Ron Paul: Government Spending Will Push Us Over the Fiscal Cliff

by Ron Paul

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste.

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar.  Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.”  This is nonsense.

This rhetoric is based on the belief that government spending sustains the economy, when in fact the opposite is true.  Every dollar the government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans.  Politicians who claim to support the free market and the lower and middle-class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon’s budget.  This is unfortunate because this is the easiest, most obvious place to start getting spending under control.  The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for government spending being as high as it is, nor for taxes being as high as they are.  Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent.  Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances.  Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up.  But it is not cuts to spending or reduced government “revenue” that will send us over the cliff, it is continued government spending that will.  Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow government, and Democrats caving on defense cuts in exchange for tax increases.  This is how the government has always grown: both sides will sacrifice their pro-liberty, small government stances in certain areas in order to grow the government where they prefer.

Liberty always loses in the 11th hour.

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

    agenda 21 IS THE UNITED NATION BIGGEST PROGRAM. IT THE FRONT RUNNER. sustainable development is to sustaining liberty by developing a attack strategist to bankrupt COOPERATION, and GUN WARS will ALL GANGS. time for peace , break the system into peaces by DOING NOTHING, and stand by your GUNs. the ppl need to relocate them self to other nation, so nothing can be done. 😉

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  • http://www.youtube.com/profile?user=pennywise6192001 pennywise6192001

    Prepare for QE3

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

    bit late avoiding the cliff when your body is decomposing at the base of it.

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

    THE CONVENTION OF RIGHT TO PERSON WITH DISABILITY = UN TREATY.

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

    The congress vote on a UN treaty last Tuesday. it take away the rights from parent. and abortion is good to go.

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  • http://www.youtube.com/profile?user=JamesPaulShelburn James Paul Shelburn

    Every dollar printed creates debt, the devalued dollar is worth about 2 cents compared to when the FED was erroneously passed. Almost every dollar of citizens taxes go to the privately owned central bank, discovered by former president Ronald Reagan. The budget will never be balanced because the fractured banking system. This is a constitutional issue i hope we can put some light on.

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

    self destruction are the name of the players, do nothing. and the empire will crumble like 9/11.

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  • http://www.youtube.com/profile?user=wetzell101 wetzell101

    Its time for action.. but what do we do??
    Rush the whitehouse/congress???

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

    Stay healthy RP. We need you for many years to come.

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  • http://www.youtube.com/profile?user=Connatiah1 Connatiah1

    It is time that the Republican party be split into two new parties, before total extinction. The war mongering, extreme right wing, self proclaimed moral half to be called the “Wedgies”, and the more moderate nethanderhal Republicans to be called the “Aholes.”

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

    I’m sick and tired of my fellow Americas, voting on people that do not have their interest in mind, like Obama and all politicians…

    And not voting for Americans that have America’s interest in heart, Like Ron Paul and Peter Schiff.

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

    Finishing a Kinetic Typography animation using Mr Paul’s last one and a half minute part of his fair-well to congress speech, hopefully it gets around and becomes popular.

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  • http://www.youtube.com/profile?user=beauvais681 beauvais681

    so true great update. taxes should only be raised on the profiteers and owners of the federal reserve, top banks, and top corporations. not the general public.

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  • http://www.youtube.com/profile?user=aclee05 aclee05

    Ron Paul you’re my hero!

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  • http://www.youtube.com/profile?user=sksman71 sksman71

    Thank you Congressman Ron Paul.Keep preaching liberty

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  • http://www.youtube.com/profile?user=Razlo5000 Razlo5000

    *On January 1, 2014, the new employer mandate kicks in which will mean companies with 50 or more full time employees will have to provide government healthcare or else pay a fine. (adds $1.79/hour to the cost of full time employees.)
    *Denny’s now charges a 5% Obamacare surcharge & cut back on employee hours.

    If you’re an American employer, & need to make cutbacks in man-hours or lay off employees,

    START WITH THE ONES YOU KNOW FOR SURE VOTED FOR OBAMA!

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

    Truth right here. Ron why do people not do their research?

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  • http://www.youtube.com/profile?user=LukeGibson Luke Gibson

    Truer words have not yet been spoken in Washington. Keep it up, Mr. Paul.

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  • http://www.youtube.com/profile?user=crinoid1919 crinoid1919

    in the end they will raise taxes and cut spending…. the best of both worlds.

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  • http://www.youtube.com/profile?user=cedoman1 cedoman1

    RON PAUL 4 LIFE!!!

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