On This, Ron Paul is Right

Rep. Ron Paul: Keynesianism Delivers a Decade of Zero

If you’re wondering about the title of this piece, it’s because a few days before the new year, when Congressman Ron Paul said that Al Qaeda terrorists are targeting the United States of America because we are “occupiers,” I titled another piece On This, Ron Paul is Wrong.

This time around, however, getting back to his wheelhouse–the economy and government run amok–Dr. Paul is once again right on the mark.  Read the entire thing for yourself.  In the meantime, here’s a snippet:

Policy makers would have been wise to heed the warnings of the Austrian economists, and must start listening to their teachings if they want solid progress in the future.  If not, the necessary correction is going to take a very long time.

The Austrian free-market economists use common sense principles.  You cannot spend your way out of a recession.  You cannot regulate the economy into oblivion and expect it to function.  You cannot tax people and businesses to the point of near slavery and expect them to keep producing.  You cannot create an abundance of money out of thin air without making all that paper worthless.  The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever.  You cannot live beyond your means indefinitely.  The economy must actually produce something others are willing to buy.   Government growth is the opposite of all these things.

Bureaucrats are loathe to face these unpleasant, but obvious realities.  It is much more appealing to wave their magic wand of regulation and public spending and divert blame elsewhere.  It is time to be honest about our problems.



  1. TJ says:

    On your previous article:

    Associate Professor Robert Pape of the University of Chicago, whose book on suicide terrorism, Dying to Win, is beginning to receive wide notice. Pape has found that the most common American perceptions about who the terrorists are and what motivates them are off by a wide margin. In his office is the world’s largest database of information about suicide terrorists.. Below are excerpts from a conversation with the man who knows more about suicide terrorists than any other American.

    The American Conservative: Your new book, Dying to Win, has a subtitle: The Logic of Suicide Terrorism. Can you just tell us generally on what the book is based, what kind of research went into it, and what your findings were?

    Robert Pape: Over the past two years, I have collected the first complete database of every suicide-terrorist attack around the world from 1980 to early 2004. This research is conducted not only in English but also in native-language sources—Arabic, Hebrew, Russian, and Tamil, and others—so that we can gather information not only from newspapers but also from products from the terrorist community. The terrorists are often quite proud of what they do in their local communities, and they produce albums and all kinds of other information that can be very helpful to understand suicide-terrorist attacks.

    This wealth of information creates a new picture about what is motivating suicide terrorism. Islamic fundamentalism is not as closely associated with suicide terrorism as many people think. The world leader in suicide terrorism is a group that you may not be familiar with: the Tamil Tigers in Sri Lanka. This is a Marxist group, a completely secular group that draws from the Hindu families of the Tamil regions of the country. They invented the famous suicide vest for their suicide assassination of Rajiv Ghandi in May 1991. The Palestinians got the idea of the suicide vest from the Tamil Tigers.

    TAC: So if Islamic fundamentalism is not necessarily a key variable behind these groups, what is?

    RP: The central fact is that overwhelmingly suicide-terrorist attacks are not driven by religion as much as they are by a clear strategic objective: to compel modern democracies to withdraw military forces from the territory that the terrorists view as their homeland. From Lebanon to Sri Lanka to Chechnya to Kashmir to the West Bank, every major suicide-terrorist campaign — OVER 95% OF ALL THE INCIDENTS — has had as its central objective to compel a democratic state to withdraw.

    Read the rest: http://www.amconmag.com/article/2005/jul/18/00017/

    Also: http://www.youtube.com/watch?v=5tEsWRXV_BM

  2. Sweet.

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