"Economic Freedom or Socialist Intervention?" - by: Ron Paul

[ThoughtCriminal]

Economic Freedom or Socialist Intervention?

The freedom to fail is an essential part of freedom. Government- provided financial security necessitates relinquishing the very essence of freedom. Last week, the big 3 American automakers came back to Capitol Hill with their hands out to the government. Congress spent this past week debating how much money to give them and what strings should be attached. Though the bailout plan for the auto industry has suffered what I would call a temporary setback in the Senate, other avenues for public funding are being explored through the Federal Reserve and the Treasury Department. I am afraid the American auto industry will soon learn that having billions rain down from Washington will not be the blessing one might expect.

The government, after it subsidizes an industry, tends to become a very demanding benefactor. Politicians may not have any real idea about how to build a car, run a bank, educate a child, heal the sick or build a road, but they are quite adept at using carrots and sticks to manipulate and threaten those who do. Most of the federal control over education, roads, healthcare, and now banking and soon auto manufacturing, is done through money, mandates and conditions. The bailout proposal we were considering would force automobile manufacturers to submit their business plans for the approval of a new federal "car czar." This bureaucrat would have the authority to approve the automakers’ restructuring plan, monitor implementation of the plan, and even stop certain transactions he determines are inconsistent with the companies’ long-term viability.

One could argue that if billions of taxpayer dollars are going to flow into a failing industry, then representatives of those taxpayers have "bought" a say in how that industry is run – which is precisely why bailouts are such a bad idea for both the industry and the taxpayers. The federal government has neither the competence nor the Constitutional authority to tell private companies, such as automakers, how to run their businesses. I would have thought that failed experiments with central planning and government control of business that caused so much harm in the last century would have taught my colleagues the folly of making businesses obey politicians and bureaucrats instead of heeding the wishes of consumers, employees, and stockholders. But the auto industry is in danger of learning for themselves one of the oldest lessons in politics: he who pays the fiddler calls the tune.

It is not the job of government to sustain business. The government should get out of the way, and instead examine excessive regulations, tax policy and red tape that have been hostile to manufacturing in this country. We should get back on a sustainable economic course in this country, or we are doomed to collapse, as the Soviets did, under the crushing burden of big government and a strangled economy that can no longer pay for it.

[steve762]

One thing I regret from a year ago is that I didn't realize exactly how screwed up things were with our economy. If I knew then what I know now I would've been a vocal Ron Paul supporter. I wasn't far-off but felt like he was too much an isolationist.

Hindsight's 20/20, and Rep. Ron Paul is an American hero.

[pacodelahoya]

The freedom to fail is an essential part of freedom.

Just that first sentence needs to be tattooed backwards on every friggin commie liberal hippie forehead in the US.

[phillyd2]

Obviously we have gone too far towards the Socialist model but there has to be a common sense middle ground. I do wonder if anybody here really really wants total free markets. For example, in a truly free market there would be no safety inspection of airplanes and the free market would determine which is the safest. If Airline A crashes once a week and Airline B does not the free market will send customer to Airline B while Airline A goes out of business. But then Airline B may start maximizing profits and cut safety corners and start crashing as well which would benefit Airline C and so on. Sounds good on paper but in reality means lots of smokey holes in the ground.

Just wondering.......

[ThoughtCriminal]

Obviously we have gone too far towards the Socialist model but there has to be a common sense middle ground. I do wonder if anybody here really really wants total free markets. For example, in a truly free market there would be no safety inspection of airplanes and the free market would determine which is the safest. If Airline A crashes once a week and Airline B does not the free market will send customer to Airline B while Airline A goes out of business. But then Airline B may start maximizing profits and cut safety corners and start crashing as well which would benefit Airline C and so on. Sounds good on paper but in reality means lots of smokey holes in the ground.

Just wondering.......

Can you point to the section of the constitution that enumerates the power for the oversight of air travel?

If it is that necessary, than there should be no problem getting an amendment passed. Our rulers don't have to obey the law, but us peasants do......

[billamj]

Can you point to the section of the constitution that enumerates the power for the oversight of air travel?

If it is that necessary, than there should be no problem getting an amendment passed. Our rulers don't have to obey the law, but us peasants do......

Um, can I guess? That would be the interstate commerce clause. You know, the one that gives congress the right to legislate commerce between the several states and other nations. To wit: Article 1, Section 8, highlighted

Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

To provide for the punishment of counterfeiting the securities and current coin of the United States;

To establish post offices and post roads;

To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries;

To constitute tribunals inferior to the Supreme Court;

To define and punish piracies and felonies committed on the high seas, and offenses against the law of nations;

To declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water;

To raise and support armies, but no appropriation of money to that use shall be for a longer term than two years;

To provide and maintain a navy;

To make rules for the government and regulation of the land and naval forces;

To provide for calling forth the militia to execute the laws of the union, suppress insurrections and repel invasions;

To provide for organizing, arming, and disciplining, the militia, and for governing such part of them as may be employed in the service of the United States, reserving to the states respectively, the appointment of the officers, and the authority of training the militia according to the discipline prescribed by Congress;

To exercise exclusive legislation in all cases whatsoever, over such District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States, and to exercise like authority over all places purchased by the consent of the legislature of the state in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful buildings;--And

To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.

[phillyd2]

Its not really the issue but I guess "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes" is what is used (and many times misused) for this sort of power.

The Paulettes may also be interested in:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

But I was more asking in a general sense of what type of system some of you guys are really wanting and what that would mean.

ETA - I see that the great and wise Mr. Bill has beaten me to it.

[ThoughtCriminal]

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes

To "regulate" in the founding era meant "to make regular", not to regulate in the sense of the word that is used now. This was to prevent states from charging enormous taxes and tariffs from good produced in other states.

[billamj]

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes

To "regulate" in the founding era meant "to make regular", not to regulate in the sense of the word that is used now. This was to prevent states from charging enormous taxes and tariffs from good produced in other states.

According to the readings that I have done the most appropriate definition of the word as used in the Constitution would be:

to exercise a directing or restraining influence over; guide: the motives governing a decision.

This being the case, I would have to say that your definition is off a little.

[ThoughtCriminal]

Its not really the issue but I guess "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes" is what is used (and many times misused) for this sort of power.

The Paulettes may also be interested in:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

But I was more asking in a general sense of what type of system some of you guys are really wanting and what that would mean.

ETA - I see that the great and wise Mr. Bill has beaten me to it.

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

(Wouldn't this preclude the states from having any allegiance to the federal gov't since gold and silver coin are no longer the "legal tender"?)