A $21 Trillion Tax Cut

by James Ostrowski, Mises.org – 3/20/2001

President Bush has proposed a $1.6 trillion tax cut. I would like to suggest that the president modify his tax proposal. He should increase the size of his tax cut to $21 trillion.

Well, it’s not really a $21 trillion tax cut. It’s a $2.1 trillion tax cut. I got the $21 trillion figure by projecting it for ten years, just as Bush does with his. I don’t know why Washington projects these tax cuts for ten years, since federal budgets are only good for one year and can be changed any time thereafter.

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A problem of regulation?

by Mark Thornton, Mises Economics Blog

The financial panic that has engulfed the planet is considered by politicians, bureaucrats, journalists and mainstream economists to be a problem of regulation. I find myself in the uncomfortable position of having to agree with this gang of opinion makers, but it is not a problem of insufficient regulation, inadequate regulation, unenforced regulation, out-dated regulation, or anything of the kind.

The problem is with regulation itself. With regard to financial markets, government regulates everything. There is the Federal Reserve that regulates the money supply, interest rates and everything else. There is the Treasury with its array of regulatory powers.

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Government Monetary Policy vs Freedom

by Rep Ron Paul

I’ve discussed just a few benefits of sound money in the last two weeks, and contrasted them to the perils of fiat currency.  Sound money keeps government spending in check, keeps trade fair and honest, which reduces the temptations, and many underlying causes, for governments to wage wars.  It also gives you the peace of mind of knowing that your savings will be able to sustain you in your retirement.

So if sound money is such a good thing, what is stopping people from simply trading with each other in gold and silver?  Why are you still being paid in fiat dollars, and why can’t you pay for gas in gold?  The answer is that the government has enacted policies that provide considerable stumbling blocks to such transactions.

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How Foreign Policy Affects Gas Prices

by Rep Ron Paul

We’ve heard how the value of the dollar affects gas prices – and indeed the price of everything.  I was pleased that my request for a hearing on such was granted by the Financial Services committee and we were able to hear some very informative testimony.  Certainly domestic policies, regarding off-shore oil drilling bans, ethanol mandates, refining capacity, and CAFE standards are interventionist and harmful enough in the energy market.

But how does foreign policy affect gas prices?  One important factor is that oil on the world market has been priced in dollars exclusively since 1973.  Only two leaders have gone against this arrangement – Saddam Hussein in 2000 and more recently Mahmoud Ahmadinejad with the recently opened Iranian Oil Bourse which trades in non-dollar currencies. 

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Freddie and Fannie Bailout: Expensive to Taxpayers, and Destructive of Liberty.

by Rep Ron Paul

Statement before the US House of Representatives on HR 3221 July 24, 2008

Madam Speaker,

For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing.

This crisis would force Congress to choose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct.

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Time for Some Real Change

by Rep Ron Paul

One reason people are unhappy with the way politics and governments operate is that people who run for office are known to “say one thing and do another.”  Thus, we have the call for “change.”

Candidates for high office make frequent use of that word.  Even our House Republican Conference’s recently released slogan highlights that word.

Yet, bringing about change is easier said than done.  The American people are aware that government is broken and must be fixed.  They will demand more than lip service as our problems become more severe.

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The Falling Dollar and Rising Energy Prices

by Rep Ron Paul

Oil prices are on the minds of many Americans as gas hits $4 a gallon, and continues to surge.  How high can prices go?  How can we solve these problems?  What, or who, is to blame?

Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System.  The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool.  When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars.  They must invest this money quickly and aggressively before it loses value. 

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Another Casualty of War: The Economy

by Rep Ron Paul

This week, as the American economy continued to suffer the effects of big government, the House attempted to pass two multibillion dollar “emergency” spending bills, one for continued spending on the war in Iraq , and one increasing spending on domestic and international welfare programs.  The plan was to pass these two bills and then send them to the president as one package.

Even though the House failed to pass the war spending bill, opponents of the war should not be fooled into believing this vote signals a long term change in policy.  At the end of the day, those favoring continued military occupation of Iraq  will receive every penny they are requesting and more as long as they agree to dramatically increase domestic and international welfare spending as well.

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Who Is Responsible for the Housing Bubble?

by Rep Ron Paul

The House passed two bills attempting to rehabilitate the housing and mortgage market this week.  There doesn’t seem to be any shortage of criticism and blame for the bad decisions, and rightly so.

Lenders and banks do share much of the blame for the overheated market.  Lending standards were relaxed, or even abandoned altogether, creating an exaggerated pool of homebuyers that led to ballooning home prices that many, especially real estate investors, expected to continue forever.  Now that the bubble has burst, the losses are staggering.

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The Double Trouble of Taxation

by Rep Ron Paul

Taxes were on the forefront of many Americans’ minds this week as they scrambled to meet the April 15th deadline to file their returns.  Tax policy in this country hurts taxpayers twice – once when they pay taxes, and then when the government spends the money.  Americans are sick and tired of the financial burden and the endless forms to fill out.

To add insult to injury, after collecting this money the government does some very detrimental things to the economy.

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