2002 Ron Paul Chapter 1
Congressman Ron Paul
January 24, 2002
January 24, 2002, in the House of Representatives
The Case for Defending America
2002 Ron Paul 1:1
As we begin this new legislative
session, we
cannot avoid reflecting on this past year. All Americans will remember
the
moment and place when tragedy hit us on September 11
th
. We
also all
know that a good philosophy to follow is to turn adversity into
something
positive, if at all possible. Although we have suffered for years from
a flawed
foreign policy and were already in a recession before the attacks, the
severity
of these events has forced many of us to reassess our foreign and
domestic
policies. Hopefully, positive changes will come of this.
2002 Ron Paul 1:2
It is just as well that the economy was
already
in recession for six months prior to the September attacks. Otherwise,
the
temptation would have been too great to blame the attacks for the weak
economy
rather than look for the government policies responsible for the
recession.
Terrorist attacks alone, no matter how disruptive, could never be the
sole
source of a significant economic downturn.
2002 Ron Paul 1:3
A major debate over foreign policy has
naturally
resulted from this crisis. Dealing with the shortcomings of our
policies of the
past is essential. We were spending $40 billion a year on intelligence
gathering
that, we must admit, failed. This tells us a problem exists. There are
shortcomings with our $320 billion DOD budget that did not provide the
protection Americans expect.
2002 Ron Paul 1:4
Obviously, a proper response to the
terrorists
requires sound judgment in order to prevent further suffering of the
innocent or
foolishly bring about a worldwide conflict.
2002 Ron Paul 1:5
One of the key responsibilities of the
federal
government in providing for national defense is protection of liberty
here at
home. Unwisely responding to the attacks could undermine our national
defense
while threatening our liberties. What we have done so far since last
September
is not very reassuring. What we do here in the Congress in the coming
months may
well determine the survival of our republic. Fear and insecurity must
not drive
our policies. Sacrificing personal liberty should never be an option.
2002 Ron Paul 1:6
Involving ourselves in every complex
conflict
around the globe hardly enhances our national security. The special
interests
that were already lined up at the public trough should not be permitted
to use
the ongoing crisis as an opportunity to demand even more benefits. Let
us all
remember why the U.S. Congress was established, what our
responsibilities are
and what our oath of office means.
2002 Ron Paul 1:7
Its been reported that since the 9-11
attacks,
big-government answers have gained in popularity, and people, fearful
for their
security, have looked to the federal government for help. Polls
indicate that
acceptance of government solutions to our problems is at its highest
level in
decades. That may be true to some degree, or it may merely reflect the
sentiments of the moment, or even the way the questions were asked.
Only time
will tell. Since the welfare state is no more viable in the long run
than a
communist or fascist state, most Americans will eventually realize the
fallacy
of depending on the government for economic security and know that
personal
liberty should not be sacrificed out of fear.
2002 Ron Paul 1:8
Even with this massive rush to embrace
all the
bailouts offered up by Washington, a growing number of Americans are
rightfully
offended by the enormity of it all and annoyed that powerful and
wealthy special
interests seem to be getting the bulk of the benefits. In one area,
though, a
very healthy reaction has occurred. Almost all Americans- especially
those still
flying commercial airlines- now know that they have a personal
responsibility to
react to any threat on any flight. Passengers have responded
magnificently. Most
people recognize that armed citizens best protect our homes, because it
is
impossible for the police to be everywhere and prevent crimes from
happening. A
homeowners ability to defend himself serves as a strong deterrent.
2002 Ron Paul 1:9
Our governments ridiculous policy
regarding
airline safety and prohibiting guns on airplanes had indoctrinated us
all-
pilots, passengers and airline owners- to believe we should never
resist
hijackers. This set up the perfect conditions for terrorists to take
over
domestic flights, just as they did on September 11
th
.
2002 Ron Paul 1:10
The people of this country now realize,
more
than ever, their own responsibility for personal self-defense, using
guns if
necessary. The anti-gun fanatics have been very quiet since 9-11, and
more
Americans are ready to assume responsibility for their own safety than
ever
before. This is all good.
2002 Ron Paul 1:11
But sadly, the Congress went in the
opposite
direction in providing safety on commercial flights. Pilots are not
carrying
guns, and security has been socialized- in spite of the fact that
security
procedures authorized by the FAA prior to 9-11 were not compromised.
The problem
did not come from
failure to follow
FAA rules; the problem
resulted from
precisely
following FAA rules. No wonder so many Americans are wisely assuming
theyd
better be ready to protect themselves when necessary!
2002 Ron Paul 1:12
This attitude is healthy, practical and
legal
under the Constitution. Unfortunately, too many people who have come to
this
conclusion still cling to the notion that economic security is a
responsibility
of the U.S. government. Thats the reason we have a $2 trillion annual
budget
and a growing $6 trillion national debt.
2002 Ron Paul 1:13
Another positive result of last years
attacks
was the uniting of many Americans in an effort to deal with the
problems the
country faced. This applies more to the people who reflect true
patriotism than
it does to some of the politicians and special interests who took
advantage of
the situation. If this renewed energy and sense of unity could be
channeled
correctly, much good could come of it. If misdirected, actual harm will
result.
2002 Ron Paul 1:14
I give less credit to the Washington
politicians
who sing the songs of patriotism, but use the crisis to pursue their
endless
personal goal to gain more political power. But the greatest
condemnation should
be directed toward the special-interest lobbyists who finance the
politicians in
order to secure their power, while using patriotism as a cover and the
crisis as
a golden opportunity. Indeed, those who are using the crisis to promote
their
own agenda are many.
2002 Ron Paul 1:15
There is no doubt, as many have pointed
out, our
country changed dramatically with the horror that hit us on 9-11. The
changes
obviously are a result of something other than the tragic loss of over
3,900
people. We kill that many people every month on our government
highways. We lost
60,000 young people in the Vietnam War, yet the sense of fear in our
country
then was not the same as it is today. The major difference is that last
years
attacks made us feel vulnerable, because it was clear that our federal
government had failed in its responsibility to provide defense against
such an
assault. And the anthrax scare certainly didnt help to diminish that
fear.
2002 Ron Paul 1:16
Giving up our civil liberties has made
us feel
even less safe from our own governments intrusion in our lives. The
two seem to
be in conflict. How can we be safer from outside threats while making
ourselves
more exposed to our own governments threat to our liberty?
2002 Ron Paul 1:17
The most significant and dangerous
result of
last years attacks has been the bold expansion of the federal police
state and
our enhanced international role as the worlds policeman.
2002 Ron Paul 1:18
Although most of the legislation
pushing the
enhanced domestic and international role for our government passed by
huge
majorities, Im convinced that the peoples support for much of it is
less
enthusiastic than Washington politicians believe. As time progresses,
the full
impact of Homeland Security, and the unintended consequences of our
growing
overseas commitments, will become apparent. And a large majority of
Americans
will appropriately ask, Why did the Congress do it?
2002 Ron Paul 1:19
Unless we precisely understand the
proper role
of government in a free society, our problems will not be solved
without
sacrificing liberty. The wonderful thing is that our problems can be
easily
solved when protecting individual liberty becomes our goal, rather than
the
erroneous assumption that solutions must always be in conflict with
liberty and
that sacrificing some liberty is to be expected during trying times.
This is not
necessary.
2002 Ron Paul 1:20
Our Attorney General established a
standard for
disloyalty to the U.S. government by claiming that those who talk of
lost
liberty serve to erode our national unity and give
ammunition to Americas enemies and only aid terrorists.
2002 Ron Paul 1:21
The dangerous assumption is that, in
the eyes of
our top law-enforcement official, perceived disloyalty or even
criticism of the
government is approximating an act of terrorism. The grand irony is
that this
criticism is being directed toward those who, heaven forbid, are
expressing
concern for losing our cherished liberties here at home. This, of
course, is
what the whole war on terrorism is supposed to be about- protecting
liberty, and
that includes the right of free expression.
2002 Ron Paul 1:22
Our government leaders have threatened
foreign
countries by claiming that if they are not with us, they are against
us, which leaves no room for the neutrality that has been practiced by
some nations for centuries. This position could easily result in
perpetual
conflicts with dozens of nations around the world.
2002 Ron Paul 1:23
Could it ever come to a point where
those who
dissent at home against our military operations overseas will be
considered too
sympathetic to the enemy? The Attorney Generals comments suggest just
that, and
it has happened here in our past. We indeed live in dangerous times. We
are
unable to guarantee protection from outside threats and may be
approaching a
time when our own government poses a threat to our liberties.
2002 Ron Paul 1:24
No matter how sincere and well
motivated, the
effort to fight terrorism and provide for homeland security, if ill
advised,
will result neither in vanquishing terrorism nor in preserving our
liberties. I
am fearful that, here in Washington, theres little understanding of
the real
cause of the terrorist attacks on us, little remembrance of the grand
purpose of
the American experiment with liberty, or even how our Constitution was
written
to strictly limit government officials in all that they do.
2002 Ron Paul 1:25
The military operation against the
Taliban has
gone well. The Taliban has been removed from power, and our government,
with the
help of the UN, is well along the way toward establishing a new Afghan
government. We werent supposed to be in the business of nation
building, but I
guess 9-11 changed all that. The one problem is that the actual number
of al-Qaida
members captured or killed is uncertain. Also the number of Taliban
officials
that had any direct contact or knowledge of the attacks on us is purely
speculative. Since this war is carried out in secrecy, well probably
not know
the details of what went on for years to come.
2002 Ron Paul 1:26
I wonder how many civilians have been
killed so
far. I know a lot of Members could care less, remembering innocent
American
civilians who were slaughtered in New York and Washington. But a policy
that
shows no concern for the innocent will magnify our problems rather than
lessen
them. The hard part to understand in all of this is that Saudi Arabia
probably
had more to do with these attacks than did Afghanistan.
2002 Ron Paul 1:27
But then again, who wants to offend our
oil
partners?
2002 Ron Paul 1:28
Our sterile approach to the bombing,
with
minimal loss of American life is to be commended, but it may generate
outrage
toward us by this lopsided killing of persons totally unaware of the
events of
September 11
th
.
2002 Ron Paul 1:29
Our President wisely has not been
anxious to
send in large numbers of occupying forces into Afghanistan. This also
guarantees
chaos among the warring tribal factions. The odds of a stable Afghan
government
evolving out of this mess are
remote
. The odds of our investing
large
sums of money to buy support for years to come are
great
.
2002 Ron Paul 1:30
Unfortunately, it has been seen only as
an
opportunity for Pakistan and India to resume their warring ways,
placing us in a
dangerous situation. This could easily get out of control, since China
will not
allow a clear-cut Indian victory over Pakistan. The danger of a nuclear
confrontation is real. Even the British have spoken sympathetically
about
Pakistans interests over India. The tragedy is that we have helped
both India
and Pakistan financially, and, therefore, the American taxpayer has
indirectly
contributed funds for the weapons on both sides. Our troops in this
region are
potential targets of either or both countries.
2002 Ron Paul 1:31
Fortunately, due to the many probable
repercussions, a swift attack on Iraq now seems less likely. Our
surrogate army,
organized by the Iraqi National Congress, is now known to be a charade,
prompting our administration to stop all funding of this organization.
Relying
on the Kurds to help remove Hussein defies logic, as the U.S.-funded
Turkish
army continues its war on the Kurds. There is just no coalition in the
Persian
Gulf to take on Iraq, and, fortunately, our Secretary of State knows it.
2002 Ron Paul 1:32
Our terrorist enemy is vague and
elusive. Our
plans to expand our current military operations into many other
countries are
fraught with great risks- risks of making our problems worse. Not
dealing with
the people actually responsible for the attacks and ignoring the root
causes of
the terrorism will needlessly perpetuate and expand a war that will do
nothing
to enhance the security and safety of the American people.
2002 Ron Paul 1:33
Since Iraq is now less likely to be
hit, it
looks like another poverty-ridden, rudderless nation, possibly Somalia,
will be
the next target. No good can come of this process. It will provide more
fodder
for the radicals claim that the war is about America against Islam.
Somalia
poses no threat to the United States, but bombing Somalia as we have
Afghanistan- and Iraq for 12 years- will only incite more hatred toward
the U.S.
and increase the odds of our someday getting hit again by some
frustrated,
vengeful, radicalized Muslim.
2002 Ron Paul 1:34
Our presence in the Persian Gulf is not
necessary to provide for Americas defense. Our presence in the region
makes all
Americans more vulnerable to attacks and defending America much more
difficult.
2002 Ron Paul 1:35
The real reason for our presence in the
Persian
Gulf, as well as our eagerness to assist in building a new Afghan
government
under UN authority, should be apparent to us all.
2002 Ron Paul 1:36
Stewart Eizenstat, Undersecretary of
Economics,
Business, and Agricultural Affairs for the previous administration,
succinctly
stated U.S. policy for Afghanistan, testifying before the Senate
Foreign
Relations Trade Subcommittee on October 13, 1997:
2002 Ron Paul 1:37
[One of] Five main foreign policy
interests in the Caspian region [is] continued 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
multi-ethnic
government.
2002 Ron Paul 1:38
This was a rather blunt acknowledgment
of our
intentions.
2002 Ron Paul 1:39
It is apparent that our policy has not
changed
with this administration. Our new special envoy to Afghanistan, Zalmay
Khalilzad,
was at one time a lobbyist for the Taliban and worked for Unocal- the
American
oil company seeking rights to build oil and gas pipelines through
northern
Afghanistan. During his stint as a lobbyist, he urged approval of the
Taliban
and defended them in the U.S. press. He now, of course, sings a
different tune
with respect to the Taliban, but I am sure his views on the pipeline by
U.S.
companies have not changed.
2002 Ron Paul 1:40
Born in Afghanistan, Khalilzad is a
controversial figure, to say the least, due to his close relationship
with the
oil industry and previously with the Taliban. His appointment to the
National
Security Council very conveniently did not require confirmation by the
Senate.
Khalilzad also is a close ally of the Secretary of Defense, Paul
Wolfowitz, in
promoting early and swift military action against Iraq.
2002 Ron Paul 1:41
The point being, of course, that it may
be good
to have a new Afghan government, but the question is whether that is
our
responsibility
and whether we
should
be doing it
under the constraints
of our
Constitution. Theres a real question of whether it will serve our best
interests in the long-term.
2002 Ron Paul 1:42
CIA support for the Shah of Iran for 25
years
led to the long-term serious problems with that nation that persist
even to this
day. Could oil be the reason we have concentrated on bombing
Afghanistan while
ignoring Saudi Arabia, even though we have never found Osama bin Laden?
Obviously, Saudi Arabia is culpable in these terrorist attacks in the
United
States, and yet little is done about it.
2002 Ron Paul 1:43
There are quite a few unintended
consequences
that might occur if our worldwide commitment to fighting terrorism is
unrestrained.
2002 Ron Paul 1:44
Russias interests in the Afghan region
are much
more intense than Putin would have us believe, and Russias active
involvement
in a spreading regional conflict should be expected.
2002 Ron Paul 1:45
An alliance between Iraq and Iran
against the
U.S. is a more likely possibility now than ever before. Iraqi Foreign
Minister
Naji Sabri is optimistically working on bringing the two nations
together in a
military alliance. His hope is that this would be activated if we
attacked Iraq.
The two nations have already exchanged prisoners of war as a step in
that
direction.
2002 Ron Paul 1:46
U.S. military planners are making
preparations
for our troops to stay in Central Asia for a long time.
A long time
could
mean 50 years! We have been in Korea for that long, and have been in
Japan and
Europe even longer, but the time will come when we will wear out our
welcome and
have to leave these areas. The Vietnam War met with more resistance,
and we left
relatively quickly in humiliating defeat. Similarly, episodes of a more
minor
nature occurred in Somalia and Lebanon.
2002 Ron Paul 1:47
Why look for more of these kinds of
problems
when it does not serve our interests? Jeopardizing our security
violates the
spirit of our Constitution and inevitably costs us more than we can
afford.
2002 Ron Paul 1:48
Our permanent air bases built in Saudi
Arabia
are totally unessential to our security, contributed to the turmoil in
the
Middle East, and they continue to do so.
2002 Ron Paul 1:49
Were building a giant new air base in
Kyrgyzstan, a country once part of the Soviet Union and close to
Russia. China,
also a neighbor, with whom we eagerly seek a close relationship as a
trading
partner, will not ignore our military buildup in this region.
2002 Ron Paul 1:50
Islamic fundamentalists may overthrow
the
current government of Saudi Arabia- a fear that drives her to cooperate
openly
with the terrorists while flaunting her relationship with the United
States.
The
Wall Street Journal
has editorialized that the solution ought to be
our
forcibly seizing the Saudi Arabian oil fields and replacing the current
government with an even more pro-Western government. All along I
thought we
condemned regimes that took over their neighbors oil fields!
2002 Ron Paul 1:51
The editorial, unbelievably explicit,
concluded
by saying: Finally, we must be prepared to seize the Saudi oil fields
and
administer them for the greater good.
The greater good?
I
just wonder whose greater good?
2002 Ron Paul 1:52
If the jingoism of the
Wall Street
Journal
prevails,
and the warmongers in the Congress and the administration carry the
day, we can
assume with certainty that these efforts being made will precipitate an
uncontrollable breakout of hostilities in the region that could lead to
World
War III.
2002 Ron Paul 1:53
How a major publication can actually
print an
article that openly supports such aggression as a serious proposal is
difficult
to comprehend! Two countries armed with nuclear weapons, on the verge
of war in
the region, and were being urged to dig a deeper hole for ourselves by
seizing
the Saudi oil fields?
2002 Ron Paul 1:54
Already the presence of our troops in
the Muslim
holy land of Saudi Arabia has inflamed the hatred drove the terrorists
to carry
out their tragic acts of 9-11. Pursuing such an aggressive policy would
only
further undermine our ability to defend the American people and will
compound
the economic problems we face.
2002 Ron Paul 1:55
Something, anything, regardless of its
effectiveness, had to be done, since the American people expected it,
and
Congress and the Administration willed it. An effort to get the
terrorists and
their supporters is obviously in order, and hopefully that has been
achieved.
But a never-ending commitment to end all terrorism in the world,
whether it is
related to the attack on September 11
th
or not, is neither a
legitimate nor wise policy.
2002 Ron Paul 1:56
HJ RES 64 gives the President authority
to
pursue only those guilty of the attack on us- not every terrorist in
the entire
world. Let there be no doubt: for every
terrorist
identified,
others will
see only a
freedom fighter
.
2002 Ron Paul 1:57
When we aided Osama bin Laden in the
1980s, he
was a member of the Mujahidien, and they were the
freedom fighters
waging
a
just
war against the Soviet Army. A broad definition of
terrorism
outside the understanding of those who attack the United States
opens a Pandoras box in our foreign policy commitments.
2002 Ron Paul 1:58
If we concentrate on searching for all
terrorists throughout the world and bombing dozens of countries, but
forget to
deal with the important contributing factors that drove those who
killed our
fellow citizens, we will only make ourselves more vulnerable to new
attacks.
2002 Ron Paul 1:59
How can we forever fail to address the
provocative nature of U.S. taxpayer money being used to suppress and
kill
Palestinians and ignore the affront to the Islamic people that our
military
presence on their holy land of Saudi Arabia causes- not to mention the
persistent 12 years of bombing Iraq?
2002 Ron Paul 1:60
Im fearful that an unlimited worldwide
war
against all terrorism will distract from the serious consideration that
must be
given to our policy of foreign interventionism, driven by the powerful
commercial interests and a desire to promote world government. This is
done
while ignoring our principle responsibility of protecting national
security and
liberty here at home.
2002 Ron Paul 1:61
There is a serious problem with a
policy that
has allowed a successful attack on our homeland. It cannot be written
off as a
result of irrational yet efficient evildoers who are merely jealous of
our
success and despise our freedoms.
2002 Ron Paul 1:62
Weve had enemies throughout our
history, but
never before have we suffered such an attack that has made us feel so
vulnerable. The cause of this crisis is much more profound and requires
looking
inwardly as well as outwardly at our own policies as well as those of
others.
2002 Ron Paul 1:63
The Founders of this country were
precise in
their beliefs regarding foreign policy. Our Constitution reflects these
beliefs,
and all of our early presidents endorsed these views. It was not until
the 20
th
Century that our nation went off to far away places looking for dragons
to slay.
This past century reflects the new and less-traditional American policy
of
foreign interventionism. Our economic and military power, a result of
our
domestic freedoms, has permitted us to survive and even thrive while
dangerously
expanding our worldwide influence.
2002 Ron Paul 1:64
Theres no historic precedent that such
a policy
can be continued forever. All empires and great nations throughout
history have
ended when they stretched their commitments overseas too far and abused
their
financial system at home. The over-commitment of a countrys military
forces
when forced with budgetary constraints can only lead to a lower
standard of
living for its citizens. That has already started to happen here in the
United
States. Who today is confident the government and our private
retirement systems
are sound and the benefits guaranteed?
2002 Ron Paul 1:65
The unfortunate complicating factor
that all
great powers suffer is the buildup of animosity toward the nation
currently at
the top of the heap, which is aggravated by arrogance and domination
over the
weaker nations. We are beginning to see this, and the
Wall Street
Journal
editorial clearly symbolizes this arrogance.
2002 Ron Paul 1:66
The traditional American foreign policy
of the
Founders and our presidents for the first 145 years of our history
entailed
three points:
2002 Ron Paul 1:67
Friendship with all nations desiring of
such
2002 Ron Paul 1:68
As much free trade and travel with
those
countries as possible
2002 Ron Paul 1:69
Avoiding entangling alliances
2002 Ron Paul 1:70
This is still good advice. The Framers
also
understood that the important powers for dealing with other countries
and the
issue of war were to be placed in the hands of the Congress. This
principle has
essentially been forgotten.
2002 Ron Paul 1:71
The executive branch now has much more
power
than does the Congress. Congress continues to allow its authority to be
transferred to the executive branch, as well as to international
agencies, such
as the UN, NAFTA, IMF, and the WTO. Through executive orders, our
presidents
routinely use powers once jealously guarded and held by the Congress.
2002 Ron Paul 1:72
Today, through altering aid and
sanctions, we
buy and sell our friendship with all kinds of threats and bribes in
our effort to spread our influence around the world. To most people in
Washington, free trade means international managed trade, with
subsidies and
support for the WTO, where influential corporations can seek sanctions
against
their competitors. Our alliances, too numerous to count, have committed
our
dollars and our troops to such an extent that, under todays
circumstances,
theres not a border war or civil disturbance in the world in which we
do not
have a stake. And more than likely, we have a stake- foreign aid- in
both
sides of each military conflict.
2002 Ron Paul 1:73
After the demise of our nemesis, the
Soviet
Union, many believed that we could safely withdraw from some of our
worldwide
commitments. It was hoped we would start minding our own business, save
some
money, and reduce the threat to our military personnel. But the
opposite has
happened. Without any international competition for super-power status,
our
commitments have grown and spread, so that today we provide better
military
protection to Taiwan and South Korea and Saudi Arabia than we do for
our own
cities like New York and Washington.
2002 Ron Paul 1:74
I am certain that national security and
defense
of our own cities can never be adequately provided unless we reconsider
our
policy of foreign interventionism.
2002 Ron Paul 1:75
Conventional wisdom in Washington today
is that
we have
no choice
but to play the role of the worlds only
superpower.
Recently, we had to cancel flights of our own Air Force over our cities
because
of spending constraints, and we rely on foreign AWACS aircraft to
patrol our
airspace.
2002 Ron Paul 1:76
The American people are not in sync
with the
assumption that we must commit ourselves endlessly to being the worlds
policemen. If we do not wisely step back and reassess our worldwide
commitments
and our endless entanglements as we march toward world government,
economic law
will one day force us to do so anyway under undesirable circumstances.
In the
meantime, we can expect plenty more military confrontations around the
world
while becoming even more vulnerable to attack by terrorists here at
home.
2002 Ron Paul Chapter 2
http://www.house.gov/paul/congrec/congrec2002/cr020402.htm
Statement of Congressman Ron
Paul
House Financial Services Committee, Capital Markets Subcommittee
Monday, February 4, 2002
Statement before the House Capital Markets Subcommittee
2002 Ron Paul 2:1
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.
2002 Ron Paul 2:2
I fear that many of my
well-meaning
colleagues are reacting to media reports portraying Enron as a reckless
company
whose problems stemmed from a lack of federal oversight. It is a
mistake for
Congress to view the Enron collapse as a justification for more
government
regulation. Publicly held corporations already comply with massive
amounts of
SEC regulations, including the filing of quarterly reports that
disclose minute
details of assets and liabilities. If these disclosure rules failed to
protect
Enron investors, will more red tape really solve anything? The real
problem with
SEC rules is that they give investors a false sense of security, a
sense that
the government is protecting them from dangerous investments.
2002 Ron Paul 2:3
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.
2002 Ron Paul 2:4
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 Enrons
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.
2002 Ron Paul 2:5
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.
2002 Ron Paul 2:6
Therefore, if Congress wishes
to avoid
future bankruptcies like Enron, the best thing it can do
is
repeal existing regulations which give investors a false sense of
security and
reform the countrys monetary policy to end the Fed-generated
boom-and-bust
cycle. Congress should also repeal those programs which provide
taxpayer
subsidies to large, politically-powerful corporations such as Enron.
2002 Ron Paul 2:7
Enron provides a perfect
example of the
dangers of corporate subsidies. The company
was
(and is) one of the biggest beneficiaries of Export-Import Bank
subsidies. The
Ex-Im bank, a program that
Congress
continues to fund with tax dollars taken from hard-working Americans,
essentially makes risky loans to foreign governments and businesses for
projects
involving American companies. The Bank, which purports to help
developing
nations, really acts as a naked subsidy for certain politically-favored
American
corporations- especially corporations
like
Enron that lobbied hard and gave huge amounts of cash to both political
parties.
Its
reward was more that
$600
million in cash via six different Ex-Im financed projects.
2002 Ron Paul 2:8
One such project, a power
plant in
India, played a big part in Enrons demise. The
company
had trouble selling the power to local officials, adding to its huge
$618
million
loss for the
third quarter
of 2001. Former president Clinton worked hard to secure the India deal
for Enron
in the mid-90s; not surprisingly, his 1996 campaign received
$100,000
from the company. Yet the media makes no mention of this favoritism.
Clinton
may claim he was protecting
tax dollars, but those tax dollars should never have been
sent
to India in the first place.
2002 Ron Paul 2:9
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. Its a game
every big
corporation plays in our heavily regulated economy, because they must
when the
government, rather than the marketplace, distributes the spoils.
2002 Ron Paul 2:10
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.
2002 Ron Paul Chapter 3
http://www.house.gov/paul/congrec/congrec2002/cr020602.htm
February 6 2002
Congressman Ron Paul
House Financial Services committee, February 6 2002
Statement on the Argentine crisis
2002 Ron Paul 3:1
Mr. Chairman, the recent
economic
difficulties in Argentina provide many valuable lessons for policy
makers, both
in America and the rest of the world. Unfortunately, early signals
indicate that
many are drawing the wrong lesson from this crisis.
2002 Ron Paul 3:2
In the last several months,
too many
commentators and policy makers have pointed the finger of blame for
Argentinas
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 worlds richest countries and leading
economies!
2002 Ron Paul 3:3
In fact, Mr. Chairman,
Argentina does
not represent an exception to the laws of economics. Rather,
Argentinas
economic collapse is but one more example of the folly of government
intervention in the economy done to benefit powerful special interests
at the
expense of the Argentine people and the American taxpayer. The primary
means by
which the federal government forces American taxpayers to underwrite
the
destruction of the Argentine economy is the International Monetary Fund
(IMF),
which enjoys a $37 billion line of credit provided with U.S. Treasury
funds.
2002 Ron Paul 3:4
Despite clear signs over the
past
several years that the Argentine economy was in serious trouble, the
IMF
continued pouring taxpayer-subsidized loans with an incredibly low
interest rate
of 2.6% into the country. In 2001, as Argentinas fiscal position
steadily
deteriorated, the IMF funneled over 8 billion dollars to the Argentine
government!
2002 Ron Paul 3:5
According to our colleague,
Congressman
Jim Saxton, Chairman of the Joint Economic Committee, this Continued
lending over many years sustained and subsidized a bankrupt Argentine
economic
policy, whose collapse is now all the more serious. The IMFs generous
subsidized bailouts lead to moral hazard problems, and enable shaky
governments
to pressure the IMF for even more funding or risk disaster.
2002 Ron Paul 3:6
Argentina is just the latest
example of
the folly of IMF policies. Only three years ago the world economy was
rocked by
an IMF-created disaster in Asia. The IMF regularly puts taxpayers on
the hook
for the mistakes of the big banks. Oftentimes, Mr. Chairman, IMF funds
end up in
the hands of corrupt dictators who use the taxpayer-provided largesse
to prop up
their regimes by rewarding their supporters and depriving their
opponents access
to capital.
2002 Ron Paul 3:7
Even if they are not corrupt,
most IMF
borrowers are governments of countries with little economic
productivity. Either
way, most recipient nations end up with huge debts that they cannot
service,
which only adds to their poverty and instability. IMF money ultimately
corrupts
those countries it purports to help, by keeping afloat reckless
political
institutions that destroy their own economies.
2002 Ron Paul 3:8
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.
2002 Ron Paul 3:9
In addition, Mr. Chairman, the
IMF
violates basic constitutional and moral principles. The federal
government has
no constitutional authority to fund international institutions such as
the IMF,
and it is simply immoral to take money form hard-working Americas to
support the
economic schemes of politically-powerful special interests and
third-world
dictators.
2002 Ron Paul 3:10
The only constituency for the
IMF are
the huge multinational banks and corporations. Big banks used IMF
funds-
taxpayer funds- to bail themselves out from billions in losses after
the Asian
financial crisis. Big corporations obtain lucrative contracts for a
wide variety
of construction projects funded with IMF loans. Its a familiar game in
Washington, with corporate
welfare
disguised as compassion for the poor.
2002 Ron Paul 3:11
Mr. Chairman, the damage
inflicted by
the IMF on Argentina is immense and inexcusable. This is yet further
proof that
the IMF was a bad idea from the very beginning- economically,
constitutionally,
and morally. However, perhaps some good can come out of this debacle if
it
causes Congress to at last rethink Americas foolish participation in
the IMF.
This is why I will soon be introducing legislation to withdraw America
from the
IMF. I hope my colleagues will join me in working to protect the
American
taxpayer from underwriting the destruction of countries like Argentina,
by
working with me to end Americas support for the IMF.
2002 Ron Paul Chapter 4
http://www.house.gov/paul/congrec/congrec2002/cr020702.htm
Congressman Ron Paul
U.S. House of Representatives
February 7, 2002
Economic Concerns
Mr. Speaker:
2002 Ron Paul 4:1
Dealing with the slumping
economy will
prove every bit as challenging to Congress as fighting terrorism.
2002 Ron Paul 4:2
No one challenges the need to
protect
American citizens from further terrorist attacks, but there is much
debate
throughout the country as to how it should be done and whether personal
liberty
here at home must be sacrificed. Many are convinced that our efforts
overseas
might escalate the crisis and actually precipitate more violence. A
growing
number of Americans are becoming concerned that our efforts to preserve
our
freedoms and security will result in the unnecessary sacrifice of that
which
weve pledge to protect- our constitutionally protected liberty.
2002 Ron Paul 4:3
A similar conflict also exists
once
government attempts to legislate an end to a recession. In the 1970s,
wage and
price controls were used to suppress price inflation and to help the
economy,
without realizing the futility of such a policy. Not only did it not
work, the
economy was greatly harmed. Legislation, per se, is not necessarily
harmful, but
if it reflects bad policy, it is. The policy of wage and price controls
makes
things worse and represents a serious violation of peoples rights.
2002 Ron Paul 4:4
Today, we hear from strong
advocates of
higher taxation, increased spending, higher budget deficits, tougher
regulations, bailouts and all kinds of subsidies and support programs
as tools
to restore economic growth. The Federal Reserve recognized early on the
severity
of the problems and, over the past year, lowered short-term interest
rates an
unprecedented 11 times, dropping the Fed funds rate from 6 1/2 % to 1
3/4 %. This has
not helped, and none of these other suggestions can solve the economic
problems
we face either. Some may temporarily help a part of the economy, but
the
solution to restoring growth lies not in more government but less. It
is
precisely too much government, and especially manipulation of credit by
the
Federal Reserve, that precipitated the economic downturn in the first
place.
Increasing that which caused the recession cant possibly, at the same
time, be
the solution.
2002 Ron Paul 4:5
The magnitude of the
distortions of the
1990s brought on by artificially low interest rates orchestrated by the
Fed, on
top of 30 years of operating with a fiat currency worldwide, suggests
that this
slowdown will not abort quickly.
2002 Ron Paul 4:6
The Japanese economy has been
in a
slump for over 10 years and shows no signs of recovery. The world
economies are
more integrated than ever before. When they are growing, it is a
benefit to all,
but in a contraction, globalism based on fiat money and international
government
assures that most economies will be dragged down together. Evidence is
abundant
that most countries of the world are feeling the pressure of a
weakening
economy.
2002 Ron Paul 4:7
Many of our political and
economic
leaders have been preaching that more consumer spending can revitalize
the
economy. This admonition, of course, fails to address the reality of a
record-high $7.5 trillion-and rising consumer debt. Today, a party-
tomorrow an economic hangover has essentially been our philosophy for
decades. But theres always a limit to deficit spending, whether its
private or
governmental, and the short-term benefits must always be paid for in
one form or
another later on.
2002 Ron Paul 4:8
Those who felt and acted
wealthy in
holding the dot-com and Enron stocks were brought back to earth with a
shattering correction. Theres a lot more of this type of correction
yet to come
in the financial sector.
2002 Ron Paul 4:9
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 todays 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.
2002 Ron Paul 4:10
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%.
2002 Ron Paul 4:11
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.
2002 Ron Paul 4:12
The Fed cant control these
rates, and
they cant control where the new credit they create goes. This means
that
resorting to, or trusting in, the Fed to bail out the economy and
accommodate
congressional spending is foolhardy and dangerous. This policy has led
to a
record default for U.S. corporate bonds. Worldwide, $110 billion of
bonds were
defaulted on last year.
2002 Ron Paul 4:13
Monetary inflation is the
chief cause
of recessions. Therefore, we must never expect that this same policy
will
reverse the economic dislocations it has caused.
2002 Ron Paul 4:14
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.
2002 Ron Paul 4:15
There are other policies that
will
assist in a recovery that the Congress could implement. All taxes ought
to be
lowered, government spending should be reduced, controls on labor costs
should
be removed, and onerous regulations should be reduced or eliminated.
2002 Ron Paul 4:16
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.
2002 Ron Paul 4:17
Transferring wealth to achieve
a
modicum of economic equality and assuming the role of world policeman,
while
ignoring economic laws regarding money and credit, must lead to
economic
distortions and a lower standard of living for most citizens. In the
process,
dependency on the government develops and Congress attempts to solve
all the
problems with a much more visible hand than Adam Smith recommended. The
police
efforts overseas and the effort to solve the social and economic
problems here
at home cannot be carried out without undermining the freedoms that we
all
profess to care about.
2002 Ron Paul 4:18
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.
2002 Ron Paul 4:19
Since rejecting the current
system and
endorsing economic freedom diminishes the power and influence of
politicians,
its difficult to get political support for such a program. The
necessary
changes will only come when the American people wake up to the reality
and
insist that the Congress pursues only those goals permitted under the
Constitution.
2002 Ron Paul 4:20
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.
2002 Ron Paul 4:21
The reason for this is that
the
conventional wisdom of the wests political and economic leaders is
that theres
a third way that is best, or an alternative to the extremes of too much
freedom-
laissez faire capitalism- and too little freedom- authoritarianism,
socialism or
communism.
2002 Ron Paul 4:22
But this is a myth. One can
only
justify intervention in the market on principle or argue against it.
Theres
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.
2002 Ron Paul 4:23
Here in the United States we
have seen
the process at work for several decades with steady growth in the size
and scope
of the federal bureaucracy and the corresponding reduction in our
personal
freedoms. This principle also applies to overseas intervention. One
episode of
meddling in the affairs of other nations leads to several new problems
requiring
even more of our attention and funding.
2002 Ron Paul 4:24
This system leads to a huge
bureaucratic government, manipulated by politicians, and generates an
army of
special interests that flood the system with money and demands. To
achieve and
maintain political power in Washington, these powerful special
interests must be
satisfied.
2002 Ron Paul 4:25
This is a well-known problem
and
prompts some serious-minded and well-intentioned Members to want to
legislate
campaign finance reforms. But the reforms proposed would actually make
the whole
mess worse. They would regulate access to the members of Congress, and
dictate
how private money is spent in campaigns. This merely curtails liberty,
while
ignoring the real problem- a government that ignores the Constitution
naturally
passes out largesse. Even under todays conditions, where money talks
in
Washington, if enough members would refuse either to accept or be
influenced by
the special interests, government favors would no longer be up for
sale. Since
politicians are far from perfect, the solution is having a government
of limited
size acting strictly within the framework of the Constitution. No
matter how
strictly campaign finance laws are written, they will do only harm if
the rule
of law is not restored and if Congress refuses to stop being
manipulated by the
special interests.
2002 Ron Paul 4:26
Most people recognize the
horrible mess
that Washington is and how campaign money and lobbyists influence the
system.
But the reforms proposed only deal with the symptoms and not the root
cause.
There is sharp disagreement in what to do about it, but no one denies
the
existence of the problem. It=s just hard for most to acknowledge that
the
welfare state is out of control and shouldnt be in existence anyway.
Therefore,
they misdirect our attention toward campaign-finance reform rather than
deal
with the real problem.
2002 Ron Paul 4:27
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. Its happened many times already, and
almost
everyone believes that in a few months our economy and stock market
will be
roaring once again.
2002 Ron Paul 4:28
This is where I disagree.
2002 Ron Paul 4:29
Every recession in the last 30
years,
since the dollar became a purely fiat currency, has ended after a
significant
correction and resumption of all the bad policies that caused the
recession in
the first place. Each rebound required more spending, debt and easy
credit than
the previous recovery did. And with each cycle, the government got
bigger and
more intrusive.
2002 Ron Paul 4:30
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. Its
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.
2002 Ron Paul 4:31
However, support for todays
policies
is built on the fallacy that material wealth and general prosperity are
best
achieved with this third way- interventionism- while avoiding the
dangers of
communism and socialism. This is coupled with the firm conviction that
the
sacrifice of freedom will be minimal and limited and that the very rich
can be
adequately taxed and regulated to help the poor.
2002 Ron Paul 4:32
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.
2002 Ron Paul 4:33
An economy that depends on
ever-increasing rates of monetary inflation will appear much healthier
and the
people much richer than is the actual case. Owners of the dot-com
companies or
Enron stocks know what its like to feel rich one day and very poor the
next.
This is not a unique experience but one that should be expected and is
predictable.
2002 Ron Paul 4:34
Countries that inflate their
currencies
must adjust their values periodically with sudden devaluations, which
destroy
the pseudo-wealth of the middle class and poor. The wealthy, more often
than
not, can protect themselves from the sudden shocks to the monetary
system.
However, they cant protect from the insidious loss of liberty that
accompanies
these adjustments, and eventually everyone suffers.
2002 Ron Paul 4:35
Our dollar system is quite
similar to
the Argentine and Mexican peso systems that periodically make sudden
and painful
adjustments. But ours is different in one respect, because the dollar
is
accepted as the reserve currency of the world- the paper gold of the
world
financial system. This gives us license to inflate- that is, steal- for
longer
periods of time, and we can avoid sudden and sharp devaluations since
the
worlds currencies are defined by our dollar. But this doesnt
permit the ultimate devaluation that will bring a significant increase
in the
cost of living to all Americans, but hurt the poor and the middle class
the
most.
2002 Ron Paul 4:36
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, were 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.
2002 Ron Paul 4:37
Ideas regarding the national
debt have
been transformed. Presidents Jefferson and Jackson despised government
debt and
warned against it. Likewise, both detested central banking, which they
knew
inevitably, would be used to liquidate the real debt through the
mischievous
process of monetary debasement.
2002 Ron Paul 4:38
Today, few decry the debt,
except for
the purpose of political demagoguery when convenient. The concern about
deficits
expressed by liberal big spenders does not merit credibility, but even
conservative spenders now are less likely to decry deficits and some
actually
praise them.
2002 Ron Paul 4:39
Just recently, the
conservative
Institute for Policy Innovation (IPI) announced in a national press
release:
National debt can lead to a growing economy, claiming government
borrowing, produces steady long-term growth, greater security, and a
higher standard of living.
2002 Ron Paul 4:40
This wouldnt be so bad if it
came from
a typically Keynesian think tank. But this is the growing conventional
wisdom of
many conservatives whose goal is to generate government revenues,
painlessly of
course, not to drastically shrink the size of government and restore
personal
liberty.
2002 Ron Paul 4:41
What they fail to recognize,
once they
lose interest in shrinking the size of government, is that government
borrowing
always takes money from productive enterprises, while placing these
funds in the
hands of politicians whose prime job is to serve special interests.
Deficits are
a political expedience that also forces the Federal Reserve to inflate
the
currency while reducing in real terms the debt owed by the government
by
depreciating the value of the currency.
2002 Ron Paul 4:42
Those who would belittle the
critics of
the deficit and national debt are merely supporting a system of big
government,
whether its welfare or warfare, or both.
2002 Ron Paul 4:43
Debt, per se, is not the only
issue.
Its also because debt always encourages the growth in the size of
government.
Allowing it to be seductively financed through inflation or borrowing
is what
makes it so bad. Just because its less painful at first and payment is
delayed,
we should not be tempted to endorse this process.
2002 Ron Paul 4:44
If liberty is our goal and
minimal
government a benefit to a sound economy, we must always reject debt and
deficits
as a legitimate tool for improving the economy and the welfare of the
greatest
number of people. The principle of authoritarian government is endorsed
whenever
deficits are legitimatised. All those who love liberty must reject the
notion
that deficits and debt perform a useful function.
2002 Ron Paul 4:45
Its 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.
2002 Ron Paul 4:46
Since were moving toward the
big
correction, were going to see a lot more wealth removed from our
balance sheets
and our retirement accounts. The rampant price inflation that results
will erode
the purchasing power of all fixed-income retirement funds like Social
Security
and mean a lower standard living for most people. The routine
government
response of increasing benefits for living expenses and medical care
will never
keep up with the needs or demands. Eventually we will have to give up,
and a new
economic system will have to be devised, as occurred in the Soviet
system after
1989.
2002 Ron Paul 4:47
Wealth- the product of labor,
investment and savings- can never be substituted by government spending
or by a
central bank that creates new money out of thin air. Governments can
only give
things they first take away from someone else. Printing money only
diminishes
the value of each monetary unit. Neither can create wealth; both can
destroy it.
2002 Ron Paul 4:48
The dilemma is that early on,
and
sometimes for many years as we have experienced, transferring wealth
and
printing money seem to help more than it hurts. Thats because the
wealth is not
real, and the trust funds, like Social Security hold no actual wealth.
A pension
fund with dot-com and Enron stock held no wealth either. Unfortunately,
the
stocks and bonds remaining are worth a lot less than most people
realize.
2002 Ron Paul 4:49
The Social Security system
depends on
the value of the dollar and on future taxation. The Fed can create
unlimited
amounts of money that Congress needs, and Congress can raise taxes as
it wants.
But this policy guarantees that the dollar cannot maintain its
purchasing power
and that there wont be enough young people to tax in the future.
Increasing
benefits under these circumstances can only be done at the expense of
the
dollar. Catching up with the current system of money and transfer
payments is
equivalent to a person on a treadmill who expects to get to the next
town. It
tragically doesnt work.
2002 Ron Paul 4:50
The economic loss is bad
enough, but
whether its fighting the war on terrorism, acting as the worlds
policeman, or
solving the problems of vanishing wealth, the real insult will come
from the
freedoms we lose. These freedoms, vital to production and wealth
formation, are
necessary and represent what the American dream is all about. They are
what made
us the richest nation in all of history, but this we will lose if
Congress is
not careful with what it does in the coming months.
2002 Ron Paul 4:51
The Dangers We Face
2002 Ron Paul 4:52
Mr. Speaker, if nothing else,
the
knowledge that we are now vulnerable from outside attack is shared by
all
Americans. The danger is clear and present and everyone wants something
done
about it.
2002 Ron Paul 4:53
There is, however, no
unanimity as to
the cause of the attacks, who is responsible, and what exactly has to
be done.
The President has been given congressional authority to use force
against
those responsible for the recent attacks launched against the United
States. A large majority of Americans are quite satisfied that his
efforts
have been carried out with due diligence.
2002 Ron Paul 4:54
But a growing number of
Americans are
becoming aware that anti-terrorist efforts, both at home and abroad,
will have
unintended consequences that few anticipated and that, in time, will
not be
beneficial to U.S. security and will undermine our liberties here at
home.
2002 Ron Paul 4:55
Let me name a few potential
dangers we
face.
2002 Ron Paul 4:56
1. Theres a danger that the
definition
of terrorism will become so vague and broad that almost any act
internationally
or domestically will qualify. If our response in Afghanistan becomes
the
standard for all countries in their retaliation, negotiated settlements
of
conflicts will become a thing of the past. Acts of terror occur on a
regular
basis around the world, whether involving Northern Ireland and Britain,
India
and Pakistan, the Palestinians and Israel, Turkey and Greece, or many
other
places. Traditionally, the United States has always urged restraint and
negotiations. This approach may end if our response in Afghanistan sets
the
standard.
2002 Ron Paul 4:57
2. Another danger is that the
administration may take it upon itself to broadly and incorrectly
interpret
House Joint Resolution 64- the resolution granting authority to the
President to
use force to retaliate against only those responsible for the recent
attacks launched against the United States. Congress did not authorize
force against all terrorist attacks throughout the world if the
individuals
involved were not directly involved in the 9-11 attacks. It would be
incorrect
and dangerous to use this authority to suppress uprisings throughout
the world.
This authority cannot be used to initiate an all-out attack on Iraq or
any other
nation we might find displeasing but that did not participate in the
9-11
attacks.
2002 Ron Paul 4:58
3. An imprecise definition of
who is or
who is not a terrorist may be used to justify our massively expanding
military
might throughout the world. For every accused terrorist, there will be
a
declared freedom fighter. To always know the difference is more than
one can expect. Our record in the past 50 years for choosing the right
side in
the many conflicts in which we have been involved is poor, to say the
least.
Many times, there is no right side, from the viewpoint of American
security, and our unnecessary entanglements have turned out to be the
greater
threat to our security.
2002 Ron Paul 4:59
4. Theres risk that our
massive
deployment of troops in the many countries of the world may contribute
to a
greater conflict. We are today in the middle of a dangerous situation
between
Pakistan and India over Kashmir, both of whom possess nuclear weapons
and both
of whom we generally finance. Exposing ourselves to such risk, while
spending
endless sums supporting both sides, makes no sense.
2002 Ron Paul 4:60
5. Our pervasive military
presence may
well encourage alliances that would have been unheard of a few years
ago. Now
that weve committed ourselves internationally to destroying
Afghanistan and
rebuilding it, with a promise that well be there for a long time,
might
encourage closer military alliances between Russia and China, and even
others
like Pakistan, Iran and Iraq, and even Saudi Arabia- countries all
nervous about
our military permanency in this region. Control of Caspian Sea oil is
not a
forgotten item for these countries, and it will not be gracefully
conceded to
U.S. oil interests. If these alliances develop, even U.S. control of
Persian
Gulf oil could be challenged as well.
2002 Ron Paul 4:61
6. Limits exist on how
extensive our
foreign commitments should be. We have our military limits. Its
difficult to be
everyplace at one time, especially if significant hostilities break out
in more
than one place. For instance, if we were to commit massive troops to
the
overthrow of Saddam Hussein, and Iran were to decide to help Iraq, and
at the
same time the North Koreans were to decide to make a move, our capacity
to wage
war in both places would be limited. Already were short of bombs from
the
current Afghanistan war. We had to quit flying sorties over our own
cities due
to cost, while depending on NATO planes to provide us AWACs cover over
U.S.
territory. In addition, our financial resources are not unlimited, and
any
significant change in the value of the dollar, as well as our rapidly
growing
deficits, could play a significant role in our ability to pay our bills.
2002 Ron Paul 4:62
7. In the area of personal
liberty, we
face some real dangers. Throughout our history, starting with the Civil
War, our
liberties have been curtailed and the Constitution has been flaunted.
Although
our government continued to grow with each crisis, many of the
liberties
curtailed during wartime were restored. War was precise and declared,
and when
the war was over, there was a desire to return to normalcy. With the
current war
on terrorism, there is no end in sight and there is no precise enemy,
and weve
been forewarned that this fight will go on for a long time. This means
that a
return to normalcy after the sacrifices we are making with our freedoms
is not
likely. The implementation of a national ID card, pervasive
surveillance,
easy-to-get search warrants, and loss of financial and medical privacy
will be
permanent. If this trend continues, the Constitution will become a much
weaker
document.
2002 Ron Paul 4:63
8. A danger exists that the
United
States is becoming a police state. Just a few decades ago, this would
have been
unimaginable. As originally designed, in the American republic, police
powers
were the prerogative of the states and the military was not to be
involved.
Unfortunately today, most Americans welcome the use of military troops
to police
our public places, especially the airports. Even before 9-11, more than
80,000
armed federal bureaucrats patrolled the countryside, checking for
violations of
federal laws and regulations. That number since 9-11 has increased by
nearly
50%- and it will not soon shrink. A military takeover of homeland
security looks
certain. Can freedom and prosperity survive if the police state
continues to
expand? I doubt it. It never has before in all of history, and this is
a threat
the Congress should not ignore.
2002 Ron Paul 4:64
9. There is a danger that
personal
privacy will be a thing of the past. Even before 9-11, there were
attacks on the
privacy of all Americans- for good reasons, or so it was argued. The
attacks
included plans for national ID cards, a national medical data bank, and
Know Your Customer type banking regulations. The need for
enforcement powers for the DEA and the IRS routinely prompted laws that
violated
the Fourth amendment. The current crisis has emboldened those who
already were
anxious to impose restrictions on the American people. With drug and
tax laws,
and now with anti-terrorist legislation sailing through Congress, true
privacy
enjoyed by a free people is fast becoming something that we will only
read about
in our textbooks. Reversing this trend will not be easy.
2002 Ron Paul 4:65
10. Flying commercial airlines
will
continue to be a hassle and dangerous. Even travel by other means will
require
close scrutiny by all levels of government in the name of providing
security.
Unfortunately, the restrictions and rules on travel on all American
citizens
will do little, if anything, to prevent another terrorist attack.
2002 Ron Paul 4:66
11. The economic ramifications
of our
war on terrorism are difficult to ascertain but could be quite
significant.
Although the recession was obviously not caused by the attacks, the
additional
money spent and the effect of all the new regulations cannot help the
recovery.
When one adds up the domestic costs, the military costs and the costs
of new
regulations, we can be certain that deficits are going to grow
significantly,
and the Federal Reserve will be further pressured to pursue a dangerous
monetary
inflation. This policy will result in higher rather than lower interest
rates, a
weak dollar and certainly rising prices. The danger of our economy
spinning out
of control should not be lightly dismissed.
2002 Ron Paul 4:67
12. In this crisis, as in all
crises,
the special interests are motivated to increase their demands. Its a
convenient
excuse to push for the benefits they were already looking for.
Domestically,
this includes everyone from the airlines to the unions, insurance
companies,
travel agents, state and local governments, and anyone who can justify
a related
need. Its difficult for the military-industrial complex to hide their
glee with
their new contracts for weapons and related technology. Instead of the
events
precipitating a patriotic fervor for liberty, we see enthusiasm for big
government, more spending, more dependency, greater deficits and
military
confrontations that are unrelated to the problems of terrorism. We are
supposed
to be fighting terrorism to protect our freedoms, but if we are not
careful, we
will lose our freedoms and precipitate more terrorist attacks.
2002 Ron Paul 4:68
13. Understandably, not much
empathy is
being expressed for members of the Taliban that we now hold as
prisoners. The
antipathy is easily understood. Its not only that as a nation we
should set a
good example under the rules of the Geneva Convention, but if we treat
the
Taliban prisoners inhumanly, there is the danger it will surely be used
as an
excuse to treat U.S. prisoners in the same manner in the future. This
certainly
is true when we use torture to extract information, which is now being
advised.
Not only does that reflect on our own society as a free nation, but
torture
notoriously rarely generates reliable information. This danger should
not be
ignored. Besides, we have nothing to gain by mistreating prisoners who
may have
no knowledge of the 9-11 attacks. The idea that those captured are
terrorists responsible for the 9-11 attacks begs the obvious
question.
2002 Ron Paul 4:69
Optimism or Pessimism?
2002 Ron Paul 4:70
Many realists who see the
world as it
really is and who recognize the dilemma we face in the United States to
preserve
our freedoms in this time of crisis are despondent and pessimistic,
believing
little can be done to reverse the tide against liberty. Others who
share the
same concern are confident that efforts to preserve the true spirit of
the
Constitution can be successful. Maybe next month or next year or at
some later
date, Im convinced that, in time, the love for liberty can be
rejuvenated. Once
its recognized that government has no guarantee of future success,
promoting
dependency and security can quickly lose it allure.
2002 Ron Paul 4:71
The Roman poet, Horace, two
thousand
years ago spoke of adversity: Adversity has the effect of eliciting
talents which in times of prosperity would have lain dormant. Since I
believe we will be a lot less prosperous in the not-too-distant future,
we will
have plenty of opportunity to elicit the talents of many Americans.
2002 Ron Paul 4:72
Leonard Read, one of the
greatest
champions of liberty in the 20
th
Century, advised optimism:
2002 Ron Paul 4:73
In every society there are persons who have the
intelligence to figure out the requirements of liberty and the
character to walk
in its ways. This is a scattered fellowship of individuals-
mostly unknown
to you or me- bound together by a love of ideas and a hunger to know
the plain
truth of things.
He was convinced that this
remnant
would rise to the occasion and do the necessary things to restore
virtue and
excellence to a people who had lost their way. Liberty would prevail.
2002 Ron Paul 4:74
Let us be convinced that there
is not
enough hate or anger to silence the cries for liberty or to extinguish
the flame
of justice and truth
.
2002 Ron Paul 4:75
We must have faith that those
who now
are apathetic, anxious for security at all costs, forgetful of the true
spirit
of American liberty, and neglectful of the Constitution, will
rise to the
task and respond accordingly.
2002 Ron Paul Chapter 5
http://www.house.gov/paul/congrec/congrec2002/cr021302.htm
Congressman Ron Paul
U.S. House of Representatives
February 13, 2002
So-Called Campaign Finance Reform is Unconstitutional
2002 Ron Paul 5:1
Mr. PAUL. Mr. Speaker, the Enron bankruptcy and the subsequent revelations
regarding Enrons political influence have once again brought campaign
finance
to the forefront of the congressional agenda. Ironically, many of the
strongest
proponents of campaign finance reform are among those who receive the
largest
donations from special interests seeking state favors. In fact, some
legislators
who where involved in the government-created savings and loan scandal
of the
late eighties and early nineties today pose as born again advocates of
good government via campaign finance reform!
2002 Ron Paul 5:2
Mr. Speaker, this so-called reform legislation is clearly unconstitutional. Many have pointed out that the First amendment
unquestionably
grants individuals and businesses the free and unfettered right to
advertise,
lobby, and contribute to politicians as they choose. Campaign reform
legislation
blows a huge hole in these First amendment protections by criminalizing
criticism of elected officials. Thus, passage of this bill will import
into
American law the totalitarian concept that government officials should
be able
to use their power to silence their critics.
2002 Ron Paul 5:3
The case against this provision was best stated by Herb Titus, one of
Americas leading constitutional scholars, in his paper
Campaign-Finance
Reform: A Constitutional Analysis
: At the heart of the guarantee
of
the freedom of speech is the prohibition against any law designed to
protect the
reputation of the government to the end that the people have confidence
in their
current governors. As seditious libel laws protecting the reputation of
the
government unconstitutionally abridge the freedom of speech, so also do
campaign-finance reform laws.
2002 Ron Paul 5:4
The damage this bill does to the First amendment is certainly a sufficient
reason to oppose it. However, as Professor Titus demonstrates in his
analysis of
the bill, the most important reason to oppose this bill is that the
Constitution
does not grant Congress the power to regulate campaigns. In fact,
article II
expressly authorizes the regulation of elections, so the omission of
campaigns
is glaring.
2002 Ron Paul 5:5
This legislation thus represents an attempt by Congress to fix a problem
created by excessive government intervention in the economy with
another
infringement on the peoples constitutional liberties. The real problem
is not
that government lacks power to control campaign financing, but that the
federal
government has excessive power over our economy and lives.
2002 Ron Paul 5:6
It is the power of the welfare-regulatory state which creates a tremendous
incentive to protect ones own interests by investing in
politicians. Since the problem is not a lack of federal laws, or rules
regulating campaign spending, more laws wont help. We hardly suffer
from too
much freedom. Any effort to solve the campaign finance problem with
more laws
will only make things worse by further undermining the principles of
liberty and
private property ownership.
2002 Ron Paul 5:7
Attempts to address the problems of special interest influence through new
unconstitutional rules and regulations address only the symptoms while
ignoring
the root cause of the problem. Tough enforcement of spending rules will
merely
drive the influence underground, since the stakes are too high and much
is to be
gained by exerting influence over government- legally or not. The more
open and
legal campaign expenditures are, the easier it is for voters to know
whos
buying influence from whom.
2002 Ron Paul 5:8
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 thats 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.
2002 Ron Paul 5:9
Many reformers recognize this, and either like the system or believe that
its futile to bring about changes. They argue that curtailing
influence is the
only option left, even if it involves compromising freedom of political
speech
by regulating political money.
2002 Ron Paul 5:10
Its naive to believe stricter rules will make a difference. If members of
Congress resisted the temptation to support unconstitutional
legislation to
benefit special interests, this whole discussion would be unnecessary.
Because
members do yield to the pressure, the reformers believe that more rules
regulating political speech will solve the problem.
2002 Ron Paul 5:11
The reformers argue that its only the fault of those trying to influence
government and not the fault of the members of Congress who yield to
the
pressure, or the system that generates the abuse. This allows members
to avoid
assuming responsibility for their own acts, and instead places the
blame on
those who exert pressure on Congress through the political process-
which is a
basic right bestowed on all Americans. The reformers argument is Stop
us
before we succumb to the special interest groups.
2002 Ron Paul 5:12
Politicians unable to accept this responsibility clamor for a system that
diminishes the need for them to persuade individuals and groups to
donate money
to their campaigns. Instead of persuasion, they endorse coercing
taxpayers to
finance campaigns.
2002 Ron Paul 5:13
This only changes the special interest groups that control government policy.
Instead of voluntary groups making their own decisions with their own
money,
politicians and bureaucrats dictate how political campaigns will be
financed.
Not only will politicians and bureaucrats gain influence over
elections, other
nondeserving people will benefit. Clearly, incumbents will greatly
benefit by
more controls over campaign spending- a benefit to which the reformers
will
never admit.
2002 Ron Paul 5:14
Mr. Speaker, the freedoms of the American people should not be restricted
because some politicians cannot control themselves. We need to get
money out of
government. Only then will money not be important in politics. Campaign
finance
laws, such as those before us today, will not make politicians more
ethical, but
they will make it harder for average Americans to influence Washington.
2002 Ron Paul 5:15
The case against this bill was eloquently made by Herb Titus in the paper
referenced above:
ACampaign-finance
reform is truly a wolf in sheeps clothing. Promising reform, it hides
incumbent
perquisites. Promising competition, it favors monopoly. Promising
integrity, it
fosters corruption. Real campaign-finance reform calls for a return to
Americas
original constitutional principles of limited and decentralized
governmental
power, thereby preserving the power of the people.
2002 Ron Paul 5:16
I urge my colleagues to listen to Professor Titus and reject this unconstitutional proposal. Instead, I hope my colleagues will work to
reduce
special interest influence in Washington and restore integrity to
politics by
reducing the federal government to its constitutional limits. I
would like
to take this opportunity to introduce the excellent article by Mr.
Titus into
the record:
2002 Ron Paul 5:17
2002 Ron Paul 5:18
Campaign-Finance Reform
A Constitutional Analysis
2002 Ron Paul 5:19
by Herbert W. Titus
2002 Ron Paul 5:20
-
Introduction
-
Congress Has No Constitutional Authority to Pass Any Campaign-Finance
2002 Ron Paul 5:21
Reform Legislation
-
Campaign-Finance Reform Violates Separation of Powers and Federalism
2002 Ron Paul 5:22
-
Campaign-Finance Reform Abridges the Freedom of Speech and the Press
-
Campaign-Finance Reform Abridges the Right of the People to Assemble
2002 Ron Paul 5:23
-
Conclusion
2002 Ron Paul 5:24
I. Introduction
2002 Ron Paul 5:25
To date, the legislative debate over campaign-finance reform has focused upon the First Amendment guarantee of freedom of speech, as
interpreted and applied by the courts. The constitutional issues,
however, are not limited to the First Amendment, neither are they
resolved by citation to
Buckley v. Valeo,
424 U.S. 1 (1976)
nor by the latest Supreme Court opinion, including the one handed down
on June 25, 2001 in
FEC v
.
Colorado Republican Federal
Campaign Committee
. To the contrary, pursuant to their oaths of
office, members of Congress have an independent duty to determine the
constitutionality of legislation before them and to decide, before ever
reaching the First Amendment, whether they have been vested by the
Constitution with
any
authority, at all, to regulate federal
election campaigns.
2002 Ron Paul 5:26
The original Constitution did not contain the Bill of Rights, including the First Amendment. Writing in
Federalist No. 84,
Alexander
Hamilton defended this omission, claiming that a bill of rights was not
needed in a republic with a written constitution expressly enumerating
the powers of government. Indeed, Hamilton observed a bill of rights
attached to such a constitution might well prove dangerous because
placing express limits upon the exercise of a power might give rise to
the assumption that such a power had been previously granted.
2002 Ron Paul 5:27
Hamilton’s warning has proved prophetic in the case of campaign-finance reform. As the debate swirls around the impact of such
reform measures on the freedom of speech and association, the question
whether Congress has the constitutional authority to regulate federal
election campaigns is being ignored. Yet, that question would have been
hotly debated and quickly answered in America’s founding era in light
of the constitutional text carefully circumscribing Congress’s
authority in relation to federal elections. (See Article I, Section 4,
Clause 1 and Article II, Section 1, Clause 4;
Federalist No. 60
and
Federalist No. 68,
I Story’s Commentaries on the
Constitution
,
Sections 814-826 and
II Story’s
Commentaries
, Sections 1453-75, 5th ed. 1891.)
2002 Ron Paul 5:28
Additionally, the issue of constitutional authority would have been examined, in the first instance, by Congress and the president
without their being bound by previous court opinions. It had already
been well established that each representative, each senator, and the
president and his cabinet had a constitutional duty, independent of the
judiciary, to determine the constitutionality of legislation before
them. As President Andrew Jackson observed, in his 1832 veto message
rejecting a bill extending the charter of the Bank of the United States:
2002 Ron Paul 5:29
It is maintained by the advocates of the bank that its constitutionality in all its features ought to be considered as settled
by precedent and by the decision of the Supreme Court. To this
conclusion I cannot assent. Mere precedent is a dangerous source of
authority...[and] the opinion of the Supreme Court...ought not to
control the coordinate authorities of this Government. The Congress,
the Executive, and the Court must each for itself be guided by its own
opinion of the Constitution. Each public officer who takes an oath to
support the Constitution swears that he will support it as he
understands it, and not as it is understood by others. It is as much
the duty of the House of Representatives, of the Senate, and of the
President to decide upon the constitutionality of any bill...presented
to them for passage...as it is of the supreme judges when it may be
brought before them for judicial decision.
2002 Ron Paul 5:30
It is in light of these principles, then, that the issue of constitutional authority to enact any campaign-finance reform bill is
addressed in sections II and III below, before reaching the First
Amendment issues raised by particular campaign-finance measures in
sections IV and V.
Furthermore, those issues are examined in
light of the constitutional duty of Congress to decide for itself
whether it has the constitutional authority to enact campaign-finance
reform legislation and whether any such legislation violates the First
Amendment, regardless of the opinion of the United States Supreme Court
in
Buckley v. Valeo,
424 U.S. 1 (1976) and its progeny,
including the high court’s most recent pronouncement on June 25, 2001.
2002 Ron Paul 5:31
II.Congress Has No Constitutional Authority to Pass Any Campaign-Finance Reform Legislation
2002 Ron Paul 5:32
According to Article I, Section 1 of the United States Constitution, Congress is a legislature of enumerated powers, having
only those powers herein granted. As a legislature of enumerated
powers, Congress may enact laws only for constitutionally authorized
purposes. (
McCulloch v. Maryland,
17 U.S., 4 Wheat. 316, 1819)
(Let the end be legitimate, and all means which are appropriate, which
are plainly adapted to that end which are not prohibited, are
constitutional.) The stated purpose of all campaign-finance reform
legislation, like the Federal Election Campaign Act that it amends, is
to reform the financing of campaigns for election to Federal office,
thereby preventing the corruption and the appearance of corruption in
government and equaliz[ing] the relative ability of all citizens to
affect the outcomes of elections. (
Buckley v. Valeo,
424 U.S.
1, 25-26, 1976) Congress has been granted no such power.
2002 Ron Paul 5:33
The threshold question concerning any campaign-finance reform bill is whether the Constitution has conferred upon Congress any authority
to regulate federal election
campaigns
. Such authority is not
found among any enumerated power conferred upon Congress. Therefore,
Congress may not justify any campaign-finance reform measure on the
grounds that its purpose is to reform the financing of campaigns for
federal office. Thus, campaign-finance reform laws may be
constitutionally justified only if enacted as a means to achieve some
other purpose that is constitutionally authorized. (
McCulloch v.
Maryland,
17 U.S., 4 Wheat. 316, 1819)
2002 Ron Paul 5:34
The Federal Election Campaign Act of 1971, as amended in 1974, presumed that the Constitution authorized Congress to regulate federal
election campaigns for the purposes of the prevention of corruption
and the appearance of corruption in government and of the equalization
of the relative ability of all citizens to affect the outcome of
elections. (
Buckley v. Valeo,
424 U.S. 1, 25-26, 1976)
According to the proponents of campaign-finance reform, both then and
now, Congress has power to regulate federal election campaigns because
it has the general power to regulate federal elections....
(
Id.,
424 U.S. at 13-14) A careful examination of the Constitution, as
it is written, uncovers no such broad power, but only a carefully
circumscribed one.
2002 Ron Paul 5:35
As for congressional elections, Article I, Section 4 limits Congress to the making of regulations prescribing the times, places
and manner of holding elections for senators and representatives. As
for the election of the president and vice president Article II,
Section 1 limits Congress only to determin[ing] the
time
of
choosing the [presidential] electors, and the day on which they shall
give their votes; which
day
shall be the same throughout the
United States. (Emphasis added.) As for the place and manner of the
selection of the presidential electors, and hence the president and
vice president of the United States, the Twelfth Amendment to the
Constitution determines the
place
and, according to Article II,
Section 1, the state legislatures choose the
manner
by which
the electors are chosen. (
Bush v. Gore
, 531 U.S. --, 148 L.Ed.2d
388, 2000)
2002 Ron Paul 5:36
Given these express restrictions upon congressional power over federal elections, it was not until the 1930s that Congress, with court
approval, began to assume broad powers over federal elections,
including the regulation of campaigns for the office of the president. (
Burroughs
v. United States,
290 U.S. 534, 1934) At the time of America’s
founding, and extending for a period of nearly 135 years, such was not
the case.
2002 Ron Paul 5:37
As for congressional elections, Alexander Hamilton observed, in
Federalist No. 60,
that congressional authority was expressly
restricted
to the regulation of the
times,
the
places
, the
manner
of elections, and did not, for example, extend to the qualifications
of voters. Likewise, Joseph Story noted that congressional authority
over federal elections was explicitly confined to regulations
concerning the mechanics and integrity of the election process itself,
and did not extend to the integrity of government generally or the
relative power of voters. (
I Story’s Commentaries on the Constitution
,
Section 826, 5th ed., 1891)
2002 Ron Paul 5:38
As for presidential elections, Hamilton noted that the detailed plan set forth in the original constitution was deliberately designed
to ensure that the president would not be elected according to rules
promulgated by Congress, lest the president be too dependent upon that
body. (
Federalist No. 68
) Likewise, Justice Story asserted that
both the original Constitution and the Twelfth Amendment immunized the
mode of election of the President and Vice-President from
congressional regulation, limiting congressional authority only to
setting the time of the election. (
II Story’s
Commentaries
,
Sections 1453-75, 5th ed., 1891)
2002 Ron Paul 5:39
In 1892, a unanimous Supreme Court rehearsed the history and text governing the election of the president and vice president, concluding
that the
manner
of selection of presidential electors was
placed absolutely and wholly with the legislatures of the several
states and that this power and jurisdiction of the State was so
framed that congressional and Federal influence might be excluded. (
McPherson
v. Blacker,
146 U.S. 1, 34-36, 1892) (See also
Bush v. Gore
,
supra.) Because the Constitution grants to Congress no authority to
regulate the manner of the election of the president and vice
president, it follows that Congress has no authority over presidential
and vice presidential election campaigns.
2002 Ron Paul 5:40
As for congressional regulation of the campaigns of candidates for the United States House of Representatives and United States Senate,
four justices of the United States Supreme Court, in 1921, struck down
a federal law limiting contributions and expenditures in congressional
elections, observing:
2002 Ron Paul 5:41
We find no support in reason or authority for the argument that because the offices were created by the Constitution, Congress has some
indefinite, undefined power over elections for Senators and
Representatives not derived from [Article I] Section 4.
(
Newberry
v. United States
, 256 U.S. 232, 249, 1921)
2002 Ron Paul 5:42
From this constitutional premise, these justices ruled that the authority to regulate the manner of holding... [elections] gives
no
right to control things that are prerequisites to elections or [that]
may affect their outcomes - voters, education, means of transportation,
health,
public discussion
, immigration, private animosities,
even the face and figure of the candidate.... (
Id.,
256 U.S.
at 257 [emphasis added])
Therefore, they concluded that
Congress had authority only to regulate congressional elections to
protect voters from fraud {
Ex parte Siebold,
100 U.S. 371,
382-88 (1880)}, from intimidation {
Ex Parte Yarbrough,
110 U.S.
660-62 (1884)} and from other acts designed to protect the integrity of
the election process, as such. (
Newberry v. United States, supra,
256
U.S. at 255)
2002 Ron Paul 5:43
This was the original understanding, as set forth in the constitutional text and as stated by Hamilton and Story. Congressional
regulation of political campaigns, beginning in the 1930s, disregards
the founding principle of limited federal authority. Instead, such
regulation is based upon the assumption that Congress is a legislature
of plenary power, rather than enumerated powers as stated in Article I,
Section 1.
2002 Ron Paul 5:44
(See
Burroughs v. United States, supra,
290 U.S. at 545.) Such precedents as these should be rejected, lest Congress overstep the
limited authority granted to it by the sovereign people of the United
States.
2002 Ron Paul 5:45
III. Campaign-Finance Reform Violates Separation of Powers and Federalism
2002 Ron Paul 5:46
Under the Constitution, Congress has no role in the manner by which the president and vice president are selected. In order to ensure
the independence of the president from Congress, the electors of the
president and vice president are state officers, governed exclusively
by the Constitution and by state law. (See
Bush v. Gore
,
supra.) All current campaign-finance measures, such as the Federal
Campaign Act of 1971, as amended in 1974, subvert these separation of
powers and federalism principles by imposing a national uniform rule
governing the conduct of election campaigns for president and
vice-president. They also undermine the federalism principle
underpinning the limited role of Congress in the governance of
elections of representatives and senators.
2002 Ron Paul 5:47
According to Article II, Section 1, the state legislatures, not Congress, determine the manner of the election of presidential
electors who, in turn, are governed by the Twelfth Amendment as to the
manner of the election of the president and vice president of the
United States. The only constitutionally prescribed role for the Senate
in that election process is to serve as an objective observer of the
final count of votes cast by the presidential electors. The House also
is limited to the role of an objective observer, unless on final count
of the electors’ votes, no person achieves a majority of votes for
president. Then, and only then, may the House intervene in the manner
of electing a president, casting one vote per state until a candidate
achieves a majority. As for the vice president, both houses of Congress
are limited to serving as objective observers of the final tally of
votes, except that the Senate plays the same role as the House if no
candidate for vice president receives a majority.
2002 Ron Paul 5:48
This detailed scheme limiting the role of Congress in the manner of electing the president and the vice president of the United States
was deliberately chosen by America’s founders to insulate the federal
executive branch from the legislative branch in order to ensure
independence of the former from the latter. As Alexander Hamilton put
it in
Federalist No. 68,
the Constitution entrusts the
selection of the president and vice president not to any
preestablished body, but to men chosen by the people for the special
purpose.... The electoral college was designed, therefore, as a buffer
between the people and Congress to guard against the risk of corruption
of the presidency by congressional participation in the election
process.
2002 Ron Paul 5:49
Thus, the electoral college system was designed to prevent corruption and the appearance of corruption of the offices of the
president and the vice president. That system was set up in such a way
as to deny to Congress any authority over the manner of selecting those
two officers, leaving the selection process to be exclusively and
absolutely determined by the legislatures of the several states. This
delegation to the several state legislatures necessarily precludes
Congress from imposing any uniform rule governing the election of the
president and the vice president. (See
McPherson v. Blacker,
146
U.S. 1, 1892.) By continuing the regulation of presidential election
campaigns as provided for in the Federal Election Campaign Act of 1971,
as amended in 1974, and by adding new regulations that extend to
candidates for the presidency and vice presidency, all current
campaign-finance reform measures subvert the constitutionally
prescribed decentralized manner by which the president and vice
president of the United States are selected.
2002 Ron Paul 5:50
By design and effect, such measures perpetuate the current regulations governing the selection of presidential and vice
presidential electors who are, according to the Constitution, state
officers, and not federal ones. (
In re Green,
134 U.S. 377,
1890) (Although the electors are appointed and act under and pursuant
to the Constitution of the United States, they are no more officers or
agents of the United States than are... the people of the States when
acting as electors of representatives in Congress.);
Ray v. Blair,
343 U.S. 214, 224-25 (1952) (The presidential electors exercise
a federal function in balloting for President and Vice-President but
they are not federal officers or agents any more than the state elector
who votes for congressmen.) Thus, all current campaign-finance reform
bills violate the principles of separation of powers and federalism
protecting the independence of the federal executive branch.
2002 Ron Paul 5:51
Additionally, campaign-finance regulations applied to the election of members of Congress also intrude upon the power of their electors
who, like presidential electors, are state officers. According to
Article I, Section 2 and the Seventeenth Amendment, the qualifications
of the electors of United States representatives and senators are set
by state law, not by federal law. (
In re Green, supra,
134 U.S.
379;
Ray v. Blair, supra,
343 U.S. at 224-25) The Constitution
did not grant to Congress any power to determine the eligibility of
their electors, and thus insulated those electors from having their
power reduced, or otherwise affected, by their representatives in
Congress.
2002 Ron Paul 5:52
Although no current campaign-finance reform bill sets the qualifications of electors for Congress, each one does, like its
predecessors, impose a uniform system of campaign rules designed to
govern the power to be exercised by citizens at the voting booth. Some
of the measures, like the McCain-Feingold bill passed in the Senate and
Shays-Meehan bill pending before the House, extend that uniform system,
exercising power over the state, district and local committees of
political parties as well as the national committees of those parties.
While such laws do not change state laws governing voter eligibility,
as such, they do change the power exercised by those eligible voters.
Indeed, one of the stated purposes of campaign reform legislation is to
equalize the power of citizens to affect the outcome of elections. (
Buckley
v. Valeo, supra,
424 U.S. at 25-26) Such a purpose, however, is
illegitimate. It imposes a national uniform standard limiting the power
of voters to the detriment of a constitutionally prescribed system of
state diversity.
2002 Ron Paul 5:53
In his
Commentaries on the Constitution
, Justice Story observed that the framers deliberately chose not to impose a standard
of equality among the voters of the several states, but rather to
accommodate a mixed system, embracing and representing and combining
distinct interests, classes and opinions. (
I Story
,
Commentaries
on the Constitution
Sections 583-84, 5th ed., 1891) More recently,
in a column published in the September 5, 1999, issue of
The
Washington Post,
columnist George Will reminded his fellow
Americans that the Constitution does not authorize
one
federal
election, but many. All current campaign-finance reform measures
disregard this decentralized federal structure governing elections to
Congress and to the presidency and, for that reason, are
unconstitutional.
2002 Ron Paul 5:54
IV. Campaign-Finance Reform Abridges the Freedom of Speech and the Press
2002 Ron Paul 5:55
At the heart of campaign-finance reform legislation, is the desire of
Congress to eliminate even the appearance of corruption to the end
that the people have confidence in the current system of representative
government. (
Buckley v. Valeo,
424 U.S. 1, 27, 1976) At the
heart of the
guarantee of the freedom of speech is the prohibition against any law
designed
to protect the reputation of the government to the end that the people
have
confidence in their current governors. As seditious libel laws
protecting the
reputation of the government unconstitutionally abridge the freedom of
speech so
also do campaign-finance reform laws.
2002 Ron Paul 5:56
In
Buckley v. Valeo,
424 U.S. 1, 27-28 (1976), the Supreme Court
recognized that the contribution and other limitations imposed by the
Federal
Election Campaign Act of 1971 could
not
be justified on the
grounds that
they prevented only the most blatant and specific attempts of those
with
money to influence governmental action. Rather, the court found, that
such
limitations served a much broader purpose, namely, the prevention of
the
appearance of corruption to the end that confidence in the system of
representative government is not to be eroded.... (
Id.,
424
U.S. at
27)
2002 Ron Paul 5:57
Since
Buckley,
the proponents of ever more stringent limits upon
campaign contributions have emphasized that such laws are needed
not
to
prevent actual government corruption, but to eliminate all appearances
of such
corruption. Indeed, these proponents have contended that the
elimination of the
appearance of corruption is compelling because, if the appearance is
allowed to
remain, people will lose faith in our current system of government and
their
confidence in their elected leaders, such faith and confidence lying at
the
heart of a healthy democracy.
2002 Ron Paul 5:58
This same theme has been struck by leading proponents of reform in the House
of Representatives. Four years ago, House Minority Leader Richard
Gephardt urged
the adoption of more restrictive measures for healthy campaigns in a
healthy democracy even at the expense of the freedom of speech.
(Gibbs,
The Wake-Up Call,
Time,
p. 25, Feb. 3, 1997) Representative
Gephardt has not changed his mind, continuing his adamant support of
the
speech-restrictive Shays-Meehan bill to this day. (Mitchell, 2
Election
Bills Go to the House Floor, The New York Times , June 29, 2001)
Indeed,
Senator John McCain has not changed his mind either. Having urged in
1997 the
enactment of a law placing limits on public policy organizations’
political
advertising in the waning days of an election campaign, and thus
calling off the
political attack dogs (NBC News, Meet the Press, Feb. 3, 1997),
Senator McCain is waging an all-out war to make sure that his version
of
campaign-finance reform passes the House. (Shenon, House Critics Call
McCain a Bully on Campaign Bill, The New York Times, July 9, 2001) As
McCain’s Democrat colleague, Russell Feingold, put it upon the
introduction of
Shays-Meehan in the Senate in 1999: The prevalence – no – the
dominance of money in our system of elections and our legislature
will…cause
them to crumble. (Cong. Rec. S422, 423, daily ed., Jan. 19, 1999)
2002 Ron Paul 5:59
What these advocates of campaign-finance reform really want is to protect
incumbent office holders from the people. Under the guise of preserving
the
present governmental structure, they support campaign-finance reform
measures
that are nothing more than incumbent-protection legislation that
would make entrenched politicians even less responsive to the people.
(See e.g.,
James C. Miller,
Monopoly Politics
88-101, Hoover Inst. 1999.)
2002 Ron Paul 5:60
Such contentions and consequences as these undermine the foundation of
America’s constitutional republic. Our nation’s continued existence -
its
sovereignty - is not embodied in its current system of government or in
its
current elected and appointed leaders. Instead, the civil sovereignty
of the
nation resides in the people. To preserve popular sovereignty, the
First
Amendment secures to the people the freedom of speech, which, in turn,
protects
the people from any legislation the purpose of which is to preserve the
current
government and its leaders.
2002 Ron Paul 5:61
Twice in America’s history, the sovereignty of the people came under direct
attack from Congress. Both times the attack came in the form of laws
prohibiting
seditious libel (writing or speaking in such a way as to bring the
government into ridicule or disrepute), and thereby threatening the
current
system of government and its leaders. Finally, in 1964, the United
States
Supreme Court put an end to seditious libel, ruling that the freedom of
speech
guarantees a nation in which debate on the public issues should be
uninhibited, robust and wide-open, and that it may well include
vehement,
caustic, and sometimes unpleasantly sharp attacks on government and
public
officials. (
New York Times v. Sullivan,
376 U.S. 254, 270,
1964)
2002 Ron Paul 5:62
Had the court applied the same standard to the Campaign Reform Act of 1971,
that law, too, would have been cast into the dustbin of history. For,
campaign-finance reform laws - like seditious libel laws - exist solely
to
protect the present government and her leaders from the people. While
this goal
may be permissible in England where the Parliament embodies the
sovereignty of
the nation, it has no place in America where, as James Madison put it
in the
1800 Virginia Resolutions in opposition to the Alien and Sedition Act
of 1798,
the people, not the government, possess absolute sovereignty.
2002 Ron Paul 5:63
Campaign-finance reform also constitutes a direct attack on the First
Amendment freedom of the press. By giving politicians and their
appointed
bureaucrats the right to decide what the people can say about them in
the heat
of an election campaign, as McCain-Feingold and Shays-Meehan do with
respect to
issue advertising in the closing weeks of a campaign, these so-called
reformers
reject the very idea of a republican form of government, granting to
the
government censorial power over the people, instead of preserving
the censorial power of the people over their government. (See New York
Times v.
Sullivan, supra, 376 U.S. at 275.)
2002 Ron Paul 5:64
Such intrusions into the campaign process put the government into the role of
editor of campaign literature, a role that is absolutely forbidden to
the
government by the freedom of the press. (
Miami Herald Tribune v.
Tornillo,
418
U.S. 241, 258, 1974) Indeed, if the Supreme Court would apply the same
principle
to election-campaign literature that it has applied to election
editorials and
stories carried by newspapers, all campaign-finance reform legislation
would be
clearly unconstitutional. Not only do all campaign-finance reform
measures
transfer editorial control over an election campaign from the people to
the
government, but they also continue the unconstitutional licensing
system of the
Federal Election Commission established by the Federal Election
Campaign Act of
1971. In order to engage in a campaign for federal office, a candidate
must
register and report to the commission. Anyone who does not meet the
commission’s
registration and reporting rules is denied the right to participate and
is
subject not only to civil and criminal penalties, but to an injunction.
Such a
regulatory scheme strikes at the very heart of the freedom of the press
which,
as Sir William Blackstone wrote in 1769:
2002 Ron Paul 5:65
The liberty of the press...consists of laying...no previous restraints on publications....
Every freeman
has the undoubted
right to lay what sentiments he pleases before the public: to forbid
this is to destroy the freedom of the press.
2002 Ron Paul 5:66
(IV W. Blackstone,
Commentaries on the Laws of England
151-52,1769 [emphasis added])
2002 Ron Paul 5:67
Campaign-finance reform, then, is not progressive, but reactive, turning the
clock back to the days of the English Star Chamber that enforced the
King’s
rules governing the conduct of elections for the ostensible purpose of
keeping
his realm free of moral and political corruption. (
Sources of Our
Liberties
130,
242, Perry, ed., American Bar Found., 1978) A free nation may only be
preserved
when the people have the liberty of the press to censor their own
speech about
the government and about candidates for governmental office, not when
the
government has censorship power of the people, as campaign-finance
reform
inevitably dictates.
2002 Ron Paul 5:68
V. Campaign-Finance Reform Abridges the Right of the People to Assemble
2002 Ron Paul 5:69
The right of the people to assemble is the right of the people to associate
freely together to consult for the common good, subject only to the
requirement
that their association be peaceable. Any law that is not designed to
keep the physical peace of the community is, therefore,
unconstitutional. No
campaign-finance reform measure has ever been designed to keep the
physical peace; rather, each is designed to keep the political
peace; a constitutionally impermissible goal abridging the right of
the
people to assemble.
2002 Ron Paul 5:70
Since Watergate, Congress has been scrambling to purify the political process in order to restore public confidence in the federal
government. Campaign-finance reform has been one of the centerpieces of
this
purification effort. Two central goals have dominated this reform
effort: (1) to
limit the amounts that any one person or entity may contribute to an
election
campaign; (2) to force disclosure of the identity of those
contributors. Both of
these aims violate the First Amendment right of the people to assemble.
2002 Ron Paul 5:71
At the heart of the right of the people to assemble is the right of the
people to choose how they are going to associate with one another for
the
‘common advancement of political beliefs.’ (
Democratic Party v.
Wisconsin,
450 U.S. 107, 121-22, 1981) This right extends to
associations of
people for the purpose of electing persons to federal office who share
those
political beliefs. (
Buckley v. Valeo,
424 U.S. 1, 57, 1976)
Indeed, as
Justice Clarence Thomas recently observed: Political associations
allow
citizens to pool their resources and make their advocacy more effective
and such
efforts are fully protected by the First Amendment. (
Colo. Rep.
Fed.
Camp. Comm. v. FEC,
518 U.S. 604, 135 Led2d 795, 818, 1996,
Thomas, J.,
concurring in the judgment and dissenting)
2002 Ron Paul 5:72
Had the Supreme Court applied this principle consistently in its review of
the Federal Election Campaign Act of 1971, it would have held that the
individual contribution limits of that act violated the
constitutionally
guaranteed freedom of association. As Justice Thomas has pointed out:
If
an individual is limited in the amount of resources he can contribute
to...a
pool, he is certainly limited in his ability to associate for the
purposes of
effective advocacy. (
Id.,
135 L.Ed.2d at 819) Instead, the
court
has attempted to distinguish between issue advocacy - where the
right of the people to associate must remain unfettered - and express
advocacy for or against individual candidates - where the right of the
people to associate may be limited.
2002 Ron Paul 5:73
Both McCain-Feingold and Shays-Meehan exploit this distinction in their
attempt to muzzle political advertisements in the final weeks of an
election
campaign, claiming that issue advocacy becomes express candidate
advocacy when
conducted during the crucial weeks before election day. In so doing,
both bills
seriously undermine the people’s right to choose for themselves how
they will
associate to advance or defeat certain measures or to promote specific
principles of public policy. Constraining the people who speak out on
the issues
in conjunction with an election campaign may make for a more orderly
political process, but people are not horses or mules to be hooked up
to the
political bandwagons of government-subsidized incumbent politicians.
Additionally, limits on so-called soft money to political parties
are really designed to place incumbent office holders in control of the
political parties whose name they sport. By placing controls on how
political
parties may raise and spend money, independent politicians like John
McCain seek to transmute America’s political parties into political
eunuchs,
impotent to affect the outcome of any election.
2002 Ron Paul 5:74
Compounding these intrusions upon the people’s right to choose how and with
whom they will associate to advance their political agenda, all
campaign-finance
reform measures depend upon forced disclosure of the names and
addresses of even
the smallest contributor to an election campaign. Such required public
disclosure hearkens back to the days when the English monarchy required
the
publication of the names and addresses of all printers of all
publications
circulated throughout the realm. Requiring disclosure of the names of
contributors to federal election campaigns departs from an American
tradition
and practice that dates back to the founding of the nation and from a
long line
of cases affording constitutional protection of anonymity in
associative
relationships. (
McIntyre v. Ohio,
514 U.S. 334, 1995;
NAACP
v.
Alabama,
357 U.S. 449, 1958)
Forced divulgence of the
names of
contributors to federal election campaigns exposes people not only to
retaliation by employers and union leaders, whose political choices are
not the
same as their employees and their members, but it also exposes people
who
support challengers to the inevitable cold shoulder of a re-elected
incumbent. (
Buckley
v. Valeo, supra,
424 U.S. at 237,
Burger, C.J., dissenting)
2002 Ron Paul 5:75
Keeping the political peace, as campaign-finance reform is designed to do,
exacts a high price, costing the people their precious liberty of
choosing how
much energy and resources they wish to devote to politics. While full
freedom of
association, including anonymity, risks corruption of the political
process,
nothing is more corrosive of that process than placing election
campaigns in the
discretionary hands of unelected bureaucrats. (Miller,
Monopoly
Politics
95-100, 1999)
2002 Ron Paul 5:76
VI. Conclusion
2002 Ron Paul 5:77
Campaign-finance reform is truly a wolf in sheep’s clothing. Promising
reform, it hides incumbent perquisites. Promising competition, it
favors
monopoly. Promising integrity, it fosters corruption. Real
campaign-finance
reform calls for a return to America’s original constitutional
principles of
limited and decentralized governmental power, thereby preserving the
power of
the people.
2002 Ron Paul Chapter 6
http://www.house.gov/paul/congrec/congrec2002/cr021402.htm
Congressman Ron Paul
U.S. House of Representatives
February 14, 2002
Introduction of the Monetary Freedom and Accountability Act
2002 Ron Paul 6:1
Mr. Speaker, I rise to introduce the Monetary Freedom and Accountability Act.
This simple bill takes a step toward restoring Congress constitutional
authority over U.S. monetary policy by requiring congressional approval
before
the President or the Treasury secretary buys or sells gold.
2002 Ron Paul 6:2
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 golds importance to Americas (and the worlds) 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.
2002 Ron Paul 6:3
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.
2002 Ron Paul 6:4
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.
2002 Ron Paul 6:5
GATA has also produced evidence that American officials are involved in gold
transactions. Alan Greenspan himself referred to the federal
governments power
to manipulate the price of gold at hearings before the House Banking
Committee
and the Senate Agricultural Committee in July, 1998: Nor can private
counterparts restrict supplies of gold, another commodity whose
derivatives are
often traded over-the-counter, where
central banks stand ready to
lease gold
in increasing quantities should the price rise
. [Emphasis added].
2002 Ron Paul 6:6
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
OMeara, an investigative reporter from
Insight
magazine. This
article
explains in detail GATAs allegations of federal involvement in the
gold market.
2002 Ron Paul 6:7
Mr. Speaker, while I certainly share GATAs 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.
2002 Ron Paul 6:8
Given the tremendous effects on the American economy from federal dealings in
the gold market, it certainly is reasonable that the peoples
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.
2002 Ron Paul 6:9
All That Glitters Is Not Gold
By Kelly Patricia OMeara
Insight Magazine
March 4, 2002, edition
2002 Ron Paul 6:10
Even though Enron employees and the companys accounting firm, Arthur
Andersen, have destroyed mountains of documents, enough information
remains in
the ruins of the nations largest corporate bankruptcy to provide a
clear
picture of what happened to wreck what once was the seventh-largest
U.S.
corporation.
2002 Ron Paul 6:11
Obfuscation, secrecy, and accounting tricks appear to have catapulted the
Houston-based trader of oil and gas to the top of the Fortune 100, only
to be
brought down by the same corporate chicanery. Meanwhile, Wall Street
analysts
and the federal governments top bean counters struggle to convince the
nation
that the Enron crash is an isolated case, not in the least reflective
of how
business is done in corporate America.
2002 Ron Paul 6:12
But there are many in the world of high finance who arent buying the
official line and warn that Enron is just the first to fall from a
shaky house
of cards.
2002 Ron Paul 6:13
Many analysts believe that this problem is nowhere more evident than at the
nations bullion banks, and particularly at the House of Morgan (J.P.
Morgan
Chase). One of the worlds leading banking institutions and a major
international bullion bank, Morgan Chase has received heavy media
attention in
recent weeks both for its financial relationships with bankrupts Enron
and
Global Crossing Ltd. as well as the financial collapse of Argentina.
2002 Ron Paul 6:14
It is no secret that Morgan Chase was one of Enrons biggest lenders,
reportedly losing at least $600 million and, perhaps, billions. The
banking
giants stock has gone south, and management has been called before its
shareholders to explain substantial investments in highly speculative
derivatives
C hidden
speculation of
the sort that overheated and blew up on Enron.
2002 Ron Paul 6:15
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.
2002 Ron Paul 6:16
It gets worse. J.P. Morgans 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
2002 Ron Paul 6:17
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.
2002 Ron Paul 6:18
At some point, though, Morgan Chase must return the borrowed gold to the Bank
of England, and if the price of gold were significantly to increase
during any
point in this process, it would make it prohibitive and potentially
ruinous to
repay the gold.
2002 Ron Paul 6:19
Bill Murphy, chairman of the Gold Anti-Trust Action Committee, a nonprofit
organization that researches and studies what he calls the gold
cartel (J.P. Morgan Chase, Deutsche Bank, Citigroup, Goldman Sachs,
Bank
for International Settlements (BIS), the U.S. Treasury, and the Federal
Reserve), and owner of www.LeMetropoleCafe.com, tells Insight that
Morgan
Chase and other bullion banks are another Enron waiting to happen.
Murphy
says, Enron occurred because the nature of their business was
obscured,
there was no oversight and someone was cooking the books. Enron was
deceiving
everyone about their business operations
C
and the same thing is happening with the gold and bullion banks.
2002 Ron Paul 6:20
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.
2002 Ron Paul 6:21
In December 2000, attorney Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, which reports on gold,
filed a
lawsuit in the U.S. District Court in Boston. Named as defendants were
J.P.
Morgan & Co., Chase Manhattan Corp., Citigroup Inc., Goldman Sachs
Group
Inc., Deutsche Bank, Lawrence Summers (former secretary of the
Treasury),
William McDonough (president of the Federal Reserve Bank of New York),
Alan
Greenspan (chairman of the Board of Governors of the Federal Reserve
System),
and the BIS.
2002 Ron Paul 6:22
Howes claim contends that the price of gold has been manipulated since 1994
by conspiracy of public officials and major bullion banks, with three
objectives: 1) to prevent rising gold prices from sounding a warning on
U.S.
inflation; 2) to prevent rising gold prices from signaling weakness in
the
international value of the dollar; and 3) to prevent banks and others
who have
funded themselves through borrowing gold at low interest rates and are
thus
short physical gold from suffering huge losses as a consequence of
rising gold
prices.
2002 Ron Paul 6:23
While all the defendants flatly deny participation in such a scheme, Howes
case is being heard. Howe tells Insight he has provided the court with
very
compelling evidence to support his claim, including sworn testimony by
Greenspan
before the House Banking Committee in July 1998. Greenspan assured the
committee, Nor can private counterparties restrict supply of gold,
another
commodity whose derivatives are often traded over the counter, where
central
banks stand ready to lease gold in increasing quantities should the
price
rise. Howe and other gold bugs cite this as a virtual public
announcement that the price of gold had been and would continue to be
controlled if necessary.
2002 Ron Paul 6:24
According to Howe, There is a great deal of evidence, but this is a very complicated issue. The key, though, is the short position of the
banks and
their gold derivatives. The central banks have leased gold for low
returns to
the bullion banks for the purpose of keeping the price of gold low.
Greenspans
remarks in 1998 explain how the price of gold has been suppressed at
times when
it looked like the price of gold was increasing.
2002 Ron Paul 6:25
Furthermore, Howes complaint also cites remarks made privately by Edward
George, governor of the Bank of England and a director of the BIS, to
Nicholas
J. Morrell, chief executive of Lonmin Plc: We looked into the abyss if
the
gold price rose further. A further rise would have taken down one or
several
trading houses, which might have
2002 Ron Paul 6:26
taken down all the rest in their wake. Therefore, at any price, at any cost,
the central banks had to quell the gold price, manage it. It was very
difficult
to get the gold price under control, but we have now succeeded. The
U.S. Fed was
very active in getting the gold price down. So was the U.K. [United
Kingdom].
2002 Ron Paul 6:27
Whether the Fed and others in the alleged gold cartel have conspired to suppress the price of gold may, in the end, be secondary
to the
growing need for financial transparency. Wall Street insiders agree
that as long
as regulators, analysts, accountants, and politicians can be lobbied
and
corrupted to permit special privileges, there will be more
Enron-size failures.
2002 Ron Paul 6:28
Securities and Exchange Commission Chairman Harvey L. Pitt, well aware of the
seriousness of these problems, recently testified before the House
Financial
Services Committee that it is my hope there are not other Enrons out
there, but Im not willing to rely on hope.
2002 Ron Paul 6:29
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 dont
know
for sure because much of what theyre doing is off the balance sheet.
The market
is scared and crying out to see whats under the hood. Like Enron, much
of what
the banks are doing is off the balance sheet, and its a time bomb
ticking as we
speak.
2002 Ron Paul 6:30
Just what would happen if a bank the size of Morgan Chase were unable to meet
its financial obligations? Its tough to go there, Maltbie says,
because it could shake the financial markets to the core.
2002 Ron Paul Chapter 7
http://www.house.gov/paul/congrec/congrec2002/cr022602.htm
Congressman Ron Paul
U.S. House of Representatives
February 26, 2002
Before We Bomb Iraq...
2002 Ron Paul 7:1
The war drums are beating,
louder and
louder. Iraq, Iran, and North Korea have been forewarned. Plans have
been laid
and, for all we know, already initiated, for the overthrow and
assassination of
Saddam Hussein.
2002 Ron Paul 7:2
Theres been talk of sabotage,
psychological warfare, arming domestic rebels, killing Hussein, and
even an
outright invasion of Iraq with hundreds of thousands of US troops. All
we hear
about in the biased media is the need to eliminate Saddam Hussein, with
little
regard for how this, in itself, might totally destabilize the entire
Middle East
and Central Asia. It could, in fact, make the Iraq problem much
worse.
2002 Ron Paul 7:3
The assumption is that, with
our
success in Afghanistan, we should now pursue this same policy against
any
country we choose, no matter how flimsy the justification. It hardly
can be
argued that it is because authoritarian governments deserve our wrath,
considering the number of current and past such governments that we
have not
only tolerated but subsidized.
2002 Ron Paul 7:4
Protestations from our Arab
allies are
silenced by our dumping more American taxpayer dollars upon them.
2002 Ron Paul 7:5
European criticism that the
United
States is now following a unilateral approach is brushed off, which
only causes
more apprehension in the European community. Widespread support from
the eager
media pumps the public to support the warmongers in the administration.
2002 Ron Paul 7:6
The pro and cons of how
dangerous
Saddam Hussein actually is are legitimate. However, it is rarely
pointed out
that the CIA has found no evidence whatsoever that Iraq was involved in
the
terrorist attacks of 9/11.
2002 Ron Paul 7:7
Rarely do we hear that Iraq
has never
committed any aggression against the United States. No one in the media
questions our aggression against Iraq for the past 12 years by
continuous
bombing and imposed sanctions responsible for the deaths of hundreds of
thousands of children.
2002 Ron Paul 7:8
Iraqs defense of her homeland
can
hardly be characterized as aggression against those who rain bombs down
on them.
We had to go over 6,000 miles to pick this fight against a third-world
nation
with little ability to defend itself.
2002 Ron Paul 7:9
Our policies have actually
served to
generate support for Saddam Hussein, in spite of his brutal control of
the Iraq
people. He is as strong today- if not stronger- as he was prior to the
Persian
Gulf War 12 years ago.
2002 Ron Paul 7:10
Even today, our jingoism
ironically is
driving a closer alliance between Iraq and Iran, two long-time bitter
enemies.
2002 Ron Paul 7:11
While we trade with, and
subsidize to
the hilt, the questionable government of China, we place sanctions on
and refuse
to trade with Iran and Iraq, which only causes greater antagonism. But
if the
warmongers goal is to have a war, regardless of international law and
the
Constitution, current policy serves their interests.
2002 Ron Paul 7:12
Could it be that only through
war and
removal of certain governments we can maintain control of the oil in
this
region? Could it be all about oil, and have nothing to do with US
national
security?
2002 Ron Paul 7:13
Too often when we dictate who
will lead
another country, we only replace one group of thugs with another- as we
just did
in Afghanistan- with the only difference being that the thugs we
support are
expected to be puppet-like and remain loyal to the US, or else.
2002 Ron Paul 7:14
Although bits and pieces of
the
administrations plans to wage war against Iraq and possibly Iran and
North
Korea are discussed, we never hear any mention of the authority to do
so. It
seems that Tony Blairs approval is more important than the approval of
the
American people!
2002 Ron Paul 7:15
Congress never complains about
its lost
prerogative to be the sole declarer of war. Astoundingly, Congress is
only too
eager to give war power to our presidents through the back door, by the
use of
some fuzzy resolution that the president can use as his justification.
And once
the hostilities begin, the money always follows, because Congress fears
criticism for not supporting the troops. But putting soldiers in
harms way without proper authority, and unnecessarily, can hardly be
the way to
support the troops.
2002 Ron Paul 7:16
Let it be clearly understood-
there is
no authority to wage war against Iraq without Congress passing a
Declaration of
War. HJ RES 65, passed in the aftermath of 9/11, does not even suggest
that this
authority exists. A UN Resolution authorizing an invasion of Iraq, even
if it
were to come, cannot replace the legal process for the United States
going to
war as precisely defined in the Constitution. We must remember that a
covert war
is no more justifiable, and is even more reprehensible.
2002 Ron Paul 7:17
Only tyrants can take a nation
to war
without the consent of the people. The planned war against Iraq without
a
Declaration of War is illegal. It is unwise because of many unforeseen
consequences that are likely to result. It is immoral and unjust,
because it has
nothing to do with US security and because Iraq has not initiated
aggression
against us.
2002 Ron Paul 7:18
We must understand that the
American
people become less secure when we risk a major conflict driven by
commercial
interests and not constitutionally authorized by Congress. Victory
under these
circumstances is always elusive, and unintended consequences are
inevitable.
2002 Ron Paul Chapter 8
http://www.house.gov/paul/congrec/congrec2002/cr022702.htm
Congressman Ron Paul
U.S. House of Representatives
February 27, 2002
Statement on Ending US Membership in the IMF
2002 Ron Paul 8:1
Mr. Speaker, I rise to introduce
legislation to withdraw the United States from the Bretton Woods
Agreement and
thus end taxpayer support for the International Monetary Fund (IMF).
Rooted in a
discredited economic philosophy and a complete disregard for
fundamental
constitutional principles, the IMF forces American taxpayers to
subsidize large,
multinational corporations and underwrite economic destruction around
the globe.
This is because the IMF often uses the $37 billion line of credit
provided to it
by the American taxpayers to bribe countries to follow destructive,
statist
policies.
2002 Ron Paul 8:2
For example, Mr. Speaker, the
IMF
played a major role in creating the Argentine economic crisis. Despite
clear
signs over the past several years that the Argentine economy was in
serious
trouble, the IMF continued pouring taxpayer-subsidized loans with an
incredibly
low interest rate of 2.6% into the country. In 2001, as Argentinas
fiscal
position steadily deteriorated, the IMF funneled over 8 billion dollars
to the
Argentine government!
2002 Ron Paul 8:3
According to Congressman Jim
Saxton,
Chairman of the Joint Economic Committee, this Continued lending over
many
years sustained and subsidized a bankrupt Argentine economic policy,
whose
collapse is now all the more serious. The IMFs generous subsidized
bailouts
lead to moral hazard problems, and enable shaky governments to pressure
the IMF
for even more funding or risk disaster.
2002 Ron Paul 8:4
Argentina is just the latest
example of
the folly of IMF policies. Only four years ago the world economy was
rocked by
an IMF-created disaster in Asia. The IMF regularly puts the taxpayer on
the hook
for the mistakes of the big banks. Oftentimes, Mr. Speaker, IMF funds
end up in
the hands of corrupt dictators who use our taxpayer-provided largesse
to prop up
their regimes by rewarding their supporters and depriving their
opponents of
access to capital.
2002 Ron Paul 8:5
If not corrupt, most IMF
borrowers are
governments of countries with little economic productivity. Either way,
most
recipient nations end up with huge debts that they cannot service,
which only
adds to their poverty and instability. IMF money ultimately corrupts
those
countries it purports to help, by keeping afloat reckless political
institutions
that destroy their own economies.
2002 Ron Paul 8:6
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.
2002 Ron Paul 8:7
In addition, the IMF violates
basic
constitutional and moral principles. The federal government has no
constitutional authority to fund international institutions such as the
IMF.
Furthermore, Mr. Speaker, it is simply immoral to take money from
hard-working
Americans to support the economic schemes of politically-powerful
special
interests and third-world dictators.
2002 Ron Paul 8:8
In all my years in Congress, I
have
never been approached by a taxpayer asking that he or she be forced to
provide
more subsidies to Wall Street executives and foreign dictators. The
only
constituency for the IMF is the huge multinational banks and
corporations. Big
banks used IMF funds- taxpayer funds- to bail themselves out from
billions in
losses after the Asian financial crisis. Big corporations obtain
lucrative
contracts for a wide variety of construction projects funded with IMF
loans.
Its a familiar game in Washington, with corporate welfare disguised as
compassion for the poor.
2002 Ron Paul 8:9
The Argentine debacle is yet
further
proof that the IMF was a bad idea from the very beginning-
economically,
constitutionally, and morally. The IMF is a relic of an era when
power-hungry
bureaucrats and deluded economists believed they could micromanage the
worlds
economy. Withdrawal from the IMF would benefit American taxpayers, as
well as
workers and consumers around the globe. I hope my colleagues will join
me in
working to protect the American taxpayer from underwriting the
destruction of
countries like Argentina, by cosponsoring my legislation to end
Americas
support for the IMF.
2002 Ron Paul Chapter 9
http://www.house.gov/paul/congrec/congrec2002/cr022702B.htm
Congressman Ron
Paul
U.S. House of Representatives
February 27, 2002
Health Information Independence Act of 2002
2002 Ron Paul 9:1
Mr. Speaker, I
rise to introduce the Health Information Independence Act of 2002. This
act takes a major
step toward restoring the right of consumers to purchase the dietary
supplements of their choice and receive accurate
information about the health benefits of foods and dietary supplements.
The Health Information Independence Act
repeals the Food and Drug Administrations (FDA) authority to approve
health claims of foods and dietary supplements.
2002 Ron Paul 9:2
Instead, that authority is vested in an independent review board. The board is
comprised of independent scientific experts randomly chosen by the FDA.
However, anyone who is, or has ever been, on the FDAs payroll is
disqualified
from serving on the commission. 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.
2002 Ron Paul 9:3
The board also must consider whether any claims can be rendered non-misleading by adopting a disclaimer before
rejecting a claim out of hand. For example, if the board finds that the
scientific evidence does not conclusively support a
claim, but the claim could be rendered non-misleading if accompanied
with a disclaimer then the board must approve the
claim provided the claim is always accompanied by an appropriate
disclaimer. The disclaimer would be a simple
statement to the effect that scientific studies on these claims are
inconclusive and/or these claims are not approved by
the FDA. Thus, the bill tilts the balance of federal law in favor of
allowing consumers access to information regarding the
health benefits of foods and dietary supplements, which is proper in a
free society.
2002 Ron Paul 9:4
The procedures established by the Health Information Independence Act are a fair and balanced way to ensure
consumers have access to truthful information about dietary
supplements. Over the past decade, the American people
have made it clear they do not want the federal government to interfere
with their access to dietary supplements, yet the
FDA continues to engage in heavy-handed attempts to restrict access to
dietary supplements.
2002 Ron Paul 9:5
In 1994, Congress responded to the American peoples desire for greater access to information about the benefits of
dietary supplements by passing the Dietary Supplements and Health and
Education Act of 1994 (DSHEA), which
liberalized rules regarding the regulation of dietary supplements.
Congressional offices received a record number of
comments in favor of DSHEA.
2002 Ron Paul 9:6
Despite DSHEA, FDA officials continued to attempt to enforce regulations aimed at keeping the American public in the
dark about the benefits of dietary supplements. Finally, in the case of
Pearson v. Shalala, 154 F.3d 650 (DC Cir. 1999),
rehg denied en banc, 172 F.3d 72 (DC Cir. 1999), the United States
Court of Appeals for the DC Circuit Court
reaffirmed consumers First Amendment right to learn about dietary
supplements without unnecessary interference from
the FDA. The Pearson court anticipated my legislation by suggesting the
FDA adopt disclaimers in order to render some
health claims non-misleading.
2002 Ron Paul 9:7
In the more than two years since the Pearson decision, members of Congress have had to continually intervene with the
FDA to ensure it followed the court order. The FDA continues to deny
consumers access to truthful health information.
Clearly, the FDA is determined to continue to (as the Pearson court
pointed out) act as though liberalizing regulations
regarding health claims is the equivalent of asking consumers to buy
something while hypnotized and therefore they are
bound to be misled. Therefore, if Congress is serious about
respecting the First Amendment rights of the people, we
must remove FDA authority to censor non-misleading health claims, and
those claims which can be rendered
non-misleading by the simple device of adopting a disclaimer, by
passing my Health Information Independence Act.
2002 Ron Paul 9:8
In conclusion, I urge my colleagues to help establish an objective process that respects consumers First Amendment
rights to non-misleading information regarding the health benefits of
foods and dietary supplements by cosponsoring the
Health Information Independence Act.
2002 Ron Paul Chapter 10
http://www.house.gov/paul/congrec/congrec2002/cr022802.htm
Congressman Ron
Paul
House Financial Services committee
February 28, 2002
Statement on the Financial Services committees Views and Estimates for Fiscal Year 2003
2002 Ron Paul 10:1
Supporters of limited,
constitutional
government and free markets will find little, if anything, to view
favorably in
the Financial Services committees 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.
2002 Ron Paul 10:2
For example, this document
gives an
unqualified endorsement to increased taxpayer support for the Financial
Crimes
Enforcement Network (FINCEN). According to the committee, these
increased funds
are justified by FINCENs new authority under the PATRIOT Act. However,
Mr.
Chairman, FINCENs powers to snoop into the private financial affairs
of
American citizens raise serious constitutional issues. Whether the
expansion of
FINCENs power threatens civil liberties is ignored in this document;
instead,
the report claims the only problem with the PATRIOT Act is that the
federal
financial police state does not have enough power and taxpayer money to
invade
the privacy of United States citizens!
2002 Ron Paul 10:3
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!
2002 Ron Paul 10:4
Finally, the committees 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.
2002 Ron Paul 10:5
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.
2002 Ron Paul 10:6
This committee should also
examine
seriously the need for reform of the system of fiat currency which is
responsible for the cycle of booms and busts which have plagued the
American
economy. Many members of the committee have expressed outrage over the
behavior
of the corporate executives of Enron. However, Enron was created by
federal
policies of easy credit and corporate welfare. Until this committee
addresses
those issues, I am afraid the American economy may suffer many more
Enron-like
disasters in the future.
2002 Ron Paul 10:7
In conclusion, the Views and
Estimates presented by the Financial Services committee endorses
increasing the power of the federal police state, as well as increasing
both
international and corporate welfare, while ignoring the economic
problems
created by federal intervention into the economy. I therefore urge my
colleagues
to reject this document and instead embrace an agenda of ending federal
corporate welfare, protecting financial privacy, and reforming the fiat
money
system which is the root cause of Americas economic instability.
2002 Ron Paul Chapter 11
http://www.house.gov/paul/congrec/congrec2002/cr022802B.htm
Congressman Ron
Paul
House International Relations committee
February 28, 2002
Statement on the International Criminal Court
2002 Ron Paul 11:1
Mr. Chairman: Thank you, Mr.
Chairman,
for holding this hearing on the important topic of the International
Criminal
Tribunals for the former Yugoslavia and Rwanda. For Americans, the most
important aspect of these international criminal tribunals is that they
are the
model for the UNs International Criminal Court. Indeed, it is the
perceived
need to make these
ad hoc
tribunals permanent that really led
to the
creation of the ICC in the first place. This permanent UN court will
attempt to
claim jurisdiction over the rest of the world within the next few
weeks, as it
has claimed that ratification by 60 countries confers world
jurisdiction upon
it.
2002 Ron Paul 11:2
This means that even though
the United
States has not ratified the treaty- though it was signed by President
Clintons
representative at midnight on the last day- the Court will claim
jurisdiction
over every American citizen, from President Bush on down. The Bush
Administration has admirably stated its opposition to the International
Criminal
Court, but it unfortunately has taken no proactive measures to unsign
Clintons initial signature or to make it known that the United States
has no
intention of cooperating with, providing funding to, or recognizing any
authority of this international court. The clock is ticking, however,
and the
day of reckoning is close at hand.
2002 Ron Paul 11:3
This court is every Americans
worst
nightmare. Currently, there are no protections for either US military
personnel
or civilians from the tentacles of this International Court. This means
when it
claims jurisdiction, you, I, or any of our 240,000 military personnel
stationed
across the globe can be kidnapped, dragged off a foreign land and be
put on
trial by foreign judges, without benefit of the basic protections of
the
American legal system, for crimes that may not even be considered
crimes in the
United States.
2002 Ron Paul 11:4
Pro-life groups in America
have already
expressed concern that the Courts claimed jurisdiction over enforced
pregnancy could make it criminal for groups to work to restrict access
to
abortions- or even reduce government funding of abortions. The pro-ICC
Womans
Caucus for Gender Justice has already stated that countries domestic
laws may
need to be changed to conform to ICC Statutes. Former Assistant to the
US
Solicitor General, Dr. Richard Wilkins, said recently that the ICC
could
eventually be used to try the Pope and other religious leaders,
because issues such as abortion and homosexuality would ultimately fall
within
the Courts jurisdiction.
2002 Ron Paul 11:5
Supporters of the
International
Criminal Court are quick to say that the Court is modeled on the
Nuremberg
tribunal set up after World War II, but nothing could be further from
the truth.
Nuremberg was a trial initiated and prosecuted by sovereign nations. It
was a
reassertion of national sovereignty over the crimes of a regime that
disregarded
the concept, that saw other sovereign countries as merely living
space for their own people. As one analyst recently wrote, the
Nuremberg tribunal, unlike the Hague tribunal, was not really an
international
tribunal at all. The judges quite specifically stated that the act of
promulgating the Nuremberg charter was the exercise of sovereign
legislative
power of the countries to which the German Reich unconditionally
surrendered. There was no pretense that the international
community was
prosecuting the Germans.
2002 Ron Paul 11:6
The International Criminal
Court is to
be modeled after the tribunals dealing with Rwanda and Yugoslavia, that
is a
fact. Knowing how these tribunals operate should therefore terrify any
American
who loves our Constitution and our system of justice. In the Yugoslav
and
Rwandan tribunals, anonymous witnesses and secret testimony are
permitted; the
defendant cannot identify his accusers. There is no independent appeals
procedure. As one observer of the Hague in action noted, the
prosecutors
use of conspiracy as a charge recalls the great Soviet show trials of
1936-1938.
In one case, the Orwellian proportions of the Prosecution mindset was
revealed
as the accused was charged with conspiring, despite the admitted lack
of
evidence. It is not the destruction of evidence but its very
absence which
can be used to convict!
2002 Ron Paul 11:7
Indeed in the showcase trial
of the
ICTY, that of former Serb leader Slobodan Milosevic, chief prosecutor
Carla del
Ponte told the French paper Le Monde last year that no genocide charge
had been
brought against Milosevic for Kosovo because there is no evidence for
it. What did the Court do in the face of this lack of evidence? They
simply disregarded a basic principle of extradition law and announced
that they
would try Milosevic for crimes other than those for which he had been
extradited. Thus they added two additional sets of charges- for Bosnia
and
Croatia- to the indictment for Kosovo. The Kosovo extradition itself
was nothing
more than bribery and kidnapping. Milosevic was snatched up off the
streets of
Serbia after the United States promised the government it had helped
install
millions of dollars in aid. That national sovereignty was to be
completely
disregarded by this international tribunal was evident in its ignoring
a ruling
by the Yugoslav Constitutional Court that extradition was illegal and
unconstitutional. Yugoslav officials preferred to put Milosevic on
trial in
Yugoslavia, under the Yugoslav system of jurisprudence, for whatever
crimes he
may have committed in Yugoslavia. The internationalists completely
ignored this
legitimate right of a sovereign state.
2002 Ron Paul 11:8
Supporters of the
International
Criminal Court, like the World Federalist Association, claim that ICC
procedures
are in full accordance with the Bill of Rights. They arent. One
pro-ICC website
sponsored by the World Federalist Association, attempting to dispel
myths
about the Court, perhaps unintentionally provided some real insight. In
response
to the myth that the ICC is unconstitutional, the website argues
that The Rome Treaty establishing the International Criminal Court
provides
almost
all the same due process protections as
the U.S.
Constitution. Every due process protection provided for in the
Constitution is
guaranteed by the Rome Treaty, with the exception of a trial by jury.
Since when is almost all equal to all? Either the Rome
Treaty provides all the protections or it does not provide all the
protections,
and here we have by its own admission that the ICC is indeed at odds
with
American due process protections. So what else are they not telling the
truth
about? Another claim on the World Federalist Association website is
that the ICC
is that the rights of the accused to a presumption of innocence is
guaranteed.
Interestingly, on the very same website the accused Slobodan Milosevic
is
referred to as a criminal. Not very reassuring.
2002 Ron Paul 11:9
It is very convenient for
supporters of
this International Criminal Court that the high profile test case in
the
Yugoslav tribunal is the widely reviled Slobodan Milosevic. They
couldnt have
hoped for a better case. Any attack on the tribunal is immediately
brushed off
as a defense of Milosevic. It is illustrative for us to take a look at
how the
Milosevic trial is being prosecuted thus far. After all, today it is
Milosevic
but tomorrow it could be any of us. And with the Milosevic trial, the
signs are
very troubling. We have all seen the arrogance of the judge in the
case, who
several times has turned off Milosevics microphone in mid-sentence.
Thus far,
the prosecution has attempted to bring as witnesses people who are on
the
payroll of the tribunal itself, as in the case of Besnik Sokoli. Other
witnesses
have turned out to have been members of the Kosovo Liberation Army,
which is the
armed force that initiated the insurgent movement within Yugoslavia.
Remember,
Milosevic was extradited for Kosovo and for Kosovo only, but the
weakness of the
case forced the Court to add other charges in other countries. Now,
after
Milosevic has shown himself adept at cross-examination, the prosecution
is
seeking to have the judge limit Milosevics ability to cross-examine
the
prosecutions witnesses. This in itself flies in the face of our system
of
evidence law, which allows the defendant nearly unlimited ability to
cross-examine a witness as long as it is relevant to testimony.
2002 Ron Paul 11:10
Mr. Chairman, these
international
tribunals and the International Criminal Court that they spawned are
bad for
America and bad for the rest of the world. The concept of a permanent
criminal
court, run by unelected bureaucrats, third rate judges, and political
hacks, and
answerable to no one, undermines everything that free peoples should
hold dear.
It is about American sovereignty, the sovereignty of our American legal
system,
but that is not all. It should also be important for Americans that the
sovereignty of the rest of the world be maintained as well, as when
sovereignty
is undermined anywhere by an un-elected international body, it is under
threat
everywhere.
2002 Ron Paul Chapter 12
http://www.house.gov/paul/congrec/congrec2002/cr030602.htm
Congressman Ron
Paul
House International Relations committee
March 6, 2002
Statement on wasteful foreign aid to Colombia
2002 Ron Paul 12:1
Mr. PAUL. Mr. Speaker, as a
member of
the House International Relations committee and the subcommittee on the
Western
Hemisphere, I would like to state my strong objections to the manner in
which
this piece of legislation was raised. I was only made aware of the
existence of
this legislation this morning, just a couple of hours before I was
expected to
vote on it. There was no committee markup of the legislation, nor was
there any
notice that this legislation would appear on todays suspension
calendar.
2002 Ron Paul 12:2
This legislation represents a
very
serious and significant shift in United States policy toward Colombia.
It sets
us on a slippery slope toward unwise military intervention in a foreign
civil
war that has nothing to do with the United States.
2002 Ron Paul 12:3
Our policy toward Colombia was
already
ill-advised when it consisted of an expensive front in our failed war
on
drugs. Plan Colombia, launched nearly two years ago, sent $1.3
billion to Colombia under the guise of this war on drugs. A majority of
that
went to the Colombian military; much was no doubt lost through
corruption.
Though this massive assistance program was supposed to put an end to
the FARC
and other rebel groups involved in drug trafficking, two years later we
are now
being told- in this legislation and elsewhere- that the FARC and rebel
groups
are stronger than ever. So now we are being asked to provide even more
assistance in an effort that seems to have had a result the opposite of
what was
intended. In effect, we are being asked to redouble failed efforts.
That doesnt
make sense.
2002 Ron Paul 12:4
At the time Plan Colombia was
introduced, President Clinton promised the American people that this
action
would in no way drag us into the Colombian civil war. This current
legislation
takes a bad policy and makes it much worse. This legislation calls for
the
United States to assist the Government of Colombia protect its
democracy
from United States-designated foreign terrorist organizations . . . In
other words, this legislation elevates a civil war in Colombia to the
level of
the international war on terror, and it will drag us deep into the
conflict.
2002 Ron Paul 12:5
Mr. Speaker, there is a world
of
difference between a rebel group fighting a civil war in a foreign
country and
the kind of international terrorist organization that targeted the
United States
last September. As ruthless and violent as the three rebel groups in
Colombia no
doubt are, their struggle for power in that country is an internal one.
None of
the three appears to have any intention of carrying out terrorist
activities in
the United States. Should we become involved in a civil war against
them,
however, these organizations may well begin to view the United States
as a
legitimate target. What possible reason could there be for us to take
on such a
deadly risk? What possible rewards could there be for the United States
support
for one faction or the other in this civil war?
2002 Ron Paul 12:6
As with much of our
interventionism, if
you scratch the surface of the high-sounding calls to protect
democracy and stop drug trafficking you often find commercial
interests driving U.S. foreign policy. This also appears to be the case
in
Colombia. And like Afghanistan, Kosovo, Iraq, and elsewhere, that
commercial
interest appears to be related to oil. The U.S. administration request
for FY
2003 includes a request for an additional $98 million to help protect
the
Cano-Limon Pipeline- jointly owned by the Colombian government and
Occidental
Petroleum. Rebels have been blowing up parts of the pipeline and the
resulting
disruption of the flow of oil is costing Occidental Petroleum and the
Colombian
government more than half a billion dollars per year. Now the
administration
wants American taxpayers to finance the equipping and training of a
security
force to protect the pipeline, which much of the training coming from
the U.S.
military. Since when is it the responsibility of American citizens to
subsidize
risky investments made by private companies in foreign countries? And
since when
is it the duty of American service men and women to lay their lives on
the line
for these commercial interests?
2002 Ron Paul 12:7
Further intervention in the
internal
political and military affairs of Colombia will only increase the
mistrust and
anger of the average Colombian citizen toward the United States, as
these
citizens will face the prospect of an ongoing, United States-supported
war in
their country. Already Plan Colombia has fueled the deep resentment of
Colombian
farmers toward the United States. These farmers have seen their
legitimate crops
destroyed, water supply polluted, and families sprayed as powerful
herbicides
miss their intended marks. An escalation of American involvement will
only make
matters worse.
2002 Ron Paul 12:8
Mr. Speaker, at this critical
time, our
precious military and financial resources must not be diverted to a
conflict
that has nothing to do with the United States and poses no threat to
the United
States. Trying to designate increased military involvement in Colombia
as a new
front on the war on terror makes no sense at all. It will only draw
the United States into a quagmire much like Vietnam. The Colombian
civil war is
now in its fourth decade; pretending that the fighting there is somehow
related
to our international war on terrorism is to stretch the imagination to
the
breaking point. It is unwise and dangerous.
2002 Ron Paul Chapter 13
http://www.house.gov/paul/congrec/congrec2002/cr031302.htm
Congressman Ron Paul
Wednesday, March 13, 2002
Steel Protectionism
2002 Ron Paul 13:1
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.
2002 Ron Paul 13:2
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.
2002 Ron Paul 13:3
We should recognize that the
cost of
these tariffs will not only be borne by American companies that import
steel,
such as those in the auto industry and building trades. The cost of
these import
taxes will be borne by nearly all Americans, because steel is widely
used in the
cars we drive and the buildings in which we live and work. We will all
pay, but
the cost will be spread out and hidden, so no one complains. The
domestic steel
industry, however, has complained- and it has the corporate and union
power that
scares politicians in Washington. So the administration moved to
protect
domestic steel interests, with an eye toward the upcoming midterm
elections. It
moved to help members who represent steel-producing states. We hear a
great deal
of criticism of special interests and their stranglehold on Washington,
but
somehow when we prop up an entire industry that has failed to stay
competitive,
we’re protecting American workers. What we’re really doing is
taxing all Americans to keep some politically-favored corporations
afloat. Sure,
some rank and file jobs may also be saved, but at what cost? Do
steelworkers
really have a right to demand that Americans pay higher taxes to save
an
industry that should be required to compete on its own?
2002 Ron Paul 13:4
If we’re going to protect the
steel
industry with tariffs, why not other industries? Does every industry
that
competes with imported goods have the same claim for protection? We’ve
propped
up the auto industry in the past, now we’re doing it for steel, so who
should
be next in line? Virtually every American industry competes with at
least some
imports.
2002 Ron Paul 13:5
What happened to the wonderful
harmony
that the WTO was supposed to bring to global trade? The administration
has been
roundly criticized since the steel decision was announced last week,
especially
by our WTO partners. The European Union is preparing to impose
retaliatory sanctions to protect its own steel industry. EU trade
commissioner
Pascal Lamy has accused the U.S. of setting the stage for a global
trade war,
and several other steel producing nations such as Japan and Russia also
have
vowed to fight the tariffs. Even British Prime Minister Tony Blair, who
has been
tremendously supportive of the President since September 11th, recently
stated
that the new American steel tariffs were totally unjustified. Wasn’t
the WTO
supposed to prevent all this squabbling? Those of us who opposed U.S.
membership
in the WTO were scolded as being out of touch, unwilling to see the
promise of a
new global prosperity. What we’re getting instead is increased
hostility from
our trading partners and threats of economic sanctions from our WTO
masters.
This is what happens when we let government-managed trade schemes pick
winners
and losers in the global trading game. The truly deplorable thing about
all of
this is that the WTO is touted as promoting free trade!
2002 Ron Paul 13:6
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.
2002 Ron Paul Chapter 14
http://www.house.gov/paul/congrec/congrec2002/cr032002.htm
Congressman Ron Paul
Wednesday, March 20, 2002
Statement against Meddling in Domestic Ukrainian Politics
2002 Ron Paul 14:1
Mr. PAUL. Mr. Speaker, I strongly oppose H. Res. 339, a bill by the United
States Congress which seeks to tell a sovereign nation how to hold its
own
elections. It seems the height of arrogance for us to sit here and
lecture the
people and government of Ukraine on what they should do and should not
do in
their own election process. One would have thought after our own
election
debacle in November 2000, that we would have learned how
counterproductive and
hypocritical it is to lecture other democratic countries on their
electoral
processes. How would members of this body- or any American- react if
countries
like Ukraine demanded that our elections here in the United States
conform to
their criteria? So I think we can guess how Ukrainians feel about this
piece of
legislation.
2002 Ron Paul 14:2
Mr. Speaker, Ukraine has been the recipient of hundreds of millions of
dollars in foreign aid from the United States. In fiscal year 2002
alone,
Ukraine was provided $154 million. Yet after all this money- which we
were told
was to promote democracy- and more than ten years after the end of the
Soviet
Union, we are told in this legislation that Ukraine has made little if
any
progress in establishing a democratic political system.
2002 Ron Paul 14:3
Far from getting more involved in Ukraines electoral process, which is where
this legislation leads us, the United States is already much too
involved in the
Ukrainian elections. The U.S. government has sent some $4.7 million
dollars to
Ukraine for monitoring and assistance programs, including to train
their
electoral commission members and domestic monitoring organizations.
There have
been numerous reports of U.S.-funded non-governmental organizations in
Ukraine
being involved in pushing one or another political party. This makes it
look
like the United States is taking sides in the Ukrainian elections.
2002 Ron Paul 14:4
The legislation calls for the full access of Organization for Security and
Cooperation in Europe (OSCE) monitors to all aspects of the
parliamentary
elections, but that organization has time and time again, from Slovakia
to
Russia and elsewhere, shown itself to be unreliable and politically
biased. Yet
the United States continues to fund and participate in OSCE activities.
As
British writer John Laughland observed this week in the Guardian
newspaper,
Western election monitoring has become the political equivalent of an
Arthur Andersen audit. This supposedly technical process is now so
corrupted by
political bias that it would be better to abandon it. Only then will
countries
be able to elect their leaders freely. Mr. Speaker, I think this is
advice
we would be wise to heed.
2002 Ron Paul 14:5
Other aspects of this bill are likewise troubling. This bill seeks, from
thousands of miles away and without any of the facts, to demand that
the
Ukrainian government solve crimes within Ukraine that have absolutely
nothing to
do with the United States. No one knows what happened to journalist
Heorhiy
Gongadze or any of the alleged murdered Ukrainian journalists, yet by
adding it
into this ill-advised piece of legislation we are sitting here
suggesting that
the government has something to do with the alleged murders. This
meddling into
the Ukrainian judicial system is inappropriate and counter-productive.
2002 Ron Paul 14:6
Mr. Speaker, we are legislators in the United States Congress. We are not in
Ukraine. We have no right to interfere in the internal affairs of that
country
and no business telling them how to conduct their elections. A far
better policy
toward Ukraine would be to eliminate any U.S.-government imposed
barrier to free
trade between Americans and Ukrainians.
2002 Ron Paul Chapter 15
http://www.house.gov/paul/congrec/congrec2002/cr0321a02.htm
Congressman Ron Paul
March 20, 2002
Why Initiate War on Iraq?
2002 Ron Paul 15:1
I was recently asked why I thought it was a bad idea for the President to
initiate a war against Iraq. I responded by saying that I could easily
give a
half a dozen reasons why; and if I took a minute, I could give a full
dozen. For
starters, here is a half a dozen.
2002 Ron Paul 15:2
Number one, Congress has not given the President the legal authority to wage
war against Iraq as directed by the Constitution, nor does he have U.N.
authority to do so. Even if he did, it would not satisfy the rule of
law laid
down by the Framers of the Constitution.
2002 Ron Paul 15:3
Number two, Iraq has not initiated aggression against the United States.
Invading Iraq and deposing Saddam Hussein, no matter how evil a
dictator he may
be, has nothing to do with our national security. Iraq does not have a
single
airplane in its air force and is a poverty-ridden third world nation,
hardly a
threat to U.S. security. Stirring up a major conflict in this region
will
actually jeopardize our security.
2002 Ron Paul 15:4
Number three, a war against Iraq initiated by the United States cannot be
morally justified. The argument that someday in the future Saddam
Hussein might
pose a threat to us means that any nation, any place in the world is
subject to
an American invasion without cause. This would be comparable to the
impossibility of proving a negative.
2002 Ron Paul 15:5
Number four, initiating a war against Iraq will surely antagonize all
neighboring Arab and Muslim nations as well as the Russians, the
Chinese, and
the European Union, if not the whole world. Even the English people are
reluctant to support Tony Blairs prodding of our President to invade
Iraq.
There is no practical benefit for such action. Iraq could end up in
even more
dangerous hands like Iran.
2002 Ron Paul 15:6
Number five, an attack on Iraq will not likely be confined to Iraq alone.
Spreading the war to Israel and rallying all Arab nations against her
may well
end up jeopardizing the very existence of Israel. The President has
already
likened the current international crisis more to that of World War II
than the
more localized Vietnam war. The law of unintended consequences applies
to
international affairs every bit as much as to domestic interventions,
yet the
consequences of such are much more dangerous.
2002 Ron Paul 15:7
Number six, the cost of a war against Iraq would be prohibitive. We paid a
heavy economic price for the Vietnam war in direct cost, debt and
inflation.
This coming war could be a lot more expensive. Our national debt is
growing at a
rate greater than $250 billion per year. This will certainly
accelerate. The
dollar cost will be the least of our concerns compared to the potential
loss of
innocent lives, both theirs and ours. The systematic attack on civil
liberties
that accompanies all wars cannot be ignored. Already we hear cries for
resurrecting the authoritarian program of constriction in the name of
patriotism, of course.
2002 Ron Paul 15:8
Could any benefit come from all this warmongering? Possibly. Let us hope and
pray so. It should be evident that big government is anathema to
individual
liberty. In a free society, the role of government is to protect the
individuals right to life and liberty. The biggest government of all,
the U.N.
consistently threatens personal liberties and U.S. sovereignty. But our
recent
move toward unilateralism hopefully will inadvertently weaken the
United
Nations. Our participation more often than not lately is conditioned on
following the international rules and courts and trade agreements only
when they
please us, flaunting the consensus, without rejecting internationalism
on
principle- as we should.
2002 Ron Paul 15:9
The way these international events will eventually play out is unknown, and
in the process we expose ourselves to great danger. Instead of
replacing todays
international government, (the United Nations, the IMF, the World Bank,
the WTO,
the international criminal court) with free and independent republics,
it is
more likely that we will see a rise of militant nationalism with a
penchant for
solving problems with arms and protectionism rather than free trade and
peaceful
negotiations.
2002 Ron Paul 15:10
The last thing this world needs is the development of more nuclear weapons,
as is now being planned in a pretense for ensuring the peace. We would
need more
than an office of strategic information to convince the world of that.
2002 Ron Paul 15:11
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.
2002 Ron Paul 15:12
Indeed, we live in challenging and dangerous times.
2002 Ron Paul Chapter 16
http://www.house.gov/paul/congrec/congrec2002/cr0321b02.htm
Congressman Ron Paul
March 20, 2002
Statement Opposing Military Conscription
2002 Ron Paul 16:1
Mr. Speaker, I rise to introduce legislation expressing the sense of Congress
that the United States government should not revive military
conscription.
Supporters of conscription have taken advantage of the events of
September 11 to
renew efforts to reinstate the military draft. However, reviving the
draft may
actually weaken America’s military. Furthermore, a military draft
violates the
very principles of individual liberty this country was founded upon. It
is no
exaggeration to state that military conscription is better suited for a
totalitarian government, such as the recently dethroned Taliban regime,
than a
free society.
2002 Ron Paul 16:2
Since military conscription ended over 30 years ago, voluntary armed services
have successfully fulfilled the military needs of the United States.
The recent
success of the military campaign in Afghanistan once again demonstrates
the
ability of the volunteer military to respond to threats to the lives,
liberty,
and property of the people of the United States.
2002 Ron Paul 16:3
A draft weakens the military by introducing tensions and rivalries between
those who volunteer for military service and those who have been
conscripted.
This undermines the cohesiveness of military units, which is a vital
element of
military effectiveness. Conscripts also are unlikely to choose the
military as a
career; thus, a draft will do little to address problems with
retention. With
today’s high-tech military, retention is the most important personnel
issue
and it seems counter-productive to adopt any policy that will not
address this
important issue.
2002 Ron Paul 16:4
If conscription helps promote an effective military, then why did General
Vladisova Putilin, Chief of the Russian General Staff, react to plans
to end the
military draft in Russia, by saying This is the great dream of all
servicemen, when our army will become completely professional...?
2002 Ron Paul 16:5
Instead of reinstating a military draft, Congress should make military
service attractive by finally living up to its responsibility to
provide good
benefits and pay to members of the armed forces and our nation’s
veterans. It
is an outrage that American military personnel and veterans are given a
lower
priority in the federal budget than spending to benefit politically
powerful
special interests. Until this is changed, we will never have a military
which
reflects our nation’s highest ideals.
2002 Ron Paul 16:6
Mr. Speaker, the most important reason to oppose reinstatement of a military
draft is that conscription violates the very principles upon which this
country
was founded. The basic premise underlying conscription is that the
individual
belongs to the state, individual rights are granted by the state, and
therefore
politicians can abridge individual rights at will. In contrast, the
philosophy
which inspired America’s founders, expressed in the Declaration of
Independence, is that individuals possess natural, God-given rights
which cannot
be abridged by the government. Forcing people into military service
against
their will thus directly contradicts the philosophy of the Founding
Fathers. A
military draft also appears to contradict the constitutional
prohibition of
involuntary servitude.
2002 Ron Paul 16:7
During the War of 1812, Daniel Webster eloquently made the case that a
military draft was unconstitutional: Where is it written in the
Constitution , in what article or section is it contained, that you may
take
children from their parents, and parents from their children, and
compel them to
fight the battles of any war, in which the folly or the wickedness of
Government
may engage it? Under what concealment has this power lain hidden, which
now for
the first time comes forth, with a tremendous and baleful aspect, to
trample
down and destroy the dearest rights of personal liberty? Sir, I almost
disdain
to go to quotations and references to prove that such an abominable
doctrine had
no foundation in the Constitution of the country. It is enough to know
that the
instrument was intended as the basis of a free government, and that the
power
contended for is incompatible with any notion of personal liberty. An
attempt to
maintain this doctrine upon the provisions of the Constitution is an
exercise of
perverse ingenuity to extract slavery from the substance of a free
government.
It is an attempt to show, by proof and argument, that we ourselves are
subjects
of despotism, and that we have a right to chains and bondage, firmly
secured to
us and our children, by the provisions of our government.
2002 Ron Paul 16:8
Another eloquent opponent of the draft was former President Ronald Reagan who
in a 1979 column on conscription said: ...it rests on the assumption
that
your kids belong to the state. If we buy that assumption then it is for
the
state -- not for parents, the community, the religious institutions or
teachers
-- to decide who shall have what values and who shall do what work,
when, where
and how in our society. That assumption isn’t a new one. The Nazis
thought it
was a great idea.
2002 Ron Paul 16:9
President Reagan and Daniel Webster are not the only prominent Americans to
oppose conscription. In fact, throughout American history the draft has
been
opposed by Americans from across the political spectrum, from Henry
David
Thoreau to Barry Goldwater to Bill Bradley to Jesse Ventura.
Organizations
opposed to conscription range from the American Civil Liberties Union
to the
United Methodist Church General Board of Church and Society, and from
the
National Taxpayers Union to the Conservative Caucus. Other major
figures
opposing conscription include current Federal Reserve Chairman Alan
Greenspan
and Nobel Laureate Milton Friedman.
2002 Ron Paul 16:10
In conclusion, Mr. Speaker, I ask my colleagues to stand up for the long-term
military interests of the United States, individual liberty, and values
of the
Declaration of Independence by cosponsoring my sense of Congress
resolution
opposing reinstatement of the military draft.
2002 Ron Paul Chapter 17
http://www.house.gov/paul/congrec/congrec2002/cr041002.htm
Congressman Ron Paul
U.S. House of Representatives
April 10, 2002
America’s Entangling Alliances in the Middle East
2002 Ron Paul 17:1
We were warned, and in the early years of our Republic, we heeded that
warning. Today, though, we are entangled in everyone’s affairs
throughout the
world, and we are less safe as a result. The current Middle-East crisis
is one
that we helped create, and it is typical of how foreign intervention
fails to
serve our interests. Now we find ourselves smack-dab in the middle of a
fight
that will not soon end. No matter what the outcome, we lose.
2002 Ron Paul 17:2
By trying to support both sides we, in the end, will alienate both sides. We
are forced, by domestic politics here at home, to support Israel at all
costs,
with billions of dollars of aid, sophisticated weapons, and a guarantee
that
America will do whatever is necessary for Israel’s security.
2002 Ron Paul 17:3
Political pressure compels us to support Israel, but it is oil that prompts
us to guarantee security for the western puppet governments of the
oil-rich Arab
nations.
2002 Ron Paul 17:4
Since the Israeli-Arab fight will not soon be resolved, our policy of
involving ourselves in a conflict unrelated to our security guarantees
that we
will suffer the consequences.
2002 Ron Paul 17:5
What a choice! We must choose between the character of Arafat versus that of
Sharon.
2002 Ron Paul 17:6
The information the average American gets from the major media outlets, with
their obvious bias, only makes the problem worse. Who would ever guess
that the
side that loses
seven
people to every
one
on the other
side is
portrayed as the sole aggressor and condemned as terrorists? We should
remember
that Palestinian deaths are seen by most Arabs as being
American-inspired, since
our weapons are being used against them, and they’re the ones whose
land has
been continuously taken from them.
2002 Ron Paul 17:7
Yet there are still some in this country who can’t understand why many in
the Arab/Muslim world hate America.
2002 Ron Paul 17:8
Is it any wonder that the grassroots people in Arab nations, even in Kuwait,
threaten their own governments that are totally dominated by American
power and
money?
2002 Ron Paul 17:9
The arguments against foreign intervention are many. The chaos in the current
Middle-East crisis should be evidence enough for all Americans to
reconsider our
extensive role overseas and reaffirm the foreign policy of our early
leaders- a
policy that kept us out of the affairs of others.
2002 Ron Paul 17:10
But here we are in the middle of a war that has no end and serves only to
divide us here at home, while the unbalanced slaughter continues with
tanks and
aircraft tearing up a country that does not even have an army.
2002 Ron Paul 17:11
It is amazing that the clamor of support for Israel here at home comes from
men of deep religious conviction in the Christian faith, who are
convinced they
are doing the Lord’s work. That, quite frankly, is difficult for me as
a
Christian to comprehend. We need to remember the young people who will
be on the
front lines when the big war starts- which is something so many in this
body
seem intent on provoking.
2002 Ron Paul 17:12
Ironically, the biggest frustration in Washington, for those who eagerly
resort to war to resolve differences, is that the violence in the
Middle East
has delayed plans for starting another war against Iraq.
2002 Ron Paul 17:13
Current policy prompts our government on one day to give the go-ahead to
Sharon to do what he needs to do to combat terrorism (a term that now
has little
or no meaning); on the next day, however, our government tells him to
quit, for
fear that we may overly aggravate our oil pals in the Arab nations and
jeopardize our oil supplies. This is an impossible policy that will
inevitably
lead to chaos.
2002 Ron Paul 17:14
Foreign interventionism is bad for America. Special interests control our
policies, while true national security is ignored. Real defense needs,
the
defense of our borders, are ignored, and the financial interests of
corporations, bankers, and the military-industrial complex gain
control- and the
American people lose.
2002 Ron Paul 17:15
It’s costly, to say the least. Already our military budget has sapped
domestic spending and caused the deficit to explode. But the greatest
danger is
that one day these contained conflicts will get out of control.
Certainly the
stage is set for that to happen in the Middle East and south central
Asia. A
world war is a possibility that should not be ignored. Our policy of
subsidizing
both sides is ludicrous. We support Arabs and Jews, Pakistanis and
Indians,
Chinese and Russians. We have troops in 140 countries around the world
just
looking for trouble. Our policies have led us to support Al Qaeda in
Kosovo and
bomb their Serb adversaries. We have, in the past, allied ourselves
with bin
Laden, as well as Saddam Hussein, only to find out later the
seriousness of our
mistake. Will this foolishness ever end?
2002 Ron Paul 17:16
A non-interventionist foreign policy has a lot to say for itself, especially
when one looks at the danger and inconsistency of our current policy in
the
Middle East.
2002 Ron Paul Chapter 18
http://www.house.gov/paul/congrec/congrec2002/cr041102.htm
Congressman Ron Paul
U.S. House of Representatives
April 11, 2002
Statement on the American Servicemember and Civilian Protection Act of 2002
2002 Ron Paul 18:1
Mr. Paul. Mr. Speaker, I rise today to introduce the American Servicemember and Civilian Protection Act of 2002.
2002 Ron Paul 18:2
This bill expresses the sense of the Congress that President Bush should
formally rescind the signature approving the International Criminal
Court made
on behalf of the United States, and should take necessary steps to
prevent the
establishment of that Court. It also prohibits funds made available by
the
United States Government from being used for the establishment or
operation of
the Court.
2002 Ron Paul 18:3
Perhaps the most significant part of the bill makes clear that any action
taken by or on behalf of the Court against members of the United States
Armed
Forces shall be considered an act of aggression against the United
States; and
that any action taken by or on behalf of the Court against a United
States
citizen or national shall be considered an offense against the law of
nations.
2002 Ron Paul 18:4
Mr. Speaker, today in New York and Rome celebrations are underway to mark the
formal establishment of this International Criminal Court. Though the
United
States has not ratified the treaty establishing the Court, as required
by the
U.S. Constitution, this body will claim jurisdiction over every
American citizen
-- military personnel and civilian alike.
2002 Ron Paul 18:5
The Court itself, however, is an illegitimate body even by the United Nations’
own standards. The Statute of the International Criminal Court was
enacted by a
Conference of Diplomats convened by the United Nations General
Assembly, whereas
according to the UN Charter, the authority to create such a body lies
only in
the UN Security Council.
2002 Ron Paul 18:6
The International Criminal Court was established contrary to the American
Declaration of Independence and the Constitution of the United States.
It puts
United States citizens in jeopardy of unlawful and unconstitutional
criminal
prosecution.
2002 Ron Paul 18:7
The International Criminal Court does not provide many of the Constitutional
protections guaranteed every American citizen, including the right to
trial by
jury, the right to face your accuser, and the presumption of innocence,
and the
protection against double jeopardy.
2002 Ron Paul 18:8
Members of the United States Armed Forces are particularly at risk for
politically motivated arrests, prosecutions, fines, and imprisonment
for acts
engaged in for the protection of the United States. These are the same
brave men
and women who place their lives on the line to protect and defend our
Constitution. Do they not deserve the full protections of that same
Constitution?
2002 Ron Paul 18:9
Mr. Speaker, I hope all members of this body will join me in opposing this
illegitimate and illegal court by co-sponsoring the American
Servicemember
and Civilian Protection Act of 2002.
2002 Ron Paul Chapter 19
http://www.house.gov/paul/congrec/congrec2002/cr050102c.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Taxpayer Funding of Multinational Development Banks
2002 Ron Paul 19:1
Mr. Speaker, Congress can perform a great service to the American taxpayer,
as well as citizens in developing countries, by rejecting HR 2604,
which
reauthorizes two multilateral development banks, the International Fund
for
Agricultural Development (IFAD) and the Asian Development Fund (AsDF).
2002 Ron Paul 19:2
Congress has no constitutional authority to take money from American taxpayers and send that money overseas for
any reason
.
Furthermore,
foreign aid undermines the recipient countries’ long-term economic
progress by
breeding a culture of dependency. Ironically, foreign aid also
undermines
long-term United States foreign policy goals by breeding resentment
among
recipients of the aid, which may manifest itself in a foreign policy
hostile to
the United States.
2002 Ron Paul 19:3
If Congress lacks authority to fund an international food aid program, then
Congress certainly lacks authority to use taxpayer funds to promote
economic
development in foreign lands. Programs such as the AsDF are not only
unconstitutional, but, by removing resources from the control of
consumers and
placing them under the control of bureaucrats and politically-powerful
special
interests, these programs actually retard economic development in the
countries
receiving this aid! This is because funds received from programs
like the AsDF are all-too-often wasted on political boondoggles which
benefit
the political elites in the recipient countries, but are of little
benefit to
the individual citizens of those countries.
2002 Ron Paul 19:4
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.
2002 Ron Paul Chapter 20
http://www.house.gov/paul/congrec/congrec2002/cr050102b.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Export-Import Bank Subsidies
2002 Ron Paul 20:1
Mr. Chairman, I rise in strong support of this amendment, being a cosponsor
of this amendment. I am opposed to the Export-Import Bank because I see
there is
no benefit to it, it has nothing to do with capitalism and freedom. It
has a lot
to do with special interests, and I am opposed to that.
2002 Ron Paul 20:2
One thing I am convinced of over the years from looking at bad agencies of
government, tinkering on the edges does not do a lot of good. Members
might ask
why am I tinkering here? Why do I want to tell corporations what to do?
I am a
capitalist. I believe in capitalism. I do not want to tell the
corporations what
to do at all as long as they do not commit fraud and live up to their
promises,
but this is different because they are getting taxpayer money. That is
different
than if they were just a corporation making it on their own.
2002 Ron Paul 20:3
The gentleman from Nebraska (Mr. Bereuter) said if we do not give them these
loans, the companies will not get any money and they will have to go
overseas.
This is a fallacy to believe if all of a sudden we took all of the
Export-Import
Bank money away from corporations, that they would have no funding.
That is not
true at all. There is a lot of funding available. It is just that they
do not
get the benefit, they do not get the subsidy.
2002 Ron Paul 20:4
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.
2002 Ron Paul 20:5
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.
2002 Ron Paul Chapter 21
http://www.house.gov/paul/congrec/congrec2002/cr050102.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Export-Import Bank Corporate Welfare
2002 Ron Paul 21:1
Mr. Chairman, we are here
today to
reauthorize the Export-Import Bank, but it has nothing to
do
with a bank, do not mislead anybody. This has to do with an agency of
the
government that
allocates
credit to
special interests and to the benefit of foreign entities. So it is not
a bank in
that sense. To me it is immoral
in the
fact that it takes from some who cannot defend themselves
to
give to the rich who get the benefits. And I just do not see that as
being a
very good function
and a
very good
program for the U.S. Congress. Besides, I would like to see where
somebody
gives me the constitutional
authority for
doing what we do here and we have been doing, of
course,
for a long time.
2002 Ron Paul 21:2
But I do not want to talk
about the
immorality of this so-called bank or the unconstitutionality
of
it. I want to talk just a second or two about the economics of it. It
is really
bad economics. It
is
pointed out
that it helps a company here or there, but what is never talked about
what you
do
not see. This is
credit
allocation.
2002 Ron Paul 21:3
In order to take billions of
dollars
and give it to one single company, it is taken out of the pool
of
funds available. And nobody talks about that. There is an expense. Why
would not
a bank
loan when it is
guaranteed
by the government? Because it is guaranteed. So if you are a smaller
investor
or a marginal investor, there is no way that you are going to get the
loan. For
that
investor to get the
loan, the
interest rates have to be higher.
So
it is a form of credit allocation, and it is also a form of
protectionism. We do
a lot of talk
around here
about
free trade. Of course, there is a lot of tariff activity going on as
well, but
this
is a form of
protectionism.
Because some argue, well, this company has to compete and another
government
subsidizes their company so, therefore, we have to compete. So it is
competitive
subsidization of special interest
corporations in order to do this.
2002 Ron Paul 21:4
Now, it seems strange that we
here in
the Congress are willing to give the beneficiary China
the
most number of dollars. They qualify for nearly $6 billion worth of
credits. And
that just does not seem like the reasonable thing for us to do. So I
strongly
urge a no vote on this bill.
2002 Ron Paul 21:5
Mr. Chairman, Congress should
reject
H.R. 2871, the Export-Import Reauthorization Act, for
economic,
constitutional, and moral reasons. The Export-Import Bank (Eximbank)
takes money
from American taxpayers to
subsidize
exports by American companies. Of course, it is not just
any
company that receives Eximbank support; the majority of Eximbank
funding benefit
large,
politically
powerful
corporations.
2002 Ron Paul 21:6
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 Enrons inevitable
day
of reckoning.
2002 Ron Paul 21:7
Eximbanks use of taxpayer
funds to
support Enron is outrageous, but hardly surprising. The
the
vast majority of Eximbank funds benefit Enron-like outfits that must
rely on
political
connections and
government subsidies to survive and/or multinational corporations who
can
afford to support their own
exports
without relying on the American taxpayer.
2002 Ron Paul 21:8
It is not only bad economics
to force
working Americans, small business, and entrepreneurs to
subsidize
the export of the large corporations: it is also immoral. In fact, this
redistribution from
the
poor and
middle class to the wealthy is the most indefensible aspect of the
welfare
state, yet
it is the most
accepted
form of welfare. Mr. Speaker, it never ceases to amaze me how members
who
criticize welfare for the poor on moral and constitutional grounds see
no
problem with the
even
more
objectionable programs that provide welfare for the rich.
2002 Ron Paul 21:9
The moral case against
Eximbank is
strengthened when one considers that the government
which
benefits most from Eximbank funds is communist China. In fact, Eximbank
actually
underwrites joint ventures with
firms
owned by the Chinese government! Whatever ones
position
on trading with China, I would hope all of us would agree that it is
wrong to
force
taxpayers to
subsidize in any
way this brutal regime. Unfortunately, China is not an isolated
case:
Colombia and Sudan benefit from taxpayer-subsidized trade, courtesy of
the
Eximbank!
2002 Ron Paul 21:10
At a time when the Federal
budget is
going back into deficit and Congress is once again
preparing
to raid the Social Security and Medicare trust funds, does it really
make sense
to use
taxpayer funds to
benefit
future Enrons, Fortune 500 companies, and communist China?
2002 Ron Paul 21:11
Proponents of continued
American
support for the Eximbank claim that the bank creates
jobs
and promotes economic growth. However, this claim rests on a version of
what the
great
economist Henry
Hazlitt
called, the broken window fallacy. When a hoodlum throws a rock
through
a store window, it can be said he has contributed to the economy, as
the store
owner
will have to spend
money
having the window fixed. The benefits to those who repaired the
window
are visible for all to see, therefore it is easy to see the broken
window as
economically
beneficial.
However,
the benefits of the broken window are revealed as an illusion when
one
takes into account what is not
seen: the
businesses and workers who would have benefited had
the
store owner not spent money repairing a window, but rather had been
free to
spend his
money as he
chose.
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.
2002 Ron Paul 21:12
Some supporters of this bill
equate
supporting Eximbank with supporting free trade, and
claim
that opponents are protectionists and isolationists. Mr.
Chairman, this
is nonsense,
Eximbank has
nothing
to do with free trade. True free trade involves the peaceful, voluntary
exchange
of goods across borders, not forcing taxpayers to subsidize the exports
of
politically
powerful
companies.
Eximbank is not free trade, but rather managed trade, where winners and
losers
are determined by how well they please government bureacrats instead of
how well
they
please consumers.
2002 Ron Paul 21:13
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 Americas standard of living!
2002 Ron Paul 21:14
Finally, Mr. Chairman, I would
like to
remind my colleagues that there is simply no
constitutional
justification for the expenditure of funds on programs such as
Eximbank. In
fact,
the drafters of the
Constitution would be horrified to think the Federal Government was
taking
hard-earned money from the
American people
in order to benefit the politically powerful.
2002 Ron Paul 21:15
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.
2002 Ron Paul Chapter 22
http://www.house.gov/paul/congrec/congrec2002/cr050202.htm
Congressman Ron Paul
U.S. House of Representatives
May 2, 2002
Statement in Support of a Balanced Approach to the Middle East Peace Process
2002 Ron Paul 22:1
MR. PAUL: Mr. Speaker, this legislation could not
have come at
a worse time in the ongoing Middle East crisis. Just when we have seen
some
positive signs that the two sides may return to negotiations toward a
peaceful
settlement, Congress has jumped into the fray on one side of the
conflict. I do
not believe that this body wishes to de-rail the slight progress that
seems to
have come from the Administration’s more even-handed approach over the
past
several days. So why is it that we are here today ready to pass
legislation that
clearly and openly favors one side in the Israeli-Palestinian conflict?
2002 Ron Paul 22:2
There are many troubling aspects to this legislation.
The
legislation says that the number of Israelis killed during that time
[since September 2000] by suicide terrorist attacks alone, on a basis
proportional to the United States population, is approximately 9,000,
three
times the number killed in the terrorist attacks on New York and
Washington on
September 11, 2001. This kind of numbers game with the innocent dead
strikes me as terribly disrespectful and completely unhelpful.
2002 Ron Paul 22:3
It is, when speaking of the dead, the one-sidedness
of this
bill that is so unfortunate. How is it that the side that loses seven
people to
every one on the other side is portrayed as the sole aggressor and
condemned as
terrorist? This is only made worse by the fact that Palestinian deaths
are seen
in the Arab world as being American-inspired, as it is our weapons that
are
being used against them. This bill just reinforces negative perceptions
of the
United States in that part of the world. What might be the consequences
of this?
I think we need to stop and think about that for a while. We in this
body have a
Constitutional responsibility to protect the national security of the
United
States. This one-sided intervention in a far-off war has the potential
to do
great harm to our national security.
2002 Ron Paul 22:4
Perhaps this is why the Administration views this
legislation
as not a very helpful approach to the situation in the Middle East.
In my view, it is bad enough that we are intervening at all in this
conflict,
but this legislation strips any lingering notion that the United States
intends
to be an honest broker. It states clearly that the leadership of one
side - the
Palestinians - is bad and supports terrorism just at a time when this
Administration negotiates with both sides in an attempt to bring peace
to the
region. Talk about undermining the difficult efforts of the president
and the
State Department. What incentive does Palestinian leader Yasser Arafat
or his
organization have to return to the negotiating table if we as honest
broker make it clear that in Congress’s eyes, the Palestinians are
illegitimate terrorists? Must we become so involved in this far-off
conflict
that we are forced to choose between Arafat and Israeli Prime Minister
Ariel
Sharon? The United States Congress should not, Constitutionally, be in
the
business of choosing who gets to lead which foreign people.
2002 Ron Paul 22:5
Many people of various religious backgrounds seem
determined
to portray what is happening in the Middle East as some kind of
historic/religious struggle, where one side is pre-ordained to triumph
and
destroy the other. Even some in this body have embraced this notion.
Surely the
religious component that some interject into the conflict rouses
emotions and
adds fuel to the fire. But this is dangerous thinking. Far from a great
holy
war, the Middle East conflict is largely about what most wars are
about: a
struggle for land and resources in a part of the world where both are
scarce. We
must think and act rationally, with this fact clearly in mind.
2002 Ron Paul 22:6
Just as with our interventionism in other similar
struggles
around the world, our meddling in the Middle East has unforeseen
consequences.
Our favoritism of one side has led to the hatred of America and
Americans by the
other side. We are placing our country in harm’s way with this
approach. It is
time to step back and look at our policy in the Middle East. After 24
years of
the peace process and some 300
billion
of our dollars, we are
no closer to peace than when President Carter concluded the Camp David
talks.
2002 Ron Paul 22:7
Mr. Speaker, any other policy that had so utterly
failed over
such a long period of time would likely come under close scrutiny here.
Why is
it that when it comes to interventionism in the Middle East conflict we
continue
down this unproductive and very expensive road?
2002 Ron Paul Chapter 23
http://www.house.gov/paul/congrec/congrec2002/cr050902.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Say No to Conscription
2002 Ron Paul 23:1
Mr.
PAUL. Mr. Speaker, I hope my colleagues who
believe that the current war on terrorism justifies violating the
liberty of
millions of young men by reinstating a military draft will consider the
eloquent
argument against conscription in the attached speech by Daniel
Webster. Then-representative Webster delivered his remarks on the floor
of the House in opposition to a proposal to institute a
draft during the War of 1812. Websters speech
remains one of the best statements of the Constitutional and moral case
against conscription.
2002 Ron Paul 23:2
Despite
the threat posed to the very existence of
the young republic by the invading British Empire,
Congress ultimately rejected the proposal to institute a draft. If the
new
nation of America could defeat what was then
the most powerful military empire in the world without
a draft, there is no reason why we cannot address our current military
needs
with a voluntary military.
2002 Ron Paul 23:3
Webster
was among the first of a long line of
prominent Americans, including former President
Ronald Reagan and Federal Reserve Chairman Alan Greenspan, to recognize
that a draft violates the fundamental principles of
liberty this country was founded upon.
2002 Ron Paul 23:4
In
order to
reaffirm support for individual liberty and an effective military, I
have introduced H. Con. Res. 368, which expresses the
sense of Congress against reinstating a military
draft. I urge my colleagues to read Daniel Websters explanation of why
the
draft is incompatible with liberty government
and cosponsor H. Con. Res. 368.
2002 Ron Paul 23:5
ON
CONSCRIPTION
(By
Daniel Webster)
During Americas first great war, waged against
Great Britain, the Madison Administration tried
to introduce a conscription bill into Congress. This bill called forth
one of
Daniel Websters most eloquent efforts, in a
powerful opposition to conscription. The speech was delivered
in the House of Representatives on December 9, 1814; the following is a
condensation:
2002 Ron Paul 23:6
This
bill indeed is less undisguised in its object,
and less direct in its means, than some of the
measures proposed. It is an attempt to exercise the power of forcing
the free
men of this country into the ranks of an
army, for the general purposes of war, under color of a military
service.
It is a distinct system, introduced for new purposes, and not connected
with any
power, which the Constitution has conferred on
Congress.
2002 Ron Paul 23:7
But,
Sir, there is another consideration. The
services of the men to be raised under this act are
not limited to those cases in which alone this Government is entitled
to the aid
of the militia of the States. These cases are
particularly stated in the Constitution--to repel invasion,
suppress insurrection, or execute the laws.
2002 Ron Paul 23:8
The
question is nothing less, than whether the most
essential rights of personal liberty shall be
surrendered, and despotism embraced in its worst form. When the present
generation of men shall be swept away, and
that this Government ever existed shall be a matter of history only,
I desire that it may then be known, that you have not proceeded in your
course unadmonished and unforewarned. Let it then be known,
that there were those, who would have stopped
you, in the career of your measures, and held you back, as by the
skirts of your garments, from the precipice, over which you
are plunging, and drawing after you the Government
of your Country.
2002 Ron Paul 23:9
Conscription
is chosen as the most promising
instrument, both of overcoming reluctance to the
Service, and of subduing the difficulties which arise from the
deficiencies of
the Exchequer. The administration asserts the
right to fill the ranks of the regular army by compulsion.
It contends that it may now take one out of every twenty-five men, and
any part or the whole of the rest, whenever its occasions
require. Persons thus taken by force, and put into an army, may be
compelled to
serve there, during the war, or for life.
They may be put on any service, at home or abroad, for defense or for
invasion, according to the will and pleasure of Government.
This power does not grow out of any invasion
of the country, or even out of a state of war. It belongs to Government
at all
times, in peace as well as in war, and is to
be exercised under all circumstances, according to its mere
discretion. This, Sir, is the amount of the principle contended for by
the
Secretary of War (James Monroe).
2002 Ron Paul 23:10
Is
this, Sir, consistent with the character of a
free Government? Is this civil liberty? Is this the
real character of our Constitution? No, Sir, indeed it is not. The
Constitution
is libeled, foully libeled. The people of
this country have not established for themselves such a fabric of
despotism. They have not purchased at a vast expense of their own
treasure and
their own blood a Magna Carta to be slaves.
Where is it written in the Constitution, in what article
or section is it contained, that you may take children from their
parents, and
parents from their children, and compel them
to fight the battles of any war, in which the folly or the
wickedness of Government may engage it? Under what concealment has this
power
lain hidden, which now for the first time
comes forth, with a tremendous and baleful aspect, to trample
down and destroy the dearest rights of personal liberty? Sir,
I almost disdain to go to quotations and
references to prove that such an abominable doctrine has no foundation
in the Constitution of the country. It is enough to
know that that instrument was intended as the basis
of a free Government, and that the power contended for is incompatible
with any notion of personal liberty. An attempt to maintain
this doctrine upon the provisions of the Constitution
is an exercise of perverse ingenuity to extract slavery from the
substance of a free Government. It is an attempt to show, by proof
and argument, that we ourselves are subjects
of despotism, and that we have a right to chains and bondage, firmly
secured to
us and our children, by the provisions of our
Government.
2002 Ron Paul 23:11
The
supporters of the measures before us act on the
principle that it is their task to raise arbitrary
powers, by construction, out of a plain written charter of National
Liberty. It
is their pleasing duty to free us of the
delusion, which we have fondly cherished, that we are the
subjects of a mild, free and limited Government, and to demonstrate by
a regular
chain of premises and conclusions, that
Government possesses over us a power more tyrannical, more
arbitrary, more dangerous, more allied to blood and murder, more full
of every
form of mischief, more productive of every
sort and degree of misery, than has been exercised by
any civilized Government in modern times.
2002 Ron Paul 23:12
But
it is said, that it might happen that any army
would not be raised by voluntary enlistment,
in which case the power to raise armies would be granted in vain,
unless they might be raised by compulsion. If this reasoning
could prove any thing, it would equally show,
that whenever the legitimate powers of the Constitution should be so
badly administered as to cease to answer the great ends
intended by them, such new powers may be
assumed or usurped, as any existing administration may deem expedient.
This is a
result of his own reasoning, to which the
Secretary does not profess to go. But it is a true result. For
if it is to be assumed, that all powers were granted, which might by
possibility
become necessary, and that Government itself
is the judge of this possible necessity, then the powers
of Government are precisely what it chooses they should be.
2002 Ron Paul 23:13
The
tyranny of
Arbitrary Government consists as much in its means as in its end; and
it would
be a ridiculous and absurd constitution which should be less cautious
to guard against abuses in the one case than in the other.
All the means and instruments which a free Government
exercises, as well as the ends and objects which it pursues, are to
partake of its own essential character, and to be conformed to
its genuine spirit. A free Government with
arbitrary means to administer it is a contradiction; a free Government
without adequate provision for personal security is an
absurdity; a free Government, with an uncontrolled power of military
conscription, is a solecism, at once the most ridiculous and abominable
that ever entered into the head of man.
2002 Ron Paul 23:14
Into
the paradise of domestic life you enter, not
indeed by temptations and sorceries, but by open
force and violence.
2002 Ron Paul 23:15
Nor
is it, Sir, for the defense of his own house
and home, that he who is the subject of military
draft is to perform the task allotted to him. You will put him upon a
service equally foreign to his interests and abhorrent to
his feelings. With his aid you are to push your
purposes of conquest. The battles which he is to fight are the battles
of
invasion; battles which he detests perhaps
and abhors, less from the danger and the death that gather over
them, and the blood with which they drench the plain, than from the
principles
in which they have their origin. If, Sir, in
this strife he fall — if, while ready to obey every rightful
command of Government, he is forced from home against right, not to
contend for the defense of his country, but to prosecute a
miserable and detestable project of invasion, and
in that strife he fall, tis murder. It may stalk above the cognizance
of human
law, but in the sight of Heaven it is murder;
and though millions of years may roll away, while his ashes
and yours lie mingled together in the earth, the day will yet come,
when his
spirit and the spirits of his children must
be met at the bar of omnipotent justice. May God, in his compassion,
shield me from any participation in the enormity of this guilt.
2002 Ron Paul 23:16
A
military force cannot be raised, in this manner,
but by the means of a military force. If administration
has found that it can not form an army without conscription, it will
find, if it
venture on these experiments, that it can not
enforce conscription without an army. The Government was not
constituted for
such purposes. Framed in the spirit of liberty, and in the
love of peace, it has no powers which render it able to enforce such
laws. The
attempt, if we rashly make it, will fail; and
having already thrown away our peace, we may thereby throw
away our Government.
2002 Ron Paul 23:17
I
express these sentiments here, Sir, because I
shall express them to my constituents. Both they
and myself live under a Constitution which teaches us, that the
doctrine of non-resistance against arbitrary power and
oppression, is absurd, slavish, and destructive of
the good and happiness of mankind. With the same earnestness with
which I now
exhort you to forbear from these measures, I
shall exhort them to exercise their unquestionable right
of providing for the security of their own liberties.
2002 Ron Paul Chapter 24
http://www.house.gov/paul/congrec/congrec2002/cr0509202.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Statement on the Paul Amendment to H.R. 4546, the Defense Authorization Act of 2003
2002 Ron Paul 24:1
Not One American Tax Dollar to the International Criminal
Court
2002 Ron Paul 24:2
Mr. PAUL: Mr. Speaker, earlier this week President Bush took the bold step of
renouncing the signature of the United States on the Rome Statute of
the
International Criminal Court. The Bush Administration, in explaining
this move,
correctly pointed out that this court has unchecked power that
contradicts our
Constitution and its system of checks and balances; that the Court is
open
for exploitation and politically-motivated prosecutions; and that
the ICC asserts jurisdiction over citizens of states that have not
ratified the treaty – which undermines American sovereignty.
2002 Ron Paul 24:3
President Bush, in renouncing the U.S. signature and declaring that the
United States would have nothing to do with the International Criminal
Court,
has put the Court on notice that the United States will defend its
sovereignty
and its citizens. The president is to be most highly commended for
standing
strong for American sovereignty in the face of world-wide attempts to
undermine
that sovereignty with this deeply flawed global court.
2002 Ron Paul 24:4
But there is no time to rest on this victory. As Secretary of Defense Donald
Rumsfeld stated this week, upon our renunciation of the ICC:
Unfortunately, the ICC will not respect the U.S. decision to stay out
of
the treaty. To the contrary, the ICC provisions claim the authority to
detain
and try American citizens-U.S. soldiers, sailors, airmen and Marines,
as well as
current and future officials-even though the United States has not
given its
consent to be bound by the treaty. Secretary Rumsfeld added, When
the ICC treaty enters into force this summer, U.S. citizens will be
exposed to
the risk of prosecution by a court that is unaccountable to the
American people,
and that has no obligation to respect the Constitutional rights of our
citizens.
2002 Ron Paul 24:5
Secretary Rumsfeld is correct. It is clear that the International Criminal
Court has no intention of honoring our president’s decision to neither
participate in nor support their global judicial enterprise. According
to the
Statutes of the court, they do indeed claim jurisdiction over Americans
even
though the president has now stated forcefully that we do not recognize
the
Court nor are we a party to the Treaty.
2002 Ron Paul 24:6
I have introduced this amendment to the Defense Authorization Act, therefore,
to support the president’s decision and to indicate that Congress is
behind
him in his rejection of this unconstitutional global court. It is
imperative
that we not award the International Criminal Court a single tax dollar
to
further its objective of undermining our sovereignty and our
Constitutional
protections. How could we do anything less: each of us in this body has
taken an
oath to protect and defend the Constitution of the United States?
2002 Ron Paul 24:7
I am also introducing today a Sense of the Congress bill to commend President
Bush for his bold and brave decision to renounce the United States’
signature
on the Statute of the International Court. We must support the
president as he
seeks to protect American servicemen and citizens from this court. I
hope all of
my colleagues here will co-sponsor and support this legislation, and
please call
my office for more details.
2002 Ron Paul 24:8
In the meantime, I urge enthusiastic support of this amendment before us. We
must speak with one voice in denying the International Criminal Court a
single
American tax dollar!
2002 Ron Paul Chapter 25
http://www.house.gov/paul/congrec/congrec2002/cr0509302.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Statement on the introduction of H. Res. 416, Expressing the Sense of the Congress regarding the International Criminal Court
2002 Ron Paul 25:1
We Want No Part of the ICC: Commending President Bush
Mr. PAUL: Mr. Speaker, I rise today to introduce a bill Expressing
the Sense
of the Congress regarding the International Criminal Court.
2002 Ron Paul 25:2
On Monday, May 6, President George W. Bush directed his representative to
inform United Nations Secretary General Kofi Annan that the United
States
does not intend to become a party to the treaty [the Rome Statute of
the
International Criminal Court (ICC)]. President Bush is to be highly
commended for renouncing the U.S. signature on the ICC treaty, a bold
first step
toward protecting American servicemembers and citizens from the
possibility of
unwarranted and politically-motivated persecutions.
2002 Ron Paul 25:3
By taking this action, President Bush has put the international community on
notice that the United States will defend its sovereignty and citizens
from this
global court. The Bush Administration correctly pointed out that the
ICC has
unchecked power that contradicts our Constitution and its system of
checks and
balances; that the Court is open for exploitation and
politically-motivated prosecutions; and that the ICC asserts
jurisdiction over citizens of states that have not ratified the treaty
–
which seriously threatens American sovereignty.
2002 Ron Paul 25:4
I applaud President Bush in making it perfectly clear that the United States
wants no part of the ICC. He faced enormous pressure from the
international
community to do otherwise, yet he did the right thing.
2002 Ron Paul 25:5
But this is only a first step. As Secretary of Defense Donald Rumsfeld stated
this week, upon our renunciation of the ICC: Unfortunately, the ICC
will
not respect the U.S. decision to stay out of the treaty. To the
contrary, the
ICC provisions claim the authority to detain and try American
citizens-U.S.
soldiers, sailors, airmen and Marines, as well as current and future
officials-even though the United States has not given its consent to be
bound by
the treaty. Secretary Rumsfeld added, When the ICC treaty enters
into force this summer, U.S. citizens will be exposed to the risk of
prosecution
by a court that is unaccountable to the American people, and that has
no
obligation to respect the Constitutional rights of our citizens.
2002 Ron Paul 25:6
Undersecretary of State Marc Grossman, explaining the president’s decision
to withdraw from the ICC, made the following critical point:
Notwithstanding our disagreements with the Rome Treaty, the United
States
respects the decision of those nations who have chosen to join the ICC;
but they
in turn must respect our decision
not
to join the ICC or place
our
citizens under the jurisdiction of the court. There is no indication
that
Undersecretary Grossman’s message has been received.
2002 Ron Paul 25:7
Therefore, this legislation makes it clear that Congress should take all
steps necessary to grant appropriate authority to the president to
defend the
American people – servicemember and citizen alike -- from the threat of
arrest, prosecution and conviction by the International Criminal Court.
2002 Ron Paul 25:8
I am introducing this legislation to also to commend President Bush for his
courageous move, to assure the president that this body supports his
action to
protect the Constitution and American sovereignty. We have all taken an
oath to
protect and defend the Constitution, and we should stand with the
president.
2002 Ron Paul 25:9
I rise, finally, to encourage the president to remain steadfast in his
intention of protecting American servicemembers and citizens from the
unchecked
power of the International Criminal Court. This is only the beginning,
however,
there is much more to be done.
2002 Ron Paul Chapter 26
http://www.house.gov/paul/congrec/congrec2002/cr051402.htm
Congressman Ron Paul
U.S. House of Representatives
May 14, 2002
No Forced Dress Code for U.S. Soldiers Abroad
2002 Ron Paul 26:1
Mr. PAUL. Mr. Speaker, while I
support
this legislation, I would like to make a few
observations.
It is unfortunate that we are in a position where we must act on such
legislation.
Because
of our
unwise policy of foreign interventionism, which has placed thousands of
American
service members in the Middle East including in Saudi Arabia, we are
placed in a
no-win situation. Either we
disregard and
mock the customs and culture of Saudi Arabia by
refusing
to adhere to dress codes that they have adopted, or we subject American
women to
a
dress code that is
offensive to
our own culture and customs and is disrespectful to the sacrifices
they
are making for this country. What a choice, Mr. Speaker!
2002 Ron Paul 26:2
I am voting for this bill
because I
believe, on the whole, that it is preferable to place concerns
about
our own citizens over those whose homeland is being defended by
American troops.
Young Americans join the
all-volunteer
military as an act of patriotism in hopes of defending
their
country and their constitution. We in Congress must honor that
sacrifice. it is
bad enough
that our
troops are sent
around the world to defend foreign soil. Asking them to comply with
foreign
customs which violate basic American beliefs about freedom in order to
appease
the
very governments our
troops are
defending adds insult to injury. I do not believe a single female
member
of the armed forces enlisted for the privilege of wearing an abaya
while
defending
the House of
Saud or that
one single male member of the armed forces enlisted in order to force
his
female colleagues to wear an abaya.
2002 Ron Paul 26:3
The fact remains that we
continue to
maintain troops in a place where they are not needed. It is the
consequences of
this dangerous policy that concern me most. Isnt it time to return to
a more
sound foreign policy, one that respects the culture of others by not
intervening
in their affairs? Is it not time to bring American troops home to
protect
America, rather than continuing to station them in far off lands where
the
protection they offer is not needed?
2002 Ron Paul Chapter 27
http://www.house.gov/paul/congrec/congrec2002/cr051602.htm
Congressman Ron Paul
U.S. House of Representatives
May 16, 2002
Stop Perpetuating the Welfare State
2002 Ron Paul 27:1
Mr. PAUL. Mr. Speaker, no one
can deny
that welfare programs have undermined Americas
moral
fabric and constitutional system. Therefore, all those concerned with
restoring
liberty and
protecting
civil
society from the maw of the omnipotent state should support efforts to
eliminate
the welfare state, or, at the
very last,
reduce federal control over the provision of social
services.
Unfortunately, the misnamed Personal Responsibility, Work, and Family
Promotion
Act (H.R. 4737) actually increases the unconstitutional federal welfare
state
and thus undermines
personal
responsibility, the work ethic, and the family.
2002 Ron Paul 27:2
H.R. 4737 reauthorizes the
Temporary
Assistance to Needy Families (TANF) block grant
program,
the main federal welfare program. Mr. Speaker, increasing federal funds
always
increases federal control as the
recipients of the funds must tailor their programs to meet federal
mandates
and regulations. More importantly, since federal funds represent
resources taken
out of
the hands of
private
individuals, increasing federal funding leaves fewer resources
available for
the voluntary provision of social
services, which, as I will explain in more detail later, is a
more
effective, moral, and constitutional means of meeting the needs of the
poor.
2002 Ron Paul 27:3
H.R. 4737 further increases
federal
control over welfare policy by increasing federal mandates on
welfare
recipients. This bill even goes so far as to dictate to states how they
must
spend their own funds! Many of the new mandates imposed by this
legislation
concern work requirements. Of course, Mr. Speaker, there is a sound
argument for
requiring recipients of welfare benefits to work. Among other benefits,
a work
requirement can help a welfare recipient obtain useful job skills and
thus
increase the likelihood that they will find productive employment.
However,
forcing welfare recipients to work does raise valid concerns regarding
how much
control over ones life should be ceded to the government in exchange
for
government benefits.
2002 Ron Paul 27:4
In addition, Mr. Speaker, it is highly unlikely that a one-size-fits-all approach dictated from Washington will meet the
diverse needs of every welfare recipient in every state and locality in
the
nation. Proponents of this bill claim to support allowing states,
localities,
and private charities the flexibility to design welfare-to-work
programs that
fit their particular circumstances. Yet, as Minnesota Governor Jesse
Ventura
points out in the attached article, this proposal constricts the
ability of the
states to design welfare-to-work programs that meet the unique needs of
their
citizens.
2002 Ron Paul 27:5
As Governor Ventura points out in reference to this proposals effects on
Minnesotas welfare-to-welfare work program, We know what we are doing
in
Minnesota works. We have evidence. And our way of doing things has
broad support
in the state. Why should we be forced by the federal government to put
our
system at risk? Why indeed, Mr. Speaker, should any state be forced
to abandon
its individual welfare programs because a group of self-appointed
experts in
Congress, the federal bureaucracy, and inside-the-beltway think tanks
have
decided there is only one correct way to transition people from welfare
to work?
2002 Ron Paul 27:6
Mr. Speaker, H.R. 4737 further expands the reach of the federal government by
authorizing $100 million dollars for new marriage promotion
programs. I
certainly recognize how the welfare state has contributed to the
decline of the
institution of marriage. As an ob-gyn with over 30 years of private
practice. I
know better than most the importance of stable, two parent families to
a healthy
society. However, I am skeptical, to say the least, of claims that
government
education programs can fix the deep-rooted cultural problems
responsible for the
decline of the American family.
2002 Ron Paul 27:7
Furthermore, Mr. Speaker, federal promotion of marriage opens the door for a
level of social engineering that should worry all those concerned with
preserving a free society. The federal government has no constitutional
authority to promote any particular social arrangement; instead, the
founders
recognized that people are better off when they form their own social
arrangements free from federal interference. The history of the failed
experiments with welfarism and socialism shows that government can only
destroy
a culture; when a government tries to build a culture, it only further
erodes
the peoples liberty.
2002 Ron Paul 27:8
H.R. 4737 further raises serious privacy concerns by expanding the use of the
New Hires Database to allow states to use the database to verify
unemployment claims. The New Hires Database contains the name and
social
security number of everyone lawfully employed in the United States.
Increasing
the states ability to identify fraudulent unemployment claims is a
worthwhile
public policy goal. However, every time Congress authorizes a new use
for the
New Hires Database it takes a step toward transforming it into a
universal
national database that can be used by government officials to monitor
the lives
of American citizens.
2002 Ron Paul 27:9
As with all proponents of welfare programs, the supporters of H.R. 4737 show
a remarkable lack of trust in the American people. They would have us
believe
that without the federal government, the lives of the poor would be
nasty,
brutish and short. However, as scholar Sheldon Richman of the Future
of
Freedom Foundation and others have shown, voluntary charities and
organizations,
such as friendly societies that devoted themselves to helping those in
need,
flourished in the days before the welfare state turned charity into a
government
function.
2002 Ron Paul 27:10
Today, government welfare programs have supplemented the old-style private
programs. One major reason for this is that the policy of high taxes
and the
inflationary monetary policy imposed on the American people in order to
finance
the welfare state have reduced the income available for charitable
giving. Many
over-taxed Americans take the attitude toward private charity that I
give
at the (tax) office.
2002 Ron Paul 27:11
Releasing the charitable impulses of the American people by freeing them from
the excessive tax burden so they can devote more of their resources to
charity,
is a moral and constitutional means of helping the needy. By contrast,
the
federal welfare state is neither moral or constitutional. Nowhere in
the
Constitution is the federal government given the power to level
excessive taxes
on one group of citizens for the benefit of another group of citizens.
Many of
the founders would have been horrified to see modern politicians define
compassion as giving away other peoples money stolen through
confiscatory
taxation. In the words of the famous essay by former Congressman Davy
Crockett,
this money is Not Yours to Give.
2002 Ron Paul 27:12
Voluntary charities also promote self-reliance, but government welfare
programs foster dependency. In fact, it is the self-interests of the
bureaucrats
and politicians who control the welfare state to encourage dependency.
After
all, when a private organization moves a person off welfare, the
organization
has fulfilled its mission and proved its worth to donors. In contrast,
when
people leave government welfare programs, they have deprived federal
bureaucrats
of power and of a justification for a larger amount of taxpayer funding.
2002 Ron Paul 27:13
In conclusion, H.R. 4737 furthers federal control over welfare programs by
imposing new mandates on the states which furthers unconstitutional
interference
in matters best left to state local governments, and individuals.
Therefore, I
urge my colleagues to oppose it. Instead, I hope my colleagues will
learn the
lessons of the failure of the welfare state and embrace a
constitutional and
compassionate agenda of returning control over the welfare programs to
the
American people through large tax cuts.
2002 Ron Paul 27:14
Welfare: Not the Feds Job (By Jesse Ventura)
In 1996, the federal government ended 60 years of failed welfare
policy that
trapped families in dependency rather than helping them to
self-sufficiency. The
1996 law scrapped the federally centralized welfare system in favor of
broad
flexibility so states could come up with their own welfare programs. It
was a
move that had bipartisan support, was smart public policy and worked.
2002 Ron Paul 27:15
Welfare reform has been a huge success. Even those who criticized the 1996
law now agree it is working. Welfare case loads are down, more families
are
working, family income is up, and child poverty has dropped.
2002 Ron Paul 27:16
The reason is simple: state flexibility. In six short years the states undid
a 60-year-old federally prescribed welfare system and created their own
programs
which are far better for poor families and for taxpayers.
2002 Ron Paul 27:17
But now it appears the Bush administration is having second thoughts about
empowering the states. The administrations proposal would return us to
a
federally prescribed system. It would impose rules on how states work
with each
family, forcing a one size fits all model for a system that for the
past six years has produced individualized systems that have been
successful in
states across the country.
2002 Ron Paul 27:18
I would hope that as a former governor, President Bush would understand that
these problems are better handled by the individual states. The
administrations
proposal would cripple welfare reform in my state and many others.
2002 Ron Paul 27:19
I know that my friend Health and Human Services Secretary Tommy Thompson did
a wonderful job of reforming Wisconsins welfare system. But that
doesnt mean
the Wisconsin system would be as effective in Vermont. My state of
Minnesota is
also a national model for welfare reform. It is a national model, in
part
because we make sure welfare reform gets families out of poverty. How
do we do
this? Exactly the way President Bush and Secretary
2002 Ron Paul 27:20
Thompson would want us to do it: by putting people to work. But heres the
rub- it matters how families on welfare get to work. In Minnesota, we
work with
each family one on one and use a broad range of services to make sure
the family
breadwinner gets and keeps a decent job. For some families it might
take a
little longer that what the president is comfortable with, but the
results are
overwhelmingly positive. A three-year follow-up of Minnesota families
on welfare
found that more than three-quarters have left welfare or gone to work.
Families
that have left welfare for work earn more than $9 an hour, higher than
comparable figures in other states. The federal government has twice
cited
Minnesota as a leader among the states in job retention and advancement.
2002 Ron Paul 27:21
An independent evaluation of Minnesotas welfare reform pilot found it to be
perhaps the most successful welfare reform effort in the nation. The
evaluation
found Minnesotas program not only increased employment and earnings
but also
reduced poverty, reduced domestic abuse, reduced behavioral problems
with kids
and improved their school performance. It also found that marriage and
marital
stability increased as a result of higher family incomes.
2002 Ron Paul 27:22
The administrations proposal would have Minnesota set all this aside and
focus instead on make-work activities. In Minnesota we believe that
success in
welfare reform is about helping families progress to a self-sufficiency
that
will last. While it may be politically appealing to demand that all
welfare
recipients have shovels in their hands, it makes sense to me that the
states-
and not the feds- are in the best position to make those decisions.
2002 Ron Paul 27:23
We know what we are doing in Minnesota works. We have evidence. And our way
of doing things has broad support in the state. Why should we be forced
by the
federal government to put our system at risk?
2002 Ron Paul 27:24
I believe in accountable and responsive government, and have no problem with
the federal government holding states accountable for results in
welfare reform.
But I also believe that in this case the people closest to the problem
should be
trusted to solve the problem and be left alone if they have.
2002 Ron Paul 27:25
Secretary Thompson, with the blessing of the president, seems to be taking us
down a road that violates the tenets of states rights.
2002 Ron Paul 27:26
Say it aint so, Tommy. As long as its working, why not let the states do
our own thing?
2002 Ron Paul Chapter 28
http://www.house.gov/paul/congrec/congrec2002/cr052102c.htm
Congressman Ron Paul
U.S. House of Representatives
May 21, 2002
Dont Force Taxpayers to Fund Nation-Building in Afghanistan
2002 Ron Paul 28:1
Mr. PAUL. Madam Chairman, I
thank the
chairman for yielding me time.
Madam Chairman, I rise in
opposition to this bill. The President has not asked for this piece of
legislation; he does not support it. We do not anticipate that it will
be passed
in the other body. But there is one good part of the bill, and that is
the
title, Freedom Support. We all support freedom. It is just that this
bill does not support freedom. Really, it undermines the liberties and
the taxes
of many Americans in order to pump another in $1.2 billion into
Afghanistan.
2002 Ron Paul 28:2
One of the moral
justifications, maybe,
for rebuilding Afghanistan is that it was the American bombs that
helped to
destroy Afghanistan in our routing of the Taliban. But there is a lot
of
shortcomings in this method. Nation-building does not work. I think
this will
fail. I do not think it will help us.
2002 Ron Paul 28:3
I do not think for a minute
that this
is much different than social engineering that we try here in the U.S.
with a
lot of duress and a lot of problems; and now we are going to do it over
there
where we really do not understand the social conditions that exist, and
it is
not like here. Some, especially those in that part of the world, will
see this
as neo-colonialism because we are over there for a lot of different
reasons. And
even in the bill it states one of the reasons. It says, We are to
design
an
overall strategy to
advance U.S.
interests in Afghanistan.
2002 Ron Paul 28:4
Well, I wonder what that
means?
Over 10 years ago there was an explicit desire and a statement made by
the
administration that until we had a unified government in Afghanistan,
we could
not build a gas pipeline across northern Afghanistan. And that is in
our
interests. Does that mean this is one of the motivations?
2002 Ron Paul 28:5
I imagine a lot of people here
in the
Congress might say no, but that might be the ultimate outcome. It is
said that
this bill may cut down on the drug trade. But the Taliban was stronger
against
drugs than the Northern Alliance. Drug production is up since weve
been
involved this past year in Afghanistan.
2002 Ron Paul 28:6
Madam Chairman, I think it is
important
to state first off that while it is true that the administration has
not
actively opposed this legislation, it certainly has not asked for nor
does it
support the Afghanistan Freedom Support Act. It did not support the
bill when we
marked it up in the International Relations Committee, it did not
support the
bill after it was amended in Committee, and it does not support the
bill today.
2002 Ron Paul 28:7
Madam Chairman, perhaps the
Afghanistan
Freedom Support Act should more accurately be renamed the
Afghanistan
Territorial Expansion Act, because this legislation essentially
treats that
troubled nation like a new American territory. In fact, I wonder
whether we give
Guam, Puerto Rico, or other American territories anywhere near $1.2
billion
every few years- so maybe we just should consider full statehood for
Afghanistan. This new State of Afghanistan even comes complete with an
American
governor, which the bill charitably calls a coordinator. After all,
we
cant just give away such a huge sum without installing an American
overseer to
ensure we approve of all aspects of the fledgling Afghan government.
Madam Chairman, when we fill a nations empty treasury, when we fund
and train
its military, when we arm it with our weapons, when we try to impose
foreign
standards and values within it, indeed when we attempt to impose a
government
and civil society of our own making upon it, we are nation-building.
There is no
other term for it. Whether Congress wants to recognize it or not, this
is
neo-colonialism. Afghanistan will be unable to sustain itself
economically for a
very long time to come, and during that time American taxpayers will
pay the
bills. This sad reality was inevitable from the moment we decided to
invade it
and replace its government, rather than use covert forces to eliminate
the
individuals truly responsible for September 11th. Perhaps the saddest
truth is
that Bin Laden remains alive and free even as we begin to sweep up the
rubble
from our bombs.
2002 Ron Paul 28:8
I am sure that supporters of
this bill
are well-intentioned, but judging from past experience this approach
will fail
to improve the lives of the average Afghan citizen. Though many will
also
attempt to claim that this bill is somehow about the attacks of 9/11,
lets not
fool ourselves: nation-building and social engineering are what this
bill is
about. Most of the problems it seeks to address predate the 9/11
attacks and
those it purports to assist had nothing to do with those attacks.
2002 Ron Paul 28:9
If we are operating under the
premise
that global poverty itself poses a national security threat to the
United
States, then I am afraid we have an impossible task ahead of us.
2002 Ron Paul 28:10
As is often the case, much of
the money
authorized by this bill will go toward lucrative contracts with
well-connected
private firms and individuals. In short, when you look past all the
talk about
building civil society in Afghanistan and defending against terrorism,
this bill
is laden with the usual corporate welfare and hand-outs to special
interests.
2002 Ron Paul 28:11
Among other harmful things,
this
legislation dramatically expands the drug war. Under the group we have
installed
in Afghanistan, opium production has skyrocketed. Now we are expected
to go in
and clean up the mess our allies have created. In addition, this bill
will send
some $60 million to the United Nations, to help fund its own drug
eradication
program. I am sure most Americans agree that we already send the United
Nations
too much of our tax money, yet this bill commits us to sending even
more.
2002 Ron Paul 28:12
The drug war has been a
failure. Plan
Colombia, an enormously expensive attempt to reduce drug production in
that
Andean nation, has actually resulted in a 25 percent increase in coca
leaf and
cocaine production. Does anyone still think our war on drugs there has
been
successful? Is it responsible to continue spending money on policies
that do not
work?
2002 Ron Paul 28:13
The bill also reflects a
disturbing
effort by the Washington elite to conduct experiments in social
engineering in
Afghanistan. It demands at least five times that the Afghans create a
government
that is broad-based, multi-ethnic, gender-sensitive, and fully
representative. We are imposing race and gender quotas on a foreign
government
that have been found inappropriate and in some cases even illegal in
the United
States. Is this an appropriate activity to be carried out with taxpayer
funds?
2002 Ron Paul 28:14
Madam Chairman, the problem
with
nation-building and social-engineering, as experience tells us time and
time
again is that it simply doesnt work. We cannot build multi-ethnic,
multi-cultural, gender-sensitive civil society and good governance in
Afghanistan on a top-down basis from afar. What this bill represents is
a
commitment to deepening involvement in Afghanistan and a determination
to impose
a political system on that country based on a blueprint drawn up
thousands of
miles away by Washington elites. Does anyone actually believe that we
can buy
Afghan democracy with even the staggering sum of 1.2 billion dollars? A
real
democracy is the product of shared values and the willingness of a
population to
demand and support it. None of these things can be purchased by a
foreign power.
What is needed in Afghanistan is not just democracy, but freedom- the
two are
not the same.
2002 Ron Paul 28:15
Release of funds authorized by
this
legislation is dependent on the holding of a traditional Afghan
assembly of
tribal representatives –a loya jirga – as a first step toward
democratization. It authorizes $10 million dollars to finance this
meeting. That
this traditional meeting will produce anything like a truly
representative body
is already in question, as we heard earlier this month that seven out
of 33
influential tribal leaders have already announced they will boycott the
meeting.
Additionally, press reports have indicated that the U.S. government
itself was
not too long ago involved in an attempted assassination of a
non-Taliban
regional leader who happened to be opposed to the rule of the
American-installed
Hamid Karzai. More likely, this loya jirga will be a stage-managed
showpiece, primarily convened to please Western donors. Is this any way
to teach
democracy?
2002 Ron Paul 28:16
Madam Chairman, some two
decades
ago the Soviet Union also invaded Afghanistan and attempted to impose
upon the
Afghan people a foreign political system. Some nine years and 15,000
Soviet
lives later they retreated in disgrace, morally and financially
bankrupt. During
that time, we propped up the Afghan resistance with our weapons, money,
and
training, planting the seeds of the Taliban in the process. Now the
former
Soviet Union is gone, its armies long withdrawn from Afghanistan, and
were left
cleaning up the mess- yet we wont be loved for it. No, we wont get
respect or
allegiance from the Afghans, especially now that our bombs have rained
down upon
them. We will pay the bills, however, Afghanistan will become a tragic
ward of
the American state, another example of an interventionist foreign
policy that is
supposed to serve our national interests and gain allies, yet which
does
neither.
2002 Ron Paul 28:17
I repeat that t
he President has not been interested
in this legislation. I do not see
a good reason to give him the burden of reporting back to us in 45 days
to explain how he is going to provide for Afghan
security for the long term. How long is long term? We have been in
Korea now for 50 years. Are we planning to send troops
that provide national security for Afghanistan? I think we should be
more concerned about the security of this country and not
wondering how we are going to provide the troops for long-term security
in Afghanistan. We should be more concerned about
the security of our ports.
2002 Ron Paul 28:18
Madam Chairman, over the last several days and almost continuously, as a matter of fact, many Members get up and talk
about any expenditure or any tax cut as an attack on Social Security,
but we do not hear this today because there is a coalition,
well built, to support this intervention and presumed occupation of
Afghanistan. But the truth is, there are monetary and budget
consequences for this.
2002 Ron Paul 28:19
After this bill is passed, if this bill is to pass, we will be close to $2 billion in aid to Afghanistan, not counting the
military. Now, that is an astounding amount of money, but it
seems
like it is irrelevant here. Twelve months ago, the national debt was
$365 billion less than it is today, and people say we are just getting
away from having surpluses. Well, $365 billion is a huge
deficit, and the national debt is going up at that rate. April revenues
were down 30 percent from 1 year ago. The only way we
pay for programs like this is either we rob Social Security or we print
the money, but both are very harmful to poor people and
people living on a limited income. Our funds are not unlimited. I
know
there is a lot of good intention; nobody in this body is saying we are
going over there to cause mischief, but let me tell
my colleagues, there is a lot of reasons not to be all that optimistic
about these wonderful results and what we are going to
accomplish over there.
2002 Ron Paul 28:20
Madam Chairman, earlier the gentleman from California (Mr. Rohrabacher) came up with an astounding reason for us to do
this. He said that we owe this to Afghanistan. Now, I have heard all
kinds of arguments for foreign aid and foreign intervention, but the
fact that
we owe this to Afghanistan? Do we know what we owe? We owe
responsibility to the American taxpayer. We owe
responsibility to the security of this country.
One provision of this bill takes a $300 million line of credit
from our DOD and just gives the President the authority to take
$300 million of weapons away from us and give it to somebody in
Afghanistan. Well, that dilutes our defense, that does not
help our defense. This is not beneficial. We do not need to have an
occupation of Afghanistan for security of this country. There
is no evidence for that.
2002 Ron Paul 28:21
The occupation of Afghanistan is unnecessary. It is going to be very costly, and it is very
dangerous. My colleagues might say, well, this is all for
democracy.
For democracy? Well, did we care about democracy in Venezuela?
It seemed like we tried to undermine that just recently. Do we care
about the democracy in Pakistan? A military dictator takes
over and he becomes our best ally, and we use his land, and yet he has
been a friend to the Taliban, and who knows, bin
Laden may even be in Pakistan. Here we are saying we are doing it all
for democracy. Now, that is just pulling our leg a little
bit too much. This is not the reason that we are over there. We are
over there for a lot of other reasons and, hopefully, things
will be improved.
2002 Ron Paul 28:22
But I am terribly concerned that we will spend a lot of money, we will become deeply mired in Afghanistan, and we will not
do a lot better than the Soviets did. Now, that is a real
possibility
that we should not ignore. We say, oh, no, everything sounds rosy and
we are going to do this,
we are going to do it differently, and this time it is going to be
okay. Well, if we look at the history of that land and that country,
I would think that we should have second thoughts.
2002 Ron Paul 28:23
It has been said that one of the reasons why we need this legislation is to help pay for drug eradication. Now, that is a good
idea. That would be nice if we could do that. But the drug production
has exploded since we have been there. In the last year,
it is just going wild. Well, that is even more reason we have to spend
money because we contributed to the explosion of the
drug production. There is money in this bill, and maybe some good will
come of this; there is money in this bill that is going to
be used to teach the Afghan citizens not to use drugs.
2002 Ron Paul 28:24
Mr. Speaker, if this is successful, if we teach the Afghan people not to use drugs, that would be
wonderful. Maybe then we can do something about the ravenous
appetite
of our people for drugs which is the basic cause of so much drug
production.
2002 Ron Paul 28:25
So to spend money on these kinds of programs I think is just a little bit of a stretch. Already there have been 33 tribal leaders
that have said they will not attend this Loya Jirga, that they are not
going to attend. The fact that we are going to spend millions
of dollars trying to gather these people together and tell them what to
do with their country, I think the odds of producing a
secure country are slim.
2002 Ron Paul 28:26
Already in the papers just a few weeks ago it was reported in The Washington Post that our CIA made an attempt to
assassinate a former prime minister of Afghanistan. He may have been a
bum for all I know, but do Members think that sits
well? He was not an ally of bin Laden, he was not a Taliban member, yet
our CIA is over there getting involved. As a matter of
fact, that is against our law, if that report is true. Yet, that is
what the papers have reported.
2002 Ron Paul 28:27
So I would say that we should move cautiously. I think this is very dangerous. I know nobody else has spoken out against
this bill, but I do not see much benefit coming from this. I know it is
well motivated, but it is going to cost a lot of money, we are
going to get further engaged, more troops are going to go over there;
and now that we are a close ally of Pakistan, we do know
that Pakistan and India both have nuclear weapons, and we are sitting
right next to them. So I would hardly think this is
advantageous for our security, nor advantageous for the American
people, nor advantageous to the American taxpayer.
2002 Ron Paul 28:28
I see this as a threat to our security. It does not reassure me one bit. This is what scares me. It scares me when we send
troops into places like Vietnam and Korea and other places, because it
ultimately comes back to haunt us.
2002 Ron Paul Chapter 29
http://www.house.gov/paul/congrec/congrec2002/cr052102b.htm
Congressman Ron Paul
U.S. House of Representatives
May 21, 2002
Statement on New Internet Regulations and Expanded Federal Wiretap Powers
2002 Ron Paul 29:1
Mr. Speaker, as a parent, grandparent, and OB-GYN who
has
delivered over three thousand babies, I certainly share the desire to
protect
children from pornography and other inappropriate material available on
the
internet. However, as a United States Congressman, I cannot support
measures
which exceed the limitations on constitutional power contained in
Article one,
Section 8 of the Constitution. The Constitution does not provide
Congress with
the authority to spend taxpayer funds to create new internet domains.
2002 Ron Paul 29:2
Furthermore, Mr. Speaker, the federal government is
singularly
unqualified to act as the arbiter of what material is inappropriate for
children. Instead, this is a decision that should be made by parents.
Most of
the problems pointed to by proponents of increased government control
of the
internet are the result of a lack of parental, not governmental,
control of
children’s computer habits. Expanding the government’s control over the
internet may actually encourage parents to disregard their
responsibility to
monitor their child’s computer habits. After all, why should parents
worry
about what websites their children is viewing when the government has
usurped
this parental function?
2002 Ron Paul 29:3
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.
2002 Ron Paul 29:4
In addition to creating new internet domains,
Congress is also
expanding federal wiretapping powers. Mr. Speaker, my colleagues should
also
remember that the Constitution creates only three federal crimes,
namely
treason, piracy, and counterfeiting. Expansion of federal police power
for
crimes outside these well-defined areas thus violates the Constitution.
In
addition, expansion of federal wiretapping powers raises serious civil
liberties
concerns, as such powers easily can be abused by federal officials.
2002 Ron Paul 29:5
I therefore hope my colleagues will respect the
constitutional
limitations on federal power. Instead of usurping powers not granted
the federal
government, Congress should allow state and local law enforcement,
schools,
local communities, and most of all responsible parents to devise the
best
measures to protect children.
2002 Ron Paul Chapter 30
http://www.house.gov/paul/congrec/congrec2002/cr052202.htm
Congressman Ron Paul
U.S. House of Representatives
May 22, 2002
Stop Taxing Social Security Benefits!
2002 Ron Paul 30:1
Mr. Speaker, I am pleased to commemorate Older
Americans Month
by introducing two pieces of legislation to reduce taxes on senior
citizens. The
first bill, the Social Security Beneficiary Tax Reduction Act, repeals
the 1993
tax increase on Social Security benefits. Repealing this increase on
Social
Security benefits is a good first step toward reducing the burden
imposed by the
federal government on senior citizens. However, imposing any tax on
Social
Security benefits is unfair and illogical. This is why I am also
introducing the
Senior Citizens’ Tax Elimination Act, which repeals all taxes on Social
Security benefits.
2002 Ron Paul 30:2
Since Social Security benefits are financed with tax
dollars,
taxing these benefits is yet another example of double taxation.
Furthermore,
taxing benefits paid by the government is merely an accounting
trick, a shell game which allows members of Congress to reduce benefits
by
subterfuge. This allows Congress to continue using the Social Security
trust
fund as a means of financing other government programs, and masks the
true size
of the federal deficit.
2002 Ron Paul 30:3
Instead of imposing ridiculous taxes on senior
citizens,
Congress should ensure the integrity of the Social Security trust fund
by ending
the practice of using trust fund monies for other programs. In order to
accomplish this goal I introduced the Social Security Preservation Act
(H.R.
219), which ensures that all money in the Social Security trust fund is
spent
solely on Social Security. At a time when Congress’ inability to
control
spending is once again threatening the Social Security trust fund, the
need for
this legislation has never been greater. When the government taxes
Americans to
fund Social Security, it promises the American people that the money
will be
there for them when they retire. Congress has a moral obligation to
keep that
promise.
2002 Ron Paul 30:4
In conclusion, Mr. Speaker, I urge my colleagues to
help free
senior citizens from oppressive taxation by supporting my Senior
Citizens’ Tax
Elimination Act and my Social Security Beneficiary Tax Reduction Act. I
also
urge my colleagues to ensure that moneys from the Social Security trust
fund are
used solely for Social Security benefits and not wasted on frivolous
government
programs.
2002 Ron Paul Chapter 31
http://www.house.gov/paul/congrec/congrec2002/cr052202b.htm
Congressman Ron Paul
U.S. House of Representatives
May 22, 2002
Dont Expand Federal Deposit Insurance
2002 Ron Paul 31:1
Mr. Speaker, HR 3717, the Federal Deposit Insurance
Reform
Act, expands the federal government’s unconstitutional control over the
financial services industry and raises taxes on all financial
institutions.
Furthermore, this legislation could increase the possibility of future
bank
failures. Therefore, I must oppose this bill.
2002 Ron Paul 31:2
I primarily object to the provisions in HR 3717 which
may
increase the premiums assessed on participating financial institutions.
These
premiums, which are actually taxes, are the premier sources of funds
for the Deposit Insurance Fund. This fund is used to bail out banks who
experience difficulties meeting their commitments to their depositors.
Thus, the
deposit insurance system transfers liability for poor management
decisions from
those who made the decisions to their competitors. This system punishes
those
financial institutions which follow sound practices, as they are forced
to
absorb the losses of their competitors. This also compounds the moral
hazard
problem created whenever government socializes business losses.
2002 Ron Paul 31:3
In the event of a severe banking crisis, Congress
likely will
transfer funds from general revenues into the Deposit Insurance Fund,
which
could make all taxpayers liable for the mistakes of a few. Of course,
such a
bailout would require separate authorization from Congress, but can
anyone
imagine Congress saying No to banking lobbyists pleading for relief
from the costs of bailing out their weaker competitors?
2002 Ron Paul 31:4
Government subsidies lead to government control, as
regulations are imposed on the recipients of the subsidies in order to
address
the moral hazard problem. This is certainly the case in banking, which
is one of
the most heavily regulated industries in America. However, as George
Kaufman,
the John Smith Professor of Banking and Finance at Loyola University in
Chicago,
and co-chair of the Shadow Financial Regulatory Committee, pointed out
in a
study for the CATO Institute, the FDIC’s history of poor management
exacerbated the banking crisis of the eighties and nineties. Professor
Kaufman
properly identifies a key reason for the FDIC’s poor track record in
protecting individual depositors: regulators have incentives to
downplay or even
cover-up problems in the financial system such as banking failures.
Banking
failures are black marks on the regulators’ records. In addition,
regulators
may be subject to political pressure to delay imposing sanctions on
failing
institutions, thus increasing the magnitude of the loss.
2002 Ron Paul 31:5
Immediately after a problem in the banking industry
comes to
light, the media and Congress inevitably will blame it on regulators
who were
asleep at the switch. Yet, most politicians continue to believe the
very regulators whose incompetence (or worse) either caused or
contributed to
the problem will somehow prevent future crises!
2002 Ron Paul 31:6
The presence of deposit insurance and government
regulations
removes incentives for individuals to act on their own to protect their
deposits
or even inquire as to the health of their financial institutions. After
all, why
should individuals be concerned with the health of their financial
institutions
when the federal government insures their deposits?
2002 Ron Paul 31:7
Finally, I would remind my colleagues that the
federal deposit
insurance program lacks constitutional authority. Congress’ only
mandate in
the area of money and banking is to maintain the value of the money.
Unfortunately, Congress abdicated its responsibility over monetary
policy with
the passage of the Federal Reserve Act of 1913, which allows the
federal
government to erode the value of the currency at the will of the
central bank.
Congress’ embrace of fiat money is directly responsible for the
instability in
the banking system that created the justification for deposit insurance.
2002 Ron Paul 31:8
In conclusion, Mr. Speaker, HR 3717 imposes new taxes
on
financial institutions, forces sound institutions to pay for the
mistakes of
their reckless competitors, increases the chances of taxpayers being
forced to
bail out unsound financial institutions, reduces individual depositors’
incentives to take action to protect their deposits, and exceeds
Congress’s
constitutional authority. I therefore urge my colleagues to reject this
bill.
Instead of extending this federal program, Congress should work to
prevent the
crises which justify government programs like deposit insurance, by
fulfilling
our constitutional responsibility to pursue sound monetary policies.
2002 Ron Paul Chapter 32
http://www.house.gov/paul/congrec/congrec2002/cr052302.htm
Congressman Ron Paul
U.S. House of Representatives
May 23, 2002
No More Taxpayer Funds for the Failed Drug War in Colombia
2002 Ron Paul 32:1
Mr. PAUL. Mr. Chairman, I rise
in
strong support of this amendment, and I compliment the gentleman from
Massachusetts (Mr.
McGovern
) and the gentleman from Missouri
(Mr.
Skelton
)
for bringing this to us. There has been a lot of discussion in the last
2 days,
a lot about the deficit; and it strikes me as a bit of an irony,
especially
because it comes from many, and I have to say on both sides of the
aisle, that
do a lot to raise the national debt and the spending, and yet the
debate went on
and on. For some reason, I think there has been a lot of politics in
the debate.
2002 Ron Paul 32:2
The interesting thing about
what is
going on right now, there is no politics in this. This is about war,
and this is
important, and this is about policy. It is said that we would like to
get things
like this through without a full discussion; but this, to me, is a key
issue.
This amendment is about whether or not we will change our policy in
central
America and, specifically, in Colombia.
2002 Ron Paul 32:3
Mr. Chairman, a year or so ago
we
appropriated $1.6 billion, and we went into Colombia with the intent of
reducing
drug usage. Instead it is up 25 percent. Drug usage is going up! They
sprayed
210,000 acres, and now there are 53,000 more acres than ever before. It
reminds
me of Afghanistan. We have been in Afghanistan for less than a year and
drug
production is going up! I just wonder about the effectiveness of our
drug
program in Colombia.
2002 Ron Paul 32:4
But the theory is that we will
be more
effective if we change the policy. Pastrana tried to negotiate a peace
and we
were going too deal with the drugs, and we were going to have peace
after 40
years of a civil war. Now Uribi is likely to become President and the
approach
is to different. He said, no more negotiations. We will be fighting and
we want
American help, and we want a change in policy, and we do not want
spraying
fields; we want helicopters to fight a war. That is what we are dealing
with
here. We should not let this go by without a full discussion and a full
understanding, because in reality, there is no authority to support a
military
operation in Colombia.
2002 Ron Paul 32:5
What we are doing is we are
appropriating for something for the administration to do without a
proper
authority. He has no authority to get involved in the civil war down
there. We
cannot imply that the issue of war is granted through the appropriation
process.
It is not the way the system works. The constitutional system works
with
granting explicit authority to wage war. The President has no
authority, and now
he wants the money; and we are ready to capitulate. Let me tell my
colleagues,
if we care about national defense, we must reconsider this.
2002 Ron Paul 32:6
This dilutes our national
defense, it
dilutes our forces, exposes our troops, takes away our weapons,
increases the
expenditures. If we ignore this issue I guess we can go back to
demagoging the
national debt limit.
2002 Ron Paul 32:7
So I would say, please, take a
close
look at this. We do not need to be expanding our role in Colombia. The
drug war
down there has not worked, and I do not expect this military war that
we are
about to wage to work either. We need to talk about national defense,
and this
does not help our national defense. I fear this. I feel less secure
when we go
into areas like this, because believe me, this is the way that we get
troops in
later on. We already have advisory forces in Colombia. Does anybody
remember
about advisors and then eventually having military follow in other
times in our
history. Yes, this is a very risky change in policy. This is not just a
minor
little increase in appropriation.
2002 Ron Paul 32:8
So I would ask, once again,
where is
the authority? Where does the authority exists for our President to go
down and
expand a war in Colombia when it has nothing to do with our national
defense or
our security? It has more to do with oil than our national security,
and we know
it. There is a pipeline down there that everybody complains that it is
not well
protected. It is even designated in legislation, and we deal with this
at times.
So I would say think about the real reasons behind us going down there.
2002 Ron Paul 32:9
It just happens that we have
spread
ourselves around the world; we are now in nine countries of the 15
countries
that used to be part of the Soviet Union. And every country has
something to do
with oil. The Caspian Sea, Georgia, and why are we in the Persian Gulf?
We are
in the Persian Gulf to protect our oil. Why are we involved with
making
and interfering with the democratically elected leader of Venezuela? I
thought
we were for democracy, and yet the reports are that we may well have
participated in the attempt to have a democratically elected official
in
Venezuela removed. I think there is a little bit of oil in Venezuela as
well.
Could that have been the reason.
2002 Ron Paul 32:10
So I would say, once again,
please take
a look at this amendment. This amendment is a yes vote, and I urge
my
colleagues to support it.
2002 Ron Paul Chapter 33
http://www.house.gov/paul/congrec/congrec2002/cr052302b.htm
Congressman Ron Paul
U.S. House of Representatives
May 23, 2002
COMMEMORATING THE 50TH ANNIVERSARY OF THE CITY OF CLUTE, TEXAS
2002 Ron Paul 33:1
Mr. PAUL. Mr. Speaker, I am
pleased to
commemorate the 50th Anniversary of the incorporation of the City of
Clute,
Texas, which will be celebrated on June 2, 2002. Clute is a city of
just over
10,000 citizens in Brazoria County on the coast of Texas. Clute has a
very rich
heritage and played an important role in the development of the proud
state of
Texas.
2002 Ron Paul 33:2
The City of Clute began as
land deeded
to Alexander Calvit by Stephen F. Austin when holdings were parceled
out to the
Old 300, the first settlers in Texas. These settlers had to be tough
as
living on the Texas coastland in the early days was not for the weak or
faint of
heart.
2002 Ron Paul 33:3
Though the living was hard
these early
settlers contributed many things to the advancement of our state. The
first
milled lumber plantation house was built in Clute. Bricks used to build
homes
and buildings all over the coast of Texas were made from the high grade
clay
that was found only in Clute. That clay was used to make structures at
Ft.
Velasco, where in 1832 the Brazoria Militia staged the first battle for
Texas
Independence.
2002 Ron Paul 33:4
Now, many years later, Clute
is still
growing and achieving. Citizens raise their families in quiet and
serene
neighborhoods while contributing to some of the greatest chemical and
industrial
achievements in modern America.
2002 Ron Paul 33:5
The face of Clute has changed
but the
people are still the same brave, hardworking Texans that helped mold
the
Republic.
2002 Ron Paul 33:6
I am pleased to extend my best
wishes
to the people of Clute as the town celebrates its 50th birthday of
incorporation
and over 170 years of habitation by the original settlers of Texas. I
am sure
all my colleagues join me in extending congratulations and wishes for
many more
years of progress to the community of Clute, Texas.
2002 Ron Paul Chapter 34
http://www.house.gov/paul/congrec/congrec2002/cr052402.htm
Congressman Ron Paul
U.S. House of Representatives
May 24, 2002
Oppose the Supplemental Spending Bill
2002 Ron Paul 34:1
Mr. Speaker, supporters of
fiscal
responsibility, a rational foreign policy, and constitutional
government can
find little, it anything, to support in the Supplemental Appropriations
bill (HR
4775). HR 4775 enlarges the federal deficit, increases the size of the
federal
government, jeopardizes the Social Security trust fund, and, by
removing
resources from individuals and placing them under government control,
depresses
economic growth.
2002 Ron Paul 34:2
Despite being sold as a
national
security bill, most of the spending in this bill bears little
relationship to
protecting the American people from terrorism. For example, this bill
contains
funding for the Securities and Exchange Commission, federal courts, and
various
welfare programs. In addition, this bill spends millions on
unconstitutional
foreign aid. Mr. Speaker, some may say that foreign aid promotes
national
security, but if that were true America would be the most beloved
country on
earth. After all, almost every country in the world has in some way
benefited
from Congress willingness to send the American people’s money oversees.
2002 Ron Paul 34:3
Even much of the military
spending in
this bill has no relationship to legitimate national security needs.
Instead it
furthers an interventionist foreign policy which is neither
constitutional nor
in the best interests of the American people. For example, this
supplemental
contains a stealth attempt to shift our policy toward Colombia,
expanding our
already failed drug war to include direct participation in Colombia’s
38-year
civil war. Though a bill on Colombia was scheduled for markup in the
International Relations committee, for some reason it was pulled at the
last
minute. Therefore, the committee has not been able to debate this
policy shift
on Colombia. We are instead expected just not to notice, I suppose,
that the
policy shift has been included in this bill.
2002 Ron Paul 34:4
Our expanded interventionism
in
Colombia is called counterterrorism, but no one has even attempted
to demonstrate that Colombias civil war poses even a remote terrorist
threat to
the United States. In fact, the only terrorist threat from Colombia I
have seen
actually counsels against our deepening involvement. According to House
International Relations Committee briefing materials made available
last month:
2002 Ron Paul 34:5
We have hundreds of
temporary duty personnel in Colombia on any given day, in addition to
our agents from the Drug Enforcement Administration (DEA), military
advisors, contractors, and embassy personnel. If U.S. presence expands
to help Colombia fight terrorism as well, these alarming IRA explosives
tactics could be used directly and intentionally against American
facilities and employees.
2002 Ron Paul 34:6
If anything, this is an
argument
against getting more deeply involved in Colombias internal affairs, as
it
rightly recognizes that our involvement will only inflame the other
side and
thus open the door to retaliation against our interventionism.
2002 Ron Paul 34:7
The war on drugs in Colombia
is failing
miserably. Under Plan Colombia, coca production has increased 25
percent in the period between 2000 and 2001. The production of cocaine
increased
by roughly the same amount. More cocaine was coming out of Colombia
into the
United States at the end of 2001, during Plan Colombia, than at the end
of 2000,
before Plan Colombia. Is this a reason to expand our involvement into
Colombias
civil war?
2002 Ron Paul 34:8
US commercial interests- not
national
security- are a big factor in our shifting policy toward Colombia. We
have
already seen an administration request for an additional $98 million to
help
protect the Caño-Limon Pipeline - jointly owned by the Colombian
national oil
company and Occidental Petroleum. This supplemental will provide for
the first
installment of this money to be paid to protect Occidentals pipeline.
2002 Ron Paul 34:9
We are being dragged into a
civil war
in Colombia that has nothing to do with us and nothing to do with
international
terrorism. Those who want to send American money and troops into the
Colombian
quagmire do not want debate, because their claims that a 38 year civil
war
somehow has something to do with 9/11 ring hollow.
2002 Ron Paul 34:10
Finally, Mr. Speaker, I must
object to
this bill on the grounds that it enables further increases in
government
spending by providing a method to increases the debt ceiling. It is bad
enough
that Congress is increasing the debt limit, but this rule provides a
procedure
whereby the debt limit will be raised in conference, away from public
scrutiny.
It makes a mockery of open government to impose more government debt on
hardworking Americans and future generations by subterfuge.
2002 Ron Paul 34:11
In conclusion, Mr. Speaker, HR
4775
contains increases in unconstitutional spending on wide variety of
welfare
programs and foreign aid. It also ignores the true security interests
of the
American people by spending valuable resources on a flawed Colombian
policy.
This bill also creates conditions for further expansions in spending by
providing a procedure to raise the debt ceiling safe from public
scrutiny. HR
4775 thus threatens the liberty and prosperity of all Americans so I
urge my
colleagues to reject this bill.
2002 Ron Paul Chapter 35
http://www.house.gov/paul/congrec/congrec2002/cr053102.htm
May 31, 2002
AN OPEN LETTER TO TREASURY SECRETARY ONEILL AND FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN
2002 Ron Paul 35:1
Why Does the IMF Prohibit Gold-Backed Currency for its Member States?
2002 Ron Paul 35:2
(Congressman Ron Paul sent this letter to both the Treasury and the Federal
Reserve Bank in April. Neither has responded)
2002 Ron Paul 35:3
Dear Sirs:
I am writing regarding Article
4,
Section 2b of the International Monetary Fund (IMF)s Articles of
Agreement. As
you may be aware, this language prohibits countries who are members of
the IMF
from linking their currency to gold. Thus, the IMF is forbidding
countries
suffering from an erratic monetary policy from adopting the most
effective means
of stabilizing their currency. This policy could delay a countrys
recovery from
an economic crisis and retard economic growth, thus furthering economic
and
political instability.
2002 Ron Paul 35:4
I would greatly appreciate an
explanation from both the Treasury and the Federal Reserve of the
reasons the
United States has continued to acquiesce in this misguided policy.
Please
contact Mr. Norman Singleton, my legislative director, if you require
any
further information regarding this request. Thank you for your
cooperation in
this matter.
2002 Ron Paul 35:5
Ron Paul
U.S. House of Representatives
2002 Ron Paul Chapter 36
http://www.house.gov/paul/congrec/congrec2002/cr060502.htm
Congressman Ron Paul
U.S. House of Representatives
June 5, 2002
Gold and the Dollar
2002 Ron Paul 36:1
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.
2002 Ron Paul 36:2
But Congress should be
interested in
the dollar fluctuation not as an investment but because of
our
responsibility for maintaining a sound and stable currency, a
requirement for
sustained
economic growth.
2002 Ron Paul 36:3
The consensus now is that the
dollar is
weakening and the hope is that the drop in its value
will
be neither too much nor occur too quickly; but no matter what the spin
is, a
depreciating
currency,
one that is
losing its value against goods, services, other currencies and gold,
cannot
be beneficial and may well be
dangerous. A
sharply dropping dollar, especially since it is the
reserve
currency of the world, can play havoc with the entire world economy.
2002 Ron Paul 36:4
Gold is historys oldest and
most
stable currency. Central bankers and politicians hate gold
because
it restrains spending and denies them the power to create money and
credit out
of thin
air. Those who
promote big
government, whether to wage war and promote foreign
expansionism
or to finance the welfare state here at home, cherish this power.
2002 Ron Paul 36:5
History and economic law are
on the
side of the gold. Paper money always fails.
Unfortunately,
though, this occurs only after many innocent people have suffered the
consequences
of the fraud that paper money represents. Monetary inflation is a
hidden tax
levied
more on the poor
and those
on fixed incomes than the wealthy, the bankers, or the corporations.
2002 Ron Paul 36:6
In the past 2 years, gold has
been the
strongest currency throughout the world in spite of
persistent
central bank selling designed to suppress the gold price in hopes of
hiding the
evil
caused by the
inflationary
policies that all central bankers follow. This type of depreciation only
works
for short periods; economic law always rules over the astounding power
and
influence of
central
bankers.
2002 Ron Paul 36:7
That is what is starting to
happen, and
trust in the dollar is being lost. The value of the dollar
this
year is down 18 percent compared to gold. This drop in value should not
be
ignored by
Congress. We
should
never have permitted this policy that was deliberately designed to
undermine
the value of the currency.
2002 Ron Paul 36:8
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
dollars
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
Nations peril. Price inflation and much higher interest
rates
are around the corner.
2002 Ron Paul 36:9
Misplaced confidence in a
currency can
lead money managers and investors astray, but
eventually
the piper must be paid. Last years record interest rate drop by the
Federal
Reserve
was like pouring
gasoline
on a fire. Now the policy of the past decade is being recognized as
being
weak for the dollar; and trust and confidence in it is justifiably
being
questioned.
2002 Ron Paul 36:10
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.
2002 Ron Paul 36:11
Now it is back to reality.
This is
serious business, and the correction that must come to adjust for
the
Federal Reserves mischief of the past 30 years has only begun.
Congress must
soon
consider significant
changes
in our monetary system.
2002 Ron Paul 36:12
Congress must soon consider
significant
changes in our monetary system if we hope to
preserve
a system of sound growth and wealth preservation. Paper money managed
by the
Federal Reserve System cannot
accomplish
this. In fact, it does the opposite.
2002 Ron Paul Chapter 37
http://www.house.gov/paul/congrec/congrec2002/cr060502b.htm
Congressman Ron Paul
U.S. House of Representatives
June 5, 2002
EXPORT-IMPORT BANK IS CORPORATE WELFARE
2002 Ron Paul 37:1
Mr. PAUL. Madam Speaker, I rise
in opposition to this bill. This bill is nothing more than subsidies
for big corporations. If
one were to look at the Constitution and look for authority for
legislation of this sort in article I, section 8, it would not be
found. That in itself should be reason to stop and think about this,
but we do not look at that particular article too often any
more.
2002 Ron Paul 37:2
Also for moral reasons, I object to this. Even if we accepted the idea that we should interfere and be involved in this type of
activity, it is unfair because the little guy gets squeezed and the big
guy gets all of the money. It is not morally fair because it
cannot be.
2002 Ron Paul 37:3
One thing that annoys me the most is when Members come to the floor and in the name of free trade say we have to support
the Export-Import Bank. This is the opposite of free trade. Free trade
is good. Low tariffs are good, which lead to lower
prices; but subsidies to our competitors is not free trade. We should
call it for what it is. We have Members who claim they are
free traders, and yet support managed trade through NAFTA and WTO and
all these special interest management schemes, as
well as competitive devaluation of currencies with the notion that we
might increase exports. This has nothing to do with free
trade.
2002 Ron Paul 37:4
I am a strong advocate for free trade, and for that reason I think this bill should not be passed. There are good economic
reasons not to support this. Because some who favor this bill argue
that some of these companies are doing risky things and
they do not qualify in the ordinary banking system for these loans and,
therefore, they need a little bit of help. That is precisely
when we should not be helping. If there is a risk, it is telling us
there is something wrong and we should not do it. It is
transferring the liability from the company to the taxpayer. So the
risk argument does not hold water at all.
The other reason why economically it is unsound, is that this is a
form of credit allocation. If a bank has money and they can
get a guarantee from the Export-Import Bank, they will always choose
the guarantee over the nonguarantee, so who gets
squeezed. The funds are taken out of the investment pool. The little
people get squeezed. They do not get the loan, but they are
totally unknown. Nobody sees those who did not get a loan. All we see
is the loan that benefits somebody on the short run. But
really on the long run, it benefits the big corporations. Many times it
doesnt even do that.
2002 Ron Paul 37:5
Take a look at Enron. We have mentioned Enron quite a few times already. If we add up all of the subsidies to Enron, it adds
up to $1.9 billion. That is if we add up the subsidies from OPIC as
well. And look at what Enron did. They ran a
few risks,
and then they lost it. Who was left holding the bag? The
taxpayers.
2002 Ron Paul 37:6
Madam Speaker, I strongly urge a no vote on this bill. If Members
are for free trade, they will vote against this bill, and will
vote for true free trade.
2002 Ron Paul Chapter 38
http://www.house.gov/paul/congrec/congrec2002/cr061202.htm
Congressman Ron Paul
U.S. House of Representatives
June 12, 2002
AFFORDABILITY OF CHILD HEALTH CARE
2002 Ron Paul 38:1
Mr. PAUL. Mr. Speaker, I am pleased to
help working Americans provide for their childrens health care needs
by
introducing the Child Health Care Affordability Act. The Child Health
Care
Affordability Act provides parents with a tax credit of up to $500 for
health
care expenses of dependent children. Parents caring for a child with a
disability, terminal disease, cancer, or any other health condition
requiring
specialized care would receive a tax credit of up to $3,000 to help
cover their
childs health care expenses. The tax credit would be available to all
citizens
regardless of whether or not they itemize their deductions.
2002 Ron Paul 38:2
The tax credits provided in
this bill
will be especially helpful to those Americans whose employers cannot
afford to
provide their employees health insurance. These workers must struggle
to meet
the medical bills of themselves and their families. This burden is
especially
heavy on, parents whose children have a medical condition, such as
cancer or a
physical disability, which requires long-term or specialized health
care.
2002 Ron Paul 38:3
As an OB-GYN who has had the
privilege
of delivering more than four thousand babies, I know how important it
is that
parents have the resources to provide adequate health care for their
children.
The inability of many working Americans to provide health care for
their
children is rooted in one of the great inequities of the tax code:
Congress
failure to allow individuals the same ability to deduct health care
costs that
it grants to businesses. As a direct result of Congress refusal to
provide
individuals with health care related tax credits, parents whose
employers do not
provide health insurance have to struggle to provide health care for
their
children. Many of these parents work in low-income jobs; oftentimes
their only
recourse to health care is the local emergency room.
2002 Ron Paul 38:4
Sometimes parents are forced
to delay
seeking care for their children until minor health concern that could
have been
easily treated become serious problems requiring expensive treatment!
If these
parents had access to the type of tax credits provided in the Child
Health Care
Affordability Act, they would be better able to provide care for their
children,
and our nations already overcrowded emergency room facilities would be
relieved
of the burden of having to provide routine care for people who
otherwise cannot
afford it.
2002 Ron Paul 38:5
According to research on the
effects of
this bill done by my staff and legislative counsel, the benefit of
these tax
credits would begin to be felt by joint filers with incomes slightly
above
$18,000 dollars a year, or single income filers with incomes slightly
above
$15,000 per year. Clearly this bill will be of the most benefit to
low-income
Americans balancing the demands of taxation with the needs of their
children.
2002 Ron Paul 38:6
Under the Child Health Care
Affordability Act, a struggling single mother with an asthmatic child
would at
last be able to provide for her childs needs; while a working-class
family will
not have to worry about how they will pay the bills if one of their
children
requires lengthy hospitalization or some other form of specialized care.
2002 Ron Paul 38:7
Mr. Speaker, this Congress has
a moral
responsibility to provide tax relief for low-income parents struggling
to care
for a sick child, in order to help them better meet their childs
medical
expenses. Some may say that we cannot enact the Child Health Care
Affordability
Act because it would cause the government to lose revenue, but who is
more
deserving of this money, Congress or the working parents of a sick
child?
2002 Ron Paul 38:8
The Child Health Care
Affordability Act
takes a major step toward helping working Americans meet their health
care needs
by providing them with generous health care related tax cuts and tax
credits. I
urge my colleagues to support the pro-family, pro-health care tax cuts
contained
in the Child Health Care Affordability Act.
2002 Ron Paul Chapter 39
http://www.house.gov/paul/congrec/congrec2002/cr061202b.htm
Congressman Ron Paul
U.S. House of Representatives
June 12, 2002
BAD TAX POLICY SENDS COMPANIES OVERSEAS
2002 Ron Paul 39:1
Mr. PAUL. Mr. Speaker, I wish to
call my
colleagues attention to the following article entitled Bad Tax
Policy: You Can Run ..... by Daniel Mitchell, McKenna Senior Fellow at the
Heritage
Foundation. Mr. Mitchell discusses the practice of companies
reincorporating in
foreign jurisdictions to reduce their tax liability. As Mr. Mitchell
points out,
reincorporation benefits shareholders and American workers. This is
because
reincorporation In a low-tax foreign jurisdiction makes companies more
competitive, thus enabling the companies to create new and better jobs
for
working Americans. Furthermore, reincorporation helps protect American
companies
from corporate takeovers by foreign investors. Americas
anti-competitive tax
system is a major reason why several US companies have been taken over
by
foreign business interests.
2002 Ron Paul 39:2
In the vast majority of cases,
when a
company moves its corporate headquarters to a foreign jurisdiction, it
maintains
its physical operations in America. In fact, Mr. Speaker, Stanley
Company, whose
recently-announced decision to incorporate in Bermuda has caused much
handwringing over reincorporation, will not be laying off a single
American
worker as a consequence of their action!
2002 Ron Paul 39:3
Though reincorporation
benefits
American investors and workers, some of my colleagues have objected to
reincorporation because this action deprives the government of revenue.
Some
have even gone so far as to question the patriotism of companies that
reincorporate. However, there is nothing unpatriotic about trying to
minimize
ones tax burden to enhance economic competitiveness. In fact, it could
be
argued that since reincorporation helps companies create new jobs and
expand the
American economy, those who reincorporate are behaving patriotically.
2002 Ron Paul 39:4
One also could argue that it
is those
who oppose reincorporation who do not grasp the essence of the American
system.
After all, two of the main principles underlying the Constitution and
the
Declaration of Independence are limited government and respect for
private
property. In contrast, opponents of reincorporation implicitly assume
that the
government owns all of a nations assets; therefore taxpayers never
should take
any actions to deny government what the politicians have determined to
be their
fair share. Mr. Speaker, this philosophy has more in common with
medieval feudalism than with the constitutional republic created by the
drafters
of the Constitution.
2002 Ron Paul 39:5
In conclusion, Mr. Speaker, I
once
again urge my colleagues to read Mr. Mitchells article, which
forcefully makes
the case that taxing offshore income is economically destructive. Such
taxation
also is inconsistent with the respect for individual liberty and
private
property rights which forms the foundation of Americas constitutional
republic,
as well as a threat to the sovereign right of nations to determine the
tax
treatment of income earned inside national borders. I hope my
colleagues will
reject efforts to subject companies that reincorporate overseas to
burdensome
new taxes and regulations. Expanding federal power in order to prevent
companies
from reincorporating will only kill American jobs and further weaken
Americas
economy.
2002 Ron Paul 39:6
[From the Washington Times, May 8, 2002]
BAD TAX POLICY: YOU CAN RUN .....
(By Daniel Mitchell)
2002 Ron Paul 39:7
The worst Supreme Court
decision of all
time? One of the leading candidates has to be the infamous 1857 Dred
Scott
decision, in which the Supreme Court ruled that slaves did not gain
freedom by
escaping to nonslave states.
2002 Ron Paul 39:8
Instead, they were considered
property
and had to be returned to their owners.
2002 Ron Paul 39:9
Some U.S. companies soon may
be treated
in a similar manner, thanks to legislation being touted by Sens. Max
Baucus,
Montana Democrat, and Charles Grassley, Iowa Republican.
2002 Ron Paul 39:10
It all starts with the
Internal Revenue
Code, which forces U.S.-based companies to pay an extra layer of tax on
income
earned in other countries.
2002 Ron Paul 39:11
In an effort to protect the
interests
of workers, shareholders and consumers, some of these companies are
escaping bad
U.S. tax law by rechartering in Bermuda.
2002 Ron Paul 39:12
This is a win-win situation
for
America. We get to keep factories and headquarters in America, and our
companies
remain on a level playing field with businesses based in Europe and
elsewhere.
2002 Ron Paul 39:13
Not so fast, Sens. Baucus and
Grassley
are saying. They want to stop corporate expatriations, even though
they
keep American jobs in America and help U.S. companies compete with
their
counterparts in Europe and Asia.
2002 Ron Paul 39:14
Their legislation would forbid
U.S.
companies from re-chartering in countries with better tax laws.
2002 Ron Paul 39:15
The politicians who support
this are
acting as if these companies belonged to the government. Yet when House
Minority
Leader Richard Gephardt, Missouri Democrat, for instance, accuses them
of being
unpatriotic, he never explains whats so patriotic
about
higher taxes and noncompetitive tax policy.
2002 Ron Paul 39:16
Republicans are doing their
share of
business-bashing, too. Mr. Grassley claims that corporate expatriations
are
:immoral,'' as if companies would be moral if they instead kept their
U.S.
charters and fired some of their workers.
2002 Ron Paul 39:17
If politicians are upset that
some
companies want to recharter, they should blame themselves for trying to
tax
worldwide income. An American firm competing against a Dutch firm
for a
contract in Ireland, for instance, must pay a 35 percent tax on its
income ndash; and
the lions share goes to the IRS.
2002 Ron Paul 39:18
The Dutch firm, by contrast,
pays only
the 10 percent Irish tax on its Irish-source income because the
Netherlands
doesnt tax income earned outside its borders.
2002 Ron Paul 39:19
Before giving the IRS more
power,
politicians should consider the following:
2002 Ron Paul 39:20
Expatriation helps control
government
waste. High-tax California cant 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
shouldnt stop companies from escaping bad U.S. tax law.
2002 Ron Paul 39:21
Expatriation protects American
jobs.
Rechartering in another jurisdiction doesnt mean factories will go
overseas.
Nor does it require a company to move its headquarters. It simply means
a
company is chartered under the laws of a different jurisdiction, much
as many
American companies are chartered in Delaware, but operate factories and
have
their home offices in other states. In the case of expatriations, the
newly
formed foreign company still maintains its U.S. operations, but now
wont have
to fire workers since it can compete more effectively with overseas
businesses.
2002 Ron Paul 39:22
Expatriation is not tax
evasion. All
corporations, regardless of where theyre based, pay tax to the IRS on
all
profits they earn in the United States. This is true of U.S.-based
companies,
and its true of all foreign-based companies- including those that
expatriate.
All that changes is that expatriating companies no longer have to pay
taxes on
income earned outside Americas borders. Since worldwide taxation is
misguided
tax policy, this is a positive result. Indeed, every tax reform plan,
including
the flat tax, is based on this common-sense principle of territorial
taxation.
2002 Ron Paul 39:23
Now is hardly the time, with
the
economy in the midst of recovery, for Washington politicians to make
U.S.
companies less competitive. Nor is it the time to give the IRS the
power to
prohibit businesses from rechartering in jurisdictions with more
sensible tax
laws. Instead of treating companies as if theyre federal property,
Sens.
Grassley and Baucus should be fixing the problems in the tax code.
2002 Ron Paul Chapter 40
http://www.house.gov/paul/congrec/congrec2002/cr061302.htm
Congressman Ron Paul
U.S. House of Representatives
June 13, 2002
RESTORING FIRST AMENDMENT PROTECTIONS OF RELIGION AND RELIGIOUS SPEECH
2002 Ron Paul 40:1
Mr. PAUL. Mr. Speaker, I rise
to
introduce legislation restoring First amendment protections of religion
and
religious speech. For fifty years, the personal religious freedom of
this
nations citizens has been infringed upon by courts that misread and
distort the
First amendment. The framers of the Constitution never in their worst
nightmares
imagined that the words, Congress shall make no law respecting an
establishment of religion or prohibiting the free exercise thereof; or
abridging
the freedom of speech ..... would be used to ban children from
praying in
school, prohibit courthouses from displaying the Ten Commandments, or
prevent
citizens from praying before football games. The original meaning of
the First
amendment was clear on these two points: The federal government cannot
enact
laws establishing one religious denomination over another, and the
federal
government cannot forbid mention of religion, including the Ten
Commandments and
references to God.
2002 Ron Paul 40:2
In case after case, the
Supreme Court
has used the infamous separation of church and state metaphor to
uphold
court decisions that allow the federal government to intrude upon and
deprive
citizens of their religious liberty. This separation doctrine is
based upon a
phrase taken
out of
context from a letter written by Thomas Jefferson to the Danbury
Baptists on
January 1, 1802. In the letter, Jefferson simply reassures the Baptists
that the
First amendment would preclude an intrusion by the federal government
into
religious matters between denominations. It is ironic and sad that a
letter
defending the principle that the federal government must stay out of
religious
affairs. should be used two hundred years later to justify the Supreme
Court
telling a child that he cannot pray in school!
2002 Ron Paul 40:3
The Court completely
disregards the
original meaning and intent of the First amendment. It has interpreted
the
establishment clause to preclude prayer and other religious speech in a
public
place, thereby violating the free exercise clause of the very same
First
amendment. Therefore, it is incumbent upon Congress to correct this
error, and
to perform its duty to support and defend the Constitution. My
legislation would
restore First amendment protections of religion and speech by removing
all
religious freedom-related cases from federal district court
jurisdiction, as
well as from federal claims court jurisdiction. The federal government
has no
constitutional authority to reach its hands in the religious affairs of
its
citizens or of the several states.
2002 Ron Paul 40:4
As James Madison said, There
are
more instances of the abridgement of the freedom of the people by the
gradual
and silent encroachment of those in power, than by violent and sudden
usurpation. I sincerely hope that my colleagues will fight against the
gradual and silent encroachment of the courts upon our nations
religious liberties by supporting this bill.
2002 Ron Paul Chapter 41
http://www.house.gov/paul/congrec/congrec2002/cr062402.htm
Congressman Ron Paul
U.S. House of Representatives
June 24, 2002
Inspection or Invasion in Iraq?
2002 Ron Paul 41:1
Mr. PAUL. Mr. Speaker, I call my colleagues attention to a recent
article by
Scott Ritter, former chief UN weapons inspector in Iraq, published in
the Los
Angeles Times. In this article, Mr. Ritter makes a salient point that
deserves
careful and serious consideration in this body: how will it be possible
to
achieve the stated administration goal of getting weapons inspectors
back into
Iraq when the administration has made it known that it intends to
assassinate
the Iraqi leader?
2002 Ron Paul 41:2
If nothing else, Saddam Hussein has proven himself a survivor. Does anyone
believe that he will allow inspectors back into his country knowing
that any one
of them might kill him? Is it the intention of the administration to
get
inspectors back into Iraq and thus answers to lingering and critical
questions
regarding Iraqs military capabilities, or is the intent to invade that
country
regardless of the near total absence of information and actually make
it
impossible for Suddam Hussein to accept the inspectors?
2002 Ron Paul 41:3
Mr. Ritter, who as former chief UN inspector in Iraq probably knows that
country better than any of us here, made some excellent points in a
recent
meeting with Republican members of Congress. According to Mr. Ritter,
no
American-installed regime could survive in Iraq. Interestingly, Mr.
Ritter noted
that though his rule is no doubt despotic, Saddam Hussein has been
harsher
toward Islamic fundamentalism than any other Arab regime. He added that
any U.S.
invasion to remove Saddam from power would likely open the door to an
anti-American fundamentalist Islamic regime in Iraq. That can hardly be
viewed
in a positive light here in the United States. Is a policy that
replaces a bad
regime with a worse regime the wisest course to follow?
2002 Ron Paul 41:4
Much is made of Iraqi National Congress leader Ahmed Chalabi, as a potential
post-invasion leader of Iraq. Mr. Ritter told me that in his many
dealings with
Chalabi, he found him to be completely unreliable and untrustworthy. He
added
that neither he nor the approximately 100 Iraqi generals that the US is
courting
have any credibility inside Iraq, and any attempt to place them in
power would
be rejected in the strongest manner by the Iraqi people. Hundreds, if
not
thousands, of American military personnel would be required to occupy
Iraq
indefinitely if any American-installed regime is to remain in power.
Again, it
appears we are creating a larger problem than we are attempting to
solve.
2002 Ron Paul 41:5
Similarly, proponents of a US invasion of Iraq often cite the Kurds in the
northern part of that country as a Northern Alliance-like ally, who
will do much
of our fighting on the ground and unseat Saddam. But just last week the
Washington Times reported that neither of the two rival Kurdish groups
in
northern Iraq want anything to do with an invasion of Iraq.
2002 Ron Paul 41:6
In the meeting last month, Scott Ritter reminded members of Congress that a
nation cannot go to war based on assumptions and guesses, that a lack
of
knowledge is no basis on which to initiate military action. Mr. Ritter
warned
those present that remaining quiescent in the face of the
administrations
seeming determination to exceed the authority granted to go after those
who
attacked us, will actually hurt the president and will hurt Congress.
He
concluded by stating that going in to Iraq without
Congressionally-granted
authority would be a failure of American democracy. Those pounding
the
war drums loudest for an invasion of Iraq should pause for a moment and
ponder
what Scott Ritter is saying. Thousands of lives are at stake.
[From the Los Angeles Times, June 19, 2002]
BEHIND PLOT ON HUSSEIN, A SECRET AGENDA
(By Scott Ritter)
2002 Ron Paul 41:7
President Bush has reportedly authorized the CIA to use all of the means at
its disposal- including U.S. military special operations forces and CIA
paramilitary teams- to eliminate Iraqs Saddam Hussein. According to
reports,
the CIA is to view any such plan as preparatory for a larger
military strike.
2002 Ron Paul 41:8
Congressional leaders from both parties have greeted these reports with
enthusiasm. In their rush to be seen as embracing the presidents
hard-line
stance on Iraq, however, almost no one in Congress has questioned why a
supposedly covert operation would be made public, thus undermining the
very
mission it was intended to accomplish.
2002 Ron Paul 41:9
It is high time that Congress start questioning the hype and rhetoric
emanating from the White House regarding Baghdad, because the leaked
CIA plan is
well timed to undermine the efforts underway in the United Nations to
get
weapons inspectors back to work in Iraq. In early July, the U.N.
secretary-general will meet with Iraqs foreign minister for a third
round of
talks on the return of the weapons monitors. A major sticking point is
Iraqi
concern over the use- or abuse- of such inspections by the U.S. for
intelligence
collection.
2002 Ron Paul 41:10
I recall during my time as a chief inspector in Iraq the dozens of extremely
fit missile experts and logistics specialists who frequented my
inspection teams and others. Drawn from U.S. units such as Delta Force
or from
CIA paramilitary teams such as the Special Activities Staff (both of
which have
an ongoing role in the conflict in Afghanistan), these specialists had
a
legitimate part to play in the difficult cat-and-mouse effort to disarm
Iraq. So
did the teams of British radio intercept operators I ran in Iraq from
1996 to
1998- which listened in on the conversations of Husseins inner circle-
and the
various other intelligence specialists who were part of the inspection
effort.
2002 Ron Paul 41:11
The presence of such personnel on inspection teams was, and is, viewed by the
Iraqi government as an unacceptable risk to its nations security.
2002 Ron Paul 41:12
As early as 1992, the Iraqis viewed the teams I led inside Iraq as a threat
to the safety of their president. They were concerned that my
inspections were
nothing more than a front for a larger effort to eliminate their
leader.
2002 Ron Paul 41:13
Those concerns were largely baseless while I was in Iraq. Now that Bush has
specifically authorized American covert-operations forces to remove
Hussein,
however, the Iraqis will never trust an inspection regime that has
already shown
itself susceptible to infiltration and manipulation by intelligence
services
hostile to Iraq, regardless of any assurances the U.N.
secretary-general might
give.
2002 Ron Paul 41:14
The leaked CIA covert operations plan effectively kills any chance of
inspectors returning to Iraq, and it closes the door on the last
opportunity for
shedding light on the true state of affairs regarding any threat in the
form of
Iraq weapons of mass destruction.
2002 Ron Paul 41:15
Absent any return of weapons inspectors, no one seems willing to challenge
the Bush administrations assertions of an Iraqi threat. If Bush has a
factual
case against Iraq concerning weapons of mass destruction, he hasnt
made it yet.
2002 Ron Paul 41:16
Can the Bush administration substantiate any of its claims that Iraq continues to pursue efforts to reacquire its capability to produce
chemical and
biological weapons, which was dismantled and destroyed by U.N. weapons
inspectors from 1991 to 1998? The same question applies to nuclear
weapons. What
facts show that Iraq continues to pursue nuclear weapons aspirations?
2002 Ron Paul 41:17
Bush spoke ominously of an Iraqi ballistic missile threat to Europe. What
missile threat is the president talking about? These questions are
valid, and if
the case for war is to be made, they must be answered with more than
speculative
rhetoric.
2002 Ron Paul 41:18
Congress has seemed unwilling to challenge the Bush administrations pursuit
of war against Iraq. The one roadblock to an all- out U.S. assault
would be
weapons inspectors reporting on the facts inside Iraq. Yet without any
meaningful discussion and debate by Congress concerning the nature of
the threat
posed by Baghdad, war seems all but inevitable.
2002 Ron Paul 41:19
The true target of the supposed CIA plan may not be Hussein but rather the
weapons inspection program itself. The real casualty is the last chance
to avoid
bloody conflict.
2002 Ron Paul Chapter 42
http://www.house.gov/paul/congrec/congrec2002/cr062502.htm
Congressman Ron Paul
U.S. House of Representatives
June 25, 2002
Introduction of the Public Safety Tax Cut Act:
2002 Ron Paul 42:1
Mr. Speaker, I am pleased to
introduce the Public Safety Tax
Cut Act. This legislation will achieve two important public policy
goals. First,
it will effectively overturn a ruling of the Internal Revenue Service
which has declared as taxable income the waiving of
fees by local governments who provide service for public safety volunteers.
2002 Ron Paul 42:2
Many local governments use volunteer firefighters and auxiliary police either in place of,
or as a supplement to, their public safety professionals. Often as an incentive to
would-be volunteers, the local entities waive all or a portion of the fees typically charged for
city services such as the provision of drinking water, sewer charges, or debris pick up.
2002 Ron Paul 42:3
Local entities make these decisions for the purpose of encouraging folks to volunteer, and seldom do these benefits come anywhere near the level of a true compensation
for the many hours of training and service required of the volunteers. This, of course, does not even
mention the fact that these volunteers very possibly could be called into a situation where
they have to put their lives on the line.
2002 Ron Paul 42:4
Rather than encouraging this
type of volunteerism, which is so
crucial, particularly to
Americas
rural communities, the IRS has decided that the provision of the
benefits
described above amount to taxable
income.
Not only does this adversely affect the
financial
position of the volunteer by imposing new taxes upon him or her, it has
in fact
led
local entities
to stop
providing these benefits, thus taking away a key tool they have used to
recruit volunteers. That is why
the IRS
ruling in this instance has a substantial negative
impact
on the spirit of American volunteerism. How far could this go? For
example,
would
consistent
application
mean that a local Salvation Army volunteer must be taxed for the value
of
a complimentary ticket to that
organizations annual county dinner? This is obviously bad
policy.
2002 Ron Paul 42:5
This legislation would rectify
the situation by specifically
exempting these types of
benefits
from federal taxation.
2002 Ron Paul 42:6
Next, this legislation would
also provide paid professional
police and fire officers with a
$1,000
per year tax credit. These professional public safety officers put
their lives
on the
line each
and every
day, and I think we all agree that there is no way to properly
compensate
them for the fabulous services they provide. In America we have a
tradition of
local, as opposed to federal, law
enforcement and public safety provision. So, while it is not the role
of our
federal government to increase the salaries of local officers, it
certainly is
within our authority to increase their take-home pay by reducing the
amount of
money that we take from their pockets via federal taxation, and that is
something this bill specifically does as well.
2002 Ron Paul 42:7
President George Bush has
called on Americans to volunteer
their time and energy to enhance public safety. Shouldn’t Congress do
its part
by reducing taxes that discourage public safety volunteerism? Shouldn’t
Congress also show its appreciation to police officers and fire
fighters by
reducing their taxes? I believe the answer to both of these questions
is a
resounding Yes, and therefore I am proud to introduce the Public
Safety Tax Cut Act. I request that my fellow Members join in support of
this key
legislation.
2002 Ron Paul Chapter 43
http://www.house.gov/paul/congrec/congrec2002/cr062502b.htm
Congressman Ron Paul
U.S. House of Representatives
June 25, 2002
Introduction of the Police Security Protection Act
2002 Ron Paul 43:1
Mr. Speaker, I am pleased to help America’s law
enforcement
officers by introducing the Police Security Protection Act. This
legislation
provides police officers with a tax credit for the purchase of armored
vests.
2002 Ron Paul 43:2
As recent events have reminded us, professional law
enforcement officers put their lives on the line each and every day.
Reducing
the tax liability of law enforcement officers so they can afford
armored vests
is one of the best ways Congress can help these brave men and women.
After all,
an armored vest literally could make the difference between life or
death for a
police officer, I hope my colleagues will join me in helping our
nation’s law
enforcement officers by cosponsoring the Police Security Protection Act.
2002 Ron Paul Chapter 44
http://www.house.gov/paul/congrec/congrec2002/cr062702.htm
Congressman Ron Paul
U.S. House of Representatives
June 27, 2002
Is America a Police State?
2002 Ron Paul 44:1
Mr. Speaker:
Most Americans believe we live in dangerous times, and I must agree.
Today I
want to talk about how I see those dangers and what Congress ought to
do about
them.
2002 Ron Paul 44:2
Of course, the Monday-morning quarterbacks are now explaining, with political
overtones, what we should have done to prevent the 9/11 tragedy.
Unfortunately,
in doing so, foreign policy changes are never considered.
2002 Ron Paul 44:3
I have, for more than two decades, been severely critical of our post-World
War II foreign policy. I have perceived it to be not in our best
interest and
have believed that it presented a serious danger to our security.
2002 Ron Paul 44:4
For the record, in January of 2000 I stated the following on this floor:
2002 Ron Paul 44:5
Our commercial interests and foreign policy are no longer separate...as
bad as it is that average Americans are forced to subsidize such a
system, we
additionally are placed in greater danger because of our arrogant
policy of
bombing nations that do not submit to our wishes. This generates hatred
directed
toward America ...and exposes us to a greater threat of terrorism,
since this is
the only vehicle our victims can use to retaliate against a powerful
military
state...the cost in terms of lost liberties and unnecessary exposure to
terrorism is difficult to assess, but in time, it will become apparent
to all of
us that foreign interventionism is of no benefit to American citizens,
but
instead is a threat to our liberties.
2002 Ron Paul 44:6
Again, let me remind you I made these statements on the House floor in
January 2000. Unfortunately, my greatest fears and warnings have been
borne out.
2002 Ron Paul 44:7
I believe my concerns are as relevant today as they were then. We should move
with caution in this post-9/11 period so we do not make our problems
worse
overseas while further undermining our liberties at home.
2002 Ron Paul 44:8
So far our post-9/11 policies have challenged the rule of law here at home,
and our efforts against the al Qaeda have essentially come up
empty-handed. The
best we can tell now, instead of being in one place, the members of the
al Qaeda
are scattered around the world, with more of them in allied Pakistan
than in
Afghanistan. Our efforts to find our enemies have put the CIA in 80
different
countries. The question that we must answer some day is whether we can
catch
enemies faster than we make new ones. So far it appears we are losing.
2002 Ron Paul 44:9
As evidence mounts that we have achieved little in reducing the terrorist
threat, more diversionary tactics will be used. The big one will be to
blame
Saddam Hussein for everything and initiate a major war against Iraq,
which will
only generate even more hatred toward America from the Muslim world.
2002 Ron Paul 44:10
But, Mr. Speaker, my subject today is whether America is a police state. Im
sure the large majority of Americans would answer this in the negative.
Most
would associate military patrols, martial law and summary executions
with a
police state, something obviously not present in our everyday
activities.
However, those with knowledge of Ruby Ridge, Mount Carmel and other
such
incidents may have a different opinion.
2002 Ron Paul 44:11
The principal tool for sustaining a police state, even the most militant, is
always economic control and punishment by denying disobedient citizens
such
things as jobs or places to live, and by levying fines and
imprisonment. The
military is more often used in the transition phase to a totalitarian
state.
Maintenance for long periods is usually accomplished through economic
controls
on commercial transactions, the use of all property, and political
dissent.
Peaceful control through these efforts can be achieved without storm
troopers on
our street corners.
2002 Ron Paul 44:12
Terror and fear are used to achieve complacency and obedience, especially
when citizens are deluded into believing they are still a free people.
The
changes, they are assured, will be minimal, short-lived, and necessary,
such as
those that occur in times of a declared war. Under these conditions,
most
citizens believe that once the war is won, the restrictions on their
liberties
will be reversed. For the most part, however, after a declared war is
over, the
return to normalcy is never complete. In an undeclared war, without a
precise
enemy and therefore no precise ending, returning to normalcy can prove
illusory.
2002 Ron Paul 44:13
We have just concluded a century of wars, declared and undeclared, while at
the same time responding to public outcries for more economic equity.
The
question, as a result of these policies, is: Are we
already
living
in a police state? If we are, what are we going to do about it? If we
are
not, we need to know if theres any danger that were moving in that
direction.
2002 Ron Paul 44:14
Most police states, surprisingly, come about through the democratic process
with majority support. During a crisis, the rights of individuals and
the
minority are more easily trampled, which is more likely to condition a
nation to
become a police state than a military coup. Promised benefits initially
seem to
exceed the cost in dollars or lost freedom. When people face terrorism
or great
fear- from whatever source- the tendency to demand economic and
physical
security over liberty and self-reliance proves irresistible. The masses
are
easily led to believe that security and liberty are mutually exclusive,
and
demand for security far exceeds that for liberty.
2002 Ron Paul 44:15
Once its discovered that the desire for both economic and physical security
that prompted the sacrifice of liberty inevitably led to the loss of
prosperity
and no real safety, its too late. Reversing the trend from
authoritarian rule
toward a freer society becomes very difficult, takes a long time, and
entails
much suffering. Although dissolution of the Soviet empire was
relatively
non-violent at the end, millions suffered from police suppression and
economic
deprivation in the decades prior to 1989.
2002 Ron Paul 44:16
But what about here in the United States? With respect to a police state,
where are we and where are we going?
2002 Ron Paul 44:17
Let me make a few observations:
2002 Ron Paul 44:18
Our government already keeps close tabs on just about everything we do and
requires official permission for nearly all of our activities.
2002 Ron Paul 44:19
One might take a look at our Capitol for any evidence of a police state. We
see: barricades, metal detectors, police, military soldiers at times,
dogs, ID
badges required for every move, vehicles checked at airports and
throughout the
Capitol. The people are totally disarmed, except for the police and the
criminals. But worse yet, surveillance cameras in Washington are
everywhere to
ensure our safety.
2002 Ron Paul 44:20
The terrorist attacks only provided the cover for the do-gooders who have
been planning for a long time before last September to monitor us for
our
own good. Cameras are used to spy on our drug habits, on our kids at
school, on subway travelers, and on visitors to every government
building or
park. Theres not much evidence of an open society in Washington, DC,
yet most
folks do not complain- anything goes if its for government-provided
safety and
security.
2002 Ron Paul 44:21
If this huge amount of information and technology is placed in the hands of
the government to catch the bad guys, one naturally asks, Whats the
big deal?
But it should be a big deal, because it eliminates the enjoyment of
privacy that
a free society holds dear. The personal information of law-abiding
citizens can
be used for reasons other than safety- including political reasons.
Like gun
control, people control hurts law-abiding citizens much more than the
law-breakers.
2002 Ron Paul 44:22
Social Security numbers are used to monitor our daily activities. The numbers
are given at birth, and then are needed when we die and for everything
in
between. This allows government record keeping of monstrous
proportions, and
accommodates the thugs who would steal others identities for criminal
purposes.
This invasion of privacy has been compounded by the technology now
available to
those in government who enjoy monitoring and directing the activities
of others.
Loss of personal privacy was a major problem long before 9/11.
2002 Ron Paul 44:23
Centralized control and regulations are required in a police state. Community
and individual state regulations are not as threatening as the monolith
of rules
and regulations written by Congress and the federal bureaucracy. Law
and order
has been federalized in many ways and we are moving inexorably in that
direction.
2002 Ron Paul 44:24
Almost all of our economic activities depend upon receiving the proper
permits from the federal government. Transactions involving guns, food,
medicine, smoking, drinking, hiring, firing, wages, politically correct
speech,
land use, fishing, hunting, buying a house, business mergers and
acquisitions,
selling stocks and bonds, and farming all require approval and strict
regulation
from our federal government. If this is not done properly and in a
timely
fashion, economic penalties and even imprisonment are likely
consequences.
2002 Ron Paul 44:25
Because government pays for much of our health care, its conveniently argued
that any habits or risk-taking that could harm ones health are the
prerogative
of the federal government, and are to be regulated by explicit rules to
keep
medical-care costs down. This same argument is used to require helmets
for
riding motorcycles and bikes.
2002 Ron Paul 44:26
Not only do we need a license to drive, but we also need special belts, bags,
buzzers, seats and environmentally dictated speed limits- or a
policemen will be
pulling us over to levy a fine, and he will be toting a gun for sure.
2002 Ron Paul 44:27
The states do exactly as theyre told by the federal government, because they
are threatened with the loss of tax dollars being returned to their
state-
dollars that should have never been sent to DC in the first place, let
alone
used to extort obedience to a powerful federal government.
2002 Ron Paul 44:28
Over 80,000 federal bureaucrats now carry guns to make us toe the line and to
enforce the thousands of laws and tens of thousands of regulations that
no one
can possibly understand. We dont see the guns, but we all know theyre
there,
and we all know we cant fight City Hall, especially if its
Uncle Sam.
2002 Ron Paul 44:29
All 18-year-old males must register to be ready for the next undeclared war.
If they dont, men with guns will appear and enforce this congressional
mandate.
Involuntary servitude was banned by the 13th Amendment, but courts
dont apply this prohibition to the servitude of draftees or those
citizens
required to follow the dictates of the IRS- especially the employers of
the
country, who serve as the federal governments chief tax collectors and
information gatherers. Fear is the tool used to intimidate most
Americans to
comply to the tax code by making examples of celebrities. Leona
Helmsley and
Willie Nelson know how this process works.
2002 Ron Paul 44:30
Economic threats against business establishments are notorious. Rules and
regulations from the EPA, the ADA, the SEC, the LRB, OSHA, etc.
terrorize
business owners into submission, and those charged accept their own
guilt until
they can prove themselves innocent. Of course, it turns out its much
more
practical to admit guilt and pay the fine. This serves the interest of
the
authoritarians because it firmly establishes just who is in charge.
2002 Ron Paul 44:31
Information leaked from a government agency like the FDA can make or break a
company within minutes. If information is leaked, even inadvertently, a
company
can be destroyed, and individuals involved in revealing
government-monopolized
information can be sent to prison. Even though economic crimes are
serious
offenses in the United States, violent crimes sometimes evoke more
sympathy and
fewer penalties. Just look at the O.J. Simpson case as an example.
2002 Ron Paul 44:32
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.
2002 Ron Paul 44:33
Price fixing is impossible to achieve in a free market. Under todays 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.
2002 Ron Paul 44:34
Lawfully circumventing taxes, even sales taxes, can lead to serious problems
if a high-profile person can be made an example.
2002 Ron Paul 44:35
One of the most onerous controls placed on American citizens is the control
of speech through politically correct legislation. Derogatory remarks
or
off-color jokes are justification for firings, demotions, and the
destruction of
political careers. The movement toward designating penalties based on
the
category to which victims belong, rather the nature of the crime
itself, has the
thought police patrolling the airways and byways. Establishing relative
rights
and special penalties for subjective motivation is a dangerous trend.
2002 Ron Paul 44:36
All our financial activities are subject to legal searches without warrants and without probable cause. Tax collection, drug
usage, and
possible terrorist activities justify the endless accumulation of
information on all Americans.
2002 Ron Paul 44:37
Government control of medicine has prompted the establishment of the National
Medical Data Bank. For efficiency reasons, it is said, the government
keeps our
medical records for our benefit. This, of course, is done with vague
and useless
promises that this information will always remain confidential- just
like all
the FBI information in the past!
2002 Ron Paul 44:38
Personal privacy, the sine qua non of liberty, no longer exists in the United
States. Ruthless and abusive use of all this information accumulated by
the
government is yet to come. The Patriot Act has given unbelievable power
to
listen, read, and monitor all our transactions without a search warrant
being
issued after affirmation of probably cause. Sneak and peak and
blanket searches are now becoming more frequent every day. What have we
allowed
to happen to the 4th amendment?
2002 Ron Paul 44:39
It may be true that the average American does not feel intimidated by the
encroachment of the police state. Im sure our citizens are more
tolerant of
what they see as mere nuisances because they have been deluded into
believing
all this government supervision is necessary and helpful- and besides
they are
living quite comfortably, material wise. However the reaction will be
different
once all this new legislation were passing comes into full force, and
the
material comforts that soften our concerns for government regulations
are
decreased. This attitude then will change dramatically, but the trend
toward the
authoritarian state will be difficult to reverse.
2002 Ron Paul 44:40
What government gives with one hand- as it attempts to provide safety and
security- it must, at the same time, take away with two others. When
the
majority recognizes that the monetary cost and the results of our war
against
terrorism and personal freedoms are a lot less than promised, it may be
too
late.
2002 Ron Paul 44:41
Im sure all my concerns are unconvincing to the vast majority of Americans,
who not only are seeking but also are demanding they be made safe from
any
possible attack from anybody, ever. I grant you this is a reasonable
request.
2002 Ron Paul 44:42
The point is, however, there may be a much better way of doing it. We must
remember, we dont sit around and worry that some Canadian citizen is
about to
walk into New York City and set off a nuclear weapon. We must come to
understand
the real reason is that theres a difference between the Canadians and
all our
many friends and the Islamic radicals. And believe me, were not the
target
because were free and prosperous.
2002 Ron Paul 44:43
The argument made for more government controls here at home and expansionism
overseas to combat terrorism is simple and goes like this: If were
not
made safe from potential terrorists, property and freedom have no
meaning.
It is argued that first we must have life and physical and economic
security,
with continued abundance, then well talk about freedom.
2002 Ron Paul 44:44
It reminds me of the time I was soliciting political support from a voter and
was boldly put down: Ron, she said, I wish you would lay off
this freedom stuff; its all nonsense. Were looking for a
Representative who
will know how to bring home the bacon and help our area, and youre not
that
person. Believe me, I understand that argument; its just that I dont
agree that is what should be motivating us here in the Congress.
2002 Ron Paul 44:45
Thats not the way it works. Freedom does not preclude security. Making
security the highest priority can deny prosperity and still fail to
provide the
safety we all want.
2002 Ron Paul 44:46
The Congress would never agree that we are a police state. Most members, Im
sure, would argue otherwise. But we are all obligated to decide in
which
direction we are going. If were moving toward a system that enhances
individual
liberty and justice for all, my concerns about a police state should be
reduced
or totally ignored. Yet, if, by chance, were moving toward more
authoritarian
control than is good for us, and moving toward a major war of which we
should
have no part, we should not ignore the dangers. If current policies are
permitting a serious challenge to our institutions that allow for our
great
abundance, we ignore them at great risk for future generations.
2002 Ron Paul 44:47
Thats why the post-9/11 analysis and subsequent legislation are crucial to
the survival of those institutions that made America great. We now are
considering a major legislative proposal dealing with this dilemma- the
new
Department of Homeland Security- and we must decide if it truly serves
the
interests of America.
2002 Ron Paul 44:48
Since the new department is now a forgone conclusion, why should anyone
bother to record a dissent? Because its the responsibility of all of
us to
speak the truth to our best ability, and if there are reservations
about what
were doing, we should sound an alarm and warn the people of what is to
come.
2002 Ron Paul 44:49
In times of crisis, nearly unanimous support for government programs is usual
and the effects are instantaneous. Discovering the error of our ways
and waiting
to see the unintended consequences evolve takes time and careful
analysis.
Reversing the bad effects is slow and tedious and fraught with danger.
People
would much prefer to hear platitudes than the pessimism of a flawed
policy.
2002 Ron Paul 44:50
Understanding the real reason why we were attacked is crucial to crafting a
proper response. I know of no one who does not condemn the attacks of
9/11.
Disagreement as to the cause and the proper course of action should be
legitimate in a free society such as ours. If not, were not a free
society.
2002 Ron Paul 44:51
Not only do I condemn the vicious acts of 9/11, but also, out of deep
philosophic and moral commitment, I have pledged never to use any form
of
aggression to bring about social or economic changes.
2002 Ron Paul 44:52
But I am deeply concerned about what has been done and what we are yet to do
in the name of security against the threat of terrorism.
2002 Ron Paul 44:53
Political propagandizing is used to get all of us to toe the line and be good
patriots, supporting every measure suggested by the administration.
We are told that preemptive strikes, torture, military tribunals,
suspension of
habeas corpus, executive orders to wage war, and sacrificing privacy
with a
weakened 4th Amendment are the minimum required to save our country
from the
threat of terrorism.
2002 Ron Paul 44:54
Whos winning this war anyway?
2002 Ron Paul 44:55
To get popular support for these serious violations of our traditional rule
of law requires that people be kept in a state of fear. The episode of
spreading
undue concern about the possibility of a dirty bomb being exploded in
Washington
without any substantiation of an actual threat is a good example of
excessive
fear being generated by government officials.
2002 Ron Paul 44:56
To add insult to injury, when he made this outlandish announcement, our
Attorney General was in Moscow. Maybe if our FBI spent more time at
home, we
would get more for the money we pump into this now- discredited
organization.
Our FBI should be gathering information here at home, and the thousands
of
agents overseas should return. We dont need these agents competing
overseas and
confusing the intelligence apparatus of the CIA or the military.
2002 Ron Paul 44:57
Im concerned that the excess fear, created by the several hundred al Qaeda
functionaries willing to sacrifice their lives for their demented
goals, is
driving us to do to ourselves what the al Qaeda themselves could never
do to us
by force.
2002 Ron Paul 44:58
So far the direction is clear: we are legislating bigger and more intrusive
government here at home and are allowing our President to pursue much
more
military adventurism abroad. These pursuits are overwhelmingly
supported by
Members of Congress, the media, and the so-called intellectual
community, and
questioned only by a small number of civil libertarians and
anti-imperial,
anti-war advocates.
2002 Ron Paul 44:59
The main reason why so many usually levelheaded critics of bad policy accept
this massive increase in government power is clear. They, for various
reasons,
believe the official explanation of Why us? The several hundred al
Qaeda members, we were told, hate us because: Were rich, were free,
we
enjoy materialism, and the purveyors of terror are jealous and envious,
creating
the hatred that drives their cause. They despise our Christian-Judaic
values and
this, is the sole reason why they are willing to die for their cause.
For
this to be believed, one must also be convinced that the perpetrators
lied to
the world about why they attacked us.
2002 Ron Paul 44:60
The al Qaeda leaders say they hate us because:
-We support Western puppet regimes in Arab countries for commercial
reasons
and against the wishes of the populace of these countries.
2002 Ron Paul 44:61
-This partnership allows a military occupation, the most confrontational
being in Saudi Arabia, that offends their sense of pride and violates
their
religious convictions by having a foreign military power on their holy
land. We
refuse to consider how we might feel if Chinas navy occupied the Gulf
of Mexico
for the purpose of protecting their oil and had air bases on U.S.
territory.
2002 Ron Paul 44:62
-We show extreme bias in support of one side in the fifty-plus-year war going
on in the Middle East.
2002 Ron Paul 44:63
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.
2002 Ron Paul 44:64
Sometimes it almost seems that our policies inadvertently are actually based
on a desire to make ourselves less free and less prosperous- those
conditions that are supposed to have prompted the attacks. Im
convinced we must
pay more attention to the real cause of the attacks of last year and
challenge
the explanations given us.
2002 Ron Paul 44:65
The question that one day must be answered is this:
2002 Ron Paul 44:66
What if we had never placed our troops in Saudi Arabia and had involved
ourselves in the Middle East war in an even-handed fashion. Would it
have been
worth it if this would have prevented the events of 9/11?
2002 Ron Paul 44:67
If we avoid the truth, we will be far less well off than if we recognize that
just maybe there is some truth in the statements made by the leaders of
those
who perpetrated the atrocities. If they speak the truth about the real
cause,
changing our foreign policy from foreign military interventionism
around the
globe supporting an American empire would make a lot of sense. It could
reduce
tensions, save money, preserve liberty and preserve our economic system.
2002 Ron Paul 44:68
This, for me, is not a reactive position coming out of 9/11, but rather is an
argument Ive made for decades, claiming that meddling in the affairs
of others
is dangerous to our security and actually reduces our ability to defend
ourselves.
2002 Ron Paul 44:69
This in no way precludes pursuing those directly responsible for the attacks
and dealing with them accordingly- something that we seem to have not
yet done.
We hear more talk of starting a war in Iraq than in achieving victory
against
the international outlaws that instigated the attacks on 9/11. Rather
than
pursuing war against countries that were not directly responsible for
the
attacks, we should consider the judicious use of Marque and Reprisal.
2002 Ron Paul 44:70
Im sure that a more enlightened approach to our foreign policy will prove
elusive. Financial interests of our international corporations, oil
companies,
and banks, along with the military-industrial complex, are sure to
remain a
deciding influence on our policies.
2002 Ron Paul 44:71
Besides, even if my assessments prove to be true, any shift away from foreign
militarism- like bringing our troops home- would now be construed as
yielding to
the terrorists. It just wont happen. This is a powerful point and the
concern
that we might appear to be capitulating is legitimate.
2002 Ron Paul 44:72
Yet how long should we deny the truth, especially if this denial only makes
us more vulnerable? Shouldnt we demand the courage and wisdom of our
leaders to
do the right thing, in spite of the political shortcomings?
2002 Ron Paul 44:73
President Kennedy faced an even greater threat in October 1962, and from a
much more powerful force. The Soviet/Cuban terrorist threat with
nuclear
missiles only 90 miles off our shores was wisely defused by Kennedys
capitulating and removing missiles from Turkey on the Soviet border.
Kennedy
deserved the praise he received for the way he handled the nuclear
standoff with
the Soviets. This concession most likely prevented a nuclear exchange
and proved
that taking a step back from a failed policy is beneficial, yet how one
does so
is crucial. The answer is to do it diplomatically- thats what
diplomats are
supposed to do.
2002 Ron Paul 44:74
Maybe there is no real desire to remove the excuse for our worldwide imperialism, especially our current new expansion into central Asia or
the
domestic violations of our civil liberties. Todays conditions may well
be
exactly what our world commercial interests want. Its now easy for us
to go
into the Philippines, Columbia, Pakistan, Afghanistan, or wherever in
pursuit of
terrorists. No questions are asked by the media or the politicians-
only cheers.
Put in these terms, who can object? We all despise the tactics of the
terrorists, so the nature of the response is not to be questioned!
2002 Ron Paul 44:75
A growing number of Americans are concluding that the threat we now face
comes more as a consequence of our foreign policy than because the bad
guys envy
our freedoms and prosperity. How many terrorist attacks have been
directed
toward Switzerland, Australia, Canada, or Sweden? They too are rich and
free,
and would be easy targets, but the Islamic fundamentalists see no
purpose in
doing so.
2002 Ron Paul 44:76
Theres no purpose in targeting us unless theres a political agenda, which
there surely is. To deny that this political agenda exists jeopardizes
the
security of this country. Pretending something to be true that is not
is
dangerous.
2002 Ron Paul 44:77
Its a definite benefit for so many to recognize that our $40 billion annual
investment in intelligence gathering prior to 9/11 was a failure. Now a
sincere
desire exists to rectify these mistakes. Thats good, unless, instead
of
changing the role for the CIA and the FBI, all the past mistakes are
made worse
by spending more money and enlarging the bureaucracies to do the very
same thing
without improving their efficiency or changing their goals.
Unfortunately that
is what is likely to happen.
2002 Ron Paul 44:78
One of the major shortcomings that led to the 9/11 tragedies was that the
responsibility for protecting commercial airlines was left to the
government,
the FAA, the FBI, the CIA, and the INS. And they failed. A greater
sense of
responsibility for the owners to provide security is what was needed.
Guns in
the cockpit would have most likely prevented most of the deaths that
occurred on
that fateful day.
2002 Ron Paul 44:79
But what does our government do? It firmly denies airline pilots the right to
defend their planes, and we federalize the security screeners and rely
on F16s
to shoot down airliners if they are hijacked.
2002 Ron Paul 44:80
Security screeners, many barely able to speak English, spend endless hours
harassing pilots, confiscating dangerous mustache scissors, mauling
grandmothers
and children, and pestering Al Gore, while doing nothing about the
influx of
aliens from Middle-Eastern countries who are on designated watch lists.
2002 Ron Paul 44:81
We pump up the military in India and Pakistan, ignore all the warnings about
Saudi Arabia, and plan a secret war against Iraq to make sure no one
starts
asking where Osama bin Laden is. We think we know where Saddam Hussein
lives, so
lets go get him instead.
2002 Ron Paul 44:82
Since our government bureaucracy failed, why not get rid of it instead of
adding to it? If we had proper respect and understood how private
property
owners effectively defend themselves, we could apply those rules to the
airlines
and achieve something worthwhile.
2002 Ron Paul 44:83
If our immigration policies have failed us, when will we defy the politically
correct fanatics and curtail the immigration of those individuals on
the highly
suspect lists? Instead of these changes, all we hear is that the major
solution
will come by establishing a huge new federal department- the Department
of
Homeland Security.
2002 Ron Paul 44:84
According to all the pundits, we are expected to champion this big-government
approach, and if we dont jolly well like it, we will be tagged
unpatriotic. The fear that permeates our country cries out for
something to be done in response to almost daily warnings of the next
attack. If
its not a real attack, then its a theoretical one; one where the bomb
could
well be only in the mind of a potential terrorist.
2002 Ron Paul 44:85
Where is all this leading us? Are we moving toward a safer and more secure
society? I think not. All the discussions of these proposed plans since
9/11
have been designed to condition the American people to accept major
changes in
our political system. Some of the changes being made are unnecessary,
and others
are outright dangerous to our way of life.
2002 Ron Paul 44:86
There is no need for us to be forced to choose between security and freedom.
Giving up freedom does not provide greater security. Preserving and
better
understanding freedom can. Sadly today, many are anxious to give up
freedom in
response to real and generated fears..
2002 Ron Paul 44:87
The plans for a first strike supposedly against a potential foreign government should alarm all Americans. If we do not resist this power
the
President is assuming, our President, through executive order, can
start a war
anyplace, anytime, against anyone he chooses, for any reason, without
congressional approval. This is a tragic usurpation of the war power by
the
executive branch from the legislative branch, with Congress being all
too
accommodating.
2002 Ron Paul 44:88
Removing the power of the executive branch to wage war, as was done through
our revolution and the writing of the Constitution, is now being
casually
sacrificed on the altar of security. In a free society, and certainly
in the
constitutional republic we have been given, it should never be assumed
that the
President alone can take it upon himself to wage war whenever he
pleases.
2002 Ron Paul 44:89
The publicly announced plan to murder Saddam Hussein in the name of our
national security draws nary a whimper from Congress. Support is
overwhelming,
without a thought as to its legality, morality, constitutionality, or
its
practicality. Murdering Saddam Hussein will surely generate many more
fanatics
ready to commit their lives to suicide terrorist attacks against us.
2002 Ron Paul 44:90
Our CIA attempt to assassinate Castro backfired with the subsequent assassination of our president. Killing Saddam Hussein, just for the
sake of
killing him, obviously will increase the threat against us, not
diminish it. It
makes no sense. But our warriors argue that someday he may build a
bomb, someday
he might use it, maybe against us or some yet-unknown target. This
policy
further radicalizes the Islamic fundamentalists against us, because
from their
viewpoint, our policy is driven by Israeli, not U.S. security interests.
2002 Ron Paul 44:91
Planned assassination, a preemptive strike policy without proof of any
threat, and a vague definition of terrorism may work for us as long as
were
king of the hill, but one must assume every other nation will naturally
use our
definition of policy as justification for dealing with their neighbors.
India
can justify a first strike against Pakistan, China against India or
Taiwan, as
well as many other such examples. This new policy, if carried through,
will make
the world much less safe.
2002 Ron Paul 44:92
This new doctrine is based on proving a negative, which is impossible to do,
especially when were dealing with a subjective interpretation of plans
buried
in someones head. To those who suggest a more restrained approach on
Iraq and
killing Saddam Hussein, the war hawks retort, saying: Prove to me that
Saddam Hussein might not do something someday directly harmful to the
United
States. Since no one can prove this, the warmongers shout: Lets
march on Baghdad.
2002 Ron Paul 44:93
We all can agree that aggression should be met with force and that providing
national security is an ominous responsibility that falls on Congress
shoulders. But avoiding useless and unjustifiable wars that threaten
our whole
system of government and security seems to be the more prudent thing to
do.
2002 Ron Paul 44:94
Since September 11th, Congress has responded with a massive barrage of
legislation not seen since Roosevelt took over in 1933. Where Roosevelt
dealt
with trying to provide economic security, todays legislation deals
with
personal security from any and all imaginable threats, at any cost-
dollar or
freedom-wise. These efforts include:
2002 Ron Paul 44:95
-The Patriot Act, which undermines the 4th Amendment with the establishment
of an overly broad and dangerous definition of terrorism.
2002 Ron Paul 44:96
- The Financial Anti-Terrorism Act, which expands the governments surveillance of the financial transactions of all American citizens
through
increased power to FinCen and puts back on track the plans to impose
Know
Your Customer rules on all Americans, which had been sought after for
years.
2002 Ron Paul 44:97
-The airline bailout bill gave $15 billion, rushed through shortly after
9/11.
2002 Ron Paul 44:98
- The federalization of all airline security employees.
-Military tribunals set up by executive order-undermining the rights
of those
accused- rights established as far back in history as 1215.
2002 Ron Paul 44:99
- Unlimited retention of suspects without charges being made, even when a
crime has not been committed- a serious precedent that one day may well
be
abused.
2002 Ron Paul 44:100
- Relaxation of FBI surveillance guidelines of all political activity.
2002 Ron Paul 44:101
- Essentially monopolizing vaccines and treatment for infectious diseases,
permitting massive quarantines and mandates for vaccinations.
2002 Ron Paul 44:102
Almost all significant legislation since 9/11 has been rushed through in a
tone of urgency with reference to the tragedy, including the $190
billion farm
bill as well as fast track.
2002 Ron Paul 44:103
Guarantees to all insurance companies now are moving quickly through the
Congress.
Increasing the billions already flowing into foreign aid is now being
planned as
our interventions overseas continue to grow and expand.
2002 Ron Paul 44:104
Theres no reason to believe that the massive increase in spending, both
domestic and foreign, along with the massive expansion of the size of
the
federal government, will slow any time soon. The deficit is exploding
as the
economy weakens. When the government sector drains the resources needed
for
capital expansion, it contributes to the loss of confidence needed for
growth.
2002 Ron Paul 44:105
Even without evidence that any good has come from this massive expansion of
government power, Congress is in the process of establishing a huge new
bureaucracy, the Department of Homeland Security, hoping miraculously
through
centralization to make all these efforts productive and worthwhile.
2002 Ron Paul 44:106
There is no evidence, however, that government bureaucracy and huge funding
can solve our nations problems. The likelihood is that the unintended
consequences of this new proposal will diminish our freedoms and do
nothing to
enhance our security.
2002 Ron Paul 44:107
Opposing currently proposed and recently passed legislation does not mean one
is complacent about terrorism or homeland security. The truth is that
there are
alternative solutions to these problems we face, without resorting to
expanding
the size and scope of government at the expense of liberty.