Category Archives: Economics

Ron Paul’s “We are the Future Rally” unlike any other political event

TAMPA, August 27, 2012 ― Everyone knows what to expect from a political rally. Speakers recite the party line on various subjects. The audience already agrees with them and knows what they are going to say. The crowd cheers. The opposition is trashed. The crowd cheers again. The keynote speaker is introduced. Standing ovation. More talking points.

Ron Paul’s “We Are the Future Rally” couldn’t have resembled that model less. Rather than politics, the entire program focused on ideas.

His first three speakers were libertarian philosophers Lew Rockwell, Walter Block and Butler Shaffer. There were no talking points. Instead, attendees were treated to intellectual arguments for individual liberty from three of the most powerful libertarian thinkers alive.

Not everyone agreed, either. Block’s controversial argument for a new libertarian stance on abortion actually drew boos. Block argued that a woman has a property right in her body and thus can evict a “trespassing” fetus from her womb, but does not have a right to take the fetus’ life. Block claimed that this was possible now during the third trimester of pregnancy and that as the science advanced, it would be possible earlier and earlier.

Some of the more conservative among Paul’s following weren’t ready to hear it.

There were speeches by politicians Barry Goldwater, Jr. and South Carolina State Senator Tom Davis, but even these were atypical. Goldwater read from and commented on passages from his father’s Conscience of a Conservative, while Davis focused exclusively on attacking the Federal Reserve System.

Paul’s official campaign blogger and rising conservative star Jack Hunter continued with a talk on conservative philosophy, citing Ronald Reagan, Russell Kirk and other noteworthy conservatives. Hunter reminded supporters of Reagan’s “three-legged stool” theory of conservatism: equal parts national security conservatives, religious conservatives and economic/libertarian conservatives. Hunter argued that it was the absence of the libertarian leg that led to the profligacy of the Bush years. He quoted Reagan saying, “libertarianism is the very heart and soul of conservatism.”

None of this is to suggest that the affair was a quiet seminar with attendees nodding their heads and taking notes. Right from senior campaign advisor Doug Wead’s opening remarks, the atmosphere was electric and the applause thunderous. As usual, remarks on the Federal Reserve System and Paul’s non-interventionist foreign policy got the most enthusiastic response.

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Repealing Glass-Steagall did not create the banking monster

TAMPA, August 22, 2012 – As we approach the Republican and Democratic National Conventions with two major party candidates that don’t substantively disagree on anything, debate about the causes of the housing bubble and what should be done about it will inevitably recur.

Both candidates advocate massive government intervention. They just disagree about the details.

Neil Barofsky weighs in with the generally accepted argument that the repeal of Glass-Steagall was the creator of what he calls “the monster,” highly leveraged investment banks taking extraordinary risks that led to the 2008 financial meltdown.

Barofsky is right about Wall Street being a monster, but the repeal of Glass Steagall wasn’t its Frankenstein. As Tom Woods explains in his bestseller, Rollback,

“But did the repeal of two provisions of Glass-Steagall allowing affiliation of commercial banks with securities firms through their control by the same holding company contribute to the losses and risk that permeated the system? Certainly not. For one thing, commercial banks bought mortgage-backed securities for their AAA rating, their attractive return, and the minimal capital requirements associated with holding them; they did not acquire these assets because they were connected to investment banks that were trying to unload them.

Moreover, severe regulatory firewalls essentially prevent this kind of affiliation from contributing to losses or increased risk on the part of the commercial bank involved. The reverse problem, that affiliation with a commercial bank might bring down and investment bank, is exceedingly unlikely, given the relative magnitudes of assets held by each institution. The commercial banks’ assets were only a tiny fraction of those held by the investment banks they were affiliated with. These banks were in no position to cause the investment banks any serious problem, much less their complete downfall.”

If that’s true, then why was that “sucker going down,” as President Bush so eloquently put it?

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Audit the Fed first shot in Ron Paul’s revolution

TAMPA, August 3, 2012 – “When I was your age, I went to the movies for a dime and bought a big bag of popcorn and a soda for a nickel.”

My father said that to me a hundred times when I used to pay $2.75 to go to the movies and another $1.25 for the popcorn and soda. For five generations, Americans have understood steadily rising prices as an immutable law of nature. Yet history shows that this just isn’t true.

The Federal Reserve of Minnesota publishes historical inflation figures on its website going back to 1800. The attached chart from that website shows annual inflation rates from 1800 through 2008. I added the last column to calculate the price movements of a basket of goods that cost $100 in 1800.

You don’t need a Ph.D. in finance for the numbers to jump off the page. The basket of goods that cost $100 in 1800 only cost $58.10 in 1913 (the year the Federal Reserve System was created). For that entire first full century of American history, steadily decreasing prices were something Americans took for granted.

In the ninety-nine years since the creation of the Federal Reserve System, that same basket of goods has risen to $1,265.14.

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Occupy Wall Street talking gibberish about healthcare

TAMPA, July 5 2012 – Thank heaven for the great Steve Zahn, who in his hilarious turn as Lenny in the Beatlesque That Thing You Do, coined a phrase that applies to nearly every political sentiment expressed here in the land of the free.

“You’re talking gibberish.”

Lenny’s prescient warning against calling the band “The One-ders” was ignored, resulting in the band’s name being universally mispronounced, until it was changed to “The Wonders” by the band’s eventual manager.

The lesson? When gibberish is accepted as reason, bad things happen. The stakes are much higher for healthcare.

There are limitless reactions to the Supreme Court’s decision to uphold Obamacare. Unfortunately, those opposed are also talking gibberish. Conservatives are trying to spin the decision as a blow for limited government because it was rendered by a conservative judge. That’s bad enough. Occupy Wall Street’s argument against the decision is even worse.

At least the left’s opposition to the law, where it exists, has remained consistent. True believers in government-provided healthcare object to the Affordable Care Act because it makes use of private insurers. Occupy Wall Street is 100% correct on one thing. “The law will deliver 20+ million new customers and $447 billion in taxpayer subsidies directly to the private health insurance companies.”

Libertarians couldn’t agree more. The Act is nothing more than a half trillion dollar theft for the health insurance industry. That it benefits big business does not make it a “free market” solution. It’s just more welfare, of the corporate variety, that libertarians oppose like any other forcible redistribution of wealth.

The gibberish comes in when Occupy argues for its solution. Proposing “Medicare for All,” a single-payer healthcare system 100% operated by the government, Occupy makes this statement.

“We believe that healthcare is a human right, not a commodity or a luxury for those who can afford it.”

Gibberish. Why? Let’s think for a moment about what this statement really means. To do that, we’re going to have to define the words used in the statement. The first one is “healthcare.”

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Morning Joe Wrong on Ron Paul and Social Security

TAMPA, June 21 2012 — Ron Paul appeared on MSNBC’s Morning Joe yesterday, giving one of his most succinct criticisms of the Republican Party to date. Host Joe Scarborough had recently endorsed Paul and explained why he had voted for him in his Republican presidential primary.

For most of the segment, the hosts concentrated on Paul’s ideas, policy positions and vision for the future of the party. However, near the end of the segment, Sam Stein decided to ambush Paul on Social Security. After Paul explained his position on letting young people opt out of the program, Stein asked Paul if he collected Social Security payments himself. When Paul replied in the affirmative, Stein implied that Paul was being hypocritical by collecting Social Security payments while asking young people to opt out.

Non sequitur.

Ron Paul’s plan to phase out Social Security does not ask people who have paid into the program to forego the benefits. Those he wants to give the opportunity to opt out would also not be taxed to support Social Security. Perhaps somewhat surprised by the line of inquiry, Paul did not give the best answer he’s ever given to this question. However, he explained it in detail in my own interview with him last year.

Under Paul’s plan, those who have paid into the program would continue to receive the benefits they were promised. The funds not collected from young people who opt out would be raised from savings realized by Paul’s cuts to overseas military spending and elimination of federal departments.

So, Paul is not asking young people to do something that he is not willing to do himself. As he pointed out on Morning Joe, he’s still paying into Social Security right now.

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Can Ron Paul supporters accept Gary Johnson?

TAMPA, May 15, 2012 — Ron Paul’s announcement today that he will “no longer spend resources campaigning in primaries in states that have not yet voted” may finally have some of his supporters considering the possibility that he will not be the Republican Party’s nominee. That may be overly pessimistic considering that Paul also stated that he will continue to pursue his delegate strategy, which has been far more successful than his quest for a primary win.

However, even the most ardent supporter may find it prudent to have a “Plan B,” especially in states where the rules on write-in candidates are onerous. There is one man who believes he’s wide open in the Plan B end zone. He’s former Governor of New Mexico Gary Johnson.

Johnson secured the Libertarian Party’s nomination for president at its national convention last Saturday in Las Vegas, winning over 70% of the delegate votes.

Johnson supports Ron Paul, but doesn’t think Paul will win the Republican nomination. He wants Ron Paul supporters to know that he represents an opportunity to vote for a lot of the things they believe in.

“Ron Paul has always been about a message and so have I and it’s the same message. It’s about liberty and it’s about freedom, first and foremost, and when Dr. Paul’s candidacy comes to an end, there’s a viable alternative and I don’t think it’s a handicapped choice. I think it’s reloading. There’s no concession.”

So, do Paul supporters have to compromise to vote for Johnson?

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What’s so important about replacing Obama with Romney?

TAMPA, April 25, 2012 – Now that the Republican Party and the media have decided, in quite Orwellian fashion, that Mitt Romney has won the nomination (even though he hasn’t); the party has ramped up its campaign to unite behind the Republican candidate. Regardless of those “minor differences” supporters of other candidates may have had, nothing is more important than defeating Barack Obama in November. There is only one question that no one is asking.

Why?

The first answer provided by many Republicans is “Obama is a socialist.”

I don’t read minds, so I can’t speculate as to what President Obama thinks. He may silently recite Saul Alinsky while he signs executive orders. He may be wearing Karl Marx Underoos when he reads from his teleprompter. I don’t know (and don’t want to know). We can only judge him on what he’s done. So far, he hasn’t done anything substantively more socialist than George W. Bush.

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For Gary Johnson it’s all about the “Libertarian” message

TAMPA, April 22, 2012 – Self-made millionaire and former two-term governor of New Mexico Gary Johnson initially sought the Republican Party’s nomination for president.

After being largely excluded from the early debates, Johnson left the Republican Party and now seeks the Libertarian Party’s nomination.

“It’s always been about the message,” Mr. Johnson says. “I’m a messenger. I think for the most part I’m delivering the same message as Ron Paul. I think that the message is identifying the solutions to the problems that this country faces and genuinely recognizing the solutions. Having been excluded from the Republican debates, that really was a self-fulfilling prophecy.”

So what are the solutions that Johnson proposes?

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Charles Goyette’s Red and Blue and Broke All Over: A refreshingly different argument for freedom

TAMPA, April 20, 2012 — Best-selling author and former talk radio host Charles Goyette follows up on his New York Times bestseller, The Dollar Meltdown, with a more comprehensive look at all that ails America. In Red and Blue and Broke All Over: Restoring America’s Free Economy, Goyette makes a compelling case that America’s many problems are not due to a dizzying array of complex moral and socio-political dilemmas. Instead, they are all the result of one simple problem: diminishing freedom.

This book is not a partisan attack on the Obama administration by a conservative talk radio host. Goyette is more accurately described as libertarian and he has plenty of criticism for both political parties. However, what makes this book so valuable is Goyette’s ability to express timeless philosophical ideas in simple, everyday terms and then demonstrate how those ideas apply to today’s problems here in the real world.

The book is divided into three sections: “Liberty,” “The State” and “Dead Ahead,” respectively. Goyette lays the philosophical foundation by explaining the inextricable link between liberty and non-aggression, recognized by modern libertarians and the founding fathers. He quotes Murray Rothbard, who said that liberty is “the absence of molestation by other people,” and Friedrich Hayek, who maintained that it is “the condition in which man is not subject to coercion by another or others.”

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