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Guest Editorial

Spending Freeze Not Likely

Saturday, February 06, 2010 - by  Dr. Ron Paul


Dr. Ron Paul

Last week politicians in Washington made a few things clear about how they really feel about the state of the union. First, they are beginning to hear the growing discontent with the size and scope of government and the broken promises that keep piling up. Certain events in Massachusetts recently made that statement loud, clear and unavoidable. In the face of those events, the powers that be made the determination that some populist rhetoric was in order, and the idea of a spending freeze in Washington was proposed, albeit with several caveats. These caveats to the proposed spending freeze ensure that we are not at any real risk of actually doing anything about spending.

First of all is timing. It wouldn't go into effect until 2011, which allows plenty of time to increase spending levels quite a bit before they are frozen. If the administration really understood and cared about our spending problems they would not freeze spending a year from now, but cut spending immediately and significantly. But, spending cuts almost never happen in Washington, and they are not likely now or a year from now - if the politicians have anything to say about it.

The second caveat is the huge areas of the budget that are shielded from this freeze. The entire State Department budget is exempt, as are all entitlements, all military industrial spending and almost all foreign aid. Fully 7/8 of federal spending is excluded from this freeze, and some areas to be frozen were actually set to decrease, which means a freeze actually guarantees a higher level of spending.

Especially insulting is the idea that in spite of our own fiscal problems at home, taxpayer dollars will continue to be sent overseas in the form of foreign aid where it often does more harm than good. When need is demonstrated to Americans and they can afford it, they can be counted on for a tremendous outpouring of private, voluntary charity to worthy aid organizations, as we recently saw in Haiti. By contrast, government-to-government aid is taken from the poor by force and too often enriches the corrupt. It is counterproductive and wasteful. But the idea of eliminating, freezing, or reducing foreign aid is not up for serious debate any time soon.

The third caveat is what is included in the freeze that would make it politically impossible to pass Congress, for example air traffic controllers salaries, education, farm subsidies and national parks.

I do not necessarily want a cut in spending in this country - I just want to change who does the spending. The spending should be done by the people who earn the money, if they choose, and on what they choose, without any government interference. That is what makes the economy work. Politicians should stick to the very limited roles given them by the constitution instead of allocating such a sizeable portion of our capital and intervening through regulations and tax policy. But because politicians have disregarded the constitution, and the people have no idea what rule they will break next, there is already a very real spending freeze underway in this economy, by the people. If government would stick only to what it was authorized to do, and leave the rest to the people, most of these problems would resolve themselves.

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Posted by Clive Edwards on 2/6/2010 6:54:22 AM

Dr. Ron Paul is a personal hero of mine for his consistent stand in favor of the Constitution. It may be that the only way to reach his goal is to de-confederate thereby closing the purse on the federal government, re-confederating on a constitutional basis. That is what the Western Block Party is working towards in Canada.

Posted by Bill on 2/6/2010 3:22:48 PM

I like Ron Paul and believe if his policies had been implemented in the 1950s we may not have been in this mess. I recall the demise of Hoover and his reluctance for government intervention in the Great Depression. He believed the people would voluntarily help each other and altruism would prevail. The results were " Hoovervilles", shanty towns built near garbage dumps and other undesirable locations.

FDR actually implemented many ideas first proposed by Hoover's advisers but which Hoover did not act on. I support Ron 100 on the lack of spending freeze on the military. Our military expenditures are bankrupting the government - and yet this seems to be sacred ground.

When you ask generals and the CIA for their needs, are they not going to present a very biased wish list. If I ask a bricklayer what material I should use to build my house will he suggest wood siding? I agree with Ron's ideals, I would like to see his transition plan from this corporatocracy to a true free market and how he would handle unemployment and social security.

Posted by Phil on 2/8/2010 5:52:09 AM

Actually, wasn't Hoover an interventionist, just as FDR was, just not to the same extent?Hoover summarized his own program in the following quote:

"We might have done nothing. That would have been utter ruin. Instead we met the situation with proposals to private business and to Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put it into action.... No government in Washington has hitherto considered that it held so broad a responsibility for leadership in such times.... For the first time in the history of depression, dividends, profits, and the cost of living, have been reduced before wages have suffered.... They were maintained until the cost of living had decreased and the profits had practically vanished. They are now the highest real wages in the world.Creating new jobs and giving to the whole system a new breath of life; nothing has ever been devised in our history which has done more for ... "the common run of men and women."

Some of the reactionary economists urged that we should allow the liquidation to take its course until we had found bottom.... We determined that we would not follow the advice of the bitter-end liquidationists and see the whole body of debtors of the United States brought to bankruptcy and the savings of our people brought to destruction.

"http://www.lewrockwell.com/rothbard/rothbard184.html

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