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=McRocket McRocket

    Don’t leave us Ron Paul to these political morons in Washington…please.

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  • http://www.youtube.com/profile?user=VahagShabani Vahag Shabani

    incredible words coming from a true patriot!! Ron Paul!

    Our government’s legitimacy has been questionable for several decades now, having let many presidents who committed War crimes get away with such barbaric atrocities. It’s time we STOP paying the international bankers(federal reserve) through the corrupt tax system, and have BUSH AND OBAMA thrown in jail!

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  • http://www.youtube.com/profile?user=rovoojoy100 rovoojoy100

    Ron Paul 2016! / Bill Still 2016! Say NO to Gary Johnson!

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

    No, it’s the fact the the US historically had the most freedom.

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  • http://www.youtube.com/profile?user=rovoojoy100 rovoojoy100

    I am happy that the Fascist Governor of New Mexico Gary Johnson did NOT win the 5% votes at all! Good riddance for supporting a humanitarian war in Uganda and supported drone strikes in the middle east as well! Gary Johnson is like a used car salesman when he made an outrageous statement on the anniversary on September 11, 2011 by saying that these troops are here to keep us safe in the middle east and others as well!

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  • http://www.youtube.com/profile?user=MatthewCarpenter Matthew Carpenter

    The Revolution continues…
    “Sometimes our light goes out, but is blown again into instant flame by an encounter with another human being.”
    ― Albert Schweitzer

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  • http://arcsynergy.blogspot.com/ R WS

    This stupid, artificial construct called the fiscal cliff is not the precipice on which we are perched (remember Congress created it when they could not decide how to divide up the bounty of our tax dollars and the unlimited press of the US Treasury). Rather we are on the edge of determining whether the experiment of American democracy can succeed.

    When the common man must wake each morning worrying what the Federal Government will do to change his life forever, we are no longer free but simple wards of the state. When the federal government works to break our ties to family and community we are not free but simple wards of the state. When business places more emphasis on lobbying than on product and service innovation we no longer have capitalism but a corrupt economy driven by the state. In short we have totalitarianism.

    That anyone believes elections have provided a mandate for federal government action is a farce. Elections are about electing people, most of which were chosen as the lesser of only bad options. In earlier times when we did silly things and our country deviated off track, there was a common morality—the Bible and God—to which we could appeal and the themes there would eventually resonate. Those days are no longer. And while we need to find a new morale authority on which we can collectively appeal, it must not stop us from making some changes to our predicament. The course of our country still only changes because its citizens say “Enough!”

    Against such totalitarianism we have only one tool, ourselves. In many respects we have forgotten it in this country but we have been able to see its success around the world against corrupt, dictatorial regimes. We must stand up individually and shout “Enough” and march collectively to change the course of American history. In to the streets, in to the fields, in to the interstate highways, we must march. Peaceful but persistent, energized and enduring.

    The patriots and martyrs in this battle will be those individuals that forgo the streams of government money to make a stand on principle placing progeny above their own needs and wants. Having found their way to be successful “legally” in this corrupt system they instead will cut the cord with their only safety net being family, friends and community. They may be individuals, they may be companies heretofore bloated on cronyism. Let the statues be erected to them! Let them be our inspiration!

    The fight will be hard and it will be long but there are 3 immediate tangible goals:

    1. Congress must pass immediately and the President must sign into law a measure that leads to government spending at no more than 18% of GDP by 2018. 18% by 2018! And all future budgets should be stable below this level until clear plans are put in place to shrink the federal government even more. No one will starve at this level. It is at the level of what government spending was in 2000. And it is more than enough for the federal government at this point.
    2. Congress must pass immediately and the President must sign into law a measure making Congress—the US Senate and US House—a part-time legislature whose members live in their home districts with limited staff and that convenes 3 times throughout the year for not more than 2 weeks. Let the lobbyists come to mainstreet and bolster the local economies rather than simply the economy of Washington, DC. Most of the work done by this body has been harmful to the country not helpful. With too much money, too much staff and too much lobbying we get incomprehensible legislation like Dodd-Frank that pulls the wool over the eyes of the American people and lets “too big too fail” political patrons continue their thievery.
    3. Congress must pass immediately and the President must sign into law a measure that requires every federal agency to list on the home page of their web site the following information: Budget, number of employees, goals of the agency, performance goals and measurement to those goals. Accountability for the spending of our tax dollars must begin now and this is a small starting point.

    Of course much more work will need to be done to restore the balance in favor of the individual in this country. Much will be required to dissolve the federal government back to its core functions of national defense and maintaining a level playing field for interstate commerce. Much will be required to bolster our local governments and state governments. Much will be required to teach us personal responsibility and accountability.

    But in this winter of our discontent, these 3 goals are achievable and can lead to our American Spring in which the foundations of our American Democracy are restored and the hard work ahead begins. Peaceful but Persistent, Energized and Enduring.

    It starts by shouting ENOUGH! Now RISE!

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

    at this point taxes are just a formality

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  • http://www.youtube.com/profile?user=Spar10Leonidas Spar10Leonidas

    I hope he continues with these somehow after he leaves office.

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  • http://www.youtube.com/profile?user=drsmith963 drsmith963

    And all this printing money has to be paid back with Interest !

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

    The truth can be demoralizing. Luckily, liberty is the only possible route as lies wilt when faced with truth, and you cannot build a foundation out of lies. The only real question is how much suffering the American people will put themselves through before embracing the truth.

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  • http://www.youtube.com/profile?user=bandido776 bandido776

    Makes scent .

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  • http://www.youtube.com/profile?user=LanceFiasco Lance Fiasco

    Isn’t the excessive militarism the only thing perpetuating the bubble of American supremacy?

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

    Isn’t the excessive militarism the only thing perpetuating the bubble of American supremacy?

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  • BIG JOHN

    NONSENSE.The fiscal cliff is a mirage.Visit http://www.understandingmoney101.com and take back the MONEY POWER!

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

    Hard choices should be made by both Democrats and the GOP when it comes to spending cuts. The Democrats should be able to supports cuts on entitlement programs that is about 62% of the Federal Budget while the GOP should be able to support defense spending cuts that is about 18% of the Federal Budget.Both parties have to think of the country and not of their political party.

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  • http://www.youtube.com/profile?user=MarkBBalbuena Mark B Balbuena

    Hard choices should be made by both Democrats and the GOP when it comes to spending cuts. The Democrats should be able to supports cuts on entitlement programs that is about 62% of the Federal Budget while the GOP should be able to support defense spending cuts that is about 18% of the Federal Budget.Both parties have to think of the country and not of their political party.

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  • http://www.youtube.com/profile?user=JoeTroyner Joe Troyner

    It’s sad, almost sounds like he’s giving up by the end of this. Furthering the cause of liberty sometimes feels like an impossible goal..

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

    Ron Paul – Correct as usual. Democrats/Republicans – Lying as always.

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  • http://www.youtube.com/profile?user=32whatsup 32whatsup

    LINDSEY GRAHAM EXPOSED —————> watch?v=1vuLGoMjlZ0

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