[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

Earth Changes Summary - June 2025: Extreme Weather, Planetary Upheaval,

China’s Tofu-Dreg High-Speed Rail Station Ceiling Suddenly Floods, Steel Bars Snap

Russia Moves to Nationalize Country's Third Largest Gold Mining Firm

Britain must prepare for civil war | David Betz

The New MAGA Turf War Over National Intelligence

Happy fourth of july

The Empire Has Accidentally Caused The Rebirth Of Real Counterculture In The West

Workers install 'Alligator Alcatraz' sign for Florida immigration detention center

The Biggest Financial Collapse in China’s History Is Here, More Terrifying Than Evergrande!

Lightning

Cash Jordan NYC Courthouse EMPTIED... ICE Deports 'Entire Building

Trump Sparks Domestic Labor Renaissance: Native-Born Workers Surge To Record High As Foreign-Born Plunge

Mister Roberts (1965)

WE BROKE HIM!! [Early weekend BS/nonsense thread]

I'm going to send DOGE after Elon." -Trump

This is the America I grew up in. We need to bring it back

MD State Employee may get Arrested by Sheriff for reporting an Illegal Alien to ICE

RFK Jr: DTaP vaccine was found to have link to Autism

FBI Agents found that the Chinese manufactured fake driver’s licenses and shipped them to the U.S. to help Biden...

Love & Real Estate: China’s new romance scam

Huge Democrat shift against Israel stuns CNN

McCarthy Was Right. They Lied About Everything.

How Romans Built Domes

My 7 day suspension on X was lifted today.

They Just Revealed EVERYTHING... [Project 2029]

Trump ACCUSED Of MASS EXECUTING Illegals By DUMPING Them In The Ocean

The Siege (1998)

Trump Admin To BAN Pride Rainbow Crosswalks, DoT Orders ALL Distractions REMOVED

Elon Musk Backing Thomas Massie Against Trump-AIPAC Challenger

Skateboarding Dog


Ron Paul
See other Ron Paul Articles

Title: Debt is the Real Pandemic
Source: [None]
URL Source: http://www.ronpaulinstitute.org/arc ... /14/debt-is-the-real-pandemic/
Published: Sep 14, 2020
Author: Ron Paul
Post Date: 2020-09-14 18:32:51 by BTP Holdings
Keywords: None
Views: 87

Debt is the Real Pandemic

written by Ron Paul Monday September 14, 2020

According to the Congressional Budget Office’s (CBO) latest “Update on the Budget Outlook,” this year’s $3.3 trillion federal deficit is not just three times larger than last year: it is the largest federal deficit in history. The CBO update also predicts that the federal debt will equal 104 percent of the gross domestic product (GDP) next year and will reach 108 percent of GDP by 2030.

The CBO update also shows that the Social Security, Medicare, and highway trust funds will all be bankrupt by 2031. This will put pressure on Congress to bail out the trust funds thus further increasing the debt.

This year’s spike in federal spending was caused by the multi- trillion dollar coronavirus relief/economic stimulus bills passed by Congress and signed by the president. However, spending had already increased by $937 billion from the time President Trump was sworn in until the lockdown.

Federal spending is unlikely to be reduced no matter who wins the presidential election. Former Vice President Joe Biden has proposed increasing spending on everything from Obamacare to militarism to “green” cronyism. Yet some progressives are attacking Biden for being to “stingy” in his spending proposals. Even more distressing is how few progressives are critical of Biden’s support for increasing the military budget.

With some notable exceptions, such as his infrastructure plan, President Trump is not proposing any massive new spending programs. However, he Is not promising to stop increasing, much less cut, federal spending.

Most Republicans have abandoned their Obama-era opposition to deficit spending to support President Trump’s spending increases. This repeats a pattern where Republicans oppose deficit spending under a Democrat president but decide that “deficits don’t matter” when a Republican is sitting in the Oval Office. If Biden wins in November, Republicans will likely once again discover that deficits do matter, especially if Democrats also gain control of the Senate.

Government spending forcibly takes resources from the private sector, where they are used to produce goods and services desired by consumers, and puts them in the hands of politicians and bureaucrats. This distorts the market, reducing efficiency and lowering the people’s standard of living. This, combined with pressure to monetize the federal debt, causes the Federal Reserve to pump money into the economy leading to a boom-bust business cycle.

Unless Congress begins reducing spending, the coming economic crisis will be even worse. The logical place to start cutting spending is ending all unnecessary overseas commitments, corporate welfare, and shuttling down all unconstitutional federal agencies — starting with the Department of Education.

The savings from these cuts can be used to start paying down debt and providing for those truly dependent on the current system while we transition away from the welfare state. Private charities, including ones run by religious organizations, are better than government bureaucracies at providing effective and compassionate aid to those in need.

Most politicians will not vote to curtail the welfare-warfare state unless their constituents demand it. The people will not demand an end to big government as long as so many believe that the government has a moral responsibility to, and is capable of, providing them with economic and personal security.

Therefore, our priority must be on getting people to reject the entitlement mentality and embrace the philosophy of liberty and personal responsibility. This will enable us to build a movement capable of convincing politicians to stop voting for more spending and debt and instead vote to respect the Constitutional limitations on government in all areas.


Poster Comment:

Federal Reserve Notes are evidence of debt and obligations of the United States. Our system of money is based on debt, and debt has been the problem since 1933 when FDR abrogated the gold standard.

Post Comment   Private Reply   Ignore Thread  



[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]