Ron Paul explains why he favors cutting government spending rather than raising more revenue.
Neil Cavuto: He’s saying, “With their votes, the American people determined their governing will now be a shared responsibility between parties. New laws will only pass with support from Democrats and Republicans.” Again, echoing this bipartisan theme, he says, “At stake right now is not who wins the next election, after all we just had an election. At stake is whether the new jobs and industries take root in this country or somewhere else”. He goes on to say, “Two years after the worst recession most of us have ever known, the stock market has been roaring back, corporate profits are up, the economy is growing again.” Keeping with that theme … I put my glasses on and realize, oh, you’re here with me. Good to see you.
The trend is the economy’s friend, the market’s friend, maybe even this president’s friend. Joining us right now is Texas Congressman Ron Paul, on whether he agrees with that sentiment. What do you think, Congressman?
Ron Paul: Well, let’s hope we’re on the right track, and the tone has changed a bit and people are talking about spending. But they don’t say much about non-discretionary spending, they don’t talk about our massive military operations overseas. So I don’t think policies will change significantly and I think people are realizing how serious it is and they should do something. But you know, you mentioned the economy is picking up. Maybe a little bit. People will say, you know, the supply side theory is, “Oh, we don’t have to raise taxes.” Supply side theory says, “Oh, this will generate more revenues and it will solve all our problems”. Remember at one time they said we don’t have to worry about deficits, all we had to do is cut the rates and we’ll generate more revenues. I don’t like generating more revenues, I want to have a net cut in the size and scope of government. I want to cut spending, and I don’t see that coming in the near term.
Neil Cavuto: Well, obviously your son kind of feels the same way, and maybe it’s in his DNA. But we’re getting word tonight as you probably know as well, that your son, Senator Rand Paul of Kentucky, is looking at $500 billion in cuts in the first year, right away, rather than staggering them out over many years. That would make his the most substantial I’ve seen from any public figure. Right up front, half a trillion dollars. The Democrats quickly countered, Congressman, that would be a shock to the system and would do more harm than good. What do you say?
Ron Paul: I would say it’s not enough. But he’s certainly bold and I think he’s taking a bold step, and that is great. But what’s that going to do to a deficit that last year the national debt went up $1.7 trillion?
Neil Cavuto: That’s right.
Ron Paul: It’s really not very much. And what if interest rates prop up a little bit? You cut a little bit and interest rates go up, that’s going to add a huge sum. It’s out of control, you know, and that’s where our problem is. And we’ve taken upon ourselves too much. We’ve become the policeman of the world, we take care of our people from cradle to grave, we have a monetary system that is out of control and we don’t have any control of the interest rates and people own our debt. Foreigners own our debt, we’re indebted to the world. It’s a big, big problem. So I think we need to have a revolutionary idea about the role of government: what should the scope of government be. And we will have that argument, not tonight and not next week, and not next year. We’ll have it because this is an unsustainable system and then we’ll have to sit down and talk about what is the proper role of government in a free society.
Neil Cavuto: Well put, Congressman, it’s always good having you. Thank you very much.
Ron Paul: Thank you, Neil.