Small government libertarian Ron Paul had some harsh words about the government’s proposed bailout plans. Paul expressed disdain for Republican presidential nominee John McCain’s suggestion to create a new government entity to deal with the crisis, calling it “just more of the same, more government, more programs, more spending, more regulations, trying to prop up a system that has been undermined.”
Talking on CNN’s “Late Edition” today he told Wolf Blitzer “we don’t have the money (for the bailout). But that doesn’t mean you have to do nothing. I mean, we could reform the system. We could return to sound money. We could balance our budget. We could change our foreign policy. We could take care of our people at home. We could lower taxes.”
“The worst thing that we can do is perpetuate the bad policies that gave us this trouble in the first place, and that is that we no longer, over the last quite a few decades, believed in free-market capitalism. Capital is supposed to come from savings. We’re supposed to work hard and save.
“As a matter of fact, the Chinese work hard, right now, and they save, and they’re buying up the world. But we borrow and spend and consume, and now it’s caught up to us and it’s undermining our whole system. … So this $700 billion is not going to do it.”
Paul also argued that …
” … And you can’t solve the problem of inflation, which is the creation of money and credit out of thin air, by more money and credit out of thin air, and not changing policy. We have to change basic policy.
“Yes, it would be painful, but it wouldn’t last so long. What they’re doing now, they’re propping up a failed system so the agony lasts longer. They’re doing exactly what we did in the Depression.”
“What the government is doing now — and this new program is trying to prop up prices. You want the price structure to adjust. You want the price of houses to go down. You don’t want to fix the price of housing. You can’t price-fix. We’ve had too much of that.
“We need a market economy. We need to believe in ourselves. We need to believe and understand how the economy got us — how the government got us into this mess. And believe me, it wouldn’t be that tough. It would be a bad year. But, this way, it’s going to be a bad decade.”