February 1, 2023

Debt Ceiling Hysteria and Hypocrisy: Ron Paul

The key to rebuilding a free society is for a vital mass of individuals to reject statism.

Recently the US government reached its thirty-one. 4 trillion dollars funding limit, better known as the “ debt ceiling. ” This led to a showdown among House Republicans, President Biden, and congressional Democrats.

House Conservatives are demanding that Chief executive Biden and Senate Democrats agree to include spending cuts with the debt ceiling increase. However , President Biden and the congressional Democrats are neglecting to negotiate with Conservatives. Rather, they and their particular allies in the mainstream media are lambasting Republicans for his or her “ irresponsibility” in trying to include spending cuts having an increase in the debt ceiling.

America’s national financial debt is approximately 122 percent of the gross domestic item (GDP), meaning the government owes more than the population produces. Curiosity payments on the national financial debt follow in size behind various other federal budget big investing areas of Social Security, Medicare health insurance, and “ defense. ” While interest payments are created, the national debt keeps growing each year.

Authorities spending steals resources through the private sector. Thus, there is certainly less capital available for private businesses to grow and create new jobs. Government spending also contributes to price inflation as well as the declining value of the dollar as the Federal Reserve monetizes the debt. One reason the Fed cannot allow interest rates to rise anywhere near exactly where they would be in a free marketplace is that it would cause the federal government’s interest obligations to rise to unsustainable amounts. Considering these facts, it must be clear that the irresponsible ones are those who think the government should increase its borrowing limit without cutting spending.

This is not to say that establishment Republicans like House Speaker Kevin McCarthy are heroes of fiscal restraint. Rather, McCarthy, like most Conservatives, objected neither to improved spending nor to debt ceiling suspensions when Donald Trump was president. Additional, any Republican spending program will likely continue increasing spending on the military-industrial complex whilst refusing to address the pending cost problems with Social Security and Medicare.

While some Republicans are willing to discuss reforms to Social Security and Medicare, most are nevertheless too afraid of the “ senior lobby” to support any changes in the programs — even if such changes will not damage current beneficiaries. Consequently, it is unlikely Congress will move meaningful entitlement reform — at least until it is forced to do so because the Medicare and Social Security Trust Money run out of money. Insolvency is certainly projected for the Medicare Trust Fund in five yrs and for the Social Safety Trust Fund in 12 years. Of course , Congress may be able to avoid making tough choices since the Federal Reserve will likely cut government benefits, together with workers’ wages and the value of savings, via the inflation tax.

Following earlier reports that the House His party leadership was open to supporting cuts in military spending, there arose a foreseeable cry from Republican hawks that any reduction in spending would leave the US as well as allies vulnerable to our opponents. The limited cuts considered, though, would still keep America with a military spending budget exceeding the combined military budgets of the next nine biggest spending countries. Right after some pressure from the military-industrial complex’s loyalists and propagandists, most Republicans retreated through supporting defense cuts.

A problem with many fiscal conservatives is they accept the premise of the welfare-warfare statists. Thus, they are unable to create consistent principled arguments supporting spending cuts and opposition spending increases. The key to restoring a free society is for a critical mass of individuals to reject statism.

This article first appeared with RonPaulInstitute. org .

Leave a Reply

Your email address will not be published. Required fields are marked *