Ron Paul: Government is Too Big to Succeed

Government is Too Big to Succeed

by Ron Paul

Last week, the Financial Crisis Inquiry Commission kicked off their first round of hearings on the causes of the economic meltdown on Wall Street. The commission is being compared to the the Pecora Commission launched in 1932 to investigate the causes of the Great Depression. The Pecora commission is beloved by those who believe the solution to every problem is more laws because it was used to justify a number of new laws, including Glass-Steagall. Of course, none of those laws addressed the real causes of the Great Depression. It was the introduction of unsound monetary policy and central economic planning pursued by the Federal Reserve that really threw everything off balance. The Fed was founded in 1913 to stabilize the economy and prevent a recurrence of the short-lived Panic of 1907, but instead it promptly produced the Great Depression which lasted more than 15 years.

The Pecora Commission was stacked with big government sympathizers who blamed the free market and the gold standard without question, and without any consideration of government interference in the economy. This panel is no different. Never will they contemplate how government steered us into this crisis, and what perverse incentives can be removed or repealed so that the market will function more smoothly. Never will they discuss how investment should come from savings, not debt. Never will it occur to them that fiat money, artificially low interest rates and the whole Federal Reserve System might be unwise and unstable, not to mention unconstitutional. The answer will always be more government regulation and oversight. It is predictable that this government panel will eventually come to the firm conclusion that government needs to be bigger, and that the market is just too free.

How sad is this when exactly the opposite is true?

It is big government that gives out tax breaks to engineer behavior, often creating large pockets of malinvestments. It is government that created the FDIC and the Fed as lender of last resort which all encourages moral hazard. It is big government that gives bureaucrats the ability to bail out cronies with taxpayer dollars while screaming that the economic sky is falling if they don’t. It is big government that every year adds new layers to the already labyrinthine regulatory code that smaller businesses can’t keep up with while simultaneously preventing new businesses from emerging. It is big government that misdirects economic productivity into bankrupt businesses that they consider to be too big to fail.

If this panel was serious about understanding the root of the problem, as they claim to be, they would have people testify who understand the crisis and saw it coming. To my knowledge, none of them have received a phone call. The problem is those people would say too many things the government panel would find inconvenient. They would point fingers at too many of the state’s anointed. They would recommend getting government out of the way of the free market and getting back to simply protecting contracts and punishing fraud. But the biggest fraud is perpetrated by the Federal Reserve. No one on this panel takes that viewpoint seriously. Instead, they will be asking people who are still scratching their heads at how they could have missed the housing bubble what new regulations they can put in place to prevent future bubbles. Thus, I don’t expect much real wisdom to come out of this current investigation.


  • Merle

    What if we don’t have any Gold in Fort Knox?
    We have to ask this question.
    Has anyone seen the Gold?

    If we and the world find out we don’t have any Gold then what happens, after our dollar
    is worthless?

    • Forest

      What if you even saw the gold with your own eyes? Would you still believe it was real? Or would you believe it was gold-plated tungsten? Or would you just follow Birthers down their path of lunacy – inventing reason after reason to justify the conclusion you have already reached which is simply masquarading as questions you will never accept the answers to.

      Personally, I think you should just assume we don’t have any gold in Fort Knox, you are asking a completely valid question, we are all living in fantasy world that has no roots in faith or reality, and you should ‘grab your pitchfork’ go ‘riot in the streets’ and ‘wake up the sheeple’ with your incredibly profound conspiracy theories.

    • fred the protectionist

      Stop spamming this same message in every topic, Merle.

  • Ross

    If only there was a way to get more people to listen…

  • It really amazes me that more people don’t get it.I find when I do my own research, many people don’t care, and are not paying attention. These are the sheep, that are being led into the wolf’s trap. It’s sad that people don’t care. By the time they realize something isn’t right, it will be too late for all of us, and I think these corrupt scumbags know this. They like em dumb! God bless you Ron Paul! You are my hero, and I will vote for you again, and again, and again, and again, and again… I know you want to take it one year at a time, and i can appreciate that, but please run in 2012. You have more support now than before, and will have even more by then. Your message is resonating!!!!!

    • Ross

      I agree.

  • Not only Government is too large to succeed! Too much regulation is also to large to succeed! Well said Dr. Paul! & congratulations to Scott Brown for winning the senate seat in yesterday’s election to replace deceased Ted Kennedy!

    • jones

      o I think regulation is necessary, particularly in a diverse society, because the proper regulation is what brings the diversity into a common good.
      What I find useless and likely damaging to the common good, or common interest, is the abundance of regulations that seem to serve no purpose at all. They seem to be distractions or dividers from that common core naturally beneficial to the people.
      I don’t know if these useless regulations are there on purpose, or they simply are the result of policy makers creating them because they have to show results and innovations.
      We all find examples of regulations and ‘laws’ that are neither applied or applied wrong: when the wrong people get punished, when the wrong people get harassed because, when that regulation gets to twisted to fit a result.
      In part I explain the situations as the need to justify their jobs because the pressures to show and assert themselves as useful.
      I believe that is unnecessary in some situations, their jobs may be better off if they just ensure the regulation is applied for real in the best interest of society.

      • jones

        excuse the typos, I edit them, yet new ones reappear, an example of a useless/damaging innovation or regulation that is causing illiteracy to the new and older generations, educated or not. Likewise, in oral communication.

        I find that obvious, consistent, intolerable, yet my hands are tied to do anything about that issue. The surprise is that it does not happen to every one. So I group that into the category of innovative harassement.

        I am tired of people regulating to destroy existing knowledge, it’s systematic because it is automated.

        So I just place that sabotage I encounter under a big umbrella. My question is how targeted it is? what groups?

        That kind of ‘regulation’ should be banded as weapon of mass destruction of education.

        FY, whoever is doing that!!!

      • longshotlouie

        Unneccessary, and/or wrongly applied, regulations are not an accident.

        • jones

          So, are you a real person? then you are safe under the current situation, you are correct, you have no typos, your spell check does not make any mistake, your message comes accross clean and crisp. How come?

          Have you ever come accross people like me? real humans that write weird and unpleasant (totally the opposite of reality), and explain and describe consistently the same hurdles to get a simple but important message whose sole orientation is constructive and based on real life situations?

          If not, then be aware, is happening, it may explain the failure in getting a ‘straight talk’ from any person across another one.

          Something is up. I don’t like it, somebody may have messed up really bad.

          Well, I hope the leadership takes notice and do something, if they acctually can.

  • NoCap&Trade

    Keep up the GREAT and BRAVE work, Dr. Paul. We love you. And watch this video about Ted Kennedy’s lost seat – Hooray … it is HILARIOUS in it’s RAW TRUTH –

  • Anderson Skeete

    Dr.Paul I am writing to let you know that you have fans as far away as Barbados. Once an individual is capable of critical thinking and can connect the dots, the plot becomes quite obvious. The Fed is unconstitutional, and is the main tool used by these internationalists to keep the people enslaved with their Babylonian style of money creation/taxes. However, I see the American people are slowly starting to come to their senses and have realized that politicians, especially the President, serve their corporate masters first and then their constituents. Please keep up your fight for truth, justice and Peace.