Restore America Now: End the Fed, Stop the Wars, Abolish the Income Tax!

Date: 06/13/2011

The Keys to Economic Growth

by Ron Paul

Recent economic data show that U.S. job growth in May was negligible, while the official unemployment figure– at least the figure the Labor Department admits to– rose to 9.1%. The real unemployment figure, however, as compiled by economist John Williams, may well be higher than 20%. It is clear the U.S. economy is in terrible shape, and that no amount of government spending or Federal Reserve quantitative easing can reduce unemployment, increase real productivity, or address our debt fiasco.U.S. jobs and productivity are dependent on the accumulation of private capital to finance existing businesses or fund new entrepreneurial activity. Private capital– whether accumulated by profitable U.S. businesses, invested by private equity and venture capital firms, or attracted from abroad– is the key to economic growth and new jobs. But we cannot create jobs if we demonize profits, punish risk-taking capitalists, and stay hostile to foreign investment.

The steps to encouraging capital investment and creating new jobs in America are simple, though not easy:

  • First and foremost, we must create a sound U.S. currency backed by gold or some other commodity respected by the market. No nation in history with a rapidly depreciating currency has attracted private capital. Unless and until we prohibit the Treasury and Federal Reserve from essentially creating money and credit from thin air, we cannot restore the U.S. economy.
  • Second, we must create a favorable regulatory environment for U.S. business. This cannot be stressed enough. When businesses don’t know what’s coming next from the EPA, when Obamacare spikes their healthcare costs, or when the Dodd-Frank bill adds almost unknowable regulatory compliance burdens, businesses simply will not expand and hire. It is time to start shrinking the federal register.
  • Third, we must stop spending trillions of dollars overseas on foreign wars. There is no point in debating a foreign policy we cannot afford. It no longer matters what neoconservatives want. Our interventionist foreign policy is financed on credit, and our credit limit has been reached. Our economy would be infinitely better off if those trillions of dollars had never been removed from the private economy or added to our debt.
  • Finally, we must completely revamp the U.S. tax system and move to a territorial model that does not tax foreign source income. U.S. corporations are sitting on more than a trillion dollars in foreign earnings that cannot be repatriated to the U.S. because of taxes. We need to stop taxing unpatriated funds to bring those earnings home. Better yet, we need to abolish the income tax altogether.

The U.S. economy is in deep trouble. Congress needs to act immediately to restore the rule of law and create an environment that rewards, rather than punishes, the critical components of any healthy economy: capital accumulation and investment.

In this struggling economy it is essential for politicians to take a step back and think about what government has been doing to business in this country. In less than 200 years, the free market, property rights, and respect for the rule of law took this nation from a rough frontier to a global economic superpower. Today, however, our nation and our economy clearly are headed in the wrong direction.

Of course, America has never enjoyed absolute free-market capitalism: creeping government intrusion and special interest political patronage have existed and increased since our founding. But America historically has permitted free markets to operate with less government interference than other nations, while showing greater respect for property rights and the rule of law. Less government, respect for private property, and a relatively stable legal environment allowed America to become the wealthiest nation on earth.

By contrast, the poorest nations almost always demonstrate hostility for free markets, private property, and the rule of law. Capital formation, entrepreneurship, credit, and wealth accumulation are uniformly discouraged in poor countries. Private contracts are not reliably enforced, and private property is not secure in the hands of owners. The predictable result is widespread poverty and misery.


  • Our actual best answer is expanding outwards into space. However we are still two centuries away from it becoming a reality. 100,000,000 people cannot share one planet.

  • lordofthemanor25

    Our actual best answer is expanding outwards into space. However we are still two centuries away from it becoming a reality. 100,000,000 people cannot share one planet.

    • Mark B

      Dude, you better recheck your math or add some zeros. There are more than three times that number of people in the USA!

  • urdisturbing

    I think we should learn as much as we can about human nature and then create a system that is most compatible with it. I don’t think it’s the job of policy makers to create a system that works if everybody does everything right, they must create a system that works no matter what people do. I think people are greedy and they can’t be counted on to do the generous thing. Poor people need public schools and hospitals.

  • OhFive350z

    Ron Paul is the best answer to the mess we are in however i dont think he is capable of generating enough popularity in order to win

  • robert

    IF RON PAUL does not become president
    fractional reserve BANKING FRAUD

    three bankers met and said LETS CONTROL THE PEOPLE

    jeffersons quote is coming true and the people are waking up SLAVES to the new world order
    can go to hell

  • Jim

    The real issue we are dealing with is control. Control over YOUR life.

    Do you want to be in control of your life, or do you want corporations and rich bankers telling you how, when, where, why to live your life?

    I have always thought, that given the choice, people would always choose freedom. Apparently I am wrong. I see people post witless statements against freedom. I see media scorn anyone who actually believes in freedom.

    I am reminded of a scene in the movie ‘Band of Brothers.” One of the characters named Webber, yells out at passing Nazi’s who have surrendered, something along the lines of, “What were you thinking? You worthless servile scum.”

    Is that what we want someone in the future yelling at us, because we failed to recognize the path we were on?

    Think about it.

  • temka892004

    ron paul. captain america! captain freedom. captain EARTH. the whole world needs him! Without him ASAP we’d all be F*CKED! this isn’t a joke. people need to get others involved in RON PAUL’S campaign and do what you can to get him noticed and post it on FACEBOOK or TWITTER. Get his name out there for those who are unable to notice. Ron Paul for 2012 and 2016.

  • 59dominic

    Thank you for your weekly updates Mr. President Paul!!!

  • kossvet1

    This man is the only honest one in the bunch. I pray the American people get up off the couch and vote for this great American.

  • robert

    now they want war with syria give me a break
    when will americans listen to RON PAUL www infowars com
    bush skull and bones boys did 911 thats why NORAD WAS TOLD TO STAND DOWN building seven was never hit by a plane FIRST TIME IN WORLD HISTORY that a steel framed building came down at free fall speed on its OWN FOOT PRINT after a few small fires
    china had a HUGE HIGHRISE that burned for a week and never fell down
    funny how bush said dont listen to conspiracy THEORIES
    funny do any americans Know what the word CONSPIRACY all by itself means TO CONSPIRE??????????????????
    bush is a liar obama is a new world ORDER PUPPET
    made famous by liars like OPRAH will you people ever be people that read and study for yourself NEW WORLD ORDER IS A LIE one world government and one world curreny under the WTO is what they want
    they want to control everything climate gate was a LIE wake up
    www henrymakow com www ohcanadamovie com www youmespp com WORLD WIDE
    www 911weknow com

  • Mark B

    Ron Paul is on the lunatic fringe of American politics and, thankfully, doesn’t stand a snow-ball’s chance in hell of being elected president.

    The man — trained as a doctor and elected as an iconoclastic loose cannon — doesn’t know the first thing about economics. Abolishing the federal income tax and the Federal Reserve System would destroy this country.

  • MissEVitale

    unless we get rid of the bilderburg criminals even ron paul voted in will be a big job if the election isn’t fixed to stop him…. this is criminal what is going on in america… the usa dissolve giving no power to the congress… there is much more than most americans understand or will take the time to learn and see the truth… I voted for ron paul last election and I will again though

  • frankfritter35

    RP2012! Any other choice would be self destructive!

  • RustyKalashnikov

    ron paul: soldier of peace and common sense. he WILL restore america when he wins, so long as they dont rig the votes to be against him

  • YoSuperman40

    Presidential debate on 9pm on CNN.

  • bradq

    I like Ron Paul. I admire Ron Paul.

  • BeastlyShihtzu

    If Ron Paul does not get the votes we are in for some very dark days

  • freemanx2x

    The enemy we face is much bigger that you can ever imagined. Even if Ron Paul will get all the votes i wouldn’t be surprized if “they” would alter the numbers… In the worst case scenario i can see “them” provoking social unrest and urban terrorism and other distracting tactics . (In ’90’s in Hungary for example, the same “organisation” used to blow up politicians in their cars right in the center city…)…What you will do to help Dr. Ron Paul to become president ?

  • ryanshaunkelly

    the red/blue party is in pure chaos
    they can’t find anyone that will beat Dr Ron
    so they keep rolling out new puppets every few days

  • NicosMind

    You would think capital accumulation was a given but no! Socialists and keynesians both demonise it. Imagine you were wanting to save money for a factory however any time you saved the slightest amount someone else went out there to spend it thinking they were doing you a favour. That capital will never be there and that factory will never be built. The economy suffers whenever there isnt the capital to build productive projects

    • Mark B

      The charge that Keynesians are opposed to the formation of capitalism is baseless, but typical of the hysterical kinds of statements that Ron Paul and the Libertarians are famous for inpsiring.