(The following contains language that may well be considered offensive. This post is an attempt to make clear what was written in past Ron Paul newsletters. More information can be found here)
Envy and government theft (welfarism) have replaced the work ethic. Conspiring to government for special privilege is easier than striving for achievement in the free market. Government influence (paying for a good lobbyist to secure a contract or special legislation) can produce a far greater return than entrepreneurial effort. The effective and productive find their taxes rising and the ineffective and weak get bailed out. This leads to dependence and partnership with government, thus destroying the concept of an unhampered market economy.
This system can work for awhile. The wealthier a nation and the stronger the currency, the longer it can last. But now our days are numbered. The capital markets are weak, long term investments with fixed interest rates are not available, and government intrusion is pervasive. Productivity will have its ups and downs on the short run, but in the long term it will be downhill. Without a sense of personal responsibility and individual effort the nation literally consumed itself, creating clashes between the producers and non-producers. Many truly self-reliant individuals opt to drop out of the official economy and into the “underground” economy.
8. Big Government Serves the Power Seekers, Not Freedom
All kinds of people seek power for many different reasons. Some are purely violent and delight in exerting power over others; some are intellectually satisfying their own egos; others are benevolent, sincerely seeking to help others by taking care of them; and there are some seeking economic power for reasons of pure greed. Accepting the ideology of big government permits them all to try to gain control of the strings of power. If governments were small, all influence and wealth would be achieved in the marketplace by persuasion and efficiency in satisfying consumers.
Politically, government power systems come in different flavors – socialism, fascism, communism, and interventionism. All these systems require central planning and intervention. Decisions are made for political, not economic, reasons. Collusion between government, industrialists and the bankers permits great masses of wealth to be accumulated at the expense of the middle class. Bankers and corporations in the West can easily do business with the dictators of the Soviet bloc. Both have something to offer each other in a way of subsidizing each other’s power bases and enhancing their wealth and economic well-being. Only by rejecting the ideas that permit big government will we stop this illicit power from gravitating to a few privileged individuals. “Power tends to corrupt and absolute power corrupts absolutely, said Lord Action.
As big government grows in size it becomes abusive. I.R.S. tactics become more gestapo-like every year. Recently, in an “austerity” move, the Administration put on another 5,000 new I.R.S. agents. Daily I get complaints of the unreasonable and violent nature of the I.R.S. and their confiscation of property. Loss of privacy in the computer age is a potentially serious threat to all of us. Conscription and enforcement of draft registration is accomplished by crosschecking all the records available in government files. Recently a bill was introduced to exempt I.R.S. agents and other government bureaucrats from liability for abusing the power they hold. A recent story tells of how the I.R.S., in capturing a tax rebel, attacked his residence with a U.S. Army tank and finally burned him to death without a serious attempt at capturing him. Government officials shot to death a man who was determined to provide education in his home and not send his children to public school.
Intervention destroys the market and pushes people into the underground economy. Regulation of life-saving drugs by the FDA prompts people to go abroad for medication. Drug laws are such that prices of illicit drugs are higher that [sic] they would be otherwise, causing crime rates to soar and underworld mobs to flourish. Even vitamins are regulated by government.
10. Big Government Causes Massive International Debt and War
Big government is financed by taxes, borrowing, and creation of new money, When the Federal Reserve creates new money, prices and interest rates later rise due to depreciation of the currency. This inflation leads to a breakdown of the economy, causing the business cycle and more intervention in the market: controls on prices and interest rates, credit allocations and more subsidies to the people hurt by the inflation. This produces a vicious cycle, difficult if not impossible to interrupt before a serious political crisis occurs. Not only does inflation interfere with domestic trade, it eventually destroys international trade and creates huge international debts that can never be paid – as is currently true of the tune [sic] of nearly one trillion dollars. This prompts moves for protectionism, economic isolationism, nationalism, militarism, and adventurism. The free flow of people and goods, the greatest guard against war, is diminished or stopped. Today, the French can no longer leave their country with more than $250 per individual.
A scan of this newsletter can be found at @RP_Newsletter, “August 1983: Ron Paul Freedom Report”.
On August 19th, 2014 the link to this report was changed from a defunct one at the New Republic to scans at the blog @RP_Newsletter.