The Libertarian Statesman

Ron Paul

Ron Paul

Questions submitted by readers to Steven Dubner’s Freakonomics Blog at the New York Times and answered by Dr. Paul.

Q: What would your plans for economic stimulation look like during this slumping economy?

A: Let’s start with what I wouldn’t do, which is make the problem worse. We can not solve our problems with what we’ve been doing – borrowing money from overseas and creating money and credit out of thin air. Distorting interest rates and inflating the monetary supply sometimes provides short-term relief, but it will only make the pain worse in the long run.

During the presidential campaign, I released the following four-point plan, and would stick by it while at the same time listening to experts for advice on how to improve it:

The Four-Point Plan

  1. Tax Reform: Reduce the tax burden and eliminate taxes that punish investment and savings, including job-killing corporate taxes.
  2. Spending Reform: Eliminate wasteful spending. Reduce overseas commitments. Freeze all non-defense, non-entitlement spending at current levels.
  3. Monetary Policy Reform: Expand openness at the Federal Reserve and require the Fed to televise its meetings. Return value to our money.
  4. Regulatory Reform: Repeal Sarbanes-Oxley regulations that push companies to seek capital outside of U.S. markets. Stop restricting community banks from fostering local economic growth.

Q: Do you still believe that the financial industry needs no regulation because markets are inherently stable and always act rationally?

A: The free market is the most stable and fair system. Government intervention and manipulation of interest rates are at the heart of the whole mess we are currently in. Government intervention causes unintended negative consequences. Artificially low interest rates help out special interest and elites, not the common person, all the while creating malinvestment and booms and busts in our economy.

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