Ron Paul Answers Your Questions, Part Two


When we solicited your questions for Congressman Ron Paul shortly after the election, so many questions came in that we split Paul’s answers into two batches, the first of which was published last week.

Here is the second. Like the first batch, they are well-considered and interesting throughout; they will surely make many readers continue to wish fervently for a Paul presidency.

Thanks again to Rep. Paul for his time and insights, and to all of you for the good questions.

Q: What is the first thing the country should do about its monetary policy?

A: We should immediately audit the Federal Reserve. I am the ranking member of the Monetary Policy subcommittee in the U.S. Congress, yet I can get more information about the internal workings of the C.I.A. than I can about our central bank. This secrecy is fundamentally wrong, and I believe that people from all over the ideological political spectrum can agree on that.

Bloomberg News this month has gone to court compel the Fed to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for trillions of dollars of loans to banks. Expanding transparency is critical and could be done very quickly.

Q: What are your expectations for the next four years under an Obama administration? How might President Obama’s interventionist economic policies impact our lives?

A: Unfortunately, I don’t expect many good things. I do expect a lot of spending and even more debt. To really cut spending and balance our budget, we need to change foreign policy. Obama’s rhetoric on foreign policy is better than what we have gotten recently, but don’t expect any real change.

He may be more likely to wind things down in Iraq, but he’s still planning on keeping troops there for a least 16 more months. He wants money for Georgia and more troops in Afghanistan. He isn’t going to bring home our 30,000 troops from Korea or our 50,000 soldiers in Germany, and he won’t close any of our 700 foreign bases. At the same time, he is planning even bigger spending here at home. I hope I’m wrong, but if this spending and debt continue, the dollar is going to crash and we will see the middle class in this country take a grave hit.

Q: Do you deny global warming? Is Obama right to invest money in green technology? If you don’t deny it, and don’t think Obama is right, what is your solution?

A: I try to look at global warming the same way I look at all other serious issues: as objectively and open-minded as possible. There is clear evidence that the temperatures in some parts of the globe are rising, but temperatures are cooling in other parts. The average surface temperature had risen for several decades, but it fell back substantially in the past few years.

Clearly there is something afoot. The question is: Is the upward fluctuation in temperature man-made or part of a natural phenomenon. Geological records indicate that in the 12th century, Earth experienced a warming period during which Greenland was literally green and served as rich farmland for Nordic peoples. There was then a mini ice age, the polar ice caps grew, and the once-thriving population of Greenland was virtually wiped out.

It is clear that the earth experiences natural cycles in temperature. However, science shows that human activity probably does play a role in stimulating the current fluctuations.

The question is: how much? Rather than taking a “sky is falling” approach, I think there are common-sense steps we can take to cut emissions and preserve our environment. I am, after all, a conservative and seek to conserve not just American traditions and our Constitution, but our natural resources as well.

We should start by ending subsidies for oil companies. And we should never, ever go to war to protect our perceived oil interests. If oil were allowed to rise to its natural price, there would be tremendous market incentives to find alternate sources of energy. At the same time, I can’t support government “investment” in alternative sources either, for this is not investment at all.

Government cannot invest, it can only redistribute resources. Just look at the mess government created with ethanol. Congress decided that we needed more biofuels, and the best choice was ethanol from corn. So we subsidized corn farmers at the expense of others, and investment in other types of renewables was crowded out.

Now it turns out that corn ethanol is inefficient, and it actually takes more energy to produce the fuel than you get when you burn it. The most efficient ethanol may come from hemp, but hemp production is illegal and there has been little progress on hemp ethanol. And on top of that, corn is now going into our gas tanks instead of onto our tables or feeding our livestock or dairy cows; so food prices have been driven up. This is what happens when we allow government to make choices instead of the market; I hope we avoid those mistakes moving forward.

Q: Will you run for a leadership position in the House Republican caucus?

A: I have no plans to do so. I don’t cut deals and trade votes, which is exactly what a role like that requires.

Q: What are your thoughts on abolishing America’s income tax and switching over to a consumption tax such as the fair tax?

A: I want to abolish the income tax, but I don’t want to replace it with anything. About 45 percent of all federal revenue comes from the personal income tax. That means that about 55 percent — over half of all revenue — comes from other sources, like excise taxes, fees, and corporate taxes.

We could eliminate the income tax, replace it with nothing, and still fund the same level of big government we had in the late 1990’s. We don’t need to “replace” the income tax at all. I see a consumption tax as being a little better than the personal income tax, and I would vote for the Fair-Tax if it came up in the House of Representatives, but it is not my goal. We can do better.

Q: Did former Federal Reserve Chairman Greenspan really believe in free markets or did he fail to practice what he preached?

A: In my book The Revolution: A Manifesto I talk about an encounter I had with Greenspan when he was still Fed chairman. I had come across an old Objectivist newsletter Greenspan had written in the 1960’s supporting a real gold standard. It was great stuff!

At a gathering we both attended, I presented the booklet and asked if he still believed in its subject. He said he remembered the piece and still believed every word. I can’t profess to know what is in Mr. Greenspan’s heart, but his own words lead me to believe that he knew better than to pursue the policies he did.

Q: What policies should have been put into place in 1932 to stimulate the economy instead of the confiscation of monetary gold?

A: A trust in free markets and sound money would have made the 1930’s much less rough. Inflation caused the Depression, and the big government policies of Roosevelt exacerbated the problem. Murray Rothbard wrote a masterpiece on the cause of the 1929 crash and the Great Depression, and I highly recommend it to anyone with a deep interest who wants to read the authoritative view.

Q: Is there any part of the Republican Party reaching out to you? At what point do we dump the G.O.P. and leave it for dead?

A: The leadership in the House of Representatives and at the N.R.C.C. has been cordial, and I as a ranking subcommittee member am myself in leadership. Other national leadership bodies largely ignore me.

Where I get the most attention, though, is from rank-and-file members. Dozens of Republican congressmen from across the country asked me for money and support in November’s election. I was happy to support and contribute to several deserving individuals through my Liberty PAC.

As far as quitting or staying with the Republicans, everyone will have to make up his or her own mind. There can be value in choosing either path. I myself have no plans to leave the G.O.P.

Q: Why is it that, even in the midst of unimaginable deficits and an economic crisis, both our enormous military and our policy of drug prohibition remain sacrosanct? Do you think this reflects actual democratic opinion, or is it the work of powerful, but numerically small interest groups?

A: I think that it might reflect democratic opinion, but only because each issue has been demagogued.

Take military spending. I believe in a strong national defense. I want our troops here, defending our territory; I want nuclear submarines and an adequate arsenal of weapons that can repel any conceivable attack. What I don’t want to do is spend a trillion dollars a year maintaining an empire.

Today, our troops are in 130 countries. We have 700 foreign bases. We can spend far less and have a stronger national defense than we do right now. But if you question our foreign policy, you are branded as un-American. And we’re told that if we don’t “fight them over there, we’ll fight them over here.” That’s absurd.

On your second example, the federal war on drugs has proven costly and ineffective, while creating terrible violent crime. But if you question policy, you are accused of being pro-drug. That is preposterous. As a physician, father, and grandfather, I abhor drugs. I just know that there is a better way — through local laws, communities, churches, and families — to combat the very serious problem of drug abuse than a massive federal-government bureaucracy.

There are certainly some powerful special interests that benefit from our flawed foreign and drug policies. Now, do I think they openly conspire together to deceive and manipulate? No I don’t. The system is much too complicated to think a few puppet masters control the strings. But I do think we’d be a lot better off if we listened to our founding fathers and obeyed the Constitution. The founders would never have formed a D.E.A., and they would be horrified if they saw our troops spread thin around the globe.

Q: What do you think were your biggest mistakes in the primary race, and what would you now do differently?

A: I was always pessimistic and never thought we would get to where we did. My regret is that we couldn’t see how quickly things would grow and were not adequately prepared for the explosion in money and support when they came. There are dozens, hundreds of things we could have done better, but we all worked hard and did our best. And I know we built something that will only get stronger in the years to come.


Ron Paul, eloquent as always.


Jon P

This guy should run for President.


Ron Paul, what a great guy. I hope he runs for President in 2012.


Thank you, Ron Paul.

I'll definitely be picking up your book.


for all his talk of change, obama will perpetuate the same disasterous foreign and monetary policy. he won't even touch the drug the failure of the drug war with a 10 foot pole. that's change we can believe in. *cough*


I always find it interesting when people claim that the founders would do this or that. First off, they could barely agree with each other on the basics of foreign/monetary policy. Second, they lived 250 years ago. We just elected a guy who probably had distant relatives working on their plantations as slaves getting a 3/5 vote through their master in the electoral college.

I love the founders and absolutely appreciate what they did, because I am a beneficiary, but I do not want to base policy decisions on what someone says the would have thought about it. Use your own logic to justify your positions; don't speculate about long dead people's positions.


"a trust in free markets... would have made the 1930s much less rough"

Ron Paul, sarcastic as always.



Amazing. Simply Amazing. Some of the Most intelligent answers to hard questions I have ever heard. I am starting to believe this country really needs Ron Paul. To bad I did not find out soon enough to support his run for President.

Scott Fox

Americans needs to listen to this man with an open mind.

Michael P.

Ron Paul is the smartest, most honest politician that we have. The primary reason he is not President is because the media beat him down, even though the public thought he won the majority of the primary races.

Big Brother Government is getting bigger and badder and we are being enslaved very quickly these days. I want to have control over my life as long as I don't infringe on the basic, unalienable rights of others. I don't need the government to redistribute my hard earned wealth to programs I find morally reprehensible, practically unachievable, and fiscally insane.


I think it's useful to say what we think the founders would have done because we agree with their principles and would like to think of how those principles should be implemented. It's not because we're thankful and like them and trust their opinion.


Actually Thomas, Ron Paul bases a lot of his "founding father" comments on things said by the founding fathers themselves. By using their own writings, plus the writings of the Constitution, we can come away with a very good idea of what the founding fathers were thinking when they created this great country.

Also, while logic is very important in guiding someone on their decisions, ultimately we must follow the rule of law, which is the Constitution. If something in the Constitution doesn't make sense for this day and age, then amend the Constitution. That's why the founding fathers created that process. If our lawmakers just decide to go against the Constitution because their logic says they should, then we have no law at all.


Thomas Said:

"I always find it interesting when people claim that the founders would do this or that. First off, they could barely agree with each other on the basics of foreign/monetary policy. Second, they lived 250 years ago. We just elected a guy who probably had distant relatives working on their plantations as slaves getting a 3/5 vote through their master in the electoral college.

I love the founders and absolutely appreciate what they did, because I am a beneficiary, but I do not want to base policy decisions on what someone says the would have thought about it. Use your own logic to justify your positions; don't speculate about long dead people's positions."

I always find it amazing that people can take this position.
The Pythagorean theorem has been around for thousands of years, does this mean it is no longer applicable? That is crazy. People who discount things as not relevant to modern day because they are old need to wake up.



Ron Paul Rocks !!!

Fools are their rights are soon parted.

To assume benevolence is foolish.

j. s. crockett

One of the few sane voices in washington


I've read nearly everything Dr. Paul has said over the course of the last 16 months. I must say, this is perhaps the most concise and strongest argument of his beliefs I've seen. Very well said, very well backed up. Onward and upward, Ron Paul.


um Founders wouldn't have a DEA or put up with an income tax because they fought a war to institute a radical new government. They also wrote opinions that opposed the tyranny of a large bureaucratic central government over the sovereignty of the states and the people.

They also couldn't imagine cities, but I don't think that matters.

Christopher Hightower

We need part 3!


Thomas, the founding fathers were split into 2 camps, the Hamiltonians and the Jeffersonians. I just finished the Federalist Papers and I'm about to hit the anti-federalist papers / constitutional convention debates and you can't honestly say that we dont' know how they felt, we most certainly do.

Ron Paul and myself follow in the tradition of Thomas Paine, Thomas Jefferson, and Andrew Jackson. The pro-statist politicians follow in the tradition of Hamilton, Lincoln, and pretty much every other president since Woodrow Wilson.

Btw, Obama's dad is from Kenya, he had no relatives that were slaves in america, he is a true african american.


Ron Paul is right, and the more you learn about history and economics the more aware you will become of how urgent his message is.

He is a true conservative, and yet a classical liberal. He is a traditionalist in his support of limited, constitutional government, and yet a radical in demanding the rebirth of such a system.

He is a patriot, an intellectual, a statesman, and an inspiration to a entire generation of young people who are waking up by the thousands to the reality that our political system is an ugly monster veiled behind the mythology of "democracy". The men behind the curtain should be afraid, very afraid.