Ron Paul Answers Questions From Freakonomics Readers (Encore)

Q. Do you still believe that the financial industry needs no regulation because markets are inherently stable and always act rationally?

A. The free market is the most stable and fair system. Government intervention and manipulation of interest rates are at the heart of the whole mess we are currently in. Government intervention causes unintended negative consequences. Artificially low interest rates help out special interest and elites, not the common person, all the while creating malinvestment and booms and busts in our economy.

Q. Do you think people who relate more to the libertarian ideals of the Republican Party have a role to play in the Republican Party of the moment, and do you see a role for them in the coming (hopeful) rebuilding of the Republican Party?

A. I certainly hope so. The Republican Party has traditionally been the party of liberty and limited government. Republicans like Robert Taft, Barry Goldwater, and Ronald Reagan had very
libertarian qualities. If the G.O.P. gets back to its roots, they can appeal once again to liberty-minded Americans.

Q. Do you think the efforts of the libertarian-minded are better spent forming a third party or joining the actual Libertarian Party?

A. I never try to tell people exactly what to do, so that’s up to them. However, I think the fact that I have remained in the Republican Party shows where I stand.

Q. What do you think are the most important steps to seeing greater access for third-party candidates? Is the root of the bipartisan problem more national or local in scope?

A. Bipartisan dominance exists at all levels, but it’s even more pronounced at the national level. The biggest obstacle, I think, is inclusion in the national debates. To take part, you basically have to be a Democrat or a Republican. Unless that changes, a national third-party presidential candidate has little chance.

Q. What role should the United States play on the world scene?

A. I believe we should treat everyone the same. We should be friends with all willing parties, talk and trade with everyone we can, have diplomacy, and travel. At the same time, we should not subsidize foreign governments with money or weapons; this comes back to hurt us more times than not. We should not have separate and different policies for Europeans or Latin America, Israelis or Palestinians. We should set a good example here at home and stay out of the internal affairs of other countries.

Q. Did Bob Barr‘s failure to appear at your press conference endorsing the third-party vote cause a rift between you and him? Are you still friends with him?

A. That’s old news as far I’m concerned. I’m more interested in focusing on positive things Americans can accomplish moving forward.

Q. Do you believe that it is possible to make positive incremental changes to our monetary policy, entitlements, taxes, etc. within the system, or is it just a matter of waiting for failure and then coming in with a solution?

A. Yes, I do believe we can make successful changes. And I want to start making those changes now so that we can avoid a devastating collapse. But we need to start quickly before it’s too late. If we can cut spending and balance budgets, beginning with our overseas expenditures, we can do a lot to fix this mess. We also need monetary reform. I would begin with the incremental step of repealing legal-tender laws and legalizing the use of gold and silver to act as a currency alongside the dollar. That would help stabilize the dollar and strengthen our monetary system.

Q. How has the recent economic turmoil affected your views regarding deregulation?

A. It has reinforced my belief that massive central planning does not work, whether it be in for the economy, education, or energy policy.

Q. How do you propose we restore people’s faith in free-market ideas?

A. Well, we need to start by making sure politicians who talk about free markets practice what they preach. One of the reasons why people may have lost faith in freedom is that leaders used limited-government rhetoric while expanding the size and scope of government. Free markets got a black eye even though the actual policy was intervention and central planning. So again, leaders who profess to support markets need to act like that once in power. If we do that, we’ll prove that freedom really does work.

Q. How much money was left over from your campaign donations and what will be the next step with those funds?

A. We had about $4 million left, which we are using to launch the Campaign for Liberty. You can learn more about that group here.