Alright, no racism chasing today. Yep, today we’re not going to talk about the new batch of racist articles from Ron Paul’s newsletters that have surfaced. Nope, I’m not going to mention anything racist connected to Ron Paul that reads like this: “We don’t think a child of 13 should be held as responsible as a man of 23. That’s true for most people, but black males age 13 who have been raised on the streets and who have joined criminal gangs are as big, strong, tough, scary and culpable as any adult, and should be treated as such.” Nah, no direct quotes from his newsletters today. Or at least something that sounds like something he or another writer might say. Today, I’m over that old debate, and it’s time for something new.
Instead, we’re gonna discuss my favorite subject; that would be, just how he plans to create jobs, and fix this economy. Now, maybe you’re a supporter of Ron Paul — actually, I’m hoping that you are — and hopefully you can tell me just how he plans to fdo this. Yeah I’ve heard all the jibber jabber about ending the wars, allowing people to smoke weed in public, and also the whole ending the Fed thing. But somehow, I have a hard time understanding just how all of this is going to be the boost the economy needs. I mean, that’s important to me considering how Obama has failed…
Or at least what they would have us believe.
Ever wonder what Ron Paul’s America would look like? Then read the budget outline that Paul released as part of his 2012 presidential bid. It promises to cut $1 trillion during his first year in office, balance the budget by 2015, withdraw us from all foreign wars and eliminate five Cabinet-level agencies in the process. Economists across the political spectrum say the impact of such drastic government spending cuts would be majorly disruptive and harmful to the economy in the short term.
“At the scale he’s talking about, it’s unlikely you could have an immediate reduction in government without hurtling the economy into recession,” says Kevin Hassett, economic policy director for the American Enterprise Institute and chief economic adviser to John McCain’s 2000 presidential campaign. Hassett maintains that Paul’s plan for a limited government “would be really positive” in the long run. But he also believes that there would be better means to achieving that end. “I think that you could achieve his long-run objectives with less short-run disruptions,” he concludes.
By reducing the deficit from more than $1 trillion to $300 billion in just a year, Paul’s plan would upend the economy at a time when it’s already fragile, says Gus Faucher, director of macroeconomics for Moody’s Analytics. “That much deficit reduction in one year is going to be a huge drag on the economy . . . the reduction in spending is much greater than cuts in taxes,” says Faucher. “We’re seeing that impact in Europe right now, where severe fiscal austerity has caused big problems for the European economy.” While long-term deficit reduction is important, legislators need to make sure that the economy is strong before major cuts take effect, he adds, calling Paul’s plan “much more ambitious” than other Republican proposals to date. By comparison, the Congressional supercommittee is required to cut $1.5 trillion over a ten-year period—a feat Paul wants to accomplish in a little more than one year.
Liberal economists were even more dire in their assessments of the Paul budget. “This is almost having the economy fall off a cliff,” says Dean Baker, co-director of the Center for Economic and Policy Research, estimating that cutting $1 trillion in 2013 would prompt the unemployment rate to jump by 3 percentage points. Even if the $1 trillion in cuts were done over two or three years’ time, there would still be double-digit employment, Baker concludes. “This will make it extremely hard to balance the budget, since if the unemployment rate goes to 11 or 12 percent, then the budget picture will look much worse. If his response is still more cuts, then who knows how high he can get the unemployment rate.” (source)
I did however hear something about deregulation and loosening the reins on corporations though. However, I’m still not sure exactly how something like that would work. After all, wasn’t it deregulation that lead to this mess? Oh well, I know very little about economics; I mean having a degree in the subject only teaches you so much. But hey, maybe I can find someone smart enough, or smarter than me to tell me what he thinks. Something tells me that him being white and me being black, makes him more credible than I could or would ever be. So anyway, allow me to introduce Noam Chomsky and see what he has to say about his free market utopia. Hopefully one of you can tell me how he plans to “fix” things in the comments below; hell, I love new ideas and shit like that.