Mach Report This Comment Date: October 21, 2010 02:15AM
Here, at least go to 11:50 and listen from there.... or just listen to the
whole thing.
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www.youtube.com]
avelli Report This Comment Date: October 22, 2010 01:59AM
Will common sense ever prevail?
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www.youtube.com]
Mach Report This Comment Date: October 22, 2010 03:47AM
[
www.lewrockwell.com]
The Perils of Economic Ignorance
by Ron Paul
Last week in this column I wrote of a perfect economic storm facing America,
caused by a federal government that spends, borrows, and prints so much money
that our dollars are eroding in value at an alarming rate. Year after year our
federal government spends beyond its revenues, prints new money to pay its
debts, and borrows hundreds of billions abroad in the form of Treasury
obligations that someday must be paid. With too many dollars and debt
instruments in circulation, and no political will in Washington to cut spending,
we've created a monster. Our perceived prosperity depends on keeping the great
debt and credit engine pumping, but the only way to attract new lenders to fuel
the engine is higher interest rates. At some point one of two things must
happen: either the party in Washington ends, or the supremacy of the dollar as
the world's reserve currency ends. It's a sobering thought, but a choice must be
made.
How did this happen? How did we get to such a state? The answer is found in the
nature of politics itself. The truth is that many politicians and voters
essentially believe in a free lunch. They believe in a free lunch because they
don't understand basic economics, and therefore assume government can spend us
into prosperity. This is the fallacy that pervades American politics today.
I believe one of the greatest threats facing this nation is the willful economic
ignorance of the political class. Many of our elected officials at every level
have no understanding of economics whatsoever, yet they wield tremendous power
over our economy through taxes, regulations, and countless other costs
associated with government. They spend your money with little or no thought
given to the economic consequences of their actions. It is indeed a tribute to
the American entrepreneurial spirit that we have enjoyed such prosperity over
the decades; clearly it is in spite of government policies rather than because
of them.
I certainly have seen firsthand a great deal of economic ignorance in Congress
over the years. Few members pay any attention whatsoever to the Federal Reserve
Bank, despite the tremendous impact Fed policy has on their constituents. Even
many members of the banking and finance committees have little or no knowledge
of monetary policy. Perhaps this is why so many in Congress seem to believe we
can all become rich by printing new dollars, or that we can make 2 + 2 = 5 by
taking money from some people and giving it to others.
We cannot suspend the laws of economics or the principles of human action any
more than we can suspend the laws of physics. Yet this is precisely what
Congress attempts to do time and time again, no matter how many times history
proves them wrong or economists easily demonstrate the harms caused by a certain
policy.
I strongly recommend that every American acquire some basic knowledge of
economics, monetary policy, and the intersection of politics with the economy.
No formal classroom is required; a desire to read and learn will suffice. There
are countless important books to consider, but the following are an excellent
starting point: The Law by Frédéric Bastiat; Economics in One Lesson by Henry
Hazlitt; What has Government Done to our Money? by Murray Rothbard; The Road to
Serfdom by Friedrich Hayek; and Economics for Real People by Gene Callahan.
If you simply read and comprehend these relatively short texts, you will know
far more than most educated people about economics and government. You certainly
will develop a far greater understanding of how supposedly benevolent government
policies destroy prosperity. If you care about the future of this country, arm
yourself with knowledge and fight back against economic ignorance. We disregard
economics and history at our own peril.
March 27, 2006
Dr. Ron Paul is a Republican member of Congress from Texas.
[
www.saigontre.com]
Edited 1 time(s). Last edit at 22/10/2010 03:48AM by Mach.