavy-handed government intrusion into the operation and regulation of money services businesses would also have the effect of raising the costs of doing business. Money service businesses have done a good job of identifying and serving their customers' needs. Healthy competition has led to a reduction in fees over the years so that money services businesses are accessible to more and more consumers. As some of our witnesses will attest, even the threat of regulation can have a chilling effect on the operation of money services businesses. The money services market has done an admirable job of self-regulation so far. The worst thing Congress could do is intervene in an overly forceful manner and undo all the good things that have been done so far.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:4
The shake up in the sub prime mortgage market which is now spreading, as the housing bubble deflates, has a long way to go. The same problem exists in the high-yield corporate debt market and will surely add to the economic uncertainty we now face. It’s deceptive to merely blame “abusive lending practices” for these problems.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:7
Too often officials ignore and even distort important economic information that could be beneficial in making market decisions.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:10
Since money growth statistics are key to calculating currency depreciation it is interesting to note, in this era of global financial markets, in a world engulfed with only fiat currencies, what total world wide money supply is doing.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:13
Welfare and warfare – guns and butter philosophy always leads to harmful inflation. We had severe problems in the 60’s and 70’s and we are doing the same thing once again. We have only started to pay for the extravagance of financing the current war and rapidly expanding the entitlement system by foreign borrowing and creating money and credit out of thin air. There are reasons to believe that the conditions we have created will be much worse than they were in 1979 when interest rates of 21% were required to settle the markets and reverse the stagflation process.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:14
Congress, and especially the Financial Services Committee, must insist on total transparency and accuracy of all government financial statistics. Any market interference by government agencies must be done in full public view.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:15
All meetings and decision and actions by the Presidents Working Group on Financial Markets must be fully open to public scrutiny. If our government is artificially propping up the dollar by directly manipulating gold prices, or colluding with other central banks, it is information that belongs in the public domain. The same is true about any interference in the stock, bond, or commodity markets.
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Opening Statement Committee on Financial Services Paulson Hearing
20 June 2007 2007 Ron Paul 71:16
A free market economy requires that government keeps its hands off and allows the consumers to exert their rightful control over the economy.
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Remembering Dr. Hans Sennholz
27 June 2007 2007 Ron Paul 72:1
Mr. PAUL. Madam Speaker, I rise to recognize the life and achievements of Hans F. Sennholz. Dr. Sennholz was one of the foremost free-market economists of his generation and an inspiration to tens of thousands of people around the world.
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Remembering Dr. Hans Sennholz
27 June 2007 2007 Ron Paul 72:3
In his 37 years as a professor of economics at Grove City College, Dr. Sennholz was a formative influence for over 10,000 students. During an era in which Keynesianism was the dominant economic ideology, Dr. Sennholz’s efforts played a major role in keeping alive the flame of classical liberalism and market-based economics. Dr. Sennholz and his free market ideas were a perfect fit for Grove City, which is one of only two colleges in the United States which eschews federal education funding.
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Remembering Dr. Hans Sennholz
27 June 2007 2007 Ron Paul 72:4
Dr. Sennholz later became President of the Foundation for Economic Education, reviving the institution and renewing its mission to advancing the ideals of private property, individual liberty, the rule of law, and the free market. He also served as an adjunct scholar at the Ludwig von Mises Institute, from which he received the Gary G. Schlarbaum Prize in 2004 for his lifelong dedication to the cause of liberty.
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Remembering Dr. Hans Sennholz
27 June 2007 2007 Ron Paul 72:6
Dr. Sennholz passed away on Saturday, June 23, 2007 at the age of 85, having lived a full and rewarding life. Generations of free- market economists are indebted to him, his spirited teaching, and his lucid writing for keeping free-market economic teaching alive during trying times. Congress would do well to heed his advice on the importance of free markets and the folly of fiat currency.
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Statement before the Financial Services Committee – Humphrey Hawkins Prequel Hearing
17 July 2007 2007 Ron Paul 76:4
Price stability attempts to disadvantage consumers by keeping prices stable, rather than allowing them to take their natural course of decline. This policy comes from two misguided notions: that lower prices lead to lower profits, and that lower prices lead to deflation. In its effort to ensure price stability, the Federal Reserve resorts to inflation targeting, using the federal funds rate and open market operations to increase the money supply at an ostensible low rate, introducing a subtle but pernicious inflation into the monetary system. Inflation benefits the government and the well-off, the first users of the new money, but harms those who receive the new money last, those who are predominantly poor and middle class.
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Statement before the Financial Services Committee – Humphrey Hawkins Prequel Hearing
17 July 2007 2007 Ron Paul 76:6
Until the Congress realizes that the economy cannot be managed by a group of economists, no matter how large or how brilliant the group may be, the result will be the same. Inflation will continue to rise, and the American people will continue to grow poorer. We would be far better off if the Congress were to reassert its Constitutional authority over the monetary system, establish a sound currency, and eliminate its meddling in the free market.
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Darfur Accountability and Divestment Act
30 July 2007 2007 Ron Paul 77:1
Mr. PAUL. Mr. Speaker, H.R. 180 is premised on the assumption that. divestment, sanctions, and other punitive measures are effective in influencing repressive regimes, when in fact nothing could be further from the truth. Proponents of such methods fail to remember that where goods cannot cross borders, troops will. Sanctions against Cuba, Iraq, and numerous other countries failed to topple their governments. Rather than weakening dictators, these sanctions strengthened their hold on power and led to more suffering on the part of the Cuban and Iraqi people. To the extent that divestment effected change in South Africa, it was brought about by private individuals working through the market to influence others.
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Opposing Further Sanctions On Iran
30 July 2007 2007 Ron Paul 78:3
Second, sanctions simply hurt American industries, particularly agriculture. Every market we close to our nation’s farmers is a market exploited by foreign farmers. China, Russia, the Middle East, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed trade restrictions that prevent our farmers from selling to the billions of people in these areas.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:1
Mr. PAUL. Madam Speaker, I am pleased to introduce the Quality Health Care Coalition Act, which takes a first step towards restoring a true free market in health care by restoring the rights of freedom of contract and association to health care professionals. Over the past few years, we have had much debate in Congress about the difficulties medical professionals and patients are having with Health Maintenance Organizations (HMOs). HMOs are devices used by insurance industries to ration health care. While it is politically popular for members of Congress to bash the HMOs and the insurance industry, the growth of the HMOs are rooted in past government interventions in the health care market though the tax code, the Employment Retirement Security Act (ERSIA), and the federal anti-trust laws. These interventions took control of the health care dollar away from individual patients and providers, thus making it inevitable that something like the HMOs would emerge as a means to control costs.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:2
Many of my well-meaning colleagues would deal with the problems created by the HMOs by expanding the federal government’s control over the health care market. These interventions will inevitably drive up the cost of health care and further erode the ability of patients and providers to determine the best health treatments free of government and third-party interference. In contrast, the Quality Health Care Coalition Act addresses the problems associated with HMOs by restoring medical professionals’ freedom to form voluntary organizations for the purpose of negotiating contracts with an HMO or an insurance company.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:3
As an OB–GYN who spent over 30 years practicing medicine, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:5
Under the United States Constitution, the federal government has no authority to interfere with the private contracts of American citizens. Furthermore, the prohibitions on contracting contained in the Sherman antitrust laws are based on a flawed economic theory which holds that federal regulators can improve upon market outcomes by restricting the rights of certain market participants deemed too powerful by the government. In fact, anti- trust laws harm consumers by preventing the operation of the free-market, causing prices to rise, quality to suffer, and, as is certainly the case with the relationship between the HMOs and medical professionals, favoring certain industries over others.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:6
By restoring the freedom of medical professionals to voluntarily come together to negotiate as a group with HMOs and insurance companies, this bill removes a government-imposed barrier to a true free market in health care. Of course, this bill does not infringe on the rights of health care professionals by forcing them to join a bargaining organization against their will. While Congress should protect the rights of all Americans to join organizations for the purpose of bargaining collectively, Congress also has a moral responsibility to ensure that no worker is forced by law to join or financially support such an organization.
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Introducing The Quality Health Care Coalition Act
2 August 2007 2007 Ron Paul 84:8
In conclusion, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to America’s health care professionals. I also urge my colleagues to join me in working to promote a true free market in health care by putting patients back in charge of the health care dollar by supporting my Comprehensive Health Care Reform Act.
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Introduction Of The Treat Physicians Fairly Act
2 August 2007 2007 Ron Paul 85:4
Ironically, the perceived need to force doctors to provide medical care is itself the result of prior government interventions into the health care market. When I began practicing medicine, it was common for doctors to provide uncompensated care as a matter of charity. However, laws and regulations inflating the cost of medical services and imposing unreasonable liability standards on medical professionals even when they were acting in a volunteer capacity made offering free care cost prohibitive. At the same time, the increasing health care costs associated with the government- facilitated overreliance on third party payments priced more and more people out of the health care market. Thus, the government responded to problems created by its interventions by imposing the EMTALA mandate on physicians, in effect making health care professionals scapegoats for the harmful consequences of government health care policies.
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Introducing The Comprehensive Health Care Act
2 August 2007 2007 Ron Paul 86:3
Furthermore, the predominance of third- party payers means there is effectively no market for individual health insurance polices, thus those whose employers cannot offer them health benefits must either pay exorbitant fees for health insurance or do without health insurance. Since most health care providers cater to those with health insurance, it is very difficult for the uninsured to find health care that meets their needs at an affordable price. The result is many of the uninsured turn to government-funded health care systems, or use their local emergency room as their primary care physician. The result of this is declining health for the uninsured and increased burden on taxpayer-financed health care system.
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Statement in Opposition to H.Res 552
4 September 2007 2007 Ron Paul 88:2
Attempting to force the hand of the Chinese government by requiring them to open their markets to United States financial services firms is akin to playing with fire. Politicians today fail to realize just how deeply our profligate fiscal and monetary policies of the past three decades have left us in debt to China. The Chinese government holds over one trillion dollars in reserves, leaving the future of the dollar highly vulnerable to the continued Chinese demand.
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Statement in Opposition to H.Res 552
4 September 2007 2007 Ron Paul 88:3
While I am in favor of unencumbered free trade, free trade cannot be enforced through threats or by resorting to international protectionist organizations such as the WTO. Even if the Chinese are recalcitrant in opening up their markets, it is not the role of the United States government to lecture the Chinese government on what it should or should not do in its own economy.
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Statement in Opposition to H.Res 552
4 September 2007 2007 Ron Paul 88:4
H. Res. 552 is a blatant encroachment on the sovereignty of the Chinese government. Were the Chinese government to pressure us into allowing greater access to the United States market for Chinese financial services firms, or to pressure us into allowing the sale of firms in strategic sectors of the market, we would justifiably resist this pressure.
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Terrorism Insurance
19 september 2007 2007 Ron Paul 89:4
As Congress considers extending this program, I renew my opposition to it for substantially the same reasons I stated six years ago. However, I do have a suggestion on how to improve the program. Since one claimed problem with allowing the private market to provide terrorism insurance is the difficulty of quantifying the risk of an attack, the taxpayers’ liability under the terrorism reinsurance program should be reduced for an attack occurring when the country is under orange or red alert. After all, because the point of the alert system is to let Americans know when there is an increased likelihood of an attack it is reasonable to expect insurance companies to demand that their clients take extra precautionary measures during periods of high alert. Reducing taxpayer subsidies will provide an incentive to ensure private parties take every possible precaution to minimize the potential damage from possible terrorists attack.
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Terrorism Insurance
19 september 2007 2007 Ron Paul 89:7
Under H.R. 3210, taxpayers are responsible for paying 90 percent of the costs of a terrorist incident when the total cost of that incident exceeds a certain threshold. While insurance companies technically are responsible under the bill for paying back monies received from the Treasury, the administrator of this program may defer repayment of the majority of the subsidy in order to “avoid the likely insolvency of the commercial insurer,” or avoid “unreasonable economic disruption and market instability.” This language may cause administrators to defer indefinitely the repayment of the loans, thus causing taxpayers to permanently bear the loss. This scenario is especially likely when one considers that “avoid . . . likely insolvency, unreasonable economic disruption, and market instability” are highly subjective standards, and that any administrator who attempts to enforce a strict repayment schedule likely will come under heavy political pressure to be more “flexible” in collecting debts owed to the taxpayers.
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Terrorism Insurance
19 september 2007 2007 Ron Paul 89:11
Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally funded insurance is avoided.
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Introducing The Television Consumer Freedom Act
19 September 2007 2007 Ron Paul 91:2
My office has received numerous calls from rural satellite and cable TV customers who are upset because their satellite or cable service providers have informed them that they will lose access to certain network and cable programming. The reason my constituents cannot obtain their desired satellite and cable services is that the satellite and cable “marketplace” is fraught with government interventionism at every level. Local governments have historically granted cable companies franchises of monopoly privilege. Government has previously intervened to invalidate “exclusive dealings” contracts between private parties, namely cable service providers and program creators, and has most recently imposed price controls. The Library of Congress has even been delegated the power to determine prices at which program suppliers must make their programs available to cable and satellite programming service providers.
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Introducing The Television Consumer Freedom Act
19 September 2007 2007 Ron Paul 91:3
It is, of course, within the constitutionally enumerated powers of Congress to “promote the progress of Science and Useful Arts by securing for limited Times to Authors and Inventors the Exclusive Right to their respective Writings and Discoveries.” However, operating a clearing-house for the subsequent transfer of such property rights in the name of setting a just price or “instilling competition” via “central planning” seems to be neither economically prudent nor justifiable under this enumerated power. This process is one best reserved to the competitive marketplace.
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Introducing The Television Consumer Freedom Act
19 September 2007 2007 Ron Paul 91:4
It is impossible for the government to set the just price for satellite programming. Over- regulation of the cable industry has resulted in competition among service providers for government privilege rather than free market competition among providers to offer a better product at a lower price. While federal regulation does leave satellite programming service providers free to bypass the governmental royalty distribution scheme and negotiate directly with owners of programming for program rights, there is a federal prohibition on satellite service providers making local network affiliates’ programs available to nearby satellite subscribers. This bill repeals that federal prohibition so satellite service providers may freely negotiate with program owners for programming desired by satellite service subscribers. Technology is now available by which viewers could view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers.
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Introducing The Television Consumer Freedom Act
19 September 2007 2007 Ron Paul 91:6
The Television Consumer Freedom Act also repeals Federal regulations that mandate that all TVs sold in the United States contain “digital technology.” In complete disregard of all free market and constitutional principles, the FCC actually plans to forbid consumers from buying TVs, after 2006, that are not equipped to carry digital broadcasts. According to economist Stephen Moore, this could raise the price of a TV by as much as $250 dollars. While some television manufacturers and broadcasters may believe they will benefit from this government-imposed price increase, they will actually lose business as consumers refrain from purchasing new TVs because of the government-mandated price increase.
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Introducing The Television Consumer Freedom Act
19 September 2007 2007 Ron Paul 91:7
Madam Speaker, the Federal Government should not interfere with a consumer’s ability to purchase services such as satellite or cable television in the free market. I therefore urge my colleagues to take a step toward restoring freedom by cosponsoring my Television Consumer Freedom Act.
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Statement before the Financial Services Committee
20 September 2007 2007 Ron Paul 93:3
One of the primary means the Federal Reserve uses to stimulate the economy is manipulation of the federal funds rate and the discount rates, which are used as benchmark rates throughout the economy. The interest rate is the price of time, as the value of a dollar today and the value of a dollar one year from now are not the same. Just like any price in the market, interest rates have an important informational signaling purpose. Government price fixing of the interest rate has the same deleterious effects as price controls in other areas.
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Statement before the Financial Services Committee
20 September 2007 2007 Ron Paul 93:6
Millions of Americans now find themselves stuck in a financial quandary that is not their fault. The result of manipulation of the interest rate, money supply, and mortgage markets are the recently popped housing bubble.
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House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy
17 October 2007 2007 Ron Paul 99:2
Foreign nations could easily criticize the United States for its weak dollar policy which favors our exporting industries while harming the exporting industries of our trading partners; for our eminent domain policies which make a mockery of property rights; and for Sarbanes-Oxley, which unfairly burdens companies operating in this country and causes companies to move to foreign capital markets. We would understandably resent this intrusion into our affairs.
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House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy
17 October 2007 2007 Ron Paul 99:3
While I empathize with the investors who have lost money through the Yukos incident, the fact remains that markets are fraught with risk. Our loose monetary policy and stimulation of credit have led to expectations of permanent positive economic growth. The technology bubble and the housing bubble have caused many to believe that markets can only go up. When bubbles burst, when stocks decline, something must have gone awry, and the government is called upon to right the wrong.
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House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy
17 October 2007 2007 Ron Paul 99:4
While many innocent investors are lured into the stock market as a result of our flawed expansionary government policies leading to visions of ever-increasing wealth, and may not be entirely at fault for their losses, the principle of caveat emptor seems to have been forgotten. In the case of a burst asset bubble or a stock's decline in price, some investors will lose out. It might be painful, it may have come about through injustice and government meddling, but government wrongdoing cannot be undone by more government wrongdoing.
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Statement Before the Joint Economic Committee
8 November 2007 2007 Ron Paul 103:1
Mr. Chairman, our economy finds itself in a precarious state. Oil prices are rising, gold is nearing all-time highs, and the dollar is nearing all-time lows. The root of this crisis, as with past financial and economic crises, results from federal government intervention into the economy, not to anything endemic to the market, nor to the the actions of market participants.
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Statement Before the Joint Economic Committee
8 November 2007 2007 Ron Paul 103:2
The collapse of the housing market has served as a catalyst for the economy's latest bust. For years the federal government has made it one of its prime aims to encourage homeownership among people who otherwise would not be able to afford homes. Various federal mortgage programs through the FHA, Fannie Mae, and Freddie Mac have distorted the normal workings of the housing market.
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Statement Before the Joint Economic Committee
8 November 2007 2007 Ron Paul 103:5
When this requirement is minimized or eliminated, you introduce a new class of homebuyers, people who are unable to budget and save for the purchase of a home, or who should wait for a few years until they have saved enough to purchase a home. Federal policies have encouraged investors, lenders, and brokers to cater to these people, so it is no surprise that market actors came up with ever more sophisticated means of bringing these people into the real estate market.
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Introducing The Free Competition In Currency Act
13 December 2007 2007 Ron Paul 110:4
As a proponent of competition in currencies, I believe that the American people should be free to choose the type of currency they prefer to use. The ability of consumers to adopt alternative currencies can help to keep the Government and the Federal Reserve honest, as the threat that further inflation will cause more and more people to opt out of using the dollar may restrain the government from debasing the currency. As monopolists, however, the Federal Reserve and the Mint fear competition, and would rather force competitors out using the federal court system and the threat of asset forfeiture than compete in the market.
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Statement of Ron Paul on H.R. 5140
29 January 2008 2008 Ron Paul 2:1
Madame Speaker, I find it odd that HR 5140, a bill allegedly designed to provide a stimulus for the anemic American economy, contains provisions that could damage the economy and hurt American taxpayers. Specifically, the provisions increasing the loan limitations of the Federal Housing Administration and the Government Sponsored Enterprises (e.g. Fannie Mae and Freddie Mac), will exacerbate the long-term problems in the housing market, and may even lead to a future taxpayer bailout of the housing industry. The recent bursting of the housing bubble should have taught my colleagues the dangers of government polices that distort the market by diverting resources to housing, when those resources would be more efficiently used in other sectors of the economy.
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Statement of Ron Paul on H.R. 5140
29 January 2008 2008 Ron Paul 2:10
In conclusion, Madame Speaker, HR 5140 does not provide the kind of permanent, deep tax relief that will protect long-term economic growth, and will actually compound the damage Congress has already done to the housing market. Instead of pretending that we are addressing America’s economic problems via temporary tax cuts, Congress should address the fundamental problems of the American economy by pursing serious monetary reform, spending cuts, and regulatory reform. Congress should also provide real long-term tax relief to the American people by passing legislation such as HR 5109 and HR 3664.
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Statement of Ron Paul on H.R. 5104
30 January 2008 2008 Ron Paul 3:6
The only legitimate “upgrade” to the original FISA legislation would be to allow surveillance of conversations that begin and end outside the United States between non-US citizens where the telephone call is routed through the United States. Technology and the global communications market have led to more foreign to foreign calls being routed through the United States. This adjustment would solve the problems outlined by the administration without violating the rights of US citizens.
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Statement on Competing Currencies
February 13, 2008 2008 Ron Paul 4:4
Over millennia of human history, gold and silver have been the two metals that have most often satisfied these conditions, survived the market process, and gained the trust of billions of people. Gold and silver are difficult to counterfeit, a property which ensures they will always be accepted in commerce. It is precisely for this reason that gold and silver are anathema to governments. A supply of gold and silver that is limited in supply by nature cannot be inflated, and thus serves as a check on the growth of government. Without the ability to inflate the currency, governments find themselves constrained in their actions, unable to carry on wars of aggression or to appease their overtaxed citizens with bread and circuses.
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Statement on Competing Currencies
February 13, 2008 2008 Ron Paul 4:15
In conclusion, Madam Speaker, allowing for competing currencies will allow market participants to choose a currency that suits their needs, rather than the needs of the government. The prospect of American citizens turning away from the dollar towards alternate currencies will provide the necessary impetus to the US government to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government’s ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system. I urge my colleagues to consider the redevelopment of a system of competing currencies.
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TRIBUTE TO GULF COPPER & MANUFACTURING
14 February 2008 2008 Ron Paul 5:2
Gulf Copper is an employee-owned company that has been in existence for over 50 years. Originally specializing in the installation of copper tubing on marine vessels, Gulf Copper has since expanded into the offshore, military marine, petrochemical, and industrial markets with base services including full topside marine repair, steel fabrication, steel and mechanical repair, machining, painting, and blasting. These expansions of service are helping Gulf Cooper achieve their objective of being the preferred provider of marine and industrial fabrication and repair services in the Texas gulf coast.
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“Monetary Policy and the State of the Economy”
February 26, 2008 2008 Ron Paul 8:3
By setting the federal funds rate, the rate at which banks in the Federal Reserve System loan funds to each other, the Federal Reserve inhibits the actions of market participants coming together to determine a market interest rate. The Federal Reserve and the federal government do not deign to interfere in setting the price of houses, the interest rate on mortgages, or the prices of wood and steel. The Fed’s actions in setting the federal funds rate however, because it reflects the price of money to a borrower and thus affects demand for money, affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls.
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“Monetary Policy and the State of the Economy”
February 26, 2008 2008 Ron Paul 8:4
The example of the Soviet Union should have taught us that no one person, no group of people, no matter how scientifically trained, can arbitrarily set prices and not expect economic havoc. Only the spontaneous interaction of market participants can lead to the development of a functioning price system that allows the needs and wants of all participants to be met. The sense I get from reading much of the punditry is that the federal funds rate is set often by the whims of the Federal Reserve governors. Even mechanistic explanations such as the Taylor Rule rely on inputs that are often left up to the discretion of the Fed policymakers: what is the potential GDP, do we use CPI or PCE, overall CPI versus CPI less energy and food, etc.
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“Monetary Policy and the State of the Economy”
February 26, 2008 2008 Ron Paul 8:5
The setting of the interest rate strikes me as quite similar to the way FDR used to set gold prices in the 1930’s, at his whim, resulting in economic havoc and uncertainty. When market actors have to devote much of their time to discerning the mindset of government price-setters, to parsing FOMC statements and minutes, they are necessarily diverted from productive economic activity. They cease to become purely economic actors and are forced to become political forecasters. This is not a problem isolated to this particular case, as businesses are forced to reckon with tax increases, expiring tax credits, import tariffs, subsidies to competitors, etc. However, because the interest rate determines the cost of borrowing and therefore determines whether or not marginal long-term business investments are undertaken, this politicized interest rate manipulation has far more impact than other government policies.
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“Monetary Policy and the State of the Economy”
February 26, 2008 2008 Ron Paul 8:6
This setting of the interest rate introduces the business cycle into the economy. Until we understand the results these Federal Reserve actions have, we will be doomed to repeat these periods of boom and bust. I urge my colleagues to study this matter, and to resist the urge for greater Federal Reserve intervention in the market.
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“Monetary Policy and the State of the Economy”
February 27, 2008 2008 Ron Paul 9:4
Some drastic proposals have called for the federal government to purchase existing mortgages and take upon itself the process of rewriting these and guaranteeing the resulting new mortgages. Aside from exposing the government to tens of billions of dollars of potentially defaulting mortgages, the burden of which will ultimately fall on the taxpayers, this type of plan would embed the federal government even deeper into the housing market and perpetuate instability. The Congress has, over the past decades, relentlessly pushed for increased rates of homeownership among people who have always been viewed by the market as poor credit risks. Various means and incentives have been used by the government, but behind all the actions of lenders has been an implicit belief in a federal bailout in the event of a crisis.
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“Monetary Policy and the State of the Economy”
February 27, 2008 2008 Ron Paul 9:5
What all of these proposed bailouts fail to mention is the moral hazard to which bailouts lead. If the federal government bails out banks, investors, or homeowners, the lessons of sound investment and fiscal discipline will not take hold. We can see this in the financial markets in the boom and bust of the business cycle. The Fed’s manipulation of interest rates results in malinvestment which, when it is discovered, leads to economic contraction and liquidation of malinvested resources. But the Fed never allows a complete shakeout, so that before a return to a sound market can occur, the Fed has already bailed out numerous market participants by undertaking another bout of loose money before the effects of the last business cycle have worked their way through the economy.
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“Monetary Policy and the State of the Economy”
February 27, 2008 2008 Ron Paul 9:6
Many market actors therefore continue to undertake risky investments and expect that in the future, if their investments go south, that the Fed would and should intervene by creating more money and credit. The result of these bailouts is that each successive recession runs the risk of becoming larger and more severe, requiring a stronger reaction by the Fed. Eventually, however, the Fed begins to run out of room in which to maneuver, a problem we are facing today.
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Foreign Government Investment in the U.S. Economy and Financial Sector
March 5, 2008 2008 Ron Paul 11:4
Rather than bemoaning the fact that foreign governments are using their dollars to purchase stakes in American companies, we should welcome the stability that such investment is bringing to our economy. While I am reluctant as anyone in this room to involve any government in any sort of intervention into the market, the fact remains that without injections of capital from foreign wealth funds the results of the subprime crisis would have been far worse for many financial firms. Even now we read that Citigroup, despite the massive funding it has received from sovereign wealth funds, is in danger of collapse unless it receives additional funding.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:2
I have never been opposed to regulation, although my idea of regulation differs from that of many people in Washington. The free market and its forces of supply and demand are the most effective regulator of the private sector, and have never been known to fail absent government intervention. But piling more public sector regulation on the private sector will have a detrimental effect on the health of our financial system and sow the seeds for the next financial meltdown.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:5
The solution called for, despite the numerous documented failures of government regulation, is always more regulation, more government involvement in and control over the economy, and less free enterprise. Never is the blame placed squarely where it belongs, which is on the shoulders of legislators and regulators whose actions distort the market, prohibiting legitimate market activities and encouraging the development of labyrinthine and opaque financial schemes.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:6
The latest regulatory plan from the Treasury Department, with the potential to turn the Federal Reserve into a super-regulator overseeing state-chartered banks, bank holding companies, and acting as a guarantor of market stability, is another in a long line of half-baked government responses to financial difficulty. Recession after recession has not impressed upon government leaders the reality that the Federal Reserve’s monetary policy activities are what lead to market instability.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:7
The business cycle, contrary to what Secretary Paulson and others seem to believe, is not endemic to the free market. It is always and everywhere the result of monetary inflation and subsequent malinvestment, which when it is discovered must of necessity be liquidated in order for a true recovery to occur. Delaying the liquidation will only prolong the crisis and ensure that the next crisis will be more severe.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:8
Every government intervention will result in a distortion of the market and a subsequent shock somewhere down the line in the future. It is about time that we recognize the failure of government intervention, get our hands out of the private sector, and for once allow the market to function.
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TRIBUTE ON THE PASSING OF SCOTT S. STUART
15 May 2008 2008 Ron Paul 28:3
Stuart, Scott S. Stuart of Baltimore, Maryland, and Canton, Connecticut, passed away peacefully in his sleep on Wednesday, May 7th. He was 43 years old. Scott was the Director of Alumni Relations at Loyola College since June of 2007. Prior to this position, he was the director of alumni relations for his alma mater Niagara University. Scott also had over 15 years of corporate experience as an executive in the banking industry and as a fund-raising director in the non- profit sector. He held the position of vice president, director of marketing, for OBA Bank in Washington, DC. In this post, he formulated corporate growth strategies and directed and identified marketing programs and opportunities, helping to “re-brand” America’s oldest thrift institution. Earlier, he spent several years working for the Boy Scouts of America in Boston, Mass., and Washington, DC., as district executive, district director, development director, and director of major gifts.
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TRIBUTE ON THE PASSING OF SCOTT S. STUART
15 May 2008 2008 Ron Paul 28:4
After graduating from Niagara University in 1986 with a bachelor’s degree in commerce/ marketing, Scott worked his way up the corporate ladder at M&T Bank to assistant vice president. Scott enjoyed traveling, backpacking, skiing and winter camping. But first and foremost, he loved his family. He was a devoted son and brother and was happiest when he was around them. He had an infectious spirit and love of life and faith. Scott is survived by his mother, Anne Stuart of Canton, Conn., and three younger siblings, Brian and his wife Yvonne of Boston, Mass., Sean Stuart of Broad Brook, Conn., and Tracy Stuart of New Canaan, Conn. To continue to keep his memory alive, the family asks that you pass on a good deed to someone in need.
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RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION
11 June 2008 2008 Ron Paul 33:3
During my years of service on the House Committee on Financial Services, I have had the opportunity to get to know many credit union employees. I have always been impressed with their commitment to serving their credit union members and their communities. In many ways, credit unions exemplify the best of the free market system. Since credit unions are formed specifically to serve their members, credit unions put the interests of their depositors first.
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CONGRESS MUST ACT TO HELP SHRIMPERS
19 June 2008 2008 Ron Paul 36:6
Of course, American shrimpers, like all American businesses that compete in the global marketplace, also suffers from the weak U.S. dollar. Congress’s fiscal irresponsibility is a major cause of the weakening U.S. dollar.
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DO NOT BELIEVE THE U.S. FEAR FACTOR PROPAGANDA AS IT RELATES TO OUR FOREIGN POLICY
26 June 2008 2008 Ron Paul 40:1
Mr. PAUL. Madam Speaker, today we saw some financial fireworks on the markets. The Dow Jones average was down 350-some points, gold was up $32, oil was up another $5, and there’s a lot of chaos out there; and everyone is worried about $4-a-gallon gasoline. I don’t think there is a clear understanding exactly why that has occurred.
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DO NOT BELIEVE THE U.S. FEAR FACTOR PROPAGANDA AS IT RELATES TO OUR FOREIGN POLICY
26 June 2008 2008 Ron Paul 40:4
And in the last several weeks, if not for months now, we have heard a lot of talk about the potentiality of Israel and/or the United States bombing Iran. And it is in the marketplace, and it’s being bid up. The energy crisis is being bid up because of this fear. It’s been predicted if bombs start dropping, that you’re going to see energy prices double or triple. It’s just the thought of it right now that helps to push these prices, the price of energy, up. And that is a very real thing going on right now. But to me, it’s almost like de´ja` vu all over again, as has been said.
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Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act
8 July 2008 2008 Ron Paul 41:2
This legislation will help Americans cope with high gas prices by making it easier for them to obtain more fuel-efficient cars. I hope my colleagues would agree that Congress should provide free market incentives to make it easier for Americans to exchange their current cars for cars that create less pollution.
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Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act
8 July 2008 2008 Ron Paul 41:3
Providing tax deductions and tax credits to make it easier for Americans to purchase fuel-efficient automobiles is a win for American consumers, a win for the environment, and a win for those of us who favor free market solutions to pollution and high gas prices. I urge my colleagues to support this legislation.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:3
America , with her traditions of free markets and property rights, led the way toward great wealth and progress throughout the world as well as at home. Since we have lost our confidence in the principles of liberty, self reliance, hard work and frugality, and instead took on empire building, financed through inflation and debt, all this has changed. This is indeed frightening and an historic event.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:5
Today things are different from even ancient times or the 1970s. There is something to the argument that we are now a global economy. The world has more people and is more integrated due to modern technology, communications, and travel. If modern technology had been used to promote the ideas of liberty, free markets, sound money and trade, it would have ushered in a new golden age — a globalism we could accept.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:10
The financial crisis, still in its early stages, is apparent to everyone: gasoline prices over $4 a gallon; skyrocketing education and medical-care costs; the collapse of the housing bubble; the bursting of the NASDAQ bubble; stock markets plunging; unemployment rising; massive underemployment; excessive government debt; and unmanageable personal debt. Little doubt exists as to whether we’ll get stagflation. The question that will soon be asked is: When will the stagflation become an inflationary depression?
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:14
It’s the post Bretton-Woods system that was responsible for globalizing inflation and markets and for generating a gigantic worldwide dollar bubble. That bubble is now bursting, and we’re seeing what it’s like to suffer the consequences of the many previous economic errors.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:17
Printing dollars over long periods of time may not immediately push prices up — yet in time it always does. Now we’re seeing catch-up for past inflating of the monetary supply. As bad as it is today with $4 a gallon gasoline, this is just the beginning. It’s a gross distraction to hound away at “drill, drill, drill” as a solution to the dollar crisis and high gasoline prices. Its okay to let the market increase supplies and drill, but that issue is a gross distraction from the sins of deficits and Federal Reserve monetary shenanigans.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:18
This bubble is different and bigger for another reason. The central banks of the world secretly collude to centrally plan the world economy. I’m convinced that agreements among central banks to “monetize” U.S. debt these past 15 years have existed, although secretly and out of the reach of any oversight of anyone — especially the U.S. Congress that doesn’t care, or just flat doesn’t understand. As this “gift” to us comes to an end, our problems worsen. The central banks and the various governments are very powerful, but eventually the markets overwhelm when the people who get stuck holding the bag (of bad dollars) catch on and spend the dollars into the economy with emotional zeal, thus igniting inflationary fever.
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Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:20
The mistakes made with excessive credit at artificially low rates are huge, and the market is demanding a correction. This involves excessive debt, misdirected investments, over-investments, and all the other problems caused by the government when spending the money they should never have had. Foreign militarism, welfare handouts and $80 trillion entitlement promises are all coming to an end. We don’t have the money or the wealth-creating capacity to catch up and care for all the needs that now exist because we rejected the market economy, sound money, self reliance and the principles of liberty.
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CONGRATULATIONS TO BASF FREEPORT ON THEIR 50TH ANNIVERSARY
10 July 2008 2008 Ron Paul 44:2
The story of the BASF Freeport began when the owners of BASF Overzee N.V., a subsidiary of Badische Anilin-& Soda Fabrik A. G. (BASF), Ludwigshafen, Germany, and the Dow Chemical Company, Midland, Michigan, agreed to form Dow Badische Chemical Company. Dow Badische was endowed with the chemical process technology of the European parent as well as the managerial and marketing knowledge of their U.S. parent.
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Humphrey Hawkins Hearing on Monetary Policy
July 16, 2008 2008 Ron Paul 46:2
The two GSE’s have been disasters waiting to happen, as I and many others have warned over the years. It was bad enough that Fannie and Freddie were able to operate with significant advantages, such as lower borrowing costs and designation of their debt as government debt. Now, the implicit government backstop has turned out to be an explicit backstop, just as we feared. The Greenspan reflation of the economy after the dot-com bust pumped additional liquidity into an already-skewed housing market, leading to an unsustainable boom that from many accounts has only begun to unravel. With a current federal funds rate of two percent, and inflation at over four percent, the Fed is currently sowing the seeds for another economic bubble.
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Humphrey Hawkins Hearing on Monetary Policy
July 16, 2008 2008 Ron Paul 46:3
At the heart of this economic malaise is the Fed’s poor stewardship of the dollar. The cause of the dollar’s demise is not the result of a purely psychological response to public statements on US dollar policy, but is rather a reaction to a massive increase in the money supply brought about by the Federal Reserve’s loose monetary policy. The policies that led to hemorrhaging of gold during the 1960’s and the eventual closing of the gold standard are the same policies that are leading to the dollar’s decline in international currency markets today. Foreign governments no longer wish to hold depreciating dollars, and would prefer to hold stronger currencies such as the euro. Foreign investors no longer wish to hold underperforming dollars, and seek to hold better-performing assets such as ports and beer companies.
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Humphrey Hawkins Hearing on Monetary Policy
July 16, 2008 2008 Ron Paul 46:4
Every government bailout or promise thereof leads to moral hazard, the likelihood that market actors will take ever riskier actions with the belief that the federal government will bail them out. Bear Stearns was bailed out, Fannie and Freddie will be bailed out, but where will the line be drawn? The precedent has been established and the taxpayers will end up footing the bill in these cases, but the federal government and the Federal Reserve lack the resources to bail out every firm that is deemed “too big to fail.” Decades of loose monetary policy will lead to a financial day of reckoning, and bailouts, liquidity injections, and lowering of the federal funds rate will only delay the inevitable and ensure that the final correction will be longer and more severe than it otherwise would. For the sake of the economy, I urge my colleagues to resist the temptation to give in to political expediency, and to oppose loose monetary policy and any further bailouts.
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Statement on HR 3221
July 24, 2008 2008 Ron Paul 48:1
Madam Speaker, For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful.
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Statement on HR 3221
July 24, 2008 2008 Ron Paul 48:4
Among the information that will be collected from loan originators for inclusion in the federal database are fingerprints. Madam Speaker, giving the federal government the power to force Americans who wish to work in real estate to submit their fingerprints to a federal database opens the door to numerous abuses of privacy and civil liberties and establishes a dangerous precedent. Fingerprint databases and background checks have been no deterrent to espionage and fraud among governmental agencies, and will likewise fail to prevent fraud in the real estate market. I am amazed to see some members who are usually outspoken advocates of civil liberties and defenders of the Fourth Amendment support this new threat to privacy.
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Statement on HR 3221
July 24, 2008 2008 Ron Paul 48:5
Finally, HR 3221 increases the federal debt limit by $800 billion. We are told that CBO has scored this bill at a cost of $25 billion, but this debt limit increase belies that. The Federal Reserve has already propped up the housing and financial markets to the tune of over $300 billion, and this raise of the debt limit indicates that the cost of this newest bailout will likely be even more costly. I am dismayed that my colleagues have not learned the lessons of the Patriot Act and Sarbanes-Oxley. Massive bills passed in knee-jerk reaction to crisis events will always be poorly written, burdensome and expensive to taxpayers, and destructive of liberty.
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Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy”
July 24, 2008 2008 Ron Paul 50:2
The root of our current economic malaise, the weak dollar, the high price of oil, and the collapse of the housing market, comes about because almost no one understands what inflation is. Inflation is an increase in the money supply, which occurs by various methods, the printing of currency, low reserve requirements, Federal Reserve open market operations, etc.
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Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy”
July 24, 2008 2008 Ron Paul 50:3
In Germany in the 1920s, South America in the 1980s, and Zimbabwe today, everyone recognizes that inflation was caused by the government running the printing presses non-stop, with the resulting exponential rise in prices being the necessary result of monetary growth. Yet somehow, both the empirical and theoretical reality of inflation as a rise in money supply is ignored in this country. Inflation is conflated with price inflation, the increase in the overall price level, and is viewed as something both endogenous to the market economy while at the same time influenced by exogenous price shocks.
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HOUSING AND ECONOMIC RECOVERY ACT OF 2008
25 July 2008 2008 Ron Paul 52:1
Mr. PAUL. Mr. Speaker, for several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit Government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the U.S. Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing Government’s involvement in housing, or restoring a free market in housing by ending Government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of Government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful.
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HOUSING AND ECONOMIC RECOVERY ACT OF 2008
25 July 2008 2008 Ron Paul 52:4
Among the information that will be collected from loan originators for inclusion in the Federal database are fingerprints. Madam Speaker, giving the Federal Government the power to force Americans who wish to work in real estate to submit their fingerprints to a Federal database opens the door to numerous abuses of privacy and civil liberties and establishes a dangerous precedent. Fingerprint databases and background checks have been no deterrent to espionage and fraud among governmental agencies, and will likewise fail to prevent fraud in the real estate market. I am amazed to see some members who are usually outspoken advocates of civil liberties and defenders of the fourth amendment support this new threat to privacy.
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HOUSING AND ECONOMIC RECOVERY ACT OF 2008
25 July 2008 2008 Ron Paul 52:5
Finally, H.R. 3221 increases the Federal debt limit by $800 billion. We are told that CBO has scored this bill at a cost of $25 billion, but this debt limit increase belies that. The Federal Reserve has already propped up the housing and financial markets to the tune of over $300 billion, and this raise of the debt limit indicates that the cost of this newest bailout will likely be even more costly. I am dismayed that my colleagues have not learned the lessons of the PATRIOT Act and Sarbanes- Oxley. Massive bills passed in knee- jerk reaction to crisis events will always be poorly written, burdensome and expensive to taxpayers, and destructive of liberty.
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Statement on HR 4137
August 1, 2008 2008 Ron Paul 56:3
The “Academic Bill of Rights” is a response to concerns that federally-funded institutions of higher learner are refusing to allow students to express, or even be exposed to, points of view that differ from those held by their professors. Ironically, the proliferation of “political correctness” on college campuses is largely a direct result of increased government funding of colleges and universities. Federal funding has isolated institutions of higher education from market discipline, thus freeing professors to promulgate their “politically correct” views regardless of whether this type of instruction benefits their students (who are, after all, the professors’ customers). Now, in a perfect illustration of how politicians use the problems created by previous interventions in the market as a justification for further interventions, Congress proposes to use the problem of “political correctness” to justify more federal control over college classrooms.
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Statement on Sovereign Wealth Funds
September 10, 2008 2008 Ron Paul 58:4
Debtors cannot continue building debts forever, and we now face strong indications that our creditors are eager to begin collecting what is owed them. It is not too late to correct our mistakes, but we must act now and cannot dally. We must drastically reduce government spending, end wasteful and disastrous interventions into financial markets, and rein in the Federal Reserve’s inflationary monetary policy. Failing to do so will ensure a descent into financial catastrophe.
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“The Future of Financial Services: Exploring Solutions for the Market Crisis”
September 24, 2008 2008 Ron Paul 59:1
Mr. Chairman, It is truly a shame that, less than two decades after the fall of communism, the lessons of price control are completely lost on most Washington power-brokers. The Treasury proposal before Congress is nothing more than a form of price control, an attempt to keep asset prices artificially elevated. The root of our recent economic boom, as in any other business cycle, was government intervention into the market under the guise of lowering the interest rate, which is itself a price. The function that prices play in the market in equalizing supply and demand, and the distortions that necessarily accompany each government effort at price-fixing, are forgotten by too many in Washington.
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“The Future of Financial Services: Exploring Solutions for the Market Crisis”
September 24, 2008 2008 Ron Paul 59:3
A similar situation exists today, where many mortgage-backed securities and other similar assets are horribly overvalued. The market response would be to allow these assets to be sold on the market at whatever price they would bring. This would result in a shakeout of bad debt and a shorter, sharper correction than would otherwise occur. Unfortunately, the political will to allow banks to take the responsibility for their lending actions is at times lacking.
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“The Economic Outlook”
September 24, 2008 2008 Ron Paul 60:1
Mr. Chairman, I believe that our economy faces a bleak future, particularly if the latest $700 billion bailout plan ends up passing. We risk committing the same errors that prolonged the misery of the Great Depression, namely keeping prices from falling. Instead of allowing overvalued financial assets to take a hit and trade on the market at a more realistic value, the government seeks to purchase overvalued or worthless assets and hold them in the unrealistic hope that at some point in the next few decades, someone might be willing to purchase them.
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“The Economic Outlook”
September 24, 2008 2008 Ron Paul 60:2
One of the perverse effects of this bailout proposal is that the worst-performing firms, and those who interjected themselves most deeply into mortgage-backed securities, credit default swaps, and special investment vehicles will be those who benefit the most from this bailout. As with the bailout of airlines in the aftermath of 9/11, those businesses who were the least efficient, least productive, and least concerned with serving consumers are those who will be rewarded for their mismanagement with a government handout, rather than the failure of their company that is proper to the market. This creates a dangerous moral hazard, as the precedent of bailing out reckless lending will lead to even more reckless lending and irresponsible behavior on the part of financial firms in the future.
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“The Economic Outlook”
September 24, 2008 2008 Ron Paul 60:3
This bailout is a slipshod proposal, slapped together haphazardly and forced on an unwilling Congress with the threat that not passing it will lead to the collapse of the financial system. Some of the proposed alternatives are no better, for instance those which propose a government equity share in bailed-out companies. That we have come to a point where outright purchases of private sector companies is not only proposed but accepted by many who claim to be defenders of free markets bodes ill for the future of American society.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:1
Mr. PAUL. Madam Speaker, I rise in strong opposition to this bill. This is only going to make the problem that much worse. The problem came about because we spent too much; we borrowed too much, and we printed too much money; we inflated too much, and we overregulated. This is all that this bill is about is more of the same. So you can’t solve the problem. We are looking at a symptom. We are looking at the collapsing of a market that was unstable. It was unstable because of the way it came about. It came about because of a monopoly control of money and credit by the Federal Reserve System, and that is a natural consequence of what happens when a Federal Reserve System creates too much credit.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:2
Now, there have been a fair number of free market economists around who have predicted this would happen. Yet do we look to them for advice? No. We totally exclude them. We don’t listen to them. We don’t look at them. We look to the people who created the problem, and then we perpetuate the problem.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:3
The most serious mistake that could be made here today is to blame free market capitalism for this problem. This has nothing to do with free market capitalism. This has to do with a managed economy, with an inflationary system, with corporatism, and with a special interest system. It has nothing to do with the failure of free markets and capitalism. Yet we’re resorting now, once again, to promoting more and more government.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:5
We need to get our house in order. We need more oversight—that is a certainty —but we need oversight of the Federal Reserve System, of the Exchange Stabilization Fund and of the President’s Working Group on Financial Markets. Find out what they’re doing. How much have they been meddling in the market?
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:11
For 37 years the world built a financial system based on the dollar as the reserve currency of the world in an attempt to make the dollar serve as the new standard of value. However since 1971, the dollar has had no intrinsic value, as it is not tied to gold. The dollar is simply a fiat currency, which has fluctuated in value on a daily, if not hourly, bias. This worked to some degree until the market realized that too much debt and malinvestment existed and a correction was required.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:15
But what politicians are willing to say that the financial “skyscraper”—the global financial and monetary system-is a house of cards. It is not going to happen at this juncture. They’re not even talking about this. They talk only of bailouts, more monetary inflation, more special interest spending, more debt, and more regulations. There is almost no talk of the relationship of the Community Reinvestment Act, HUD, and government assisted loans to the housing bubble. And there is no talk of the oversight that is desperately needed for the Federal Reserve, the Exchange Stabilization Fund, and all the activities of the President’s Working Group on financial markets. When these actions are taken we will at last know that Congress is serious about the reforms that are really needed.
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“The Bailout”
September 29, 2008 2008 Ron Paul 65:19
It is bad economic policy—By refusing to address the monetary system while continuing to place the burdens of the bailout on the dollar, we can be certain that in time, we will be faced with another, more severe crisis when the market figures out that there is no magic government bailout or regulation that can make a fraudulent monetary system work.
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Statement on HR 1424
October 3, 2008 2008 Ron Paul 67:2
The Federal Reserve has already injected hundreds of billions of dollars into US and world credit markets. The adjusted monetary base is up sharply, bank reserves have exploded, and the national debt is up almost half a trillion dollars over the past two weeks. Yet, we are still told that after all this intervention, all this inflation, that we still need an additional $700 billion bailout, otherwise the credit markets will seize and the economy will collapse. This is the same excuse that preceded previous bailouts, and undoubtedly we will hear it again in the future after this bailout fails.
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UNTITLED
3 October 2008 2008 Ron Paul 68:2
I think one of the reasons why we are floundering around here is that we don’t understand the problem because instead of it being a credit crunch, I think it is a lot more serious than that. That is, I think what is happening in the market today is signaling something much more draconian because it is probably telling us that our government is insolvent, that we are on the verge of bankruptcy and big things are starting to happen. And we don’t quite understand it, so we fall back on the old cliches that what we need is more appropriations, more spending, more debt, and more credit in the market. That means more inflation by the Federal Reserve system. And yet, that is what caused the trouble.
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UNTITLED
3 October 2008 2008 Ron Paul 68:5
My sincere conviction is that by doing more mischief and not allowing markets to adjust, debt to be liquidated, you’re going to guarantee a depression. It is going to be prolonged. The agony is going to be there for a lot longer than if you allow markets to adjust. Liquidation of debt. Let the bankruptcy occur, let the good assets come up, and let it react.
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The Austrians Are Right
November 20, 2008 2008 Ron Paul 71:2
Except for a rare few, Members of Congress are unaware of Austrian Free Market economics. For the last 80 years, the legislative, judiciary and executive branches of our government have been totally influenced by Keynesian economics. If they had had any understanding of the Austrian economic explanation of the business cycle, they would have never permitted the dangerous bubbles that always lead to painful corrections.
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The Austrians Are Right
November 20, 2008 2008 Ron Paul 71:3
Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail.
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The Austrians Are Right
November 20, 2008 2008 Ron Paul 71:11
Who’s being ignored? The Austrian free-market economists—the very ones who predicted not only the Great Depression, but the calamity we’re dealing with today. If the crisis was predictable and is explainable, why did no one listen? It’s because too many politicians believed that a free lunch was possible and a new economic paradigm had arrived. But we’ve heard that one before — like the philosopher’s stone that could turn lead into gold. Prosperity without work is a dream of the ages.
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UNTITLED
10 December 2008 2008 Ron Paul 73:10
The alternative proposal is less costly to the taxpayer; therefore I will vote for it if offered as a motion to recommit. However, I am troubled that the proposal endorses the notion that the federal government should play both a financial and managerial role in restoring the American automobile industry. Mr. Speaker, it is a shame that we are not given a chance to vote for a true free-market approach; instead we are asked to choose between two types of government interference with the market.
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INTRODUCTION OF THE PRESCRIPTION DRUG AFFORDABILITY ACT
January 6, 2009 2009 Ron Paul 3:3
In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the U.S. or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Madam Speaker, letting the free market work is the best means of lowering the cost of prescription drugs.
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Bailout
January 14, 2009 2009 Ron Paul 8:9
Then with the assumption that we’re all going to be bailed out, which we’re endorsing by bailing everybody out, people say, “Well, no sweat because, if there is a mistake, the government will come to our rescue.” That’s part of the system of the FDIC. Now, nobody can conceive of the notion that we could live without an FDIC, but the truth is that a private FDIC would never permit this massive malinvestment. There would be regulations done in the marketplace, and there would not be this distortion that we’ve ended up with.
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LIVING BENEATH OUR MEANS
January 21, 2009 2009 Ron Paul 10:8
Central bank cooperation in the scheme will not make it work. Pretending the dollar is maintaining real value by manipulating the price of gold – the historic mechanism for measuring a currency’s value – will work no better than the effort of the 1960s to keep gold at $35 an ounce. Nevertheless, Bretton Woods failed in 1971, as was predicted by the free market economists, despite these efforts.
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More Spending Isn’t The Answer
January 22, 2009 2009 Ron Paul 11:2
Actually, we should have talked more about prevention of a problem like we have today than trying to deal with the financial cancer that we are dealing with. But the prevention could have come many decades ago. And many free-market economists predicted, even decades ago, that we would have a crisis like this. But those warnings were not heeded, and even in the last 10 years there have been dire warnings by people who believe in sound money and not in the inflationary system that we have that we will come to this point.
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FEDERAL RESERVE BOARD ABOLITION ACT
February 3, 2009 2009 Ron Paul 14:6
In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.
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FEDERAL RESERVE IS THE CULPRIT
February 25, 2009 2009 Ron Paul 17:3
The market rate of interest is crucial information for the smooth operation of the economy. A central bank setting interest rates is price fixing and is a form of central economic planning. Price fixing is a tool of socialists and destroys production.
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FEDERAL RESERVE IS THE CULPRIT
February 25, 2009 2009 Ron Paul 17:4
Central bankers, politicians and bureaucrats can’t know what the proper rate should be. They lack the knowledge and are deceived by their aggrandizement. Manipulating the money supply and interest rates rejects all the principles of the free market.
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FEDERAL RESERVE IS THE CULPRIT
February 25, 2009 2009 Ron Paul 17:5
Ironically, free markets and sound money generates low rates, but unlike the artificially low rates orchestrated by the Fed, the information conveyed is beneficial to investors and savers.
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THRIFT SAVINGS FUND IMPROVEMENT ACT
March 10, 2009 2009 Ron Paul 25:3
Recent gains aside, precious metals have a number of features that make them a sound part of a prudent investment strategy. In particular, inflation does not erode the value of precious metals is not eroded over time. Thus, precious metals can serve as a valuable “inflation hedge.” Precious metals also maintain, or even increase, their value during times of stock market instability, such as what the country is currently experiencing. Thus, investments in precious metals can help ensure that an investment portfolio maintains its value during times of economic instability.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:1
Mr. PAUL. Madam Speaker, I am pleased to introduce the Quality Health Care Coalition Act which takes a first step towards restoring a true free market in health care by restoring the rights of freedom of contract and association to health care professionals. For over a decade, we have had much debate in Congress about the difficulties medical professionals and patients are having with Health Maintenance Organizations (HMOs). HMOs are devices used by insurance industries to ration health care. While it is politically popular for members of Congress to bash the HMOs and the insurance industry, the growth of the HMOs are rooted in past government interventions in the health care market though the tax code, the Employment Retirement Security Act (ERSIA), and the federal anti-trust laws. These interventions took control of the health care dollar away from individual patients and providers, thus making it inevitable that something like the HMOs would emerge as a means to control costs.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:2
Many of my well-meaning colleagues would deal with the problems created by the HMOs by expanding the federal government’s control over the health care market. These interventions will inevitably drive up the cost of health care and further erode the ability of patents and providers to determine the best health treatments free of government and third-party interference. In contrast, the Quality Health Care Coalition Act addresses the problems associated with HMOs by restoring medical professionals’ freedom to form voluntary organizations for the purpose of negotiating contracts with an HMO or an insurance company.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:3
As an OB–GYN who spent over 30 years practicing medicine, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:5
Under the United States Constitution, the federal government has no authority to interfere with the private contracts of American citizens. Furthermore, the prohibitions on contracting contained in the Sherman antitrust laws are based on a flawed economic theory which holds that federal regulators can improve upon market outcomes by restricting the rights of certain market participants deemed too powerful by the government. In fact, anti- trust laws harm consumers by preventing the operation of the free-market, causing prices to rise, quality to suffer, and, as is certainly the case with the relationship between the HMOs and medical professionals, favoring certain industries over others.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:6
By restoring the freedom of medical professionals to voluntarily come together to negotiate as a group with HMOs and insurance companies, this bill removes a government-imposed barrier to a true free market in health care. Of course, this bill does not infringe on the rights of health care professionals by forcing them to join a bargaining organization against their will. While Congress should protect the rights of all Americans to join organizations for the purpose of bargaining collectively, Congress also has a moral responsibility to ensure that no worker is forced by law to join or financially support such an organization.
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INTRODUCING THE QUALITY HEALTH CARE COALITION ACT
March 12, 2009 2009 Ron Paul 29:8
In conclusion, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to America’s health care professionals. I also urge my colleagues to join me in working to promote a true free market in health care by putting patients back in charge of the health care dollar by supporting my Comprehensive Health Care Reform Act.
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TREAT PHYSICIANS FAIRLY ACT
March 12, 2009 2009 Ron Paul 30:4
Ironically, the perceived need to force doctors to provide medical care is itself the result of prior government interventions into the health care market. When I began practicing, it was common for doctors to provide uncompensated care as a matter of charity. However, government laws and regulations inflating the cost of medical services and imposing unreasonable liability standards on medical professionals even when they where acting in a volunteer capacity made offering free care cost prohibitive. At the same time, the increased health care costs associated with the government-facilitated over-reliance in third party payments priced more and more people out of the health care market. Thus, the government responded to problems created by their interventions by imposing EMTALA mandate on physicians, in effect making the health care profession scapegoats for the unintended consequences of failed government health care policies.
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INTRODUCING THE ENERGY EFFICIENT AND ENVIRONMENTALLY FRIENDLY AUTOMOBILE TAX CREDIT ACT
March 26, 2009 2009 Ron Paul 38:2
This legislation will help Americans reduce the amount they pay to fill up their cars by making it easier for them to obtain more fuel- efficient cars. I hope my colleagues would agree that Congress should provide free market incentives to make it easier for Americans to exchange their current cars for cars that create less pollution.
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INTRODUCING THE ENERGY EFFICIENT AND ENVIRONMENTALLY FRIENDLY AUTOMOBILE TAX CREDIT ACT
March 26, 2009 2009 Ron Paul 38:3
Providing tax deductions and tax credits to make it easier for Americans to purchase fuel- efficient automobiles is a win for American consumers, a win for the environment, and a win for those of us who favor free market solutions to pollution and high gas prices. I urge my colleagues to support this legislation.
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Federal Reserve Monetizes Debt
April 1, 2009 2009 Ron Paul 41:8
Now, have they backed off in any way? No. They are expanding it. Not only do they buy in the market, they are buying it directly from the Treasury. They’re only encouraging us to do even more of this.
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FAMILY EDUCATION FREEDOM ACT
April 2, 2009 2009 Ron Paul 43:2
The Family Education Freedom Act returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty”. Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness.
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FAMILY EDUCATION FREEDOM ACT
April 2, 2009 2009 Ron Paul 43:3
Currently, consumers are less than sovereign in the education “market.” Funding decisions are increasingly controlled by the federal government. Because “he who pays the piper calls the tune,” public, and even private schools, are paying greater attention to the dictates of federal “educrats” while ignoring the wishes of the parents to an ever-greater degree. As such, the lack of consumer sovereignty in education is destroying parental control of education and replacing it with state control. Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system.
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INDUSTRIAL HEMP FARMING ACT
April 2, 2009 2009 Ron Paul 44:7
It is unfortunate that the Federal Government has stood in the way of American farmers, including many who are struggling to make ends meet, competing in the global industrial hemp market. Indeed, the founders of our Nation, some of whom grew hemp, would surely find that Federal restrictions on farmers growing a safe and profitable crop on their own land are inconsistent with the constitutional guarantee of a limited, restrained Federal Government. Therefore, I urge my colleagues to stand up for American farmers and cosponsor the Industrial Hemp Farming Act.
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BIRTHDAY GREETINGS TO MALINDA WRIGHT
May 4, 2009 2009 Ron Paul 52:2
Malinda was married to Alex C. Wright for over seventy years. Together, Malinda and Alex raised six children. A lifelong lover of reading, Malinda continues to read the newspaper every day, and I understand that she is particularly interested in the stock market.
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INTRODUCTION OF COERCION IS NOT HEALTH CARE
May 21, 2009 2009 Ron Paul 58:2
While often marketed as a “moderate” compromise between nationalized health care and a free market solution, forcing every American to purchase a government-approved health insurance plan is a back door approach to creating a government-controlled health care system.
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INTRODUCING THE PROTECT PATIENTS’ AND PHYSICIANS’ PRIVACY ACT
May 21, 2009 2009 Ron Paul 59:9
Madam Speaker, allowing patients and providers to opt out of the electronic medical records system will in no way harm the practice of medicine or the development of an efficient system of keeping medical records. Instead, it will enhance these worthy goals by ensuring patients and physicians can escape the inefficient, one-size-fits-all government- mandated system. By creating a market for alternatives to the government system, the op- out ensures that private businesses can work to develop systems that meet the demands for an efficient system of electronic records that protects patients’ privacy. I urge my colleagues to stand up for privacy and quality health care by cosponsoring the Protect Patients’ and Physicians’ Privacy Act.
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INTRODUCTION OF THE AFFORDABLE GAS PRICE ACT
May 21, 2009 2009 Ron Paul 60:3
Unfortunately, many proposals to address the problem of higher energy prices involve increasing government interference in the market through policies such as price controls. These big government solutions will, at best, prove ineffective and, at worst, bring back the fuel shortages and gas lines of the seventies.
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MISTAKES: JUST A FEW!
June 3, 2009 2009 Ron Paul 63:2
We have failed to recognize the true cause of the crisis. Instead, free markets and not enough regulations and central economic planning have been blamed.
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MISTAKES: JUST A FEW!
June 3, 2009 2009 Ron Paul 63:5
This has entailed taxpayers being forced to buy worthless assets, propping up malinvestments, not allowing the liquidation of bad debt, bailing out privileged banking, Wall Street and corporate elites. We promote artificially low interest rates which eliminates information that only the market can provide. Steadily sacrificing economic and personal liberty is accepted as good policy. Socializing American industry offers little hope that prosperity will soon return.
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MISTAKES: JUST A FEW!
June 3, 2009 2009 Ron Paul 63:16
The policies required to provide a solution to this catastrophic crisis we face are available. We must apply a precise philosophy of liberty along with respect for private property ownership, free markets, voluntary contracts enforced by law and free minds.
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Let People Decide Whether To Use Tobacco
June 12, 2009 2009 Ron Paul 66:6
And look at what happened to the prohibition of alcohol. You say, Well, no, this is not going to be a prohibition. It is going to be prohibition. This is a form of prohibition. When you have prohibition or even approach prohibition, what do you create? You create the black market. We will see the black market come. Already the taxes are opening up the doors of the black market.
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EARMARK DECLARATION
June 24, 2009 2009 Ron Paul 75:12
Address of Requesting Entity: 2401 Market Street, Baytown, TX 77522
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Statement at Financial Services Committee Hearing
July 21, 2009 2009 Ron Paul 82:2
Real unemployment is now 20% and there has not been any economic growth since the onset of the crisis in the year 2000, according to non-government statistics. Pyramiding debt and credit expansion, over the past 38 years, has come to an abrupt end – as predicted by free-market economists. Pursuing the same policy of excessive spending, debt expansion, and monetary inflation, can only compound the problems and prevent the required correction. Doubling the money supply didn’t work; quadrupling it won’t work either. The problem of debt must be addressed.
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EARMARK DECLARATION
July 23, 2009 2009 Ron Paul 84:6
Address of Requesting Entity: 2401 Market Street, Baytown, Texas 77522
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INTRODUCING HEALTH FREEDOM LEGISLATION
July 29, 2009 2009 Ron Paul 87:1
Mr. PAUL. Madam Speaker, I rise to introduce two pieces of legislation restoring the First Amendment rights of consumers to receive truthful information regarding the benefits of foods and dietary supplements. The first bill, the Health Freedom Act, codifies the First Amendment by ending the Food and Drug Administration (FDA)’s efforts to censor truthful health claims. The second bill, the Freedom of Health Speech Act, codifies the First and Fifth Amendment by requiring the Federal Trade Commission (FTC) to prove that health claims are false before it takes action to stop manufacturers and marketers from making the claims.
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INTRODUCING HEALTH FREEDOM LEGISLATION
July 29, 2009 2009 Ron Paul 87:7
The Freedom of Health Speech Act addresses the FTC’s violations of the First Amendment. Under traditional constitutional standards, the federal government bears the burden of proving an advertising statement false before censoring that statement. However, the FTC shifted the burden of proof to industry. The FTC presumes health advertising is false and compels private parties to prove the ads (and everything the regulators say the ads imply) to be true to a near conclusive degree. This violation of the First and Fifth Amendments is harming consumers’ by blocking innovation in the health foods and dietary supplement marketplace.
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THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207
July 30, 2009 2009 Ron Paul 88:3
Former Federal Reserve Board Chairman Arthur Burns, when asked about all the inflation he brought about in 1971, before Nixon’s re-election, said that the Fed has to do what the President wants it to do, or it would “lose its independence.” That about tells you everything. Not by accident, Chairman Burns strongly supported Nixon’s program of wage and price controls, the same year; but I guess that’s not political. Is not making secret deals with the likes of Goldman Sachs, international financial institutions, foreign governments and foreign central banks, politicizing monetary policy? Bernanke argues that the knowledge that their discussions and decisions will one day be scrutinized will compromise the freedom of the Open Market Committee to pursue sound policy. If it is sound and honest, and serves no special interest, what’s the problem?
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THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207
July 30, 2009 2009 Ron Paul 88:5
Fed sychophants argue that an audit would destroy the financial market’s faith in the Fed. They say this in the midst of the greatest financial crisis in history, brought on by none other than the Federal Reserve. In fact, Chairman Bernanke stated on November 14, 2007, that “a considerable amount of evidence indicates that central bank transparency increases the effectiveness of monetary policy and enhances economic and financial performance.”
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H.R. 3269
July 31, 2009 2009 Ron Paul 89:4
Perhaps even more frustrating is that enforcement of the provisions of this bill will be undertaken by overpaid bureaucrats who lack the skills to earn comparable salaries in the marketplace by providing useful products or services desired by consumers. People who shuttle between federal regulator and federally regulated firms, trading on their political connections and epitomizing the corruption endemic to the government-managed financial system, will be making decisions that affect every single public company in this country.
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MORE GOVERNMENT WON’T HELP
September 23, 2009 2009 Ron Paul 90:14
Number 12, the principle of insurance should be remembered. Its purpose in a free market is to measure risk, not to be used synonymously with social welfare programs. Any program that provides for first-dollar payment is no longer insurance. This would be similar to giving coverage for gasoline and repair bills to those who buy car insurance or providing food insurance for people who go to the grocery store. Obviously, that would not work.
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TRANSPARENCY AT THE FEDERAL RESERVE
December 1, 2009 2009 Ron Paul 100:3
Since the Fed is the source of all economic downturns, it’s impossible for any central banker to regulate in such a manner to prevent the problems that are predictable consequences of his own monetary management. The Federal Reserve fixes interest rates at levels inevitably lower than those demanded by the market. This manipulation is a form of price control through credit expansion, and is the ultimate cause of business cycles and so many of our economic problems, generating the mal- investment, excessive debt, stock, bond, commodity, and housing bubbles.
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TRANSPARENCY AT THE FEDERAL RESERVE
December 1, 2009 2009 Ron Paul 100:7
What he does not recognize – nor does he want to admit – is that he is talking about symptoms while ignoring the source of the crisis: the Federal Reserve itself. More regulations will never compensate for all the distortion and excesses caused by monetary inflation and artificially low interest rates. Regulation distracts from the real cause while further interfering with the market forces, thus guaranteeing that the recession will become much deeper and prolonged.
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INTRODUCING THE FREE COMPETITION IN CURRENCY ACT
December 9, 2009 2009 Ron Paul 102:3
Over millennia of human history, gold and silver have been the two metals that have most often satisfied these conditions, survived the market process, and gained the trust of billions of people. Gold and silver are difficult to counterfeit, a property which ensures they will always be accepted in commerce. It is precisely for this reason that gold and silver are anathema to governments. A supply of gold and silver that is limited in supply by nature cannot be inflated, and thus serves as a check on the growth of government. Without the ability to inflate the currency, governments find themselves constrained in their actions, unable to carry on wars of aggression or to appease their overtaxed citizens with bread and circuses.
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INTRODUCING THE FREE COMPETITION IN CURRENCY ACT
December 9, 2009 2009 Ron Paul 102:14
In conclusion, Madam Speaker, allowing for competing currencies will allow market participants to choose a currency that suits their needs, rather than the needs of the government. The prospect of American citizens turning away from the dollar towards alternate currencies will provide the necessary impetus to the U.S. Government to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government’s ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system. I urge my colleagues to consider the redevelopment of a system of competing currencies and cosponsor the Free Competition in Currency Act.
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Sanctions on Iran, Part 3
December 15, 2009 2009 Ron Paul 106:2
I talked to somebody today that will be voting for these, but admitted that they won’t work and it is mere symbolism. So already they don’t think these will do much good, even those who will vote for it. They’re impossible to enforce, is one reason, and it will create a black market. And these particular sanctions are most difficult to enforce just because of the nature of the way it’s written.
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- The China Syndrome: Let's not be hasty with a prescription
20 June 1997 Texas Straight Talk 20 June 1997 verse 9 ... Cached
To clear up a misconception, MFN is not a "special" status. In fact, MFN for a country simply means we will trade with that nation with no extraordinary barriers to their entering our marketplace. Free trade is not something to be lightly dismissed. And MFN is nothing more than an attempt, albeit imperfect, at free trade.
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- Congress continues to ignore Constitution in the appropriations process
29 September 1997 Texas Straight Talk 29 September 1997 verse 10 ... Cached
This week the Congress has a full plate, including legislation re-authorizing the Export-Import Bank, or Ex-Im. The Ex-Im is one of the mechanisms by which politicians are able to use your tax money to subsidize the actions of big, multinational corporations. Besides being unconstitutional, the Ex-Im Bank runs contrary to free market economics. It is unreasonable that taxpayers should be forced to foot the bill for funding risky ventures by big business. The Ex-Im Bank is the welfare engine for corporate America, paid for on the backs of the American taxpayer. The supporters of Ex-Im readily admit taxpayers have subsidized more than $100 billion of big-business deals in this decade alone.
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- US shouldn't cast stones with Religious Persecution
06 October 1997 Texas Straight Talk 06 October 1997 verse 6 ... Cached
The Congress did vote, as an amendment to the Export-Import re-authorization, to rename the organization the "United States Export Bank," or USEX. Subsidizing big corporations is unconstitutional and violative of the laws of free-market economics, no matter what Congress calls the mechanism. Those who are addicted to corporate welfare have no need to worry; USEX will be doing the same thing as Ex-Im.
market
- FDA bill no reform: proves Congress still the same
13 October 1997 Texas Straight Talk 13 October 1997 verse 12 ... Cached
To the dismay of medical privacy advocates, the bill goes so far as to authorize the FDA to track patients who use certain medical devices for up to 36 months, and even to conduct post-market surveillance of these patients. Just think, a formerly overweight patient may be followed by an FDA agent to make sure they don't regain the weight a few years later.
market
- Congress has finished for the year, but fast-track is not dead
17 November 1997 Texas Straight Talk 17 November 1997 verse 11 ... Cached
Second, the fast-track backers claimed to be the defenders of free-trade, yet they have no history of ever promoting free market economics and sound money. Instead they prefer to manage a welfare state and use the mechanisms of the Export-Import Bank, the World Bank, foreign aid, and the federal reserve system to benefit their corporate friends.
market
- Congress '97: more taxes, more spending, more big-government
01 December 1997 Texas Straight Talk 01 December 1997 verse 16 ... Cached
In this battle over federal priorities, those of us fighting on the side of constitutional government, individual liberty and free markets must not give up. The fact that the 1998 budget is bigger than any before it should spur us not into retreat, but more resolutely into action. Now is not the time for us raise our hands in surrender to the big-government advocates who mouth the rhetoric of our beliefs, but rather for us to speak more forcefully, work harder, for lower spending.
market
- Taxes and regulations will never lead to prosperity
08 December 1997 Texas Straight Talk 08 December 1997 verse 5 ... Cached
In a free society, social and economic problems are solved through voluntary and free market solutions. Compassion is real and charity honest in a free society, where no one is compelled to assist another.
market
- Taxes and regulations will never lead to prosperity
08 December 1997 Texas Straight Talk 08 December 1997 verse 6 ... Cached
But today, whether the problem is food for the poor, homes for the homeless, or medical care for the sick, our society endlessly calls upon government to redistribute resources contrary to the needs of the market and producers of prosperity. In fact, in government's rush to distribute welfare, there is a total disregard for the conditions required to produce the wealth. So as they rob resources to pay for these supposedly humanitarian concerns, the government "do-gooders" not only harm those who work and save for their own families, the government hurts all of society by violating the tenets of a moral, free nation; finally, it rubs salt in the wound by crippling the very system needed to produce more wealth.
market
- Kyoto treaty disregards science for a radical anti-American agenda
15 December 1997 Texas Straight Talk 15 December 1997 verse 7 ... Cached
To be fair, many in the environmental movement are honestly concerned about man's impact on our land, air and water, and are sincere in wanting only to do what is right. At a basic level, we all should be concerned about those things. But sadly many in the movement are more guided by a complete, unabashed hatred of free-markets, capitalism and the American way of life, as well as a complete disregard for the well-being of their fellow man.
market
- Kyoto treaty disregards science for a radical anti-American agenda
15 December 1997 Texas Straight Talk 15 December 1997 verse 13 ... Cached
Perhaps the bottom-line of this treaty is not that polluting is bad, or that we are facing a massive environmental threat. The bottom-line, apparently, is that Americans are bad, and that the notions of free-markets, individual liberty and capitalism are a threat to the radical agenda of the international liberal-left. The treaty makes it clear that anyone can pollute, as long as they are an oppressive regime, a communist dictatorship, or have the approval of the international bureaucrats, though perhaps that is redundant.
market
- President opts to use taxpayer fund to bailout wealthy investors
29 December 1997 Texas Straight Talk 29 December 1997 verse 4 ... Cached
Using the old reliable excuse that it was in the interest of "national security," President Clinton last week opted to obligate the money of the American taxpayers to bailout the troubled South Korean economy and the legions of wealthy investors who had made a mistake in sinking their cash into a bad market.
market
- President opts to use taxpayer fund to bailout wealthy investors
29 December 1997 Texas Straight Talk 29 December 1997 verse 6 ... Cached
This kind of frivolous use of taxpayers' money is a sham. Under our Constitution, this fund should not exist in the first place, given the Article 1, Section 7, powers and restrictions on raising and spending money. Brought online by the Roosevelt Administration in the 1930s, the fund was set-up to stabilize a volatile US dollar, not prop-up foreign currencies and markets. So even if this fund were constitutional - which it clearly is not - to use the money to cover the bad investments of Wall Street bankers and save the hides of Korean government officials is against the premise under which the fund was established.
market
- President opts to use taxpayer fund to bailout wealthy investors
29 December 1997 Texas Straight Talk 29 December 1997 verse 11 ... Cached
Of course, Mexico and South Korea do have something special which makes their case easier for the politically minded controllers of the taxpayer purse-strings. Both countries had a lot of American investors wanting to cash in on lucrative deals abroad with the possibility of big payoffs. Of course, as anyone who invests knows, the bigger the potential payoff, the bigger the risk. But many investors today are eager to embrace the philosophy of free-market economics when it comes to making money and keeping their profits, but at the first sign of those investments going sour, they want the government to socialize their losses at the expense of the taxpayers.
market
Government prescription for health is bad medicine
19 January 1998 Texas Straight Talk 19 January 1998 verse 10 ... Cached
As the population gets older, and people seek ways to cut costs, they will want to look more closely at the benefits of healthy living and nutritional balance. But those who make their living from people using the expensive "mainstream" programs are not excited about that; after all, if someone can achieve good health simply by fortifying their diet with some commonly available vitamins, minerals and herbs, the pharmaceutical companies lose out. So aligning themselves with government, these corporations are trying to shore-up their profits by actually supporting new regulatory burdens in the hopes it keeps new ideas and philosophies out of the public market, prohibiting consumers from getting information on alternative health programs.
market
Bombing Iraq lacks support, common sense and constitutional base
02 February 1998 Texas Straight Talk 02 February 1998 verse 11 ... Cached
A Kuwaiti professor was quoted in a pro-government Kuwaiti newspaper as saying, "The U.S. frightens us with Saddam to make us buy weapons and sign contracts with American companies," thus ensuring a market for American arms manufacturers and United States' continued military presence in the Middle East.
market
Never sacrifice liberty for "campaign reform"
02 March 1998 Texas Straight Talk 02 March 1998 verse 8 ... Cached
Extensive power - the ability to confer financial and legislative favors - is now concentrated in the hands of relatively few lawmakers. If we remove that power, we remove the incentive to influence how the power is wielded. I wouldn't mind getting the big PAC money, but it doesn't come my way because I'm not considered a "good investment" for those seeking handouts or special attention at taxpayer expense; they know I just won't go along. Big money flows to non-ideological candidates who have no problem tinkering with the markets to give advantages - or disadvantages - as they wish.
market
Never sacrifice liberty for "campaign reform"
02 March 1998 Texas Straight Talk 02 March 1998 verse 11 ... Cached
If corporations conspired to lock their competitors out of economic markets the way Republicans and Democrats have locked competitors out of the political market, CEOs would be prosecuted under anti-trust laws. And the many of us are correctly calling for more parental choice in education, to improve academics. But Republicans and Democrats defend the status quo-protection racket by claiming we must limit the number of candidates down to avoid "voter confusion." So while the American people can sort out the myriad of choices available to them for foods, entertainment, banks, schools and doctors, politicians seem to think voters are not smart enough to decide between more than two candidates (especially as there is often no substantive difference between candidates of the two major parties).
market
Proposed tobacco deal undermines personal responsibility
13 April 1998 Texas Straight Talk 13 April 1998 verse 10 ... Cached
When the free market works, medical insurance premiums adjust to reflect the cost of habits like smoking, sky diving, overeating, and medical preconditions. When Government pays, the concept of insurance goes out the window and everybody gets everything paid for, regardless of their behavior. This, of course, explains why people in socialized nations, like England, continue to smoke in increasing numbers. Socializing the cost of the consequences increases participation in risky behavior.
market
Proposed tobacco deal undermines personal responsibility
13 April 1998 Texas Straight Talk 13 April 1998 verse 16 ... Cached
If this attitude toward consumer risk and personal responsibility is not changed, the chances for a free market and prosperous society will dissipate like so much cigarette smoke blown by a breeze.
market
Federalization of crime contrary to Constitution
18 May 1998 Texas Straight Talk 18 May 1998 verse 5 ... Cached
The federal government was designed to be limited in power. In fact, there is a strict enumeration of the spheres in which Congress is allowed to act. For every other issue, only the state governments or the people, in their private market actions, enjoy constitutionally protected right to those powers. The tenth amendment is brutally clear: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. "
market
Asian economic crisis result of suppressed liberty
25 May 1998 Texas Straight Talk 25 May 1998 verse 9 ... Cached
"Crony capitalism" was not the cause of Indonesia's trouble; inflationism and political corruption are the culprits, for they allow 'crony capitalism' to exist. In fact, there is nothing "capitalistic" (in a free market sense) about crony capitalism - it is simply a mild form of fascism.
market
Asian economic crisis result of suppressed liberty
25 May 1998 Texas Straight Talk 25 May 1998 verse 11 ... Cached
Further, international efforts to prop-up an ailing economy after the financial bubble has popped prolongs the agony and increases the severity of the correction. Restoration of free markets, including the establishment of a sound monetary policy, has not yet been considered though those are the only real solutions. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads.
market
Asian economic crisis result of suppressed liberty
25 May 1998 Texas Straight Talk 25 May 1998 verse 13 ... Cached
The philosophy of the free market holds the solution to the exploding East Asian crisis, yet few are willing to consider the philosophy of liberty.
market
Asian economic crisis result of suppressed liberty
25 May 1998 Texas Straight Talk 25 May 1998 verse 14 ... Cached
Concern for liberty is not a subject associated with economic crisis and is in fact an ongoing casualty of past and current policy. A greater concern for the philosophy of liberty - whether it is the "personal liberty" of the individual or freedom in the marketplace - is required if a positive outcome is to be expected from the Indonesian crisis.
market
Trade, not aid or isolation, should be US foreign policy
22 June 1998 Texas Straight Talk 22 June 1998 verse 12 ... Cached
Again quoting Mr. Warfield from the American Farm Bureau publication, "The United States, as the leader in world trade, has an unprecedented opportunity to promote its values throughout the world by peaceful engagement through trade. Reaching out through engagement and trade, not withdrawing behind embargoes, is the best way to achieve positive change--not by denying ourselves access to the markets and creating opportunities for our competitors."
market
Trade, not aid or isolation, should be US foreign policy
22 June 1998 Texas Straight Talk 22 June 1998 verse 14 ... Cached
And there is another dynamic in place as we look toward engagement rather than isolation, and that is the issue of aid. For years the American taxpayer has been forced to subsidize hundreds of governments around the world, including those of some of the most vicious dictators in history, in the name of either "promoting human rights" in that country, or in the interest of "national security." Often times, tax dollars are being used to prop up these dictators, while at the same time trade sanctions prevent US farmers and small businessmen from selling their products in that market.
market
Trade, not aid or isolation, should be US foreign policy
22 June 1998 Texas Straight Talk 22 June 1998 verse 15 ... Cached
So while the farmer or small businessman is losing money by being forbidden to enter a potentially lucrative market, he is being taxed at higher rates to pay for subsidies to those same foreign governments.
market
Right to work must be free of coercion
27 July 1998 Texas Straight Talk 27 July 1998 verse 10 ... Cached
A far better system is one of voluntary union membership. If a worker feels the union can represent them and they agree with the politics (or do not care), they are free to join the union. Likewise, an employee can choose to not join a union at all. In fact, a great market could open up, where several unions could exist, giving employees a choice of which union will best represent their interests with the dues they pay.
market
Right to work must be free of coercion
27 July 1998 Texas Straight Talk 27 July 1998 verse 11 ... Cached
But at every stage the agreements should be voluntary. Employees should be free to join or not join, and employers should be free to bargain with the unions, or not. The free market will sort out the details. The free and open market, not the heavy, restrictive hand of the government, will determine the best employment atmosphere, allowing for maximum freedom for the employees and the employers.
market
Washington 'solutions' to voter frustration are dangerous
03 August 1998 Texas Straight Talk 03 August 1998 verse 11 ... Cached
And so those in Washington answer the frustration by creating new levels of frustration by further restricting the abilities of the pro-lifers and pro-abortionists, the unions and the right-to-workers, the fascists and the libertarians, the socialists and the capitalists, from being heard. Lawmakers say they abhor a monopoly in the marketplace, yet they entertain laws to ensure their duopoly power grows.
market
Deceptive economic euphoria
17 August 1998 Texas Straight Talk 17 August 1998 verse 7 ... Cached
Is anyone asking serious questions about what is going on and how long will the good times roll? A few, but they are not inside the Capitol Building. Outside the beltway, it's a different story. Many people I talk to are outright skeptical, or just don't believe the propaganda, and many don't even listen to the nonsense coming from our political leaders. They are struggling to pay their bills, believe taxes are way too high, that business and personal regulations are too numerous and overbearing, that inflation is alive and social security is broken. And this in spite of being at the peak of a grand economic "recovery" with the markets in the world awash in paper dollars and paper profits.
market
The problem is the currency
21 September 1998 Texas Straight Talk 21 September 1998 verse 8 ... Cached
Markets inevitably devalue currencies that have been inflated by the monetary authorities. The degree depends on the amount of previous monetary inflation and political perceptions but, on the short run, countries frequently accelerate the devaluation in a competitive fashion in an effort to compete with their trading partners.
market
The problem is the currency
21 September 1998 Texas Straight Talk 21 September 1998 verse 12 ... Cached
Let there be no doubt about it. The good times came with generous credit creation and low interest rates and the Fed will yield to the politicians' pressure to continue the process. Turning off the money spigot, and allowing the market to work will never be seriously considered.
market
The problem is the currency
21 September 1998 Texas Straight Talk 21 September 1998 verse 13 ... Cached
But eventually, the markets will rule. Credit creation may lower rates for a time, but when confidence is undermined, an inflation premium will emerge and rates will rise regardless.
market
Tax measure provides income averaging
12 October 1998 Texas Straight Talk 12 October 1998 verse 8 ... Cached
But our federal government has seen fit to use the facts of agricultural life against farmers to get a few more dollars of revenue. This occurs by taxing agriculture at the extremely high-income rates in the good years because on paper the farmer made a lot of money. They leave out of the equation that the previous year may have been a disaster because of drought, flood, market fluctuations or other problems, resulting in perhaps literally no income for the farmer and his family.
market
Economic crisis looms
19 October 1998 Texas Straight Talk 19 October 1998 verse 5 ... Cached
A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in the turbulent and commodity-driven inflation of the 1970s.
market
Economic crisis looms
19 October 1998 Texas Straight Talk 19 October 1998 verse 8 ... Cached
We must understand the serious flaw in the current system that is playing havoc with world markets. When license is given to central banks to inflate a currency, they eventually do so. Money can be inflated for only so long until serious problems arise.
market
Economic crisis looms
19 October 1998 Texas Straight Talk 19 October 1998 verse 11 ... Cached
But in time the free ride comes to an end. Even the beneficiaries suffer the inevitable consequences of a philosophy that teaches wealth comes from money creation and that central banks are acceptable central economic planners -- even in countries such as the United States where many pay lip service to free markets and free trade.
market
Economic crisis looms
19 October 1998 Texas Straight Talk 19 October 1998 verse 17 ... Cached
Fourth, policies must conform to free markets and free trade. Taxes, as well as government spending, should be lowered. Regulations should be greatly reduced, and all voluntary economic transactions in hiring practices should be permitted. No control on wages and prices should be imposed.
market
Economic crisis looms
19 October 1998 Texas Straight Talk 19 October 1998 verse 19 ... Cached
Nothing but a free market, sound money approach to our economics can guarantee personal liberty or offer greater potential for fiscal rewards.
market
Free speech is good medicine
07 December 1998 Texas Straight Talk 07 December 1998 verse 9 ... Cached
This harm comes from limiting the information which consumers have before them. It foolish to think that any one doctor is aware of everything on the market which can help a patient maintain their good health, or recover from illness more rapidly. As a physician, I have always preferred working with an informed patient. They would sometimes be aware of new treatments, medicines or advances that I may have not yet studied. Sometimes that information would lead to new treatment for that patient, other times not, but the more information and choices available to the patient, the better.
market
Free speech is good medicine
07 December 1998 Texas Straight Talk 07 December 1998 verse 12 ... Cached
Opposition to the FDA's unilateral control of our nation's medicinal drug market is seen as heretical to the concept of government-knows-best.
market
Medical costs can be cut with freedom
14 December 1998 Texas Straight Talk 14 December 1998 verse 9 ... Cached
Most obviously, there is the direct government meddling. Bureaucrats, under authority granted to them by years of irresponsible congressional action, now dictate how medical care is to be offered, in what timetables, quantities and situations. Of course, these directives have nothing to do with the realities of medicine or even the demands of the market, but are simply political directives issued for soundbite effectiveness. While sounding nice, these regulations increase costs by forcing the medical provider to expend greater resources to meet the regulations.
market
Embargoes most destructive at home
28 December 1998 Texas Straight Talk 28 December 1998 verse 13 ... Cached
Second, embargoes greatly harm our people. As the American agricultural industry continues to develop new technology that reduces the cost of operation and increases the yield, it becomes more important for farmers and ranchers to find markets outside the United States to sell their goods so they can make ends meet. By preventing our farmers and ranchers from competing in the world market, we deny them very profitable opportunities.
market
Embargoes most destructive at home
28 December 1998 Texas Straight Talk 28 December 1998 verse 16 ... Cached
Government meddling is always destructive to the free market; people will inevitably make wiser decisions about how to spend their money, with whom, and when, than politicians in Washington. Embargoes simply do not accomplish the ends advocates claim to desire, and are extremely harmful to the well being of Americans.
market
A New Pandora's Box
25 January 1999 Texas Straight Talk 25 January 1999 verse 3 ... Cached
Government invest in market must be opposed
market
A New Pandora's Box
25 January 1999 Texas Straight Talk 25 January 1999 verse 5 ... Cached
Perhaps the worst of his propositions is the proposal to allow the federal government to invest in the stock market. Under the Clinton plan, a quarter of the Social Security funds would be invested in the stock market.
market
A New Pandora's Box
25 January 1999 Texas Straight Talk 25 January 1999 verse 12 ... Cached
Under the president's plan, government will become a very loud part-owner of thousands of companies. And because government will want to ensure a return on its investments (which is fundamentally impossible), one shudders at the potential rules and regulations that would be imposed on the marketplace in general, and those companies specifically.
market
A New Pandora's Box
25 January 1999 Texas Straight Talk 25 January 1999 verse 13 ... Cached
This president firmly believes government knows best -- in everything. While he would deny individual Americans the right to divert a portion of their Social Security taxes to savings and investment programs of their choosing, this president would dump billions into the stock market so he and his cronies can effectively nationalize our economy, while using the proceeds to pay for more needless government programs.
market
A New Pandora's Box
25 January 1999 Texas Straight Talk 25 January 1999 verse 16 ... Cached
Government investment in the stock market is a path that must not be taken, and a Pandora's Box that should never be opened. The results could be unimaginably dangerous for the nation, and simply unprofitable for the individual.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 3 ... Cached
Free market offers best option for viewers
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 4 ... Cached
Who has the "right" to view television programming? It may seem a trivial question, but it indeed strikes at a core issue for the free-market system.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 7 ... Cached
This, of course, begs the question as to whether or not one has a right to more than can be secured by voluntary exchange in the marketplace, or if the federal government should assume the role of deciding who gets what property in what amount and at whose expense.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 9 ... Cached
The root cause of this problem, of course, is that we have a so-called marketplace fraught with interventionism at every level. Cable companies have historically been granted franchises of monopoly privilege at the local level. Government has previously intervened to invalidate "exclusive dealings" contracts between private parties, namely cable service providers and program creators, and have most recently assumed the role of price setter.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 10 ... Cached
The Library of Congress, if you can imagine, has been delegated the power to determine prices at which program suppliers must make their programs available to cable and satellite programming service providers. Government's attempt to set the just price for satellite programming outside the market mechanism is inherently impossible. This has resulted in competition among service providers for government privilege rather than consumer-benefits inherent to the genuine free market. Currently, however, federal regulation does leave satellite programming service providers free to bypass the governmental royalty distribution scheme and negotiate directly with owners of programming for program rights.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 11 ... Cached
It is within the constitutionally enumerated powers of Congress to "promote the Progress of Science and useful Arts by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." However, operating a clearinghouse for the subsequent transfer of such property rights in the name of setting a just price or "instilling competition" via "central planning" seems not to be an economically prudent nor justifiable action under this enumerated power. This process is one best reserved to the competitive marketplace.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 12 ... Cached
Helpfully, network programs will not be terminated prior to March 1, 1999, and waivers may be available from the local network affiliate for those who cannot receive a signal even when using an over-the-air antenna. Moreover, technology is now available by which viewers will be able to view network programs via satellite as presented by their nearest network affiliate. This market-generated technology will remove a major stumbling block to negotiations that should currently be taking place between network program owners and satellite service providers.
market
A right to network TV?
08 February 1999 Texas Straight Talk 08 February 1999 verse 13 ... Cached
I will continue to consistently oppose all governmental barriers to the free functioning of markets -- markets, which if allowed to function, will maximize viewer choices at the most reasonable costs.
market
Free trade rhetoric often obscures agenda
22 March 1999 Texas Straight Talk 22 March 1999 verse 6 ... Cached
Proponents of the legislation claimed foreign companies were "dumping" steel on our market. The word "dumping" is used to conjure up images of foreigners sneaking across the border under cover of darkness and selling low-quality steel in back alleys. Reality is far different from rhetoric; Americans are buying the foreign steel because it is a better value.
market
Free trade rhetoric often obscures agenda
22 March 1999 Texas Straight Talk 22 March 1999 verse 7 ... Cached
So rather than re-examine the market (which is unwilling to pay the high-prices brought on by government regulations and union-imposed wages), the advocates of big government and forced unionism demand that Congress close down what remains of the free market.
market
Free trade rhetoric often obscures agenda
22 March 1999 Texas Straight Talk 22 March 1999 verse 8 ... Cached
The true free market is a threat to entrenched interests and lazy minds. The free market rewards those who are willing to work hard, produce that which people demand, and at a price they are willing to pay.
market
Free trade rhetoric often obscures agenda
22 March 1999 Texas Straight Talk 22 March 1999 verse 12 ... Cached
I have introduced HR1181, which will allow Americans to enter the Cuban market, but prevents federal tax dollars from being used to subsidize the Castro regime.
market
Free trade rhetoric often obscures agenda
22 March 1999 Texas Straight Talk 22 March 1999 verse 16 ... Cached
True free trade involves neither protectionism nor subsidization. Free trade recognizes that market forces, not government regulations or spending packages, will best allocate resources; even across political borders.
market
Get to know your banker
12 April 1999 Texas Straight Talk 12 April 1999 verse 3 ... Cached
Free-market economics can stop privacy invasion
market
Get to know your banker
12 April 1999 Texas Straight Talk 12 April 1999 verse 9 ... Cached
The problem for both the big banks and the regulators, though, is the free market. Not every bank is participating in this privacy grab. But you can bet you won't see anyone advertise that they share every detail of your life with any federal agent who walks in the door. As a consumer, though, you do have a right to know what records your bank keeps on you, what is being done with them, and how they are being used.
market
Get to know your banker
12 April 1999 Texas Straight Talk 12 April 1999 verse 12 ... Cached
Until then, Americans should use the free market to get to know their banker, and protect their own privacy.
market
'Must-Carry' must be dropped
26 April 1999 Texas Straight Talk 26 April 1999 verse 4 ... Cached
It cannot be stated too often that we do not enjoy a free marketplace in the United States. In fact, the market is fraught with government intervention at every level. Nothing, it seems, can long escape a politician or bureaucrat eager to shape the world in their image of "fairness."
market
'Must-Carry' must be dropped
26 April 1999 Texas Straight Talk 26 April 1999 verse 5 ... Cached
Few other aspects of the market are as visible as television, and it is among the most regulated of industries. Of the many almost-insane rules and regulations which exist for the industry, one is perhaps the most ridiculous of all.
market
'Must-Carry' must be dropped
26 April 1999 Texas Straight Talk 26 April 1999 verse 12 ... Cached
The biggest loser, of course, remains the consumer. All of these questions (which channels to carry, how much the channels and carried programs are worth) are best answered by free market, not some bureaucrat working in Washington.
market
'Must-Carry' must be dropped
26 April 1999 Texas Straight Talk 26 April 1999 verse 15 ... Cached
To best serve consumers, and to more fully embrace the philosophy of the free market, Congress should act to remove the restrictive regulations placed on the services cable companies can provide, as well as the barriers that exist giving those companies monopolistic power. As technology expands, we must ensure outmoded notions like government intervention in the market goes the way of the black-and-white set and rabbit-ear antennas.
market
Free trade makes sense
07 June 1999 Texas Straight Talk 07 June 1999 verse 12 ... Cached
There is another way. Free trade and free markets are, without a doubt, the best guarantor of peace. But this requires something all too few in Washington want: less government intervention.
market
Free trade makes sense
07 June 1999 Texas Straight Talk 07 June 1999 verse 13 ... Cached
It is indisputable that individuals know better how to provide for their families than government. It is also indisputable that a company is better equipped to know what its market will tolerate than a bureaucrat in Washington. In this way, a person is able to determine what goods best meet their individual needs, weighing numerous factors in their decision. But when government intervenes, it no longer becomes possible for an individual to provide for their family and business in the most expedient fashion. This is the antithesis of liberty.
market
Free trade makes sense
07 June 1999 Texas Straight Talk 07 June 1999 verse 17 ... Cached
Never, though, should Congress raise taxes or limit the ability of individual Americans to engage in honest trade with foreign manufacturers. While the market may demand - through boycotts and similar activities - that trade cease, that should be left entirely to the market, not bureaucrats in Washington.
market
Tragedy begets tragedy
14 June 1999 Texas Straight Talk 14 June 1999 verse 12 ... Cached
One measure would require every music store to provide, free of charge, the lyrics to any song upon the demand of a parent. While perhaps a good service for a store to provide on its own, to mandate this from Washington is nothing short of immoral, and an unfunded mandate of the highest order. It is also an infringement on the rights of the free-market musician. After all, he profits by the sale of his music -- lyrics and all. For as revolting as his "art" may be, it remains true that never is a second wrong justified by a first.
market
Campaign reform misses target
12 July 1999 Texas Straight Talk 12 July 1999 verse 6 ... Cached
There is a tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Corporate lobbyists spend over $100 million per month trying to influence Congress, while taxpayers' dollars are used by bureaucrats in efforts to convince Congress to protect their "empires." Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans and grants. Corporations and individuals alike are forced to participate in an out-of-control system essentially as a matter of self-defense.
market
Legalized theft
09 August 1999 Texas Straight Talk 09 August 1999 verse 13 ... Cached
Several weeks ago we engaged in the annual debate over the level of free trade our citizens could have with China. I always take the position that one should have free markets and allow Americans to trade with whomever they please, but at the same time taxpayers shouldn't be forced to subsidize foreign governments. The crowd I cannot understand is the one that argues against free trade yet supports subsidizing China and other brutal regimes around the world. That is the other half of what we do with OPIC, the Export-Import Bank and other international managed-trade organizations. By propping up the corporations that move to China, not only are we subsidizing bad business decisions, but also using tax dollars to shore up China's economy without their having to feel the pressure of the free market to change their ways.
market
A flood of bills of rights
16 August 1999 Texas Straight Talk 16 August 1999 verse 8 ... Cached
The answer is simple. The problem with the Bill of Rights is that it restricts the power of the federal government while ensuring maximum liberty for the individual. This is a problem for those who see government as the panacea to every ill, the protector of all that is good. While the Bill of Rights limits government, liberates the market and empowers the individual, these initiatives inevitably anoint government with greater power, restrict the rights of the individual and shackle the market.
market
A flood of bills of rights
16 August 1999 Texas Straight Talk 16 August 1999 verse 11 ... Cached
If over the last fifty years we would have had more respect for the Bill of Rights, property rights, voluntary contracts, state jurisdiction and free markets, we would not have the mess we’re facing today in medical care and a host of other issues.
market
A flood of bills of rights
16 August 1999 Texas Straight Talk 16 August 1999 verse 12 ... Cached
Economic principles determine efficiency of markets, even the medical market; but not our emotional experiences. As a physician, I know that the most efficient manner to deliver medical services, as it is with goods and other services, is determined by the degree to which the market is allowed to operate.
market
A flood of bills of rights
16 August 1999 Texas Straight Talk 16 August 1999 verse 13 ... Cached
Contrary to the claims of advocates for increased government regulation of health care, the problems we face do not represent market failure, but rather the failure of government policies that have destroyed the health-care market. While it appears on the surface that the interest of the patient is in conflict with the insurance companies and the Health Maintenance Organizations (HMOs), in a free market this cannot happen. But when one side is given a legislative advantage in an artificial system, as with managed care, merely making an effort to balance government dictated advantages between patients and HMOs is impossible. The differences cannot be reconciled by more government mandates; because we are trying to patch an unworkable system, the impasse in Congress over this -- or any such issue -- should not be a surprise.
market
Dangerous to our health
11 October 1999 Texas Straight Talk 11 October 1999 verse 7 ... Cached
What made last week's congressional action the equivalent of medical malpractice was that the people operating on the "patient" were the same ones responsible for injury. American health care became what it is today not as a result of too little government intervention, but rather too much. Contrary to the claims of many advocates of increased government regulation of health care, the problems with the health care system do not represent market failure. Rather, they represent the failure of government policies that have destroyed the health care market.
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Dangerous to our health
11 October 1999 Texas Straight Talk 11 October 1999 verse 9 ... Cached
No one can take a back seat to me regarding the disdain I hold for the HMO's role in managed care. This entire unnecessary level of corporatism that rakes off profits and undermines care is a creature of government interference in health care dating to the 1970s. These non-market institutions could have only gained control over medical care through collusion between organized medicine, politicians, and the profiteers, in an effort to provide universal health care.
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Dangerous to our health
11 October 1999 Texas Straight Talk 11 October 1999 verse 10 ... Cached
But the government intervention in health care pre-dates the 1974 Employee Retriement Income Security Act (ERISA), with Congress granting tax benefits to employers for providing health care, while not allowing similar incentives for individuals. As such, government removed the market incentive for health insurance companies to cater to the actual health-care consumer. As a greater amount of government and corporate money has been used to pay medical bills, the costs have artificially risen out of the range of most individuals.
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Best medicine is liberty
18 October 1999 Texas Straight Talk 18 October 1999 verse 9 ... Cached
Yet rather than reverse the trend and liberate patients, physicians and the health care market, many in Congress would make the situation worse by adding new regulations and new fees, while eroding services and limiting choices.
market
Best medicine is liberty
18 October 1999 Texas Straight Talk 18 October 1999 verse 12 ... Cached
Worse, yet, she may have no choice at all, as new regulations price her, or her insurer, out of the health insurance market with no alternative.
market
Best medicine is liberty
18 October 1999 Texas Straight Talk 18 October 1999 verse 14 ... Cached
The most important thing Congress can do is to stop practicing medicine and allow market forces to operate by allowing Medical Savings Accounts (MSAs) for everyone. Patient motivation to save and shop would be a major force in reducing cost, as physicians would once again negotiate fees with patients. MSAs would help satisfy the American's people's desire to control their own health care and provide incentives for consumers to take more responsibility for their care. MSAs will also allow those consumers to do business with insurance provider of their choice, who will cover the needs and procedures for which that family is willing and able to pay.
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In search of a cause
25 October 1999 Texas Straight Talk 25 October 1999 verse 11 ... Cached
If Congress were eager to address the issue of "cruelty," then perhaps the ongoing trampling of the Constitution would be a good place to start. There certainly is a market for people eager to watch our liberties trashed. Or, if Congress is so concerned about brutality, why not finally address the brutal assault on privacy experienced daily by American citizens?
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International Protectionism
13 December 1999 Texas Straight Talk 13 December 1999 verse 4 ... Cached
We all saw the recent demonstrations at the World Trade Organization meetings in Seattle. Although many of those who were protesting were indeed rallying against what they see as the evils of free trade and capitalist markets, the real problem when it comes to the World Trade Organization is not free trade. The WTO is the furthest thing from free trade. Instead, it is an egregious attack upon our national sovereignty, and this is the reason why we must vigorously oppose it. No nation can maintain its sovereignty if it surrenders its authority to an international collective. And, since sovereignty is linked inextricably to freedom, our very notion of American liberty is at stake in this issue.
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International Protectionism
13 December 1999 Texas Straight Talk 13 December 1999 verse 9 ... Cached
When our founding fathers drafted the constitution, they placed the Treaty making authority with the President and the Senate but the authority to regulate commerce with the House. The effect of this is obvious. The founders left us with a system that made no room for agreements regarding international trade. Hence, our nation was to be governed not by protection but rather by market principles. Trade barriers were not to be erected, period.
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The New Year
10 January 2000 Texas Straight Talk 10 January 2000 verse 6 ... Cached
Private computers were corrected beyond expectations, because many people did not understand or underestimated the free market's ability to adjust. The final word has not yet been heard on government computers. It may be that weeks or even months may be required to find out where the real glitches are. Most government checks, scheduled for early January, were processed in December, which may have only delayed the problems if they still exist. Evidence that the IRS computers have been corrected to adjust for calculating interest and penalties are yet to come.
market
Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 6 ... Cached
But one thing ignored is the fact that a fiat monetary system is incompatible with a free market economy. Instead of depending on production and savings for capital, today's economy depends on new "capital" coming from the Fed's credit machine. When credit is created out of thin air for investment purposes and interest rates are driven artificially low, mal-investment results. This monetary inflation, of which we have had plenty, has already set the stage for the next recession.
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Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 10 ... Cached
Every time the market in the past three years threatened to bring on a correction, Chairman Greenspan rushed to the rescue - to the delight of everyone in Washington and New York - with a massive influx of new money and lower rates. In 1997 the excuse was the Asian crisis; in 1998 it was the failure of Long Term Capital Management; and in 1999 it was the potential Y2K crisis. In the past 3 months, bank credit has increased at a greater than 30% annual rate. Greenspan, in this past quarter, may have talked about "tight money" and even raised overnight rates, but he was quite active inflating the currency.
market
Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 12 ... Cached
The Federal Reserve will always want to avert a collapse of the stock market, just as it did publicly with Long Term Capital Management. But it can only do that for a limited period of time. The markets will eventually rule. They always do.
market
Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 13 ... Cached
Likewise, the world central banks have for years sold and loaned gold to keep the gold price artificially low. A rise in gold price is a vote of no confidence in paper. And it's in the interest of all central banks to keep this from happening. Their credibility is at stake. But we must remember through the 50s and the 60s, gold was "fixed" at $35 an ounce and in the 70s the markets overruled the powerful Fed and the US Treasury and vetoed this price.
market
Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 14 ... Cached
Alan Greenspan was at one time a free market adherent and gold standard advocate. Read what he had to say about the Federal Reserve Board policy of the 1920s and the subsequent depression. The experts in the 20s had also declared a New Era economic growth without price inflation resulting from technological advances and wise monetary management. Greenspan explains: "The excess credit which the Fed pumped into the economy spilled over into the stock market, triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late. By 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a constant demoralizing of business confidence." (Gold and Economic Freedom, 1966)
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Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 16 ... Cached
This is not to say that anyone else can do any better than the current chairman in the coming years. Central planning, whether it's in the monetary system or in the economy itself, just doesn't work. The debate should not be over who is best at managing the economy, determining the money supply and knowing the proper interest rates. It should be over whether or not we should have a monetary system that requires its manager to know things he cannot know. Instead of arguing over whether and when interest rates should go up or down, we should debate whether or not market interest rates and commodity money is superior to fiat money in preventing price inflation, recessions and painful periods of unemployment.
market
Answering the Middle Class Squeeze
27 March 2000 Texas Straight Talk 27 March 2000 verse 10 ... Cached
The fact that government creates money out of thin air must be addressed, because it is the entire reason why costs of living increase and standards of living decline. In a market economy prices tend to gently fall as a result of the increased efficiencies brought about by competition. If the average person paid half as much for his or her home and half as much for his or her car, would we not be better off than we are with these paltry government-mandated wage increases?
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Answering the Middle Class Squeeze
27 March 2000 Texas Straight Talk 27 March 2000 verse 11 ... Cached
Again, there is only one reason why prices are rising instead of falling. Because the government, through its credit-creation mechanism, is engaged in a sort of price controls, it is in fact following a policy that eventuates in price inflation as well as recession. Plus, this credit creation is at the heart of recent instability in the markets, thus threatening retirement security.
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Electoral Follies
03 April 2000 Texas Straight Talk 03 April 2000 verse 6 ... Cached
I believe in competition, in the economic marketplace, and in the marketplace of ideas also. For political purposes, the marketplace is an election and that marketplace ought to be free from federal interference and government restrictions. Our founding fathers gave no power over political campaigns to any federal bureaucracy. Indeed, they would have recoiled at the very notion. But in the current "anything goes" Clinton-Gore administration there is no barrier against what will be proposed by those who seek to maintain political power.
market
China Bill Is Not Free Trade
29 May 2000 Texas Straight Talk 29 May 2000 verse 5 ... Cached
Also, consider the process in which these changes were made. For months we have been talking about PNTR, and I said I would support normal trade relations. The first version of the bill was put forward by the sub-committee chaired by my good friend Phil Crane, a strong advocate of free markets and free trade. After seeing HR 4444, I was able to again voice strong support for PNTR. However, we wound up in a last minute situation where the President was unable to convince his own party to support him. A backroom deal was cut aimed at winning votes from liberal Democrats. I will not support this method of operation.
market
China Bill Is Not Free Trade
29 May 2000 Texas Straight Talk 29 May 2000 verse 7 ... Cached
The people who elected us have criticized this Congress. Time and again I have heard it said that we are not doing the job we have been elected to do. We have given in to President Clinton and the liberal minority in the House. Enough is enough. These last minute changes left us a PNTR bill that created a new government commission and put taxpayers on the line for millions in so-called "technical aid" to Communist China. Apparently the administration believed left-wing members of Congress could be convinced to vote for freer trade and freer markets just so long as we give more foreign aid to our Communist Chinese adversaries.
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China Bill Is Not Free Trade
29 May 2000 Texas Straight Talk 29 May 2000 verse 11 ... Cached
Free trade is about free markets, which means limiting government interference in the marketplace. We face high hurdles for the philosophy of less government in the foreseeable future because the Congressional trade debate is now limited to the voices of outright protectionists and those who, in the name of free trade, promote a regime of managed trade which threatens the sovereignty upon which our fundamental liberties will always depend.
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True Free Trade Benefits Texas Farmers
03 July 2000 Texas Straight Talk 03 July 2000 verse 6 ... Cached
"Still, farmers in the 14th District would benefit from access to this new market (as well as access to four other countries named in the agreement). Trade advisory groups estimate that U.S. exports of food to Cuba alone could amount to $400 million within five years. The American Farm Bureau estimates that the aggregate market for agricultural commodities to all five countries amounts to $7 billion. Rather than punishing our farmers with sanctions, we should be eliminating barriers so that they can export agricultural products to these countries. Sanctions simply benefit our export competitors, who have increased their sales in markets closed to American businesses. Over one-third of U.S. agricultural production is exported, so farmers suffer disproportionately when trade restrictions are imposed.
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True Free Trade Benefits Texas Farmers
03 July 2000 Texas Straight Talk 03 July 2000 verse 8 ... Cached
"I have always supported true free trade not simply because it makes economic sense for Texas agriculture, but also because it is a critical component of private property rights and human freedom. "Sanctions," closing foreign markets, really are penalties on Texas farmers who export much of what they produce. Such sanctions ought never be permitted merely by executive order. We have a long way to go in reforming agricultural policy and ending embargoes which hurt our farmers, but this agreement is an important first step and a victory for Texas farmers. I will continue the battle to get HR 1181 passed so that we might realize the full benefits of free trade with Cuba.
market
High Taxes Cause High Gas Prices
17 July 2000 Texas Straight Talk 17 July 2000 verse 8 ... Cached
Of course, eliminating gas taxes will not eliminate all fluctuations in gas prices. Some fluctuation occurs as the normal result of supply and demand forces in the market. Americans can take partial responsibility for their gas bills by driving fuel-efficient automobiles. Also, we should be willing to explore new domestic oil sources to reduce our need to buy oil abroad. However, politicians should be held accountable for true cause of high gas prices: massive increases in federal gas taxes.
market
Congress Must Work for Seniors
18 September 2000 Texas Straight Talk 18 September 2000 verse 6 ... Cached
Next, Congress must work to lower the cost of prescription drugs. Many seniors, especially those on fixed incomes, are unable to afford the expensive medications they need every month. Unfortunately, nearly every proposal coming out of Washington attempts to lower drug costs through price-fixing (which inevitably leads to rationing of drugs), or through subsidies to insurance or pharmaceutical companies. My legislation, the "Pharmaceutical Freedom Act," makes prescription drugs more affordable by providing seniors with a tax credit for drug expenses so they can spend their resources on needed medications. Also, my legislation eliminates needless government regulations and barriers to competition which drive up drug prices. Congress must remove bureaucratic regulations that prevent America’s seniors from enjoying lower prices available from Internet and foreign pharmacies. The key to lowering drug prices is to create a true, competitive free market for prescription drugs. Additionally, my legislation returns control of health care dollars to our seniors and their doctors, rather than federal bureaucrats.
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"Privatization" of Social Security Poses Risks
02 October 2000 Texas Straight Talk 02 October 2000 verse 3 ... Cached
Federal Government Should Not Play the Stock Market with Your Retirement Funds
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"Privatization" of Social Security Poses Risks
02 October 2000 Texas Straight Talk 02 October 2000 verse 6 ... Cached
Concerns over the future solvency of Social Security have prompted proposals for "privatizing" the system. Many proposals include plans to allow the federal government to put tax dollars into certain approved stock market investments.
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"Privatization" of Social Security Poses Risks
02 October 2000 Texas Straight Talk 02 October 2000 verse 8 ... Cached
However, I believe government-managed investment of Social Security funds poses undue risks for our nation's seniors. Although the stock market has done well in recent years, market investments never are completely safe (especially with the Federal Reserve's risky inflationary policies). Our nation's seniors could lose their benefits if the U.S. stock market (or markets worldwide) experience a severe downturn. Remember that Social Security payments were promised to our seniors, and they paid for them during their working lives. Congress cannot risk breaking the Social Security promise, because it cannot risk the well being of millions of our nation's seniors.
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"Privatization" of Social Security Poses Risks
02 October 2000 Texas Straight Talk 02 October 2000 verse 9 ... Cached
Furthermore, government involvement in the private stock market would have dangerous consequences. Who would decide what stocks, bonds, mutual funds, or other investment vehicles were approved? Which politicians would you trust to create an investment portfolio with your taxes? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If the company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility.
market
"Privatization" of Social Security Poses Risks
02 October 2000 Texas Straight Talk 02 October 2000 verse 10 ... Cached
Such "privatization" of Social Security would not really be private at all. Private companies would become a "partner" of sorts with the government. Individuals still would not truly own their invested Social Security funds. Payroll taxes likely would be raised to make up for dollars taken out of the Social Security trust fund. Political favoritism, rather than market efficiency, would determine what investments were made. Worst of all, our nation's seniors would be threatened with the loss of the benefits they already paid for.
market
Drug Re-Importation Will Lower Prescription Drug Costs
09 October 2000 Texas Straight Talk 09 October 2000 verse 3 ... Cached
Free-Market Approach Benefits American Consumers
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Drug Re-Importation Will Lower Prescription Drug Costs
09 October 2000 Texas Straight Talk 09 October 2000 verse 7 ... Cached
Legislation I introduced earlier this year would go farther in creating beneficial price competition for pharmaceuticals. The "Pharmaceutical Freedom Act" (H.R. 3636) eliminates needless FDA regulations which prevent Americans from buying low-cost drugs from foreign and Internet pharmacies. The Act also provides seniors with a tax credit of up to 80% of their prescription drug expenditures. My approach applies free-market principles to the problem: drugs become more affordable when we encourage price competition and provide tax relief to offset drug expenses. The free-market approach lets you and your doctor choose the prescription drugs that are appropriate for you.
market
Drug Re-Importation Will Lower Prescription Drug Costs
09 October 2000 Texas Straight Talk 09 October 2000 verse 10 ... Cached
The proposed crackdown on online pharmacies simply serves the existing entrenched pharmaceutical interests at the expense of price competition. As a result, you and I end up paying more for our prescriptions. However, the re-importation agreement reached this week encourages me that others in Congress are beginning to favor the free-market approach. Undoubtedly many are responding to polls showing that a large majority of Americans support drug re-importation. I applaud my colleagues who support the measure, and I plan to use this momentum to seek passage of the "Pharmaceutical Freedom Act." Congress must allow all Americans to benefit from worldwide price competition for prescription drugs.
market
The Conflict Between Collectivism and Liberty is Reflected in the Presidential Election
27 November 2000 Texas Straight Talk 27 November 2000 verse 7 ... Cached
The resulting division between American voters is the direct result of Washington's increasingly collectivist policies. Instead of moving toward a market economy and less dependency on the federal government in the midst of this so-called "prosperity,"each side in Washington continues to clamor for more of the taxpayer loot. The pretended goal of the economic planners has been economic fairness through redistribution of wealth. The real goal always has been an increasingly collectivist system which gives the federal government more and more power over our lives.
market
The Conflict Between Collectivism and Liberty is Reflected in the Presidential Election
27 November 2000 Texas Straight Talk 27 November 2000 verse 8 ... Cached
The goal of liberty has long been forgotten. An impasse was destined to come, and already signs of a fundamental conflict are evident. The presidential election in many ways demonstrates both an economic and political reality. The political stalemate mirrors the stalemate that is developing in the economy. Both eventually will cause deep division and hardship. The real problem- preserving the free market and private property rights- will worsen if ignored. The only solution offered by Washington will be more government intervention, increased spending, increased monetary inflation, more debt, and increased military interventionism throughout the world.
market
The Conflict Between Collectivism and Liberty is Reflected in the Presidential Election
27 November 2000 Texas Straight Talk 27 November 2000 verse 9 ... Cached
The financial markets now are nervously watching the impasse reached in the presidential election. Many commentators claim the most recent drop in the market is a consequence of the uncertainty surrounding the election. Although it would be a mistake to dismiss completely the influence of the election as a factor in the economy, it must be made clear that the markets and the economy are driven by something much more basic. We know that the markets have been off significantly for the past several months, and this drop was not related in any way to the presidential election. However, confidence is an important factor in the way markets work, and certainly the confusion in the Presidential election does not convey confidence in American markets to investors.
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The Blessings of Liberty at Christmas
25 December 2000 Texas Straight Talk 25 December 2000 verse 7 ... Cached
The American information technology industry continues to lead the world. Our software and internet companies dominate the worldwide marketplace (not coincidentally, high tech is our least regulated industry). Talented individuals in technological fields have come to the U.S. from around the globe, increasing our competitive advantage. The technological boom of the past decade, and the resulting rise in technology markets, was largely an American phenomenon. America is poised to continue to lead the world in information technology in the new century, to the benefit of all Americans.
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A Legislative Agenda for 2001
01 January 2001 Texas Straight Talk 01 January 2001 verse 6 ... Cached
Health care also will be a defining issue for Congress this year. Again, the answer to concerns about health care costs and quality is not a massive federal program. Schemes for "free" national health care will only result in shortages of drugs and doctors, waiting lists for procedures, and rationing of treatments and pharmaceuticals. Our emphasis should be on restoring market incentives to the health care and pharmaceutical industries. Our current FDA system reduces incentives for the development of new drugs and restricts competition for existing drugs, which results in the very high drug prices borne by consumers. Congress should undo the regulatory burdens that drive prices up, while providing tax credits and deductions for health care and prescription drug costs.
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Turn Out the Lights
15 January 2001 Texas Straight Talk 15 January 2001 verse 5 ... Cached
As frightening as this development may be to Americans who believe in free markets, it was not unexpected. California has faced severe energy shortages for more than a year. Residents and businesses in the state have seen dramatic increases in their monthly electric bills, with some paying 200% more than a year ago. Shortages and blackouts are threatened. In response to this crisis, California Governor Gray Davis has become an increasingly vocal proponent of an outright socialist energy system for the nation's largest state. He decided (not surprisingly) to go to the Feds for help, resulting in the meeting with Energy secretary Bill Richardson and Treasury secretary Larry Summers, among others.
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Turn Out the Lights
15 January 2001 Texas Straight Talk 15 January 2001 verse 6 ... Cached
California's woes are due in part to its tremendous population growth over the past decade. The influx of residents and businesses, particularly energy-intensive tech businesses, has greatly increased demand for electricity. The problem is that the California government has not allowed the construction of new power plants, in large part because of "environmentalists," citizens groups, and regulators hostile to property rights. The blatantly obvious result of high demand coupled with artificially low supply must be: high prices. Had the free market been allowed to operate, profit-seeking utility companies would have built new power plants to meet the demand and the situation would be very different today.
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Turn Out the Lights
15 January 2001 Texas Straight Talk 15 January 2001 verse 7 ... Cached
Governor Davis, seemingly oblivious to the real problem (his own government), has accused California's electricity companies of "price gouging," and called for stricter price controls. He even threatened (chillingly) to seize the assets of utility companies if they do not lower prices. Ultimately, he wants a new state agency to control the entire industry and even build new power plants if necessary! (new plants apparently are OK if the government builds them). Davis exhibits the classic bureaucratic cycle: first the government creates the crisis, which is blamed on the free market, and then more government is justified to fix the crisis.
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Turn Out the Lights
15 January 2001 Texas Straight Talk 15 January 2001 verse 8 ... Cached
Price controls will never work, because the laws of economics cannot be fooled. Price controls always result in shortages, because no rational business wants to produce something to sell at below-market rates. The California utility companies, which already are forced to sell to consumers at state-mandated prices, cannot do so forever. Their costs have increased dramatically; if they cannot raise prices they will be bankrupt. Utility companies outside the state simply refuse to sell to California because they can sell their power for a higher price elsewhere. This is why Governor Davis sought the meeting with Energy secretary Richardson. He wants the Feds to force utility companies in other states to sell energy to California. Unfortunately for Davis and Richardson, there are no laws (yet) forcing companies to stay in business forever while the government destroys them.
market
Turn Out the Lights
15 January 2001 Texas Straight Talk 15 January 2001 verse 9 ... Cached
To politicians like Davis, only the government can save us. Like most politicians, he apparently accepts the myth that some goods and services are too vital to be left to the free market. However, it is precisely because energy is so vital that the government should not interfere in the electricity market. The operation of the market does not create a utopia, but it clearly would have prevented the California crisis. When the price rises in a free market, consumers simply use less energy (which supposedly is the goal of the "environmentalists"). When growth creates greater demand in a free market, the supply of energy increases to meet that demand. These simple principles, which are obvious to anyone studying basic economics, should be clear to the likes of Davis and Richardson. The likely explanation is that their true goal is the expansion of government power, without regard to the well-being of the people of California.
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"Buy American," Unless...
12 February 2001 Texas Straight Talk 12 February 2001 verse 3 ... Cached
Members of Congress often encourage us to "buy American" during their speeches on the House floor. Some members regularly place a "buy American" clause in various trade-related bills, seeking to protect domestic jobs by encouraging the purchase of American goods. Ironically, however, many of these same legislators vote to prohibit American companies from gaining access to new markets overseas. They do so by supporting our senseless embargo policies, which simply help our foreign trading competitors at the expense of American companies.
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"Buy American," Unless...
12 February 2001 Texas Straight Talk 12 February 2001 verse 4 ... Cached
Of course most politicians claim that they support free trade. Intuitively, most Americans understand that access to foreign markets provides significant benefits to US citizens and American-based corporations. However, we continue to pursue a policy of denying or restricting domestic companies from selling to Cuba, Iraq, Iran, China, and other countries. This inconsistency is especially evident when we consider "export financing," which really is foreign aid designed to help other countries buy American goods. Most Washington politicians support the practice of export financing, arguing that access to foreign markets benefits American companies, and not just foreign consumers. However, the opposite argument is made with regard to our embargo policies. Suddenly, increased trade with countries some want to label as unworthy only benefits sinister foreign consumers, and not domestic producers. This nonsensical position is maintained by many in government who favor government-managed trade which benefits certain chosen special interests.
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"Buy American," Unless...
12 February 2001 Texas Straight Talk 12 February 2001 verse 5 ... Cached
Conflicting and inconsistent views on trade policy result largely from a lack of understanding of basic economic principles. Free trade is not a zero-sum game where some countries benefit and others inevitably suffer. On the contrary, true free trade by definition benefits both parties. Free trade is the process of free people engaging in market activity without government interference such as tariffs or managed-trade agreements. In a true free market, individuals and companies do business voluntarily, which means they believe they will be better off as a result of a transaction. Tariffs, taxes, and duties upset the balance, because governments add costs to the calculation which make doing business less attractive. Similarly, so-called managed trade agreements like WTO favor certain business interests and trading nations over others, which reduces the mutual benefit inherent in true free trade.
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"Buy American," Unless...
12 February 2001 Texas Straight Talk 12 February 2001 verse 6 ... Cached
The ultimate result of our embargo policies is obvious: when our government prevents American companies from selling their goods abroad, it creates an economic hardship for those companies and their employees. Similarly, when the government prevents American consumers from buying the goods or services they want from certain countries, it simply diminishes the living standards of those Americans. Washington intervention in international trade only benefits certain special interests for a short time. In the long run, the vast majority of American citizens and businesses would benefit from unfettered access to all foreign markets. An example is the relatively unregulated software industry, where American companies absolutely dominate the global marketplace. Americans don't need help competing, but they do need a government which does not hinder their access to foreign markets. By following the current policy of government-managed trade and special interest favoritism, Congress is harming the constituents it was elected to represent. The sooner we adopt policies which promote free exchange with all nations, the better off our nation and its people will be.
market
Tax Cuts Benefit All Americans
19 February 2001 Texas Straight Talk 19 February 2001 verse 6 ... Cached
Also, the class argument that average Americans do not benefit from tax cuts cannot be supported by facts. The Bush proposal, though far too modest in my view, is very straightforward. A key feature of the plan simplifies and lowers all marginal rates. Every taxpayer, regardless of income, will pay taxes at a lower rate than before under the plan. An American with a modest income might save $1,000 on his yearly tax bill, which could mean more to him than a million dollars would to a very wealthy taxpayer. This benefit is ignored in Washington and in the popular press. The focus, as always, is on overhyped disparities in wealth. The assumption is that government, rather than individual achievement in the marketplace, should determine who becomes wealthy.
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Tax Cuts Benefit All Americans
19 February 2001 Texas Straight Talk 19 February 2001 verse 7 ... Cached
With more Americans involved in the stock market, however, the politics of envy may fail to attract the average voter. Collectivist politicians forget that the American dream of becoming wealthy is alive and well. They seek to encourage resentment of the wealthy, when in truth most Americans admire successful people. They forget that upward mobility, the chance to start from humble beginnings and achieve wealth and position, is virtually impossible in high-tax socialist societies. Most of all, however, the pro-tax politicians forget that your money belongs to you. As a society, we should not forget their dishonesty when we go to the polls.
market
Bush Tax Plan Only One Piece of the Tax Cut Puzzle
12 March 2001 Texas Straight Talk 12 March 2001 verse 7 ... Cached
The capital gains tax is another onerous tax that must be removed. Like the estate tax, the capital gains tax punishes individuals for saving and investing wisely for themselves and their families. The capital gains tax was once thought of as a tax on the rich. However, with more and more Americans investing in the stock market and relying on IRA's and 401K's to fund their retirements, there is growing opposition to this burdensome tax that actually discourages individuals from being self-sufficient.
market
Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 3 ... Cached
Last week was tumultuous for worldwide stock markets, some of which ended the week at their lowest levels in years. Our own Dow-Jones and NASDAQ market indices both suffered heavy losses, while the Japanese Nikkei index fell to its lowest level since 1985! Nervous investors scrambled to sell even blue-chip holdings, especially after news that projected 2001 earnings would be lower than expected for many companies.
market
Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 4 ... Cached
The market downturn is not surprising. An economic slowdown began in 2000, accelerating in the last quarter of the year. All indications suggest the U.S. economy is headed for a further slowdown in economic growth, if not an outright recession. Already we have seen thousands of job cuts, and not only in the market-sensitive high tech sector. Economic output, as measured by the gross domestic product, dropped every quarter in 2000.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 6 ... Cached
Such thinking should be dismissed as absurd. Economic recessions are not the result of a gloomy national state of mind; if so, we could create economic prosperity simply by positive thinking. Yet basic education in economics is so badly lacking in America that many will accept this preposterous idea. The same ignorance of economic principles is behind the fallacy that capitalism is to blame for recessions, that a free market system causes an inevitable cycle of booms and busts. In reality, it is government intervention in the economy, particularly in the areas of money supply and interest rates, which creates the precarious financial bubbles that cause economic recessions.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 7 ... Cached
The Federal Reserve did two things to artificially expand the economy over the last decade. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of capital (i.e. savings) determining the cost of borrowing money. In a healthy market economy, more saving equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases. When interest rates are set by the market, individuals and businesses make good spending decisions, because they pay an accurate interest rate for their debts. However, when the Fed set rates artificially low, the cost of borrowing becomes cheap. Individuals incur greater amounts of debt (evidenced by the record number of personal bankruptcies), while businesses overextend themselves and grow without real gains in productivity. The bubble bursts quickly once the credit dries up and the bills cannot be paid.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 9 ... Cached
Only six months ago, market pundits were still proclaiming a new era of unending prosperity. They claimed that the fundamentals no longer mattered, that technology would save us from any more bear markets. Technology is wonderful, but it cannot save us from our own misguided monetary policies. Until we stop permitting the Fed to manipulate the economy, real prosperity will elude us. The Fed received credit for the boom times of the 1990s, yet its policies are responsible for the market correction and economic recession we are experiencing today.
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 2 ... Cached
Don't Blame the Free Market for Energy Shortages
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 3 ... Cached
Political pressure is mounting in Washington as gas prices rise and the California electricity shortage worsens. The national media and politicians from both parties have irresponsibly characterized the situation as an energy "crisis,"thereby generating public support for further unconstitutional and unwise federal intervention in energy markets. Washington appears to have accepted full responsibility for the California problem; hence the one-sided debate centers around a supposed need for a national energy policy. The obvious implication is that the federal government must play nanny to California or any other state which finds itself facing shortages caused by its own bad policies. Never mind that California caused its own problems by restricting supply and freezing energy prices while the population skyrocketed. The real danger is that the federal government may repeat California's mistakes on a national level, subjecting the rest of the nation to similar shortages. The true crisis facing us is not a physical shortage of energy, but rather the looming threat that socialist economic planning will replace market mechanisms and cause unnecessary shortages.
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 4 ... Cached
The worst idea coming out of Washington (with support even from some supposedly free market politicians) is that the federal government should impose price controls on energy companies that sell to California. The politically favored term is "price caps," which sounds less authoritarian. The premise is that greedy energy companies charge California too much, so the federal government should set "reasonable" limits on wholesale prices. The accusation of price gouging is never questioned: no one considers the costs involved in producing excess capacity to sell to California. Why should electric companies sell their power at below-market rates? Is it their responsibility to correct the mistakes of California politicians? Why do we presume the federal government has any authority or credibility to determine prices and profits?
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 5 ... Cached
The answer is obvious to anyone with even the slightest knowledge of basic economics: price controls always cause shortages. When government sets a price too low, supply drops. The simplicity of this is apparent to anyone who examines a supply and demand chart, and history consistently proves the folly of centralized government price planning. Producers of energy (or any other good) make less when they are forced to sell at below-market prices. This is exactly what happened in California. Expect energy companies simply to stop selling to California if new federal price controls are imposed. It's discouraging that basic economic fallacies are still used to justify terribly harmful government practices.
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 6 ... Cached
By contrast, the market price mechanism works to insure that everyone has electricity. In a free market, increased demand naturally causes prices to rise. Two things then happen: people conserve, and supply increases. If California had not chosen to regulate the energy market, new plants would have been built to meet the needs of the growing population. Californians still would have seen price increases, but they would have had a strong economic incentive to conserve energy. Over time, new energy providers seeking to profit from the demand and price increases would have gradually increased supply and driven prices down. Instead, California capped prices and restricted supply. This summer's blackouts will be the direct result of this exceedingly misguided policy.
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Don't Blame the Free Market for Energy Shortages
21 May 2001 Texas Straight Talk 21 May 2001 verse 7 ... Cached
Free markets work. Government, not markets or deregulation, causes the economic woes we face today. Free markets insure that supply and demand are evenly matched, preventing shortages. Contrary to the claims of environmentalists, free markets always promote conservation by increasing the price of precious resources as they become scarcer. Advocates of socialist central planning in Washington may claim to have the solutions to energy shortages, but in truth market forces cannot be ignored any more than the laws of physics. Americans who want to continue to enjoy uninterrupted energy supplies should oppose any federal regulation of energy markets.
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End Trade Sanctions that Hurt Texas Farmers
25 June 2001 Texas Straight Talk 25 June 2001 verse 5 ... Cached
Second, sanctions simply hurt American industries, particularly agriculture. Every market we close to our nation's farmers is a market exploited by foreign farmers. China, Russia, the middle east, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed trade restrictions that prevent our farmers from selling to the billions of people in these areas. The department of Agriculture estimates that Iraq alone represents a $1 billion market for American farm goods. Given our status as one of the world's largest agricultural producers, why would we ever choose to restrict our exports? The only beneficiaries of our sanctions policies are our foreign competitors.
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"Patients Bill of Rights" or Federal Takeover of Medicine?
02 July 2001 Texas Straight Talk 02 July 2001 verse 5 ... Cached
So what should we do about the HMO mess? Before we call for government action, we should recognize that the federal government has virtually mandated HMOs on the American people First, the tax code excludes health insurance from taxation when purchased by an employer, but not when purchased by an individual. Second, the HMO Act of 1973 forced all but the smallest employers to offer HMOs to their employees. So while many in Congress are happy to criticize HMOs today, the public never hears how the present system was imposed upon the American people by federal law. In fact, one very prominent Senator now attacking managed care is on record in the 1970s lauding HMOs as "effective and efficient mechanisms for delivering health care of the highest quality." As usual, government intervention in the private market has caused unintended consequences, but Washington blames only the HMOs themselves- not the laws that created them.
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"Patients Bill of Rights" or Federal Takeover of Medicine?
02 July 2001 Texas Straight Talk 02 July 2001 verse 7 ... Cached
We can hardly blame the market for our current healthcare woes. As with all goods and services, medical care is best delivered by the free market, with competition and patient responsibility keeping costs down. Government has neither the constitutional authority nor the wisdom to determine appropriate contract terms between individuals and health insurers. Congress needs to abolish the HMO mandate and allow favorable tax treatment for individuals paying for health care directly. Medical Savings Accounts (MSAs), which are tax-deductible and tax-exempt accounts used to pay medical expenses, should be made available to all Americans. When patients spend their own money for health care, they have a direct incentive to negotiate lower costs with their doctor. When government controls health care, all cost incentives are lost. No "patients bill of rights" will help us when the money runs out.
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Free Trade Means No Tariffs and No Subsidies
30 July 2001 Texas Straight Talk 30 July 2001 verse 3 ... Cached
Congress recently considered several trade-related measures containing massive subsidies for American corporations that sell their products overseas. For example, the Export-Import bank received more than $750 million in appropriations funding last week. The biggest beneficiary of this money is China, which has used Ex-Im funds to build nuclear power plants, expand its state-run airline, and even build steel factories that compete directly with our own struggling domestic steel industry. Undoubtedly the American companies who benefit from contracts with China are happy with these trade subsidies, but American taxpayers should not be forced to pay for corporate welfare that simply benefits some politically favored interests. I introduced an amendment to completely defund the Ex-Im bank, because true free trade cannot flourish when subsidies interfere with healthy market competition. Unfortunately, however, the debate in Washington tends to focus on which nations and companies should be subsidized, rather than whether American taxpayers should pay for trade subsidies at all.
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Free Trade Means No Tariffs and No Subsidies
30 July 2001 Texas Straight Talk 30 July 2001 verse 4 ... Cached
I focus on the Constitution when voting on trade issues. This approach leads me to always oppose trade subsidies, as there is no enumerated power that gives Congress authority to send your money abroad to help big corporations sell their products. The current system allows the most powerful interests, with the largest political lobbies, to prevail in the Congressional pork subsidy game. So the biggest corporations tend to get bigger, while smaller competitors face a very uneven playing field. This is not free trade, but rather government-mangaged trade epitomized by international bodies like NAFTA and the WTO. As noted Austrian economist Murray Rothbard explained, we don't need government agreements to have free trade. In fact, true free trade means just the opposite- true free trade occurs only when government is not involved at all. We must remember that government-managed trade always means political favoritism. Merit, rather than politics, should determine which companies succeed in the export markets. Congress should abide by the Constitution and get out of the subsidy business altogether, so that real free trade can work and benefit all Americans.
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Free Trade Means No Tariffs and No Subsidies
30 July 2001 Texas Straight Talk 30 July 2001 verse 5 ... Cached
The same free-market principles that compel me to oppose subsidies apply to tariffs as well. Simply put, tariffs are taxes. Like subsidies, tariffs are paid for by American taxpayers and consumers. I vote against tariffs for the same reasons I vote against any federal taxes- I want to get the federal government out of your pocketbook. Many tariff bills in Congress are touted as pro-American, but they really just raise taxes by stealth. In a free society, consumers must be allowed to buy goods from abroad if they so choose. Americans should not be taxed simply because they determine that their family budgets are better served by purchasing an imported item.
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Free Trade Means No Tariffs and No Subsidies
30 July 2001 Texas Straight Talk 30 July 2001 verse 7 ... Cached
Finally, I always oppose trade sanctions against foreign nations. Sanctions are terribly ineffective foreign policy tools that harm the people, rather than the governments, of nations we hold in disfavor. Sanctions also hurt American exporters, including Texas farmers, who are prohibited from selling their products overseas. China, Russia, the middle east, North Korea, and Cuba all represent huge markets for our farm products, yet many in Congress favor current or proposed sanctions that prevent our farmers from selling to the billions of people in those nations. Given our status as one of the world's largest agricultural producers, why would we ever choose to restrict our exports? The only beneficiaries of our sanctions policies are our foreign competitors. I recently voted to against continued trade sanctions against Iran and Libya, and I have introduced legislation to end our trade embargo against Cuba. All Americans benefit from both sides of the free trade equation, and Congress should not interfere with exports any more than it should tax imports.
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What Happened to the Surplus?
20 August 2001 Texas Straight Talk 20 August 2001 verse 7 ... Cached
American voters should understand that Congress will always find a way to spend every last dollar sent to Washington. Remember, politicians get votes by promising everything to everyone, always at the expense of some other invisible taxpayers. Most politicians are unashamed of their unconstitutional pork-barrel spending, even highlighting during campaigns their "accomplishment" of spending more and more of your money. The federal government cannot maintain a budget surplus any more than an alcoholic can leave a fresh bottle of whiskey untouched in the cupboard. We must change our perception that a budget surplus is healthy for the economy, because every dollar parked in the federal treasury ultimately is spent by Congress. Those dollars could have been spent, saved, or invested in the private marketplace. With a spendthrift Congress, high federal revenues simply mean more federal spending. The only way to end the unconscionable waste is to drastically reduce federal revenues by cutting taxes. Voters need to regain control of the nation's finances by rejecting the big spenders at the ballot box.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 3 ... Cached
Last week Federal Reserve chairman Alan Greenspan discussed the state of the US economy during a conference held in Wyoming. He was quite candid in his admission that the economic outlook remains gloomy, especially given the sobering numbers recently released in the media. Economic growth, measured by GDP, has fallen to .2%, the lowest in 8 years- meaning the economy is nearly in a recession. The Dow and Nasdaq averages suffered losses throughout August. Consumer spending, supposedly the one bright spot in the outlook, is also wavering. American families undoubtedly know first-hand that the job market is very shaky, and it was only a matter of time until purchases of new houses, cars, and retail goods declined. A tumble in the real estate markets may be the last straw that sends the economy into a tailspin.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 4 ... Cached
All of these economic problems have developed despite the massive interest rate- cutting measure taken by the Fed over the past two years. Chairman Greenspan has cut interest rates 7 times in 2001 alone, most recently in mid-August. However, the markets have not responded, and Wall Street continues to pressure the Fed to reduce rates even more. This trend developed steadily throughout the 1990's- each time the economy showed signs of a downturn, the Fed cut rates. Yet it is becoming apparent that this practice cannot work forever, and that every short-term fix simply puts off the inevitable painful correction that must follow.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 5 ... Cached
The Japanese economy provides a vivid example of the futility of manipulating interest rates. Japan's central bank began cutting rates more than a decade ago, but the country remains mired in a stagnant economy. Ultimately, interest rates were cut to zero, where they have remained for several years. This rate-cutting has failed to stimulate the economy, however. The Nikkei stock market index remains at 1980s levels, while Japanese unemployment recently reached 5%, the highest rate in decades. The Japanese experience should tell us that prosperity cannot be created out of thin air by a central bank.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 7 ... Cached
The truth is that the good times may be coming to an end. The Fed, far from being our savior, is actually the cause of the current economic troubles. The Fed's easy credit policies flooded the economy with cheap money over the last decade, but the bills are coming due. With lots of artificial investment capital in the marketplace, businesses and individuals spent with less discipline and incurred more debt. The stock market became wildly overvalued, with many companies trading at outrageous prices. We should expect both personal and business bankruptcies to continue to climb as the bubble bursts.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 8 ... Cached
In a truly free society, interest rates should be set by the market. The laws of supply and demand work better than any government bureaucrat in determining the correct cost of money, and without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. The turbulent period we are entering may serve to remind Americans that the Fed cannot suspend the laws of economics. The key to lasting prosperity is a return to true private banking, where interest rates are set by the free market and dollars are backed by gold.
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What Should Government Do for the Airlines?
24 September 2001 Texas Straight Talk 24 September 2001 verse 4 ... Cached
The airline business was not doing well even prior to the attacks. The slowing economy caused a big drop in business travel compared to recent years, while labor disputes and rising fuel costs have further reduced profits. The industry perhaps had too much capacity; takeovers and bankruptcies were likely among some carriers regardless of the recent disasters. As a strong advocate of free-market capitalism, I would never support government subsidies or bailouts for any industry simply because its companies could not survive in the marketplace.
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The Feds at the Airport
19 November 2001 Texas Straight Talk 19 November 2001 verse 6 ... Cached
Congress should be privatizing rather than nationalizing airport security. The free market can and does produce excellent security in many industries (including most European airports). Many security-intensive industries do an outstanding job of maintaining safety without depending on federal agencies. Nuclear power plants, chemical plants, oil refineries, and armored money transport companies all employ private security forces that operate very effectively. No government agency will ever care about the bottom-line security and profitability of the airlines more than the airlines themselves. Airlines cannot make money if travelers and flight crews are afraid to fly, and in a free market they would drastically change security measures to prevent future tragedies. In the current regulatory environment, however, the airlines prefer to relinquish all responsibility for security to the government, so that they cannot be held accountable for lapses in the future.
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Can Freedom be Exchanged for Security?
26 November 2001 Texas Straight Talk 26 November 2001 verse 8 ... Cached
In his speech to the joint session of Congress following the September 11th attacks, President Bush reminded all of us that the United States outlasted and defeated Soviet totalitarianism in the last century. The numerous internal problems in the former Soviet Union- its centralized economic planning and lack of free markets, its repression of human liberty, its excessive militarization- all led to its inevitable collapse. We must be vigilant to resist the rush toward ever-increasing state control of our society, so that our own government does not become a greater threat to our freedoms than any foreign terrorist.
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Enron, Bankruptcy, and Easy Credit
17 December 2001 Texas Straight Talk 17 December 2001 verse 3 ... Cached
The recent bankruptcy filing by Enron has shaken the economy, with investors, employees, and creditors losing billions in a few short months. The shocking and sudden demise of America's seventh-largest company raises serious issues about stock valuations and the financial health of America's big companies. Questions are being raised about improprieties on the part of Enron management and its accounting firm. If evidence of fraud or other criminal activity exists, management and auditors should of course be held responsible. People are understandably angry, especially those who suffered serious financial losses. However, we should be careful not to blame the free market for the actions of a few in what is actually a very highly regulated market.
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Enron, Bankruptcy, and Easy Credit
17 December 2001 Texas Straight Talk 17 December 2001 verse 5 ... Cached
In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk.
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Enron, Bankruptcy, and Easy Credit
17 December 2001 Texas Straight Talk 17 December 2001 verse 7 ... Cached
Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluations: Fed expansion of money and credit.
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Enron, Bankruptcy, and Easy Credit
17 December 2001 Texas Straight Talk 17 December 2001 verse 8 ... Cached
The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level for the markets.
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Stimulus or Spending?
24 December 2001 Texas Straight Talk 24 December 2001 verse 5 ... Cached
These obvious economic realities are lost on most Washington politicians, who either fail to understand basic economics or choose to ignore the long-term harm they cause. Many in Congress fought to add billions in wasteful pork spending to the stimulus bill. Of course the lobbyists and the special interests love any new spending, because it "stimulates" certain industries and groups. It's easy for politicians to point to the benefits of such spending; for example, a government contract certainly creates new jobs, right? The fallacy, of course, is that we never see the economic growth that would have been created if those tax dollars had never been sent to Washington in the first place. Remember, the private marketplace is always far more efficient that any government program. You know better than the government how to spend your own money, and the same principle applies to the economy as a whole. Spending is spending, even when politicians call it "investing in America" or "stimulus." Government cannot simply spend us into prosperity.
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Argentine Default and the IMF
14 January 2002 Texas Straight Talk 14 January 2002 verse 3 ... Cached
Imagine a hypothetical bank run by a group of international executives operating behind closed doors, making decisions of enormous international importance. Imagine the bank consistently made high-risk loans to shaky governments with weak economies and currencies. Imagine it made those loans at substantially below-market interest rates, even though the risks involved warranted high interest rates. Imagine it knew that certain corporate interests would benefit directly from contracts awarded by the borrowing nations. Finally, imagine the bank schemed with governments around the world to have taxpayers foot the bill for the predictable losses stemming from bad loans. Surely no reasonable person would invest his money in such an institution, right?
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Enron: Under-Regulated or Over-Subsidized?
28 January 2002 Texas Straight Talk 28 January 2002 verse 8 ... Cached
The point is that Enron was intimately involved with the federal government. While most in Washington are busy devising ways to "save" investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to Congress and the Clinton administration. It's a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils.
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Enron: Under-Regulated or Over-Subsidized?
28 January 2002 Texas Straight Talk 28 January 2002 verse 9 ... Cached
This does not mean Enron is to be excused. There seems to be little question that executives at Enron deceived employees and investors, and any fraudulent conduct should of course be fully prosecuted. Yet we should not allow criminal fraud in one company, which constitutionally is a matter for state law, to justify the imposition of burdensome new accounting and stock regulations. We certainly should not allow the Enron collapse to be characterized as a failure of capitalism or free markets, because the opposite is true. The Enron collapse provides an example of how government does so much to prevent the market from working properly in the first place.
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The Voucher Debate and the Failure of Public Education
25 February 2002 Texas Straight Talk 25 February 2002 verse 4 ... Cached
I applaud the proponents of vouchers for having the initiative to try something new that challenges the federal government’s virtual monopoly on education. It’s admirable to apply a market approach to schools. Forty years of Great Society federal programs have done nothing but make our public schools worse. Fifty years ago, before the federal government became involved in public education, American grammar and high schools were the best in the world. Students faced a demanding curriculum of math, hard sciences, geography, literature, western civilization, spelling and grammar, Latin, and useful trades. They even learned American history, which is sadly lacking in today’s schools. Teachers were respected, and free to enforce discipline without fear of lawsuits or being undermined by school administrators and parents.
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Steel Tariffs are Taxes on American Consumers
18 March 2002 Texas Straight Talk 18 March 2002 verse 3 ... Cached
The administration’s recent decision to impose a 30 percent tariff on steel imports was disappointing to free trade advocates. This measure will hurt far more Americans than it will help, and it takes a step backwards toward the protectionist thinking that dominated Washington in decades past. These steel tariffs also make it quite clear that the rhetoric about free trade in Washington is abandoned and replaced with talk of "fair trade" when special interests make demands. What most Washington politicians really believe in is government-managed trade, not free trade. Government-managed trade means government, rather than competence in the marketplace, determines what industries and companies succeed or fail.
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Steel Tariffs are Taxes on American Consumers
18 March 2002 Texas Straight Talk 18 March 2002 verse 4 ... Cached
It’s easy for some lawmakers to make emotional arguments that tariffs are needed to protect the jobs of American steelworkers, but we never hear about the jobs that will be lost or never created when the cost of steel rises 30 percent. Tariffs are taxes, and imposing new tariffs means raising taxes. Apparently no one in the administration has read Henry Hazlitt’s classic economics text, Economics in one Lesson. Professor Hazlitt’s fundamental lesson was simple: We must examine economic policy by considering the long-term effects of any proposal on all groups. The administration instead chose to focus only on the immediate effects of steel tariffs on one group, the domestic steel industry. This has nothing to do with fairness, and everything to do with political favors. The free market is fair; it alone justly rewards the worthiest competitors. Tariffs reward the strongest Washington lobbies.
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Gold, Dollars, and Federal Reserve Mischief
10 June 2002 Texas Straight Talk 10 June 2002 verse 5 ... Cached
Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. So even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception. Should the dollar continue to decline in value, America will find itself struggling to service our already massive debt load even as our foreign creditors become less interested in our dollars.
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Gold, Dollars, and Federal Reserve Mischief
10 June 2002 Texas Straight Talk 10 June 2002 verse 6 ... Cached
America once enjoyed a stable dollar backed by gold deposits, a "gold standard" system. This system gradually was undermined throughout the last century, until President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Fed has employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the total amount of dollars in circulation (the money supply), and the financial markets. In other words, fiat dollars have no intrinsic value.
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Gold, Dollars, and Federal Reserve Mischief
10 June 2002 Texas Straight Talk 10 June 2002 verse 7 ... Cached
What does all of this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses. Inflation acts as a hidden tax levied disproportionately on the poor and fixed-income retirees, who find the buying power of their limited dollars steadily diminished. The corporations, bankers, and wealthy Americans suffer far less from this inflation, because they can take advantage of the credit expansion that immediately precedes each new round of currency devaluation.
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What About Government Accountability?
15 July 2002 Texas Straight Talk 15 July 2002 verse 3 ... Cached
This does not mean corporate America is innocent. Many big corporations soak taxpayers for billions in government subsidies every year, while using political influence to avoid fair competition in the marketplace. Criminal conduct by executives at Enron, WorldCom, or any other company should be prosecuted vigorously under state fraud laws. If these executives indeed lied to investors, presented false earnings statements, or otherwise stole from shareholders, they should return the stolen money and serve jail time.
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What About Government Accountability?
15 July 2002 Texas Straight Talk 15 July 2002 verse 5 ... Cached
None of the free-market restraints against financial mismanagement apply to government. The federal government doesn’t need to raise money by meeting a market demand or raising investment capital- it simply takes what it wants through taxes, which can be raised at will. It never has to operate profitably or efficiently; witness Amtrak and the Postal Service. It also has no incentive to cut costs. In fact, federal agencies scramble to spend every last penny of their budgets to justify more the next year. There is no stock price to worry about, and nobody tracks government "performance" against earlier years. Nobody ever gets fired. Simply put, the money is not hard-earned, so it’s not well-spent.
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What About Government Accountability?
15 July 2002 Texas Straight Talk 15 July 2002 verse 6 ... Cached
So why is there not more outrage about government financial accountability? Of course we read the occasional news article lamenting $400 hammers at the Pentagon, but for the most part Congress gets a free pass on its own fiscal mismanagement. What we hear instead are calls for more regulation of our already heavily regulated mixed economy. Few suggest that federal interference in the market, especially Federal Reserve expansion of credit, creates the distortions that make it possible for corporations to become so overvalued in the first place. No one mentions that market forces ultimately cut through the distortions, causing the stock prices of fraudulent corporations to plummet. Instead we hear denunciations of the free market, and calls for more regulations from the very career politicians who are so completely unfit to manage anything.
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Your Taxes Fund South American Bailout
12 August 2002 Texas Straight Talk 12 August 2002 verse 4 ... Cached
Why the sudden interest in Uruguay? Treasury Secretary O’Neill’s statement on the matter makes it sound like Uruguay is a real financial powerhouse. In fact, he tells us "Uruguay’s approach to bank reform should encourage confidence of depositors in the financial system. Uruguay has effectively implemented sound economic policies and embraced free markets." Apparently, those sound economic policies led to outright collapse and a run on the nation’s banks, while their commitment to free markets involves billions in welfare bailouts courtesy of American taxpayers. If Uruguay is indeed so financially and politically stable, why in the world would it need billions in foreign welfare?
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Your Taxes Fund South American Bailout
12 August 2002 Texas Straight Talk 12 August 2002 verse 6 ... Cached
The real concern behind schemes like the Exchange Stabilization Fund and the International Monetary Fund is the corporate interests they subsidize. American banks and corporations have a great deal of money invested in South America, and a bank default by any country there directly threatens those dollars. The multinational banks especially fear a chain reaction of economic meltdowns, beginning with Argentina and spreading to Uruguay, Brazil, and beyond. So they use political influence to thwart the free market process and prop up bankrupt economic policies in Uruguay.
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Your Taxes Fund South American Bailout
12 August 2002 Texas Straight Talk 12 August 2002 verse 7 ... Cached
But why should taxpayers subsidize the risky business practices of multinational lenders? The banks themselves should bear the risks of investing in unstable nations, just as surely as they enjoy the rewards when investments in foreign markets prove profitable. They want taxpayers to protect them from risk, but never share in the rewards.
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Your Taxes Fund South American Bailout
12 August 2002 Texas Straight Talk 12 August 2002 verse 8 ... Cached
What a shame that our government continues to fund risky overseas bailouts and unconstitutional foreign aid, even as our own nation faces serious financial problems here at home. Congress has lapsed into uncontrolled deficit spending, and billions more will be spent creating the Department of Homeland Security and funding an unwise war in Iraq. The private economy sputters along with little or no growth, while the stock market bubble loses more air almost daily. The pension and retirement plans of millions of Americans have suffered heavy losses, and the very solvency of Social Security is threatened by the coming retirement of the baby boom generation. Meanwhile, our military families and veterans are allowed to live in poverty. In the midst of all these problems at home, how in the world can we justify another nickel for foreign bailouts?
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Does Government Run the Economy?
19 August 2002 Texas Straight Talk 19 August 2002 verse 3 ... Cached
So what exactly would critics have the President do to "fix" the economy? Presumably they believe he should propose some new laws and regulations, thereby protecting us from greedy CEOs and the risks of the free market. The belief is that government brings about economic prosperity, and that the current economic malaise represents a failure by government to act. In other words, the government somehow caused the economy to sour through inattention and neglect.
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Does Government Run the Economy?
19 August 2002 Texas Straight Talk 19 August 2002 verse 7 ... Cached
Centralized economic planning is disastrous for every society that employs it. From the former Soviet Union to present day China, planned economies have produced little but hardship and bloodshed. The reason for this is simple human nature, because individuals have little incentive to produce when the fruits of their labors are stripped from them. Both history and economic theory demonstrate conclusively that government-run economies lower the standard of living for everyone except government elites charged with the "planning." By contrast, capitalism raises the standard of living for everyone in a society. More importantly, free market capitalism is the only moral economic system because it is the only free economic system. Socialism, communism, and authoritarianism- variants on the same collectivist theme- all use immoral government force to control the economic lives of individuals.
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Government Vaccines- Bad Policy, Bad Medicine
09 December 2002 Texas Straight Talk 09 December 2002 verse 8 ... Cached
Politics and medicine don’t mix. It is simply not the business of government at any level to decide whether you choose to accept a smallpox vaccine or any other medical treatment. Yet decades of federal intervention in health care, including the impact of third-party HMOs created by federal legislation, have weakened the doctor-patient relationship. A free market system would allow doctors and patients to make their own decisions about smallpox inoculations, without the federal government hoarding, mandating, nor prohibiting the vaccine. Instead, we’re moving quickly toward the day when government controls not only what vaccines patients receive, but what kind of health care they receive at all.
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What Really Divides Us?
23 December 2002 Texas Straight Talk 23 December 2002 verse 4 ... Cached
Yet it is the federal government more than anything else that divides us along race, class, religion, and gender lines. The federal government, through its taxes, restrictive regulations, corporate subsidies, racial set-asides, and welfare programs, plays far too large a role in determining who succeeds and who fails in our society. This government "benevolence" crowds out genuine goodwill between men by institutionalizing group thinking, thus making each group suspicious that others are receiving more of the government loot. Americans know that factors other than merit in the free market often play a part in the success of some, and this leads to resentment and hostility between us.
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What Really Divides Us?
23 December 2002 Texas Straight Talk 23 December 2002 verse 8 ... Cached
The true antidote to racism is liberty. Liberty means having a limited, constitutional government devoted to the protection of individual rights rather than group claims. Liberty means free-market capitalism, which rewards individual achievement and competence, not skin color, gender, or ethnicity. In a free market, businesses that discriminate lose customers, goodwill, and valuable employees- while rational businesses flourish by choosing the most qualified employees and selling to all willing buyers. More importantly, in a free society every citizen gains a sense of himself as an individual, rather than developing a group or victim mentality. This leads to a sense of individual responsibility and personal pride, making skin color irrelevant. Rather than looking to government to correct what is essentially a sin of the heart, we should understand that reducing racism requires a shift from group thinking to an emphasis on individualism.
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Tax Cuts and Class Wars
20 January 2003 Texas Straight Talk 20 January 2003 verse 5 ... Cached
The class war tactic highlights what the left does best: divide Americans into groups. Collectivists see all issues of wealth and taxation as a zero-sum game played between competing groups. If one group gets a tax break, other groups must be rallied against it- even if such a cut would ultimately benefit them. Yet the class warriors forget that American wealth is not static, but rather very dynamic. Poor people become rich, and rich people lose all of their money. In fact, at no time in American history have more of the nation’s wealthy earned rather than inherited their money. Rich family dynasties are increasingly rare, and are quickly destroyed by unproductive spendthrift generations. So when the left attacks the rich, they’re attacking a fluid group that many poor Americans hope to join someday by moving up in life. Upward mobility is possible only in a free-market capitalist system, whereas collectivism dooms the poor to remain exactly where they are.
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Government Policy and False Prosperity
27 January 2003 Texas Straight Talk 27 January 2003 verse 3 ... Cached
President Bush’s plan to end the double taxation of stock dividends, which I support, has been both lauded and denounced by the usual factions in Washington. Some of the President’s supporters, however, make the argument that a dividend tax cut will boost stock prices. While tax cuts are always good for the economy, it’s dangerous to promote the idea that government can create value in the financial markets. The collapse of stock prices in the last two years provides stark evidence that the Federal Reserve’s monetary policies of the 1990s did not create lasting prosperity, and we should understand that tax policy is no different. Centralized planning via tax policy is every bit as harmful as centralized planning in monetary policy.
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Government Policy and False Prosperity
27 January 2003 Texas Straight Talk 27 January 2003 verse 5 ... Cached
The financial markets demand real value. Merely reducing taxes on dividends or capital gains cannot make a company or stock fundamentally more valuable. Any increase in a company’s stock price not based on real gains in productivity cannot be sustained for long, especially when the increase is caused by a reaction to government policies. Simply believing a company is worth a certain amount doesn’t make it so. In the end, only results- in the form of profitability and growth- matter. When government interferes in the financial markets through its monetary or tax policies, company values become distorted and investor knowledge become even more imperfect. This encourages the kind of uneducated speculation we saw during the 1990s, and many investors today find themselves mired in debt and holding almost worthless stocks.
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Government Policy and False Prosperity
27 January 2003 Texas Straight Talk 27 January 2003 verse 6 ... Cached
Even in hindsight, many don’t seem to understand the true nature of the 1990s Fed-created financial bubble. The prosperity enjoyed by so many companies and individuals was artificial, caused by Fed policies that vastly inflated the money supply and made the cost of borrowing money artificially low. Much of the “money” made in the market, and most of the astonishing paper increases in market capitalization, were illusory. The economic problems created by this artificial bubble are real, and we cannot hope to insulate ourselves from the ongoing correction merely by tinkering with the tax code.
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Government Policy and False Prosperity
27 January 2003 Texas Straight Talk 27 January 2003 verse 7 ... Cached
We need to rid ourselves of the fantasy that wealth can be created by artificially raising stock prices. The only stimulus our economy needs is sensible government policies. A sound money system, low taxes, and a low regulatory burden would foster an environment where real productivity and economic growth could flourish. Politicians need to learn from the failed Fed policies of the 1990s, and stop trying to fool the markets and the American people by promising prosperity through government policy.
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Welfare for the Left, Welfare for the Right, Welfare for the World
03 February 2003 Texas Straight Talk 03 February 2003 verse 6 ... Cached
A better approach would be to follow the Constitution and stop spending tax dollars on corporate subsidies. Private sector research always works better than government-sponsored research, and it always produces more honest results. If hydrogen power really works well, and companies can profitably provide clean running, affordable cars that people like, then the market for such cars will be tremendous. In other words, if hydrogen cars are so great, they will become popular without government subsidies. Why should the technology be developed at taxpayer expense, when future profits will be reaped by private companies? Let the market, rather than the lobbyists, decide whether hydrogen-powered cars are the future.
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The 2003 Spending Orgy
03 March 2003 Texas Straight Talk 03 March 2003 verse 2 ... Cached
Federal tax revenues have dropped dramatically since the stock market peaks of 2000. Rising unemployment continues to reduce the number of taxpayers, while plummeting investor portfolios no longer produce the huge capital gains and dividend revenues that flooded federal coffers in the 1990s. This drop in revenues was of course predictable, given the faltering economy and enormous market losses of the past two years.
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The Myth of War Prosperity
10 March 2003 Texas Straight Talk 10 March 2003 verse 6 ... Cached
We should expect the financial markets to react badly to an invasion of Iraq. Although military victory should be swift, prolonged urban fighting in Baghdad or other cities would cause investor confidence to plunge. This lack of confidence in the U.S. economy will make trade more difficult and cause our trade deficit to rise.
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The Myth of War Prosperity
10 March 2003 Texas Straight Talk 10 March 2003 verse 8 ... Cached
The greatest economic cost of war, however, comes from the expansion in the size and scope of government. Government always grows during wars and other crises. As economist Murray Rothbard noted, government uses crises to “Engineer the great leaps forward,” in the size of the state. When the crisis ends, government never returns to its former size. As government expands, individual liberty necessarily shrinks. True prosperity cannot exist without individual liberty and its corollaries of limited government, property rights, and free markets. Ultimately, war leaves us with less freedom at home. The sad irony is that while our soldiers have fought for the freedom of Europe, Korea, Vietnam, Kuwait, and Iraq, the government uses war to steadily diminish freedom here at home. While we fight a war in Iraq, we must also fight to maintain and restore individual liberty in America.
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The Free-Market Approach to the Medical Malpractice Crisis
31 March 2003 Texas Straight Talk 31 March 2003 verse 1 ... Cached
The Free-Market Approach to the Medical Malpractice Crisis
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The Free-Market Approach to the Medical Malpractice Crisis
31 March 2003 Texas Straight Talk 31 March 2003 verse 7 ... Cached
Yet the assessment of liability and compensation should be determined by private contractual agreements between physicians and patients- in other words, by the free market. The free-market approach enables patients to protect themselves with “negative outcomes” insurance purchased before medical treatment. Such insurance ensures that those harmed receive fair compensation, while reducing the burden of costly malpractice litigation on the health care system. Patients receive this insurance payout without having to endure lengthy lawsuits, and without having to give away a large portion of their award to a trial lawyer. This also drastically reduces the costs imposed on physicians and hospitals by malpractice litigation.
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Assault Weapons and Assaults on the Constitution
21 April 2003 Texas Straight Talk 21 April 2003 verse 5 ... Cached
Few people asking that question, however, know much about the banned weapons or the Second amendment itself. The law in question bans many very ordinary types of rifles and ammunition, while limiting magazine capacity for both rifles and pistols that are still legal. Many of the vilified “assault rifles” outlawed by the ban are in fact sporting rifles that are no longer available to hunters and outdoorsmen. Of course true military-style automatic rifles remain widely available to criminals on the black market. So practically speaking, the assault weapons ban does nothing to make us safer.
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Border Tragedy Reveals Deeper Problems
19 May 2003 Texas Straight Talk 19 May 2003 verse 5 ... Cached
This tragedy also reminds us of the lengths to which some will go to gain entry into the United States. Even as the government takes more and more of our income and curtails our liberties, incidents like this serve as a poignant reminder of the great freedoms and prosperity we enjoy in the United States. That dozens of people would cram themselves into a trailer like cattle, just for the opportunity to come to the United States, says a great deal about our relatively free-market system. It should also remind us of just how important it is to do everything we can to preserve our liberty and constitutional form of government.
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Declining Dollar, Declining Fortunes
23 June 2003 Texas Straight Talk 23 June 2003 verse 3 ... Cached
Of course capitalism is based on the premise that centralized economic planning is bad. I’m always amazed that otherwise pro-market conservatives, who rightfully scorned disastrous Soviet economic policies, are so willing to accept centralized monetary planning by the Fed. True capitalism requires a free market for money and interest rates, just as surely as it requires a free market for wages and prices.
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Declining Dollar, Declining Fortunes
23 June 2003 Texas Straight Talk 23 June 2003 verse 5 ... Cached
Mr. Greenspan’s two greatest sins are easy to understand. First, he has wildly inflated the money supply by creating more than $5 trillion in new dollars since he became Fed chairman. Second, he has relentlessly cut interest rates below market levels. These actions make money too plentiful and too cheap. When dollars are abundant and the cost of borrowing is low, people and businesses spend money less carefully. The stock market bubble of the late 1990s is all the proof we need that Fed printing presses can create money, but not wealth.
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Declining Dollar, Declining Fortunes
23 June 2003 Texas Straight Talk 23 June 2003 verse 7 ... Cached
Both Congress and the Fed should be promoting sound dollar policies, because a sound and stable currency is required for sustained economic growth. Instead, both have through default and deliberate action promoted fiat policies that systematically depreciate the dollar. The financial markets understand this, and investors track the minute-by-minute fluctuations in value of the dollar seeking an investment advantage. This kind of speculation would not exist in a sound monetary system.
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Federal Reserve Inflation Punishes Saving
21 July 2003 Texas Straight Talk 21 July 2003 verse 9 ... Cached
Centralized planning is as disastrous in monetary affairs as in economic affairs. Just as Russian commissars could not determine prices or production levels in the absence of a free market, the Federal Reserve Board cannot determine the “proper” level for interest rates or the money supply. Our fiat currency and artificially low interest rates can only result in the deterioration of the U.S. dollar through inflation, which in the end will cause interest rates to rise no matter what the Fed says or does. Older Americans especially stand to suffer most from Mr. Greenspan’s easy money policies.
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Drug Reimportation Increases Medical Freedom
04 August 2003 Texas Straight Talk 04 August 2003 verse 3 ... Cached
The pharmaceutical industry obviously likes this, and it worked overtime lobbying against the reimportation measure- paying off some strange bedfellows in the process. Several supposedly free-market groups came out against reimportation, making tortured attempts to argue that the free-market principles they normally promote somehow just don’t apply to imported prescription drugs. Some even made the outrageous argument that reimportation will threaten the pharmaceutical industry’s profits, as though it is the job of government to ensure the profitability of any industry!
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Drug Reimportation Increases Medical Freedom
04 August 2003 Texas Straight Talk 04 August 2003 verse 4 ... Cached
The truth is that many of the organizations opposing reimportation either directly represent the pharmaceutical industry, or receive funding from it. They are transparently willing to abandon their free-market “principles” when necessary to protect their bottom line.
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Drug Reimportation Increases Medical Freedom
04 August 2003 Texas Straight Talk 04 August 2003 verse 5 ... Cached
The arguments against reimportation amount to simple protectionism. Opponents of reimportation want to preserve artificially high drug prices in America at the expense of drug consumers. They rely on two tired and demonstrably false claims: namely, that the free market does not work when it comes to health care, and that there is no “level playing field” because other countries impose price controls on drugs. These protectionist arguments are used as justification for imposing higher costs on Americans by limiting their consumer choices.
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Drug Reimportation Increases Medical Freedom
04 August 2003 Texas Straight Talk 04 August 2003 verse 6 ... Cached
It does not matter if the Canadians or Germans employ price controls. Their drug prices may be artificially low, while ours may be artificially high. This simply shows that both the U.S. and other countries interfere in the market. It is not a justification for further intervention in the market by prohibiting reimportation. American consumers should not be punished simply because other governments have foolish economic policies.
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Look Outside Politics for Blackout Solution
18 August 2003 Texas Straight Talk 18 August 2003 verse 4 ... Cached
It’s true that the nation’s power grids are inadequate for today’s needs, and that a relatively small overload in a vulnerable spot can create a huge problem. This is hardly an indictment of the free market, however, but rather an indictment of the stifling maze of government regulations that burden electricity producers. Energy bureaucrats, despite their attempts at centralized planning through production and price controls, can never hope to determine how much electricity should be produced, where it should be channeled, and at what prices it should be sold. The very complexity of the power grid, which resembles a spider web dotted by population centers, cries out for the economic cooperation that only the invisible hand of an unregulated market system can provide.
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Look Outside Politics for Blackout Solution
18 August 2003 Texas Straight Talk 18 August 2003 verse 5 ... Cached
As economist Thomas DiLorenzo points out, the fundamental problem is government interference with supply in the electricity market. The nation’s population has risen dramatically in the last 30 years, causing a huge increase in demand for electricity. But supply has increased little if at all, thanks to environmentalists and land-use bureaucrats at both the state and federal levels. The Neo-Luddites, as DiLorenzo terms them, are adamantly against building new nuclear power plants, hydroelectric dams, and especially coal or natural gas-fired electric power plants. When demand grows without a corresponding increase in capacity, the entire electric grid becomes overloaded. Last week demonstrates that it doesn’t take much to tip the balance and crash the system over a large area.
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Look Outside Politics for Blackout Solution
18 August 2003 Texas Straight Talk 18 August 2003 verse 6 ... Cached
Electricity, from coal burning sources or not, is likely to remain our primary form of power for decades. We simply need to accept this and build more electric power plants. In a free market, profit-seeking companies would be happy to build new plants and sell power to an ever-growing population. Unless and until government stops restricting supply and controlling prices, however, we can only expect the electric power system to remain vulnerable. It is precisely because electricity is so vitally important in our modern world that it should be delivered by the efficient free market, rather than the dismal bureaucratic sector. In this day and age, it is preposterous that we have problems delivering simple electric power where and when it is needed. The recent blackout cannot be blamed on technology or a lack of capital, and certainly not on a supposed market failure. The real problem- too much government regulation- is likely to be ignored as Congress rushes to engineer a wholesale federal takeover of the electricity industry.
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The Tyranny of Paper Money
08 September 2003 Texas Straight Talk 08 September 2003 verse 2 ... Cached
In an article entitled “Gold and Economic Freedom,” Federal Reserve Chairman Alan Greenspan wrote that “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom…The speculative imbalances had become overwhelming and unmanageable by the Fed… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” The irony is that Mr. Greenspan’s words, written in 1966 to describe the era leading up to the Great Depression, could easily have been written in 2003 to describe the consequences of his own Fed policies during the 1990s.
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Paying Dearly for Free Prescription Drugs
06 October 2003 Texas Straight Talk 06 October 2003 verse 6 ... Cached
Prescription drugs are tremendously expensive, but the solution is not a wasteful new one-size-fits-all government drug entitlement. To lower drug prices, we must eliminate government interference that prevents healthy free-market price competition.
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Paying Dearly for Free Prescription Drugs
06 October 2003 Texas Straight Talk 06 October 2003 verse 8 ... Cached
The Food and Drug Administration is also directly responsible for high drug costs. Pharmaceutical companies spend hundreds of millions of dollars to bring a single drug to market because of FDA rules. Often FDA approval is never obtained, no matter how much a company spends developing a drug. So pharmaceutical makers naturally try to recoup their huge investments by charging high prices and lobbying to keep exclusive drug patent periods as lengthy as possible. We need to understand that the FDA does far more harm than good, both in terms of drug prices and the incalculable chilling effect it has on needed drug research. With less FDA interference, patents could be shortened and drug development costs reduced. This would allow greater price competition between drug companies.
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Economic Woes Begin at Home
03 November 2003 Texas Straight Talk 03 November 2003 verse 8 ... Cached
This answer should send a clear message to every lawmaker in America: the taxes and regulations imposed on American businesses are hurting economic growth and killing jobs. If we are serious about creating jobs, we should be working on an aggressive agenda of cutting taxes and repealing needless regulations. We should be working to adopt a stable, gold-backed dollar whose value is determined by the market. We don’t need to bully our foreign competitors, we just need to stop subsidizing them while releasing the regulatory and tax stranglehold on American businesses.
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Congress Grovels for the WTO
17 November 2003 Texas Straight Talk 17 November 2003 verse 8 ... Cached
As economist Murray Rothbard explained, true free trade does not require treaties or agreements between governments. On the contrary, true free trade occurs in the absence of government intervention in the free flow of goods across borders. Organizations like the WTO and NAFTA represent government-managed trade schemes, not free trade. Government-managed trade is inherently political, meaning politicians and bureaucrats determine who wins and loses in the marketplace. We should not allow globalist trade schemes to masquerade as free trade.
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The Disappearing Dollar
08 December 2003 Texas Straight Talk 08 December 2003 verse 2 ... Cached
Those who follow financial markets may be familiar with the term “strong-dollar policy,” which is used by Bush administration officials and Federal Reserve Chairman Alan Greenspan himself. One might assume that such a policy entailed a course of action designed to strengthen the value of the U.S. dollar. However, if we judge Fed policy by Mr. Greenspan’s actions rather than his words, it appears we have a weak-dollar policy, a policy that erodes the value of your personal savings. The “strong-dollar policy” is nothing more than an empty political slogan.
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The Disappearing Dollar
08 December 2003 Texas Straight Talk 08 December 2003 verse 5 ... Cached
The problem is that faith can be shaken, and the precipitous drop in the dollar shows how investors around the globe are very concerned about American deficits and debt. When government policies in a fiat system are the sole measure of a currency’s worth, the currency markets act as a reliable barometer of how those policies are viewed around the world. Politicians often manage to fool voters and the media, but they rarely fool the financial markets over time. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government. The Medicare prescription drug bill passed two weeks ago provides an example of this phenomenon- the day after the bill passed, the dollar dropped once again. Investors understand that the new entitlement will cost trillions over coming decades, trillions that will come from Treasury printing presses and further devalue existing dollars.
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Inflation- Alive and Well
08 March 2004 Texas Straight Talk 08 March 2004 verse 7 ... Cached
The prices of many other goods and services, including medical care and energy, also have increased substantially in the past decade. Commodity prices in particular have risen recently. In fact, broad indexes show commodities have risen 49% since last spring! The price of gold, steel, lumber, coal, lead, soybeans, corn, and rice have all spiked over the past year. When raw materials and basic consumables rise in price, all of us feel the effects in our pocketbooks. Mr. Greenspan may dismiss commodities as mere “physical” assets in his vision of an increasingly “conceptual” economy, but the markets are showing their preference for hard assets over fiat dollars and dollar-denominated equities.
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Congressional Indecency
15 March 2004 Texas Straight Talk 15 March 2004 verse 4 ... Cached
The censors from both political parties argue that because the broadcast spectrum is publicly owned, the public has a right to control the content. But “public” ownership really means government ownership. And government ownership means the current gang of bureaucrats in power gets to decide what is heard and seen. Airwaves are far too precious to be owned or controlled by government- like other scarce and valuable natural resources, airwaves should be controlled by market forces. One mistake- nationalizing the airwaves- does not justify another. We should not violate the First Amendment today because of the sins of the past.
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Congressional Indecency
15 March 2004 Texas Straight Talk 15 March 2004 verse 9 ... Cached
Ultimately, broadcasters air indecent material only if the market demands it. Congress cannot raise the moral bearing of the American people by edict, but it can destroy liberty in the process. When it comes to decency, the American people should stop looking to government and start looking at themselves.
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The Federal Reserve Debt Engine
26 April 2004 Texas Straight Talk 26 April 2004 verse 2 ... Cached
Federal Reserve Chairman Alan Greenspan testifies for both US House and Senate committees several times each year, and last week appeared before the Joint Economic committee on which I serve. These appearances by Mr. Greenspan always cause quite a stir on Capitol Hill. Often the stock markets react within hours of his pronouncements regarding the health of the economy and the future of interest rates.
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Free Market Medicine
03 May 2004 Texas Straight Talk 03 May 2004 verse 1 ... Cached
Free Market Medicine
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Free Market Medicine
03 May 2004 Texas Straight Talk 03 May 2004 verse 6 ... Cached
We should remember that HMOs did not arise because of free-market demand, but rather because of government mandates. The HMO Act of 1973 requires all but the smallest employers to offer their employees HMO coverage, and the tax code allows businesses- but not individuals- to deduct the cost of health insurance premiums. The result is the illogical coupling of employment and health insurance, which often leaves the unemployed without needed catastrophic coverage.
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Free Market Medicine
03 May 2004 Texas Straight Talk 03 May 2004 verse 7 ... Cached
While many in Congress are happy to criticize HMOs today, the public never hears how the present system was imposed upon the American people by federal law. In fact, one very prominent Senator now attacking HMOs is on record in the 1970s lauding them. As usual, government intervention in the private market failed to deliver the promised benefits and caused unintended consequences, but Congress never blames itself for the problems created by bad laws. Instead, we are told more government- in the form of “universal coverage”- is the answer.
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Free Market Medicine
03 May 2004 Texas Straight Talk 03 May 2004 verse 8 ... Cached
We can hardly expect more government to cure our current health care woes. As with all goods and services, medical care is best delivered by the free market, with competition and financial incentives keeping costs down. When patients spend their own money for health care, they have a direct incentive to negotiate lower costs with their doctor. When government controls health care, all cost incentives are lost. Dr. Berry and others like him may one day be seen as consumer heroes who challenged the third-party health care system and resisted the trend toward socialized medicine in America.
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The Great Foreign Aid Swindle
24 May 2004 Texas Straight Talk 24 May 2004 verse 5 ... Cached
In many cases, foreign aid money simply distorts foreign economies and props up bad governments. In countries that pursue harmful economic policies, an infusion of US cash only exacerbates and prolongs problems. No amount of money can help nations that reject property rights, free markets, and the rule of law.
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The Great Foreign Aid Swindle
24 May 2004 Texas Straight Talk 24 May 2004 verse 6 ... Cached
In developing countries that pursue sound economic policies, foreign aid money is not needed- the international financial markets will provide the investment capital necessary for economic growth. This capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whims of government bureaucrats.
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Zero Down for the American Dream
21 June 2004 Texas Straight Talk 21 June 2004 verse 5 ... Cached
Every mortgage banker knows that even a modest downpayment greatly increases the likelihood that a buyer will pay his mortgage as promised. A buyer who has consistently saved money for a down payment is by definition a better credit risk, and it’s harder to walk away from an obligation if it means losing a sizable amount of hard-earned money. A downpayment measures a buyer’s willingness and ability to make sacrifices in order to reach a goal and improve his standard of living. Banks used to recognize hard work and thrift as indicators of creditworthiness, and in a free market would demand a significant down payment for virtually all homebuyers.
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Zero Down for the American Dream
21 June 2004 Texas Straight Talk 21 June 2004 verse 6 ... Cached
But as with all federal intervention in the economy, housing welfare distorts the mortgage industry and makes ordinary Americans poorer. Banks, of course, love federal mortgage programs- after all, the risk of default is transferred to American taxpayers. The lending mortgage banks get paid whether homebuyers default or not, and what business wouldn’t love having the federal government guarantee the profitability of its ventures? Between the Federal Housing Administration, which is the largest insurer of mortgages in the world, and the government-created Fannie Mae and Freddie Mac corporations, the mortgage market is hopelessly distorted. Millions of mortgages in this country are federally insured, and the tax bill for defaults could be astronomical if the housing bubble bursts.
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Zero Down for the American Dream
21 June 2004 Texas Straight Talk 21 June 2004 verse 7 ... Cached
Despite the congressional rhetoric about helping the poor, federal housing policies often harm poor people by pushing them into houses they may not be ready to buy. Given the realities of insurance, property taxes, maintenance, and repairs, many low-income buyers lose their homes and destroy their credit ratings. Easy credit and low interest rates, courtesy of the Federal Reserve, have dramatically increased housing demand and artificially increased prices. Zero down payment schemes do the same thing by pushing renters into the housing market. This increased demand actually serves to price many poor Americans out of the housing market indefinitely.
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None of Your Business!
12 July 2004 Texas Straight Talk 12 July 2004 verse 7 ... Cached
The census also represents a form of corporate welfare, since the personal data collected on hundred of millions of Americans can be sold to private businesses. Surely business enjoys having such extensive information available from one source, but it’s hardly the duty of taxpayers to subsidize the cost of market research.
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Saving the World with Your Money
19 July 2004 Texas Straight Talk 19 July 2004 verse 6 ... Cached
The proponents of the Millennium Challenge Act tell us this time it will be different. If only we condition foreign aid money on the adoption of certain policies, the recipient nations will clean up their acts. Market economies and democratic political reforms surely will follow, if only American taxpayers provide a little seed money.
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The IMF Con
27 September 2004 Texas Straight Talk 27 September 2004 verse 4 ... Cached
The IMF provides a perfect illustration of the both the folly of foreign aid and the real motivations behind it. The IMF touts itself as a bank of sorts, although it makes “loans” that no rational bank would consider-- mostly to shaky governments with weak economies and unstable currencies. The IMF has little incentive to operate profitably like a private bank, since its funding comes mostly from a credulous US Congress that demands little accountability. As a result, it is free to make high-risk loans at below- market interest rates.
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The IMF Con
27 September 2004 Texas Straight Talk 27 September 2004 verse 7 ... Cached
Government-to-government transfers through a middleman like the IMF cannot produce real growth. When capital remains in private hands, it is allocated to its most productive uses as determined by the choices of consumers in the market. Placing capital in the hands of politicians and bureaucrats inevitably results in inefficiencies, shortages, and economic crises, as even the best-intentioned politicians cannot know the most efficient use of resources.
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The IMF Con
27 September 2004 Texas Straight Talk 27 September 2004 verse 9 ... Cached
The IMF and other complex schemes only serve to obscure the real issue: Why should US taxpayers be forced to send money abroad? Certainly the Constitution provides no authority for foreign aid. In historical and practical terms, redistribution of wealth from rich to poor nations has done little or nothing to alleviate suffering abroad. Only free markets, property rights, and the rule of law can create the conditions necessary to lift poor nations out of poverty.
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Government Debt- The Greatest Threat to National Security
25 October 2004 Texas Straight Talk 25 October 2004 verse 8 ... Cached
Debt destroys U.S. sovereignty, because the American economy now depends on the actions of foreign governments. While we brag about our role as world superpower in international affairs, we are in truth the world’s greatest debtor. Like all debtors, we are not truly free. China and other foreign government creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Desmond Lachman, an economist at the American Enterprise Institute, states that foreign central banks “Now have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.” Former Treasury secretary Lawrence Summers warns about “A kind of global balance of financial terror,” noting our dependency on “the discretionary acts of what are inevitably political entities in other countries.”
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Social Security: House of Cards
08 November 2004 Texas Straight Talk 08 November 2004 verse 8 ... Cached
Furthermore, who would decide what stocks, bonds, mutual funds, or other investment vehicles deserve government approval? Which politicians would you trust to build an investment portfolio with billions of your Social Security dollars? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If a company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility.
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Gold Exposes the Dollar
06 December 2004 Texas Straight Talk 06 December 2004 verse 7 ... Cached
The world financial markets are betting against the dollar. Our creditors, particularly Asian central banks, are losing their appetite for U.S. Treasuries. Our federal government’s huge debt and voracious appetite for deficit spending make our economy dependent on the actions of foreign governments and central bankers. Yet few Americans realize the extent to which their own government has sold out American sovereignty by borrowing money overseas.
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Private Help for Tsunami Victims
10 January 2005 Texas Straight Talk 10 January 2005 verse 5 ... Cached
We are mistaken when we assume governments must be the central organizing agents of the relief efforts. Private-sector charities and free-market social cooperation are the real saviors in any natural disaster, despite the intense desire of politicians to be seen as heroes on a white horse-- heroes who use other people’s money. Government-to-government transfers are inherently inefficient, and adding the UN as a middleman will only ensure that even less of the money actually reaches those who need it most.
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Want to Reform Social Security? Stop Spending.
24 January 2005 Texas Straight Talk 24 January 2005 verse 7 ... Cached
The administration speaks of private accounts, but government-managed investment of Social Security funds is not privatization at all. True capitalism by definition operates without government interference, and we should oppose further government involvement in the financial markets. After all, which government officials will decide what stocks, bonds, mutual funds, or other investment vehicles are approved? Which politicians will you trust to decide what your portfolio may contain? Imagine the lobbyists fighting over which special interests will have their favored investments approved for Social Security accounts. Political favoritism, rather than market performance, will determine what investments are allowed, and Social Security in essence will become a huge source of taxpayer-provided investment capital.
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Why Do We Fund UNESCO?
18 April 2005 Texas Straight Talk 18 April 2005 verse 6 ... Cached
President Reagan rightly withdrew the U.S. from UNESCO in 1984, citing the organization’s financial mismanagement, blatant anti-Americanism, and general hostility to freedom. He believed the organization had become too politicized, too bloated, and too hostile to free markets. Furthermore, UNESCO enjoyed rapidly expanding budgets during the 1970s and 1980s, which President Reagan felt American taxpayers should not shoulder. President Reagan was correct in identifying UNESCO as an organization that did not act in America's interest, and he was correct in questioning why the United States should fund 25 percent of UNESCO's budget for that privilege.
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Does the WTO Serve Our Interests?
16 May 2005 Texas Straight Talk 16 May 2005 verse 8 ... Cached
In reality, the WTO is the third leg of the globalists’ plan for a one-world, centrally-managed economic system. The intention behind the creation of the WTO was to have a third institution to handle the trade side of international economic cooperation, joining two institutions created by Bretton Woods, the World Bank and the International Monetary Fund. For the United States to give up any bit of its sovereignty to these unelected and unaccountable organizations is economic suicide. International organizations can never “manage” trade better than it naturally occurs in a true free market of goods and services. At best, WTO acts as a meddling middleman, taking a cut for unnecessary services provided. At worst, it forces the United States to change its domestic laws in ways that seriously harm our economy and our sovereignty.
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Congress and the Federal Reserve Erode Your Dollars
23 May 2005 Texas Straight Talk 23 May 2005 verse 6 ... Cached
The root of the problem is the Federal Reserve and our fiat monetary system itself. Since US dollars and other major currencies are not backed by gold, they have no inherent value. Their relative values are subject to political events, and fluctuate constantly in highly volatile currency markets. A fiat system means every dollar you have can be eroded into nothing by the actions of politicians and central bankers. In essence, paper currencies like the US dollar operate as articles of faith-- faith in the policies of the governments and central banks that issue them. When it comes to a government as deeply indebted as our own, that faith is sorely lacking among investors worldwide. Politicians often manage to fool voters and the media, but they rarely fool financial markets over time. The precipitous drop in the US dollar over the past few years is proof that investors around the globe are very concerned about American deficits and debt. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government.
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Missing the Point: Federal Funding of Stem Cell Research
30 May 2005 Texas Straight Talk 30 May 2005 verse 5 ... Cached
Federal funding of medical research guarantees the politicization of decisions about what types of research for what diseases will be funded. Scarce tax resources are allocated according to who has the most effective lobby, rather than on the basis of need or even likely success. Federal funding also causes researchers to neglect potential treatments and cures that do not qualify for federal funds. Medical advancements often result from radical ideas and approaches that are scoffed at initially by the establishment. When scientists become dependent on government funds, however, they quickly learn not to rock the boat and stick to accepted areas of inquiry. Federal funds thus distort the natural market for scientific research.
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What Should America do for Africa?
11 July 2005 Texas Straight Talk 11 July 2005 verse 6 ... Cached
African poverty is rooted in government corruption, corruption that actually is fostered by western aid. We should ask ourselves a simple question: Why is private capital so scarce in Africa? The obvious answer is that many African nations are ruled by terrible men who pursue disastrous economic policies. As a result, American aid simply enriches dictators, distorts economies, and props up bad governments. We could send Africa $1 trillion, and the continent still would remain mired in poverty simply because so many of its nations reject property rights, free markets, and the rule of law.
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CAFTA and Dietary Supplements
18 July 2005 Texas Straight Talk 18 July 2005 verse 4 ... Cached
The Codex Alimentarius Commission, organized by the United Nations in the 1960s, is charged with “harmonizing” food and supplement rules between all nations of the world. Under Codex rules, even basic vitamins and minerals require a doctor’s prescription. The European Union already has adopted Codex-type regulations, regulations that will be in effect across Europe later this year. This raises concerns that the Europeans will challenge our relatively open market for health supplements in a WTO forum. This is hardly far-fetched, as Congress already has cravenly changed our tax laws to comply with a WTO order.
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Immigration and the Welfare State
08 August 2005 Texas Straight Talk 08 August 2005 verse 7 ... Cached
Our current welfare system also encourages illegal immigration by discouraging American citizens to take low-wage jobs. This creates greater demand for illegal foreign labor. Welfare programs and minimum wage laws create an artificial market for labor to do the jobs Americans supposedly won’t do.
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Gas, Taxes, and Middle East Policy
05 September 2005 Texas Straight Talk 05 September 2005 verse 5 ... Cached
Many people are upset with oil companies, which is understandable given the frustrations of steadily rising gas prices. But the fundamental problem is not a lack of regulation or price gouging, but rather the lack of price competition between oil companies. The maze of regulatory and environmental rules makes it nearly impossible for would-be competitors to explore new domestic sources of oil or build new refineries. When was the last time you heard of a new start-up oil company? This is because of too much government regulation, not too little. History proves time and time again that the best way to provide any good is too allow markets to operate freely.
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Gas, Taxes, and Middle East Policy
05 September 2005 Texas Straight Talk 05 September 2005 verse 8 ... Cached
Consider this: Iraqis can buy gas for as little as five cents per gallon, courtesy of American taxpayers! We’re talking about imported refined gas, because Iraqi refineries are not operating. Iraqi officials, using American tax dollars, buy this fuel from the Saudis or other OPEC nations at market rates. This subsidy to Iraq cost us nearly $3 billion in 2004 alone. What kind of foreign policy justifies using your tax dollars to subsidize gas prices in an oil-rich nation, while prices skyrocket in the U.S.? We must change our priorities and focus our resources on the American people. We cannot count on using military or political influence in the Middle East to keep gas prices low.
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A Free Market in Gasoline
31 October 2005 Texas Straight Talk 31 October 2005 verse 1 ... Cached
A Free Market in Gasoline
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A Free Market in Gasoline
31 October 2005 Texas Straight Talk 31 October 2005 verse 3 ... Cached
Many Americans understandably are upset with the sharp spike in gas prices since Hurricane Katrina hit the gulf coast in August, and are concerned by reports of oil company profits. But we must understand that high oil prices are not the result of an unregulated free market. On the contrary, the oil industry is among the most regulated and most subsidized of U.S. industries. Perhaps we need to ask ourselves whether too much government involvement in the oil markets, rather than too little regulation, has kept the supply of refined gasoline artificially low.
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A Free Market in Gasoline
31 October 2005 Texas Straight Talk 31 October 2005 verse 9 ... Cached
Oil is critical, but it is not a magic commodity that somehow is immune from the laws of economics. In fact, it is precisely because oil is so critical to our economy that we must allow the free market to deliver it. Absent government interference in the oil markets, gas prices would rise or fall according to concrete realities affecting supply and demand. High prices would encourage conservation better than any environmental regulations. Entrepreneurs would race to develop viable alternate fuels if gas prices rose too much.
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A Free Market in Gasoline
31 October 2005 Texas Straight Talk 31 October 2005 verse 11 ... Cached
What can Congress do to provide Americans with some relief at the pump? First it can suspend federal gas taxes, which would save consumers nearly 20 cents per gallon. In the long term, Congress must pass legislation like HR 4004, which I introduced earlier this month. HR 4004 takes a comprehensive approach by allowing offshore drilling, eliminating regulations that restrict refining, and suspending harmful tax rules that discourage domestic oil production. If we hope to have a stable, affordable supply of gas, we must allow the free market to operate.
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Deficts at Home, Welfare Abroad
07 November 2005 Texas Straight Talk 07 November 2005 verse 15 ... Cached
In many cases, foreign aid money simply distorts foreign economies and props up bad governments. In countries that pursue harmful economic policies, an infusion of US cash only exacerbates and prolongs problems. No amount of money can help nations that reject property rights, free markets, and the rule of law.
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More of the Same at the Federal Reserve
28 November 2005 Texas Straight Talk 28 November 2005 verse 7 ... Cached
Inflation is not in check, as anyone who examines the cost of housing, energy, medical care, school tuition, and other basics can attest. In one sense the remarkable rise in housing prices over the last decade really just represents a drop in the value of the dollar. The artificial boom in the 1990s equity markets, engineered by Mr. Greenspan's relentless monetary expansion and interest rate cutting, ended badly for millions of Americans holding overinflated stocks. What will happen when the same thing happens with housing?
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More of the Same at the Federal Reserve
28 November 2005 Texas Straight Talk 28 November 2005 verse 8 ... Cached
The fundamental question is whether a central bank can manage the supply of money and credit better than the free market otherwise would. We shouldn't kid ourselves about the true nature of the Fed, which is inherently incompatible with real free market capitalism. Centralized planning of the money supply is a form of economic control that significantly affects prices, wages, and production levels. Remember how market economists once criticized central planning of prices, wages, and production levels in the former Soviet Union?
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What do Rising Gold Prices Mean?
05 December 2005 Texas Straight Talk 05 December 2005 verse 3 ... Cached
The market price for an ounce of gold rose to over $500 last week, a significant milestone for economists watching precious metals and commodities markets. The last time gold topped $500 was December 1987, in the wake of the “Black Monday” stock market collapse earlier that fall.
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What do Rising Gold Prices Mean?
05 December 2005 Texas Straight Talk 05 December 2005 verse 6 ... Cached
Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. Even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception.
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What do Rising Gold Prices Mean?
05 December 2005 Texas Straight Talk 05 December 2005 verse 7 ... Cached
President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Federal Reserve and U.S. Treasury have employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the money supply, and the financial markets. In other words, fiat dollars have no intrinsic value.
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What do Rising Gold Prices Mean?
05 December 2005 Texas Straight Talk 05 December 2005 verse 8 ... Cached
What does this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses.
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The Real Washington Scandal
06 February 2006 Texas Straight Talk 06 February 2006 verse 6 ... Cached
The simplest way for the Fed to overcome these fears and maintain worldwide enthusiasm for the dollar is to raise interest rates and stop putting new dollars into circulation. But the Greenspan "boom" was based on the opposite approach. By cutting interest rates to the bone and vastly increasing the money supply, Greenspan made Americans feel rich-- first with the stock market bubble of the 1990s, and later with the housing bubble that is only now starting to burst. Greenspan was brilliant at making debt feel like wealth, but Mr. Bernanke inherits a very difficult situation. To maintain the value of the dollar, he must put the brakes on the money supply and raise the cost of borrowing. Such tough action is unlikely, however, given Mr. Bernanke's troubling public statements about the benefits of government printing presses.
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The Ever-Growing Federal Budget
13 February 2006 Texas Straight Talk 13 February 2006 verse 12 ... Cached
Neither political party wants to address the fundamental yet unspoken issues inherent in any budget proposal: What is the proper role for government in our society? Are these ever-growing entitlement and military expenditures really consistent with a free country? Do the proposed expenditures, and the resulting taxes, make us more free or less free? Should the government or the marketplace provide medical care? Should the U.S. military be used to remake whole nations? Are the programs, agencies, and departments funded in the budget proposal constitutional? Are they effective? Could they operate with a smaller budget? Would the public even notice if certain items were eliminated altogether? These are the kinds of questions the American people should ask, even if Congress lacks the courage to apply any principles whatsoever to the budget process.
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The Port Security Controversy
27 February 2006 Texas Straight Talk 27 February 2006 verse 6 ... Cached
This is not a true free market transaction, but rather a marriage of multinational corporate and state interests. And surely the American people should have a say over foreign governments doing business here, especially when that business affects port security.
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Sanctions against Iran
17 April 2006 Texas Straight Talk 17 April 2006 verse 12 ... Cached
Embargoes greatly harm our citizens. As the American agricultural industry continues to develop new technology to reduce costs and increase yields, it becomes more important for farmers and ranchers to find markets outside the United States to sell their goods so they can make ends meet. By preventing our farmers and ranchers from competing in the world market, we deny them very profitable opportunities.
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Sanctions against Iran
17 April 2006 Texas Straight Talk 17 April 2006 verse 13 ... Cached
Government meddling is always destructive to the free market; people inevitably will make wiser decisions about how to spend their money, with whom, and when, than politicians in Washington. Embargoes simply do not accomplish the ends advocates claim to desire, and are extremely harmful to the well-being of Americans.
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True Foreign Aid
01 May 2006 Texas Straight Talk 01 May 2006 verse 6 ... Cached
Likewise with the so-called Millennium Challenge Account, which sends US aid to countries that meet US-determined economic reform criteria. The fact is, countries that enact solid economic policies will attract many times the amount of private foreign investment on international capital markets than they receive through the Millennium Challenge program.
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True Foreign Aid
01 May 2006 Texas Straight Talk 01 May 2006 verse 8 ... Cached
Private assistance organizations, on the other hand, are more subject to market forces and thus much more effective. When Americans feel motivated to part with their hard-earned money to help someone overseas, they want to make sure it goes only to the most effective charities. Bad news travels fast, and private charities are unlikely to send their resources where they are likely to be wasted because their contributions would soon dry up. We all recall what happened several years ago when it was revealed that the top management of a major charity organization was paid extremely high salaries: people stopped sending money. The problem corrected itself.
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Foreign Policy, Monetary Policy, and Gas Prices
08 May 2006 Texas Straight Talk 08 May 2006 verse 10 ... Cached
If we want to do something about gas prices, we should demand greatly reduced welfare and military spending, a balanced budget, and fewer regulations that interfere with the market development of alternative fuels. All subsidies and special benefits to energy companies should be ended. We also should demand a return to a sound commodity monetary system.
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Foreign Policy, Monetary Policy, and Gas Prices
08 May 2006 Texas Straight Talk 08 May 2006 verse 12 ... Cached
Oil prices are at a level where consumers reduce consumption voluntarily. The market will work if we let it. But as great as the market economy is, it cannot overcome a foreign policy that is destined to disrupt oil supplies and threaten the world with an expanded and dangerous conflict in the Middle East. And it cannot overcome a monetary policy destined to inflate our dollars into oblivion.
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The Declining Dollar Erodes Personal Savings
15 May 2006 Texas Straight Talk 15 May 2006 verse 8 ... Cached
The world financial markets are betting against the dollar and against Mr. Bernanke’s chances of correcting the imbalances caused by Alan Greenspan. Our creditors, particularly Asian central banks, are losing their appetite for U.S. Treasuries. Our federal government’s huge debt and voracious appetite for deficit spending make our economy dependent on the actions of foreign governments and central bankers. Yet few Americans realize the extent to which their own government has sold out American sovereignty by borrowing money overseas.
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The Annual Foreign Aid Rip-Off
05 June 2006 Texas Straight Talk 05 June 2006 verse 6 ... Cached
Also, this year Congress will nearly double funding for the monstrous Millennium Challenge program. This is billed as a different kind of foreign aid, in that it only goes to governments that pursue “free market” economic and social reforms. Of course this is a waste of money: governments that pursue wise economic policies will attract much more in foreign private investment than the US government can send them. The true reward for sound economic policies is increased prosperity. Foreign aid does not purchase that prosperity but in fact distorts internal markets and props up inefficient companies.
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What Congress Can Do About High Gas Prices
31 July 2006 Texas Straight Talk 31 July 2006 verse 9 ... Cached
If we want to do something about gas prices, Congress should greatly reduce federal spending, balance the budget, and eliminate regulations that interfere with the market development of alternative fuels. All subsidies and special benefits to energy companies should be ended. And in the meantime let’s eliminate federal gas taxes at the pump.
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What Congress Can Do About High Gas Prices
31 July 2006 Texas Straight Talk 31 July 2006 verse 10 ... Cached
Oil prices are at a level where consumers reduce consumption voluntarily. The market will work if we let it. But as great as the market economy is, it cannot overcome a foreign policy that is destined to disrupt oil supplies and threaten the world with an expanded and dangerous conflict in the Middle East.
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Lowering the Cost of Health Care
21 August 2006 Texas Straight Talk 21 August 2006 verse 4 ... Cached
We should remember that HMOs did not arise because of free-market demand, but rather because of government mandates. The HMO Act of 1973 requires all but the smallest employers to offer their employees HMO coverage, and the tax code allows businesses- but not individuals- to deduct the cost of health insurance premiums. The result is the illogical coupling of employment and health insurance, which often leaves the unemployed without needed catastrophic coverage.
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Lowering the Cost of Health Care
21 August 2006 Texas Straight Talk 21 August 2006 verse 5 ... Cached
While many in Congress are happy to criticize HMOs today, the public never hears how the present system was imposed upon the American people by federal law. As usual, government intervention in the private market failed to deliver the promised benefits and caused unintended consequences, but Congress never blames itself for the problems created by bad laws. Instead, we are told more government- in the form of “universal coverage”- is the answer. But government already is involved in roughly two-thirds of all health care spending, through Medicare, Medicaid, and other programs.
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Diagnosing our Health Care Woes
25 September 2006 Texas Straight Talk 25 September 2006 verse 4 ... Cached
The problems with our health care system are not the result of too little government intervention, but rather too much. Contrary to the claims of many advocates of increased government regulation of health care, rising costs and red tape do not represent market failure. Rather, they represent the failure of government policies that have destroyed the health care market.
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Diagnosing our Health Care Woes
25 September 2006 Texas Straight Talk 25 September 2006 verse 5 ... Cached
It’s time to rethink the whole system of HMOs and managed care. This entire unnecessary level of corporatism rakes off profits and worsens the quality of care. But HMOs did not arise in the free market; they are creatures of government interference in health care dating to the 1970s. These non-market institutions have gained control over medical care through collusion between organized medicine, politicians, and drug companies, in an effort to move America toward “free” universal health care.
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Diagnosing our Health Care Woes
25 September 2006 Texas Straight Talk 25 September 2006 verse 6 ... Cached
One big problem arises from the 1974 ERISA law, which grants tax benefits to employers for providing health care, while not allowing similar incentives for individuals. This results in the illogical coupling between employment and health insurance. As such, government removed the market incentive for health insurance companies to cater to the actual health-care consumer. As a greater amount of government and corporate money has been used to pay medical bills, costs have risen artificially out of the range of most individuals.
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The NAFTA Superhighway
30 October 2006 Texas Straight Talk 30 October 2006 verse 9 ... Cached
The SPP was not created by a treaty between the nations involved, nor was Congress involved in any way. Instead, the SPP is an unholy alliance of foreign consortiums and officials from several governments. One principal player is a Spanish construction company, which plans to build the highway and operate it as a toll road. But don’t be fooled: the superhighway proposal is not the result of free market demand, but rather an extension of government-managed trade schemes like NAFTA that benefit politically-connected interests.
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Gun Control on the Back Burner
06 November 2006 Texas Straight Talk 06 November 2006 verse 6 ... Cached
The media has not been honest in reporting about guns, especially when it comes to statistics about law-abiding individuals who use firearms to prevent or deter crimes. Many of the "assault rifles" vilified by the press are in fact sporting rifles that are no longer available to hunters and outdoorsmen. Of course true military-style fully automatic rifles remain widely available to criminals on the black market.
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Demographic Reality and the Entitlement State
13 November 2006 Texas Straight Talk 13 November 2006 verse 9 ... Cached
Are ever growing entitlement and military expenditures really consistent with a free country? Do these expenditures, and the resulting deficits, make us more free or less free? Should the government or the marketplace provide medical care? Should younger taxpayers be expected to provide retirement security and health care even for affluent retirees? Should the U.S. military be used to remake whole nations? Are the programs, agencies, and departments funded by Congress each year constitutional? Are they effective? Could they operate with a smaller budget? Would the public even notice if certain programs were eliminated altogether? These are the kinds of questions the American people must ask, even though Congress lacks the courage to do so.
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Milton Friedman 1912-2006
20 November 2006 Texas Straight Talk 20 November 2006 verse 3 ... Cached
The death of economist Milton Friedman last week at the age of 94 marks a great loss for advocates of freedom everywhere. He was perhaps the most successful free-market economist of the 20th century, in terms of his real-world impact on politics and policy. Many modern politicians, including Ronald Reagan, considered him a major influence in their careers.
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Monetary Inflation is the Problem
04 December 2006 Texas Straight Talk 04 December 2006 verse 6 ... Cached
Of course Mr. Bernanke inherited this tightrope act from his predecessor Alan Greenspan. The Federal Reserve did two things to artificially expand the economy during the Greenspan era. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of savings determining the cost of borrowing money. In a healthy market economy, more savings equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases.
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Monetary Inflation is the Problem
04 December 2006 Texas Straight Talk 04 December 2006 verse 9 ... Cached
The precipitous drop in the dollar shows how investors around the globe are very concerned about American deficits and debt. When government policies in a fiat system are the sole measure of a currency’s worth, the currency markets act as a reliable barometer of how those policies are viewed around the world. Politicians often manage to fool voters and the media, but they rarely fool the financial markets over time. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government.
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Monetary Policy is Critically Important
19 February 2007 Texas Straight Talk 19 February 2007 verse 7 ... Cached
The role the Fed plays in the President's secretive Working Group on Financial Markets goes unnoticed by members of Congress. The Federal Reserve shows no willingness to inform Congress voluntarily about how often the Working Group meets, what actions it takes that affect the financial markets, or why it takes those actions.
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Monetary Policy is Critically Important
19 February 2007 Texas Straight Talk 19 February 2007 verse 11 ... Cached
For example: Before the breakdown of the Bretton Woods system, CEO income was about 30 times the average worker's pay. Today, it's closer to 500 times. It's hard to explain this simply by market forces and increases in productivity. One Wall Street firm last year gave out bonuses totaling $16.5 billion. There's little evidence that this represents free market capitalism.
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Don't Blame the Market for Housing Bubble
19 March 2007 Texas Straight Talk 19 March 2007 verse 1 ... Cached
Don't Blame the Market for Housing Bubble
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Don't Blame the Market for Housing Bubble
19 March 2007 Texas Straight Talk 19 March 2007 verse 3 ... Cached
The U.S. housing market, long considered vulnerable by many economists, is now on the verge of suffering a serious collapse in many regions. Commodities guru and hedge fund manager Jim Rogers warns that real estate in expensive bubble areas will drop 40 or 50%. Mainstream media outlets like the New York Times are reporting breathlessly about the possibility of widespread defaults on subprime mortgages.
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Don't Blame the Market for Housing Bubble
19 March 2007 Texas Straight Talk 19 March 2007 verse 4 ... Cached
When the bubble finally bursts completely, millions of Americans will be looking for someone to blame. Look for Congress to hold hearings into subprime lending practices and “predatory” mortgages. We’ll hear a lot of grandstanding about how unscrupulous lenders took advantage of poor people, and how rampant speculation caused real estate markets around the country to overheat. It will be reminiscent of the Enron hearings, and the message will be explicitly or implicitly the same: free-market capitalism, left unchecked, leads to greed, fraud, and unethical if not illegal business practices.
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Don't Blame the Market for Housing Bubble
19 March 2007 Texas Straight Talk 19 March 2007 verse 9 ... Cached
Fed credit also distorts mortgage lending through Fannie Mae and Freddie Mac, two government schemes created by Congress supposedly to help poor people. Fannie and Freddie enjoy an implicit guarantee of a bailout by the federal government if their loans default, and thus are insulated from market forces. This insulation spurred investors to make funds available to Fannie and Freddie that otherwise would have been invested in other securities or more productive endeavors, thereby fueling the housing boom.
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Don't Blame the Market for Housing Bubble
19 March 2007 Texas Straight Talk 19 March 2007 verse 10 ... Cached
The Federal Reserve provides the mother’s milk for the booms and busts wrongly associated with a mythical “business cycle.” Imagine a Brinks truck driving down a busy street with the doors wide open, and money flying out everywhere, and you’ll have a pretty good analogy for Fed policies over the last two decades. Unless and until we get the Federal Reserve out of the business of creating money at will and setting interest rates, we will remain vulnerable to market bubbles and painful corrections. If housing prices plummet and millions of Americans find themselves owing more than their homes are worth, the blame lies squarely with Alan Greenspan and Ben Bernanke.
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The Federal Reserve Monopoly over Money
09 April 2007 Texas Straight Talk 09 April 2007 verse 4 ... Cached
Certainly it’s true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being? Is centralized, monopoly control over our money even compatible with a supposedly free-market economy?
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Government and Racism
16 April 2007 Texas Straight Talk 16 April 2007 verse 10 ... Cached
The true antidote to racism is liberty. Liberty means having a limited, constitutional government devoted to the protection of individual rights rather than group claims. Liberty means free-market capitalism, which rewards individual achievement and competence, not skin color, gender, or ethnicity.
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Rights of Taxpayers is Missing Element in Stem Cell Debate
25 June 2007 Texas Straight Talk 25 June 2007 verse 7 ... Cached
Our founding fathers devised a system of governance that limited federal activity very narrowly. In doing so, they intended to keep issues such as embryonic stem cell research entirely out of Washington’s hands. They believed issues such as this should be tackled by free people acting freely in their churches and medical associations, and in the marketplace that would determine effective means of research. When government policies on this issue were to be developed, our founders would have left them primarily to state legislators to decide in accord with community standards.
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High Risk Credit
20 August 2007 Texas Straight Talk 20 August 2007 verse 3 ... Cached
As markets went on a rollercoaster ride last week, our economy is coming close to a day of reckoning for loose credit policies being followed by the Federal Reserve Bank. Simply, foreign banks we have been relying on to buy our debt are waking up to the reality of much higher default rates than predicted, and many mortgage backed securities have been reduced to “junk” ratings. Wall Street fears the possibility of tightening credit and the tightening of America’s belts. Why, they say, “if Americans spend only what they can afford, think of the ripple effects throughout the economy!” This is the cry, as the call comes for the fed to cut rates and bail out companies in trouble.
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High Risk Credit
20 August 2007 Texas Straight Talk 20 August 2007 verse 5 ... Cached
The truth is that business involves risk, and businesses that miscalculate risk should be liquidated, so their assets can be reallocated to businesses that correctly judge risk and make profits. Instead, the Fed has injected $64 billion into the jittery markets, effectively amounting to a bailout that keeps these malinvestments afloat, but eventually they will become the undoing of our economy.
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High Risk Credit
20 August 2007 Texas Straight Talk 20 August 2007 verse 6 ... Cached
In addition to the negative reactions in financial markets, many Americans have taken on too much personal debt owing to exotic mortgage products and artificially low interest rates. Unfortunately, these families are now in the position of losing their homes in unprecedented numbers as the teaser rates expire and the real bills are coming due.
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High Risk Credit
20 August 2007 Texas Straight Talk 20 August 2007 verse 7 ... Cached
The real answers are, and always have been, found in the principles of the free market. Let the market set the interest rates. If we had been functioning under a true and transparent free market system, we would not be in the mess we are in today. Government, like the American household, needs to live within its means to get back on stable fiscal ground.
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High Risk Credit
20 August 2007 Texas Straight Talk 20 August 2007 verse 8 ... Cached
We’ve been headed in the wrong direction since 1971. This week marks the 36th anniversary of Nixon’s decision to close the gold window, which convinced me to seek public office to call attention to the runaway money train that would come in the aftermath of that decision. The temptation to print and spend money with impunity, like the temptation to max out lines of credit, is too strong to for government to resist. While Nixon brokered exclusivity deals with OPEC to prop up demand for the tidal wave of green pieces of paper the Fed pumped into the markets, the world is tiring of marching to the beat of our drum in order to secure their energy needs. The house of cards Nixon built is now on the verge of collapsing on our heads, and on our children’s heads.
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The Money Has to Come From Somewhere
23 September 2007 Texas Straight Talk 23 September 2007 verse 2 ... Cached
After the current turmoil in the markets, I was hoping that new Federal Reserve Chairman Ben Bernanke would see the big picture and act judiciously. Instead he signaled, with an aggressive rate cut, that we can expect a continuation of the monetary policies that got us here to begin with. Alan Greenspan released his memoir this week explaining his policies and decisions in the wake of the irrational exuberance they fueled. His successor should see that it is now time for a change of policy that addresses the root of our troubles. But instead of seeing an inflation problem, the Federal Reserve sees a liquidity problem, which is a little like extinguishing a forest fire with gasoline. In the wake of the rate cut, the Dow jumped and brokers cheered. Behind the headlines, however, the dollar quietly fell and was abandoned by more of the world in favor of more solid stores of wealth.
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The Money Has to Come From Somewhere
23 September 2007 Texas Straight Talk 23 September 2007 verse 4 ... Cached
In a very real sense, the Fed and the government are close to going over the spending limit of our nation’s credit card. We rely on foreign investors to buy our debt so our government can maintain its appetite for spending. Yet the market for US Treasury Bonds is rapidly shrinking as yield declines. Still the government will need an estimated $100 billion more for every year we “stay the course” in Iraq , not to mention what a possible conflict in Iran could cost.
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The Money Has to Come From Somewhere
23 September 2007 Texas Straight Talk 23 September 2007 verse 7 ... Cached
The reality is that this type of manipulation of the markets masks where resources, or money, ultimately comes from. It comes from the taxpayer. The government doesn’t create Gross Domestic Product, they just limit and control how it is done. They then absorb much of the value produced in the economy through taxation and inflation, so they can squander our nation’s wealth with runaway spending.
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The Money Has to Come From Somewhere
23 September 2007 Texas Straight Talk 23 September 2007 verse 8 ... Cached
The Fed tries to keep up with government’s spending habits, but is sending inaccurate signals to mask bad monetary policy. Ultimately, we’ll get back on track financially only when government spending is held in check and the free market controls monetary policy, not the other way around.
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Struggling for Relevance in Cuba: Close, Still No Cigars
28 October 2007 Texas Straight Talk 28 October 2007 verse 5 ... Cached
The irony of supposed Capitalist, free-marketeers inducing Communists to freedom with government hand-outs should not be missed. We call for a free and private press in Cuba while our attempts to propagandize Cubans through the US government run Radio/TV Marti has wasted $600 million in American taxpayer dollars.
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Tax Reform Promises Treats, Delivers Tricks
04 November 2007 Texas Straight Talk 04 November 2007 verse 6 ... Cached
The founding fathers never saw taxation as a method to direct social behavior or enforce equality. Equality to them was equality under the law, not equality of outcome, or income. It was not the founding fathers' job to manage the economy, or make American businesses competitive. That was up to the free market and American businesses. The founders sought to provide only protection of property and civil liberties such that job creation could happen naturally and peacefully in a stable, prosperous environment. They never sought to take from the rich to give to the poor, or rob Peter to pay Paul. But today, the top 5% of earners in this country pay over half of all income taxes collected, but only bring in a third of the income. One third of Americans pay nothing or receive subsidies from government.
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Pain at the Pump
25 November 2007 Texas Straight Talk 25 November 2007 verse 4 ... Cached
The indirect costs government imposes on gas prices are much more serious. A major bottleneck that causes gas prices to surge is our very meagre and vulnerable refinery capacity due mostly to regulatory red tape. Environmental regulations and litigation have kept our existing refinery capacity barely adequate. In fact, no new refineries have been built since the 70's and these are operating at capacity, which makes our gasoline market especially vulnerable as demonstrated by skyrocketing gas prices in the aftermath of Hurricane Katrina when many coastal oil facilities were brought to a halt. In addition, many foreign refineries don't have the ability to produce the specialized blends of gasoline mandated by our government, and therefore 90% of our gasoline is refined in the United States under extreme regulatory burden. When our domestic refineries are damaged or jeopardized, there are few options other than soaring prices or long lines.
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Pain at the Pump
25 November 2007 Texas Straight Talk 25 November 2007 verse 6 ... Cached
Much of government intervention in the oil industry in the past has been counter-productive and has resulted in disastrous unintended consequences. This Thanksgiving, I am grateful for every mile Americans can still afford to travel to be with family. I am working hard in Congress to reverse the costly trend of government interference and return markets, including oil markets, to true economic freedom.
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Legislative Forecast for 2008
13 January 2008 Texas Straight Talk 13 January 2008 verse 4 ... Cached
This leads me to my next forecast of more federal bailouts for the housing sector. Efforts by the Federal Reserve to stave off recession will have the net effect of only blowing the bubble bigger, making the crash that much more painful when it inevitably comes. The malinvestments caused by easy credit in the housing industry will be prolonged by more easy credit. New programs and laws will be enacted to prop up housing, all with a falling dollar, devalued by continued foreign interventions. The crisis in the housing market will spread and I’m afraid we are in for some rough economic times.
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Can Foreign Aid Save Africa?
09 March 2008 Texas Straight Talk 09 March 2008 verse 8 ... Cached
These efforts, though well-meaning, are misguided. The truth is all the foreign aid in the world will not transform Africa into a thriving, healthy continent. The economic growth of Africa depends on African entrepreneurs, liberalized trade policies, and political and economic freedom. The best thing we could possibly do for Africa and for our own country, is to stop sending misguided aid, and stop protectionist trade practices that prevent African farmers and producers from competing in our markets. Perhaps then Africa's leaders would focus less on how to get aid out of the United States , and more on the economic vitality of their own countries.
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On Money, Inflation and Government
30 March 2008 Texas Straight Talk 30 March 2008 verse 6 ... Cached
The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality.
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On Money, Inflation and Government
30 March 2008 Texas Straight Talk 30 March 2008 verse 7 ... Cached
In free markets, both success and failure are options. If government interventions prevent businesses, like Bear Stearns, from failing, then it is not truly a free market. As painful as it might be for Wall Street, banks, even big ones, must be allowed to fail.
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Bailing Out Banks
13 April 2008 Texas Straight Talk 13 April 2008 verse 2 ... Cached
There has been a lot of talk in the news recently about the Federal Reserve and the actions it has taken over the past few months. Many media pundits have been bending over backwards to praise the Fed for supposedly restoring stability to the market. This interpretation of the Fed's actions couldn't be further from the truth.
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Bailing Out Banks
13 April 2008 Texas Straight Talk 13 April 2008 verse 3 ... Cached
The current market crisis began because of Federal Reserve monetary policy during the early 2000s in which the Fed lowered the interest rate to a below-market rate. The artificially low rates led to overinvestment in housing and other malinvestments. When the first indications of market trouble began back in August of 2007, instead of holding back and allowing bad decision-makers to suffer the consequences of their actions, the Federal Reserve took aggressive, inflationary action to ensure that large Wall Street firms would not lose money. It began by lowering the discount rates, the rates of interest charged to banks who borrow directly from the Fed, and lengthening the terms of such loans. This eliminated much of the stigma from discount window borrowing and enabled troubled banks to come to the Fed directly for funding, pay only a slightly higher interest rate but also secure these loans for a period longer than just overnight.
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Bailing Out Banks
13 April 2008 Texas Straight Talk 13 April 2008 verse 7 ... Cached
Worst of all, the Treasury Department has recently proposed that the Federal Reserve, which was responsible for the housing bubble and subprime crisis in the first place, be rewarded for all its intervention by being turned into a super-regulator. The Treasury foresees the Fed as the guarantor of market stability, with oversight over any financial institution that could pose a threat to the financial system. Rewarding poor performing financial institutions is bad enough, but rewarding the institution that enabled the current economic crisis is unconscionable.
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The Double Trouble of Taxation
20 April 2008 Texas Straight Talk 20 April 2008 verse 4 ... Cached
Aside from the direct loss of money and productivity, the funds from the income tax enable the government to do some very destructive things, such as vastly over-regulating economic activity, making it difficult to earn money in the first place. The federal government funds over 50 agencies, departments and commissions that formulate rules and regulations. These bureaucracies operate with little to no oversight from the people or Congress and generate around 4,000 new rules every year and operate at a cost of about 40 billion dollars. There are some 75,000 pages of regulations in the Federal Register that Americans are expected to know and abide by. Complying with these governmental regulations costs American businesses more than one trillion dollars per year, according to a study by Mark Crain for the Small Business Administration. This complicated system drives production to other countries and shrinks our job market here at home.
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Big Government Responsible for High Gas Prices
04 May 2008 Texas Straight Talk 04 May 2008 verse 3 ... Cached
Instead of imposing further restraints on the market, Congress should consider reforming the federal policies that raise gas prices. For example, federal and state taxes can account for as much as a third of what consumers’ pay at the pump. The Federal Government’s boom-and-bust monetary policy also makes consumers vulnerable to inflation and to constant fluctuations in the prices of essential goods such as oil. It is no coincidence that oil prices first became an issue shortly after President Nixon unilaterally severed the dollar’s last link to gold.
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Big Government Responsible for High Gas Prices
04 May 2008 Texas Straight Talk 04 May 2008 verse 6 ... Cached
The free market can meet the American people’s demand for a reliable supply of gasoline as long as government does not distort the market through excessive taxation and regulation. Therefore, Congress should lower prices gas prices by pursuing an agenda of low taxes, regulatory relief, and sound money by passing legislation such as my Affordable Gas Act.
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Big Government Responsible for Housing Bubble
11 May 2008 Texas Straight Talk 11 May 2008 verse 2 ... Cached
The House passed two bills attempting to rehabilitate the housing and mortgage market this week. There doesn't seem to be any shortage of criticism and blame for the bad decisions, and rightly so. Lenders and banks do share much of the blame for the overheated market. Lending standards were relaxed, or even abandoned altogether, creating an exaggerated pool of homebuyers that led to ballooning home prices that many, especially real estate investors, expected to continue forever. Now that the bubble has burst, the losses are staggering.
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Big Government Responsible for Housing Bubble
11 May 2008 Texas Straight Talk 11 May 2008 verse 3 ... Cached
However, many in Washington fail to realize it was government intervention that brought on the current economic malaise in the first place. The Federal Reserve’s artificially low interest rates created the loose, easy credit that ignited a voracious appetite in the banks for borrowers. People made these lending and buying decisions based on market conditions that were wildly manipulated by government. But part of sound financial management should be recognizing untenable or falsified economic conditions and adjusting risk accordingly. Many banks failed to do that and are now looking to taxpayers to pick up the pieces. This is wrong-headed and unfair, but Congress is attempting to do it anyway.
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Big Government Responsible for Housing Bubble
11 May 2008 Texas Straight Talk 11 May 2008 verse 5 ... Cached
The solution is for government to stop micromanaging the economy and let the market adjust, as painful as that will be for some. We should not force taxpayers, including renters and more frugal homeowners, to switch places with the speculators and take on those same risks that bankrupted them. It is a terrible idea to spread the financial crisis any wider or deeper than it already is, and to prolong the agony years into the future. Socializing the losses now will only create more unintended consequences that will give new excuses for further government interventions in the future. This is how government grows - by claiming to correct the mistakes it earlier created, all the while constantly shaking down the taxpayer. The market needs a chance to correct itself, and Congress needs to avoid making the situation worse by pretending to ride to the rescue.
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Sowing More Big Government with the Farm Bill
01 June 2008 Texas Straight Talk 01 June 2008 verse 4 ... Cached
Third world countries also lose with these continued government manipulations. Agricultural subsidies lead to overproduction, which leads to foreign food aid as a form of dumping. By “dumping” government-created agricultural surpluses, agrarian economies are artificially kept in a constant state of economic depression. The would-be third world farmer cannot compete with “free” grain, thus he and his countrymen remain perpetual beggars rather than competitive producers. Also, by keeping food prices high, we keep more of our own citizens dependent on government food stamps, instead of paying fair market prices for food.
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Sowing More Big Government with the Farm Bill
01 June 2008 Texas Straight Talk 01 June 2008 verse 5 ... Cached
Free trade helps farmers and consumers much more than this convoluted system of subsidies, surpluses and central planning. Newly opened markets would create increased demand for what we produce. There is absolutely no reason we trade with China , yet not with Cuba . With energy and transportation prices as high as they are, opening up trade with a country as close as Cuba just makes sense. The recent power shift from Fidel Castro to his brother Raul, and the somewhat positive steps he has taken, provides an opportunity to lift the embargo.
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Sowing More Big Government with the Farm Bill
01 June 2008 Texas Straight Talk 01 June 2008 verse 7 ... Cached
Those who believe federal farm programs benefit independent farmers, should take note that after 70 years of this type of government intervention, small farms continue to struggle while large corporate farms control an ever-increasing share of the agricultural market. Subsidies for agribusiness should be stopped and the free market should be allowed to work. With commodity and food prices on the rise, Congress had an opportunity to scale down government controls and taxpayer funding of agriculture. Instead, despite the warning sent by an 18% approval rating, Congress stubbornly opted for more of the same.
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Rising Energy Prices and the Falling Dollar
09 June 2008 Texas Straight Talk 09 June 2008 verse 3 ... Cached
Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System. The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool. When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars. They must invest this money quickly and aggressively before it loses value. This causes certain sectors to expand beyond what would naturally occur in the free market. Eventually the sector overheats and the bubble bursts. Overinvestment in dotcoms eventually led to a collapse of the NASDAQ. Next we had the housing bubble, and now we are seeing the price of oil being bid up in the creation of another new bubble. Investors are now looking to commodities like oil, for stability and growth as they pull capital out of real estate. This increased demand for investment vehicles related to oil contributes to driving up the price of the actual product.
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Rising Energy Prices and the Falling Dollar
09 June 2008 Texas Straight Talk 09 June 2008 verse 4 ... Cached
If the Fed continues with its bubble blowing policies of the past, the new commodities bubble will continue to grow, gas prices will continue to go up, as the value of your dollars go down. We will see an overinvestment in these commodities as solutions are desperately sought for a supply shortage, which is only part of the problem. Make no mistake, though, this is not the free market at work. Government manipulations have added levels of complication and unintended consequences to the marketplace.
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Rising Energy Prices and the Falling Dollar
09 June 2008 Texas Straight Talk 09 June 2008 verse 5 ... Cached
This is not the time for members of Congress to take political potshots at each other, or to imagine that the free market is somehow to blame. This is the time to understand and fix problems. That begins with making sure the decision makers have a firm grasp on the causes of the problems and possible effects of their decisions. This is absolutely crucial if we want to get it right this time. That is why I am in the process of calling for hearings on Capitol Hill on how the falling value of the dollar affects energy prices.
Texas Straight Talk from 20 December 1996 to 23 June 2008 (573 editions) are included in this Concordance. Texas Straight Talk after 23 June 2008 is in blog form on Rep. Paul’s Congressional website and is not included in this Concordance.
Remember, not everything in the concordance is Ron Paul’s words. Some things he quoted, and he added some newspaper and magazine articles to the Congressional Record. Check the original speech to see.