Today marks the first post for the Rational Interest on WordPress. We bid a fond adieu to Blogger. This blogs resurrection has been a long time coming, but now that we’re back, here’s to hoping we stay put for awhile.
The impetus for our return, or the straw that broke the camels back, can been seen here on the Democrats.org website. They have, in rather disgusting fashion, launched an attack on Congressman Ron Paul. Now, the fact that he is seen as a threat is certainly good news, but this misleading smear campaign cannot go unaddressed. So, what follows is a point by point refutation to the Democrats.
1) Ron Paul admitted that a low flat tax would be “punishing to the poor and middle class”—but supports it anyway. To be clear, Ron has consistently advocated for the abolition of the IRS and the repeal of the 16th Amendment. He threw out the 10% number as an off the cuff suggestion during his speech at CPAC 2011. However, even a 10% flax tax on on all working Americans would be a considerable savings over the current system. The blog sneakily suggests that the trade off for this flax tax would be no government services including not driving on public roads. This is clever, but intellectually dishonest. It is common knowledge roads are funded by a gasoline tax that acts as a user fee, and is the same for all Americans. Funny, this isn’t mentioned, since by their own logic, this flax tax on a gallon of gasoline would be exponentially more burdensome to poorer Americans. I guess that tidbit isn’t worth mentioning, nor should we talk about the rising costs of gasoline under the Obama Administration which also disproportionately hurts poorer Americans.
2) Ron Paul opposed the loan package that is successfully helping the auto industry recover. I wish there was a way to measure time lapses on blogs because it took awhile to quit laughing at this one. Where to start though? How about here, GM and Chrysler should have been allowed to fail and go through a private bankruptcy, not a politicized one. The good news is that according to the media, the American taxpayer is only losing out on about 14 billion dollars, a relatively small sum if you think about the hundreds of trillions of dollars in unfunded entitlement obligations or even the paltry one trillion and change we’ve spent on the War on Terror. As for the recovery of the auto industry, we can say that about three years later they are adding some jobs. However, check out this blog to see how the President skews the growth percentage by neglecting to mention the auto industry is growing from a much smaller base.
3) Ron Paul favored a return to the gold standard, an idea rejected by nearly every economist and fiscal expert. Without going into a book-length explanation, let’s just point out a few simple things. The lack of backing in our currency, be it gold or chickens, has eroded the value of the dollar since its was divested of its backing when Bretton-Woods collapsed. The absence of a backing has allowed a body like the Federal Reserve to create money out of thin air, thus contributing to the boom bust business cycle, and leading to price inflation, which, going back to point #1 disproportionately hurts the poor. Lets also mention that the credible economists had no idea the sky was falling in 2007 and 2008 until chaos was raining from heavens around them. Austrian school economists saw the impending collapse, tried to warn us, and were laughed at for their trouble. Coincidentally, these same economists also advocate sound money. The claim that sound money would shrink the economy is beyond absurd. Sound money is a barrier against inflation and the business cycle. It allows for sustained growth and quicker market corrections. Like I said, whole books have been written on this (apparently the Democrats have not read them).
4) Ron Paul suggested that Social Security was unconstitutional. That’s because it is. Any sane person reading the Constitution will not read about how the government can shake down current workers to fund present retirees. Also, notice how the Democrats stop there though. I’m sure they would like you to believe that mean ole Ron would end Social Security with a stroke of the pen on day 1 of his Presidency and all those poor seniors would be left to rot. Quite, the opposite is true. First, Ron has consistently introduced legislation to prevent Congress from spending the money in the “trust fund.” Secondly, Ron has repeatedly stated that when reforming government, no one has to be cut off or put out in the street. By massively cutting spending, Ron has suggested using tax dollars to tide over the Social Security system while letting younger workers opt out of the system. Retirees get their checks, and young workers can save for their own retirement. That’s what you call a win win.
5) Ron Paul said it could be a “positive thing” for the U.S. to default on its debt. Again we see some clever word play. Here is a nice quote from the same interview, “They default by giving you money back that doesn’t have as much value and that’s when prices go up. So that’s how they’re defaulting and since there’s inflation back and hurting us, there’s plenty of default going on right now.” Here again, Ron is concerned with preventing the government from inflating its way out of a debt crisis to the detriment and possible destruction of the lower and middle classes. And the Democrats think this is a bad thing? Let’s also point out that even though administration officials predict economic doomsday, Ron’s son, Senator Rand Paul pointed out on CNN that the US has more than enough in monthly revenue to make our interest payments without raising the debt ceiling. Yes, sacrifices must be made on the part of the government, not on the part of the American people.
Smear attacks such as this must be answered. I already responded via twitter with the hashtag #pathetic. We cannot let the left intimidate people with their falsehoods. Stay tuned as the Rational Interest goes on the offensive and points out some very disturbing and very true items the Obama Administration would rather you forgot about.