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.

  • glittrgurl

    Thank you Ron Paul!

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  • http://www.youtube.com/profile?user=RonPaulPrimary2012 RonPaulPrimary2012

    If we want Ron Paul to win, I cannot stress the importance of voting in the 2012 primaries! Only a fraction of voters show up, so this is HUGE! Thumbs up to raise awareness!

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  • Katherine Jones

    I consider myself very liberal and a Democrat. So let me tell you why I love Ron Paul. He makes sense. He is down-to-earth and honest. When he speaks you can tell he believes in what he is saying. I am a purist and what I hate more than anything is hypocrisy. There is not an ounce of that in this man. Many Republicans use scare tactics and go back on their ideology to get what they want accomplished and put money in their pockets. They trample on the constitution to achieve their ends. Of course Democrats do this too…they too reek of hypocrisy. If you want a capitalist society, stick with it and let that guide your ideology. If you want a socialist society, let that guide you. But don’t play both sides and confuse the American public about what kind of system we actually have. Ron Paul does not mince words…you know where he stands and that in all things he is guided by his belief in capitalism. I myself cannot say I have full faith in capitalism…which is what of course makes me a liberal Democrat, and admittedly a socialist. I too do not mince my words. However, I do realize that I live in a country that is capitalist, and if I don’t like it then I should probably leave rather than try to change it into something it is not. Right now our system is a hybrid…and how long can you really expect that to last. I do think that if/when this country converts to a pure capitalist economy, it will be hard. There will be workers exploited by corporations. There will be companies that overstep their bounds and pollute our environment, monopolize industries, etc. But the system will eventually work itself out over the years. People will vote with their dollars just like they are voting now for protecting the environment by buying hybrid cars…while our government gives socialist welfare to the rich oil and car companies to keep them in business when its obvious the American people don’t want them anymore. The real struggle in this country isn’t between the businesses and the workers. It’s between the extremely rich and the rest of us who give from our pockets to support them in their time of need. I say, if we don’t get hand outs, neither should they. And when the day comes that our capitalist system makes its transition back to its purest state, I hope Ron Paul is the one at the controls. Because he does not believe in capitalism for his gain or the gain of the rich. He believes in its ability to create a middle class that controls the economy with its dollars. Which is I must say, far far more idealistic than socialism. And the greatest leaders in history have all been idealists. Ron, I hope you get the nomination. Please help America open its eyes.

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  • http://www.youtube.com/profile?user=CatiEllen Cati Ellen

    Ron, I’m not sure the entire nation “GETS” it yet, but please, continue on! And while I’m hoping and praying (and voting) that you’re the next leader of our great and struggling country, if by some chance you’re not elected, please RUN again. Eventually, I think the truth will reach the majority and we can begin the process of rebuilding our crumbling nation.

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  • MyWordsofLove6

    Ron, I’m not sure the entire nation “GETS” it yet, but please, continue on! And while I’m hoping and praying (and voting) that you’re the next leader of our great and struggling country, if by some chance you’re not elected, please RUN again. Eventually, I think the truth will reach the majority and we can begin the process of rebuilding our crumbling nation.

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  • PeoplePower

    Cavemen fight with sticks & rocks, anyone heard of Revolution ? Ron Paul 2012

    Smart people find sollutions to problems, end the mindless bs & start exploring the universe a far better use of our tax dollars if you ask me.

    Go Ron Paul :-)

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  • http://www.youtube.com/profile?user=CatherineColeman Catherine Coleman

    AGREE!!

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  • http://www.youtube.com/profile?user=indyterp1959 indyterp1959

    AGREE!!

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  • http://www.youtube.com/profile?user=DanielB. Daniel B.

    WAR, what is it good for? Only the rich.

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  • DanB317

    WAR, what is it good for? Only the rich.

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  • sooboard

    I think Ron Paul needs to endorse with the venus project with jacue fresco. A fantastic mind. A futurist that has thought out every pin point of human needs and how to make it happen. without a goverment. without money. but a free and equal world. where people are free to live and not just work themselves into a hole call DEBt. that DOESNT EVEN EXIST. there is no such thing as money.. it even says so on the dollar.. legal tender.. RON PAUL 2012!!!!!!

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  • http://www.youtube.com/profile?user=Chickenwing1313 Chickenwing1313

    The people who will make it to space don’t breed like rabbits.

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  • PatHenry4RonPaul

    AMERICA has proven that any government that is BIG enough to give you all you want is BIG ENOUGH TO TAKE ALL YOU’VE GOT!

    We are one flush short of losing our Liberty forever! Google Ron Paul and watch our videos about him. He IS the Champion of the Constitution.

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  • campaign4liberty

    Ron Paul rocks!
    Down with NWO tyranny
    visit Liberty Poet
    website

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  • http://www.youtube.com/profile?user=CaseyCole Casey Cole

    I hate to tell you that we have way more than 100 million people today. The US alone is 300 million strong.

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  • http://www.youtube.com/profile?user=mcaseycole mcaseycole

    I hate to tell you that we have way more than 100 million people today. The US alone is 300 million strong.

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  • http://www.youtube.com/profile?user=CaseyCole Casey Cole

    I hate to tell you the bad news, but there are way more than 100 million people today. i think the number you meant needed 3 more zeros.

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  • http://www.youtube.com/profile?user=CaseyCole Casey Cole

    I hate to tell you the bad news, but there are way more than 100 million people today. i think the number you meant needed 3 more zeros.

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  • http://www.youtube.com/profile?user=mcaseycole mcaseycole

    I hate to tell you the bad news, but there are way more than 100 million people today. i think the number you meant needed 3 more zeros.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=mcaseycole mcaseycole

    I hate to tell you the bad news, but there are way more than 100 million people today. i think the number you meant needed 3 more zeros.

    Like or Dislike: Thumb up 0 Thumb down 0