23 Ron Paul Quotes on Economics

Ron Paul quotes on economics

10. Liberty once again must become more important to us than the desire for security and material comfort. Personal safety and economic prosperity can only come as the consequence of liberty. They cannot be provided by an authoritarian government... The foundation for a police state has been put in place, and it's urgent we mobilize resistance before it's too late... Central planning is intellectually bankrupt - and it has bankrupted our country and undermined our moral principles. Respect for individual liberty and dignity is the only answer to government force, force that serves the politically and economically powerful. Our planners and rulers are not geniuses, but rather demagogues and would-be dictators -- always performing their tasks with a cover of humanitarian rhetoric... The collapse of the Soviet system came swiftly and dramatically, without a bloody conflict... It came as no surprise, however, to the devotees of freedom who have understood for decades that socialism was doomed to fail... And so too will the welfare/warfare state fail... A free society is based on the key principle that the government, the president, the Congress, the courts, and the bureaucrats are incapable of knowing what is best for each and every one of us... A government as a referee is proper, but a government that uses arbitrary force to direct every aspect of society threatens freedom... The time has come for a modern approach to achieving those values that all civilized societies seek. Only in a free society do individuals have the best chance to seek virtue, strive for excellence, improve their economic well-being, and achieve personal happiness... The worthy goals of civilization can only be achieved by freedom loving individuals. When government uses force, liberty is sacrificed and the goals are lost. It is freedom that is the source of all creative energy. If I am to be your president, these are the goals I would seek. I reject the notion that we need a president to run our lives, plan the economy, or police the world... It is much more important to protect individual liberty and privacy than to make government even more secretive and powerful.

12. Racism is simply an ugly form of collectivism, the mindset that views humans strictly as members of groups rather than individuals. Racists believe that all individuals who share superficial physical characteristics are alike: as collectivists, racists think only in terms of groups. By encouraging Americans to adopt a group mentality, the advocates of so-called 'diversity' actually perpetuate racism. Their obsession with racial group identity is inherently racist. The true antidote to racism is liberty. Liberty means having a limited, constitutional government devoted to the protection of individual rights rather than group claims. Liberty means free-market capitalism, which rewards individual achievement and competence, not skin color, gender, or ethnicity.

33. Special interests and the demented philosophy of conquest have driven most wars throughout history. Rarely has the cause of liberty, as it was in our own revolution, been the driving force. In recent decades our policies have been driven by neo-conservative empire radicalism, profiteering in the military industrial complex, misplaced do-good internationalism, mercantilistic notions regarding the need to control natural resources, and blind loyalty to various governments in the Middle East.

37. We need to worry about our borders here at home, not worry about the borders around the world, and the border between Syria and Iraq - that doesn't have anything to do with our national security, we have to deal with our own national security. Our military right now is in shambles because we've been stretched too thin. One of these days we're gonna have to wake up, and I'm afraid we won't wake up until we go bankrupt, and we're approaching that time already.

47. It really doesn't matter whether I'm right or wrong: the war is going to end because we're gonna have such a political and financial havoc here with the devaluation of our dollar, because we just can't keep affording it. This is usually how empires end, by spending too much money maintaining their empire. We're in 130 countries, we have 700 bases around the world, and it's going to come to an end. I want it to come to an end more gracefully and peacefully, follow the constitution, and follow a more sensible foreign policy.

51. It's a mistake to think that poor people get the benefit from the welfare system. It's a total fraud. Most welfare go to the rich of this country: the military-industrial complex, the bankers, the foreign dictators, it's totally out of control. [...] This idea that the government has services or goods that they can pass on is a complete farce. Governments have nothing. They can't create anything, they never have. All they can do is steal from one group and give it to another at the destruction of the principles of freedom, and we ought to challenge that concept.

54. Capitalism should not be condemned, since we haven't had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. It's not capitalism when the system is plagued with incomprehensible rules regarding mergers, acquisitions, and stock sales, along with wage controls, price controls, protectionism, corporate subsidies, international management of trade, complex and punishing corporate taxes, privileged government contracts to the military-industrial complex, and a foreign policy controlled by corporate interests and overseas investments. Add to this centralized federal mismanagement of farming, education, medicine, insurance, banking and welfare. This is not capitalism!

55. A paper monetary standard means there are no restraints on the printing press or on federal deficits. In 1971, M3 was $776 billion; today it stands at $8.9 trillion, an 1100% increase. Our national debt in 1971 was $408 billion; today it stands at $6.8 trillion, a 1600% increase. Since that time, our dollar has lost almost 80% of its purchasing power. Common sense tells us that this process is not sustainable and something has to give. So far, no one in Washington seems interested.

56. War is never economically beneficial except for those in position to profit from war expenditures.

60. I think everybody has the same concerns about helping people when they're having trouble. The question is whether it should be done through coercion, or voluntary means, or local government. And I opt out from the federal government doing it, because that involves central economic planning. So even if we accept the gentleman's moral premise, in a practical way it's a total failure. We'd have been better off taking the amount of money and giving every single family $20,000, and they'd all been better off, than the way we did it. We bought all these trailer homes and they sat out in the open, so the whole thing is insane, it's a total waste. And besides, the reason I don't like these federal government programs, it encourages people like me to build on the beach. I have a house on the beach in the gulf of Mexico. But why don't I assume my own responsibility, why doesn't the market tell me what the insurance rates should be? Because it would be very very high. But, because we want it subsidized, we ask the people of Arizona to subsidize my insurance so I can take greater danger, my house gets blown down, and then the people of Arizona rebuild it?! My statement back during the time of Katrina, which was a rather risky political statement: why do the people of Arizona have to pay for me to take my risk... less people will be exposed to danger if you don't subsidize risky behavior... I think it's a very serious mistake to think that central economic planning and forcibly transferring wealth from people who don't take risks to people who take risks is a proper way to go.

63. Welfarism and excessive spending and deficits and socialism divide us, because everybody has to go to Washington. Those who have the biggest clout, whose who are the best lobbyists, those who go and they grab. And whether it's the medical industrial complex, or the banking industry, or the military industrial complex, that's who ends up controlling our government... For so long, conservatives and constitutionalists have lost the argument, they lost the moral highground. Because those who want to give things away, not talking about where they steal it from, but they want to give things and take care of people, they get the moral highground and they come by as being compassionate. And we who believe in liberty, we lack compassion. But the truth is, there's only one compassionate system known to man, and that is freedom and personal responsibility, then there's enough wealth, and then we will all have personal responsibility to use this compassion that we have, first to take care of our families and friends and neighbors, and there would be so much wealth that we could spread this wealth around the world.

64. Ron Paul: What's happening is, there's transfer of wealth from the poor and the middle class to the wealthy. This comes about because of the monetary system that we have. When you inflate a currency or destroy a currency, the middle class gets wiped out. So the people who get to use the money first which is created by the Federal Reserve system benefit. So the money gravitates to the banks and to Wall Street. That's why you have more billionaires than ever before. Today, this country is in the middle of a recession for a lot of people... As long as we live beyond our means we are destined to live beneath our means. And we have lived beyond our means because we are financing a foreign policy that is so extravagant and beyond what we can control, as well as the spending here at home. And we're depending on the creation of money out of thin air, which is nothing more than debasement of the currency. It's counterfeit... So, if you want a healthy economy, you have to study monetary theory and figure out why it is that we're suffering. And everybody doesn't suffer equally, or this wouldn't be so bad. It's always the poor people -- those who are on retired incomes -- that suffer the most. But the politicians and those who get to use the money first, like the military industrial complex, they make a lot of money and they benefit from it. John McCain: Everybody is paying taxes and wealth creates wealth. And the fact is that I would commend to your reading, Ron, 'Wealth of Nations,' because that's what this is all about. A vibrant economy creates wealth. People pay taxes. Revenues are at an all time high.

65. Ron Paul: ...you have to develop the transition, and eventually the next step would be to prohibit the Fed from monetizing debt. This is the real evil. The politicians spend for war, welfare, and they don't have to do it responsibly. Question: When you say monetize the debt, you mean they would only be able to spend the cash that they had on hand. They couldn't write any cheques for which they don't have in their account any money? Ron Paul: That's right. And that is the key to it. Because when the Fed comes along, and there's starvation for capital and liquidity, and politicians are spending too much, the Fed can create 20, 30, 50 billion dollars in a day, just like they did trying to bail out this housing bubble crash. So they create money out of thin air endlessly, eventually that has to stop because that drives the value of the dollar down.

67. Question: You wanna gut that safety net... Ron Paul: But the safety net doesn't work. Question: Tell me why it doesn't work. Ron Paul: It does work for some people, but overall it ultimately fails, because you spend more money than you have, and then you borrow to the hilt. Now we have to borrow $800 billion a year just to keep the safety net going. It's going to collapse when the dollar collapses, you can't even fight the war without this borrowing. And when the dollar collapses, you can't take care of the elderly of today. They're losing ground. Their cost of living is going up about 10%, even though the government denies it, we give them a 2% cost of living increase. Question: So do you think the gold standard would fix that? Ron Paul: The gold standard would keep you from printing money and destroying the middle class. Every country where you have runaway inflation, there's no middle class. Mexico, there's no middle class, you have a huge poor class, and a lot of wealthy people. Today we have a growing poor class, and we have more billionaires than ever before. So we're moving into third world status... Question: Who is the safety net that you're speaking of, who does benefit from all those programs and all those agencies? Ron Paul: Everybody on a short term benefits for a time. If you build a tenement house by the government, for about 15 or 20 years somebody might live there, but you don't measure who paid for it: somebody lost their job down the road, somebody had inflation, somebody else suffered. But then the tenement house falls down after about 20 years because it's not privately owned, so everybody eventually suffers. But the immediate victims aren't identifiable, because you don't know who lost the job, and who had the inflation, the victims are invisible. The few people who benefit, who get some help from government, everyone sees, 'oh! look what we did!', but they never say instead of what, what did we lose. And unless you ask that question, we'll go into bankruptcy, we're in the early stages of it, the dollar is going down, our standard of living is going down, and we're hurting the very people that so many people wanna help, especially the liberals...

70. Question: ...you believe the Fed shouldn't exist... make the case. Ron Paul: First reason is, it's not authorized in the Constitution, it's an illegal institution. The second reason, it's an immoral institution, because we have delivered to a secretive body the privilege of creating money out of thin air; if you or I did it, we'd be called counterfeiters, so why have we legalized counterfeiting? But the economic reasons are overwhelming: the Federal Reserve is the creature that destroys value. This station talks about free market capitalism, and you can't have free market capitalism if you have a secret bank creating money and credit out of thin air. They become the central planners, they decide what interest rates should be, what the supply of money should be... Question: How does the gold standard solves that? Ron Paul: It maintains a stable currency and a stable value. If the Fed concentrated more on stable money rather than stable prices... They push up new money in stocks and in commodities and in houses, and then they have to come in to rescue the situation. They create the bubbles, then they come in and rescue it, and they do nothing more than try to do price fixing. Capitalism depends, and capital comes from savings, but there's no savings in this country, so this is all artificial. It creates the misdirection and the malinvestment and all the excessive debt, and it always has to have a correction. Since the Fed has been in existence, the dollar has lost about 97% of its value. You're supposed to encourage savings, but if something loses its value, why save dollars? There's no encouragement whatsoever. [...] Gold is 6000 years old, and it still maintains its purchasing power. Oil prices really are very stable in terms of Gold. [...] Both conservatives and liberals want to enhance big government, and this is a seductive way to tax the middle class.

73. ...why the American people would even give the slightest consideration for government health programs. They don't want the government to deliver their automobiles, or their videocassette recorders, or their food... The best way to deliver healthcare is the way we deliver all goods and services in a free society.

74. It's time to rethink the whole system of HMOs and managed care. This entire unnecessary level of corporatism rakes off profits and worsens the quality of care. But HMOs did not arise in the free market; they are creatures of government interference in health care dating to the 1970s. These non-market institutions have gained control over medical care through collusion between organized medicine, politicians, and drug companies, in an effort to move America toward 'free' universal health care.

75. The American people have been offered two lousy choices. One, which is corporatism, a fascist type of approach, or, socialism. We deliver a lot of services in this country through the free market, and when you do it through the free market prices go down. But in medicine, prices go up. Technology doesn't help the cost, it goes up instead of down. But if you look at almost all of our industries that are much freer, technology lowers the prices. Just think of how the price of cell phones goes down. Poor people have cell phones, and televisions, and computers. Prices all go down. But in medicine, they go up, and there's a reason for that, that's because the government is involved with it... I do [think that prices will go down without government involvement], but probably a lot more than what you're thinking about, because you have to have competition in the delivery of care. For instance, if you have a sore throat and you have to come see me, you have to wait in the waiting room, and then get checked, and then get a prescription, and it ends up costing you $100. If you had true competition, you should be able to go to a nurse, who could for 1/10 the cost very rapidly do it, and let her give you a prescription for penicillin. See, the doctors and the medical profession have monopolized the system through licensing. And that's not an accident, because they like the idea that you have to go see the physician and pay this huge price. And patients can sort this out, they're not going to go to a nurse if they need brain surgery...

76. Question: As a doctor, is it meaningful to you when somebody say that healthcare is a right, or that people have a right to good medical care? Ron Paul: That's incorrect, because you don't have a right to the fruits of somebody else's labor. You don't have a right to a house, you don't have a right to a job, you don't have a right to medical care. You have a right to your life, you have your right to your liberty, you have a right to keep what your earn. And that's what produces prosperity. So you want equal justice. And this is not hard for me to argue, because if you really are compassionate and you care about people, the freer the society the more prosperous it is, and more likely that you are going to have medical care... When you turn it over to central economic planning, they're bound to make mistake. The bureaucrats and the special interests and the Halliburtons are gonna make the money. Whether it's war, or Katrina, these noncompetitive contracts, the bureaucrats make a lot of money and you end up with inefficiency.

106. His opposition to what he considers unconstitutional spending even earned the grudging respect of GOP leaders. When Newt Gingrich cracked the whip on party members to support a messy budget compromise, he excused Paul from the duty to support the budget, and the 'Ron Paul exemption' entered the congressional vocabulary. What did it take for other members to earn this privilege to buck the party? A voting record that opposed all unnecessary federal spending, even in their home district. No one else has been granted the exemption.

114. Let me tell you Ron, there are a lot of people out there in the Republican primaries, trying to seize the mantle of Ronald Reagan...but when it comes to economic issues, you are the only guy out there that really is delivering the same message that Ronald Reagan delivered for 30 years.

134. When Ron Paul said inflation was the hidden tax, I yelled at the screen, 'He's right! Follow up: This is a key comment!' Instead the moderator, other candidates, and the crowd just stared at him and probably just wanted a baked potato with their cheese burger.

146. The first time I heard Paul talk about monetary policy, I'd felt like a hostage, the only person in the room who didn't buy into the program. Then, slowly, like so many hostages, I started to open my mind and listen. By the time we got to Reno, unfamiliar thoughts were beginning to occur: Why shouldn't we worry about the soundness of the currency? What exactly is the dollar backed by anyway? And, if the gold standard is crazy, is it really any crazier than hedge funds? I'd become Patty Hearst, ready to take up arms for the cause, or at least call my accountant and tell him to buy Krugerrands.