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.


  • Ron Paul, your vote will be missed in congress.


  • Nov. 15th = Bill of Rights day.The United States of America is, after all, a “tax farm,” meaning the productivity of the working people is harvested by the government to be used for whatever nefarious schemes the corrupt bureaucrats have in mind: Endless wars, creating economic dependence through welfare, giving money to their crony insider crooks, and so on.

  • This fiscal cliff was devised while we weren’t controlling and using a sound monetary system. This is why the American founders instructed gold and silver be used, because it’s much harder to manipulate and people can’t make it out of thin air. Accept digital currency and you will suffer.

  • Ben Bernanke disliked this

  • Thank you Dr Paul. I fear your perspective will closely resemble the shake out later tis month. Educated voters will help spread the message of common sense, however, as you know they are in very short supply.

  • No wonder the GOP fought so hard against Dr Paul. The truth will never be tolerated in Washington.

  • No wonder the GOP fought so hard against Dr Paul. The truth will never be tolerated in Washington.

  • So true.

  • So true.

  • So true.

  • It would not matter, the whole system is corrupt.

  • It is sad that there are not more individuals within the federal government of the United States of America who have similar Constitutional outlooks like Dr. Paul.

  • QE∞

  • Politics was originally about which warlords had control of certain areas and the treaties they made to keep a balance of power. Democracy is a way to do the same thing, but with conversation instead of swords.

    I say we bring back the swords (and add some guns) and stick them right into the statist bastards that populate this country, otherwise known as “the public”

  • What’s this I have heard , that people in Congress has been talking about putting a wealth tax on people with money ?? , money that they have already paid taxes on because they have saved all their lives

  • This is all very true, but also very sad!

  • This is all very true, but also very sad!

  • Once LIBERTY is Lost it can NEVER be Restore

  • the people in foreign nation can be bought, so u have to do nothing. UN members want to fight,but they don`t know how. don`t let them make the first move while you are in the cage(USA). spread out America,spread out, this fight is global. foreigner are stupid, sell them the American dream(guns). Their know government is not a friend,so they get from gov to destroy gov. Enemies of God are his worshiper.the world suck the tit of lady liberty,when it stop their will all fight the America WAY(GUNS).