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Ron Paul's Charity: Libertarian Views Fail Reality Test

First Posted: 09/27/2011 4:48 pm Updated: 11/27/2011 4:12 am

In this series of articles, HuffPost is taking a close look at the charitable giving of Republican presidential candidates. How much and to whom did they give? How does their giving compare with their fellow Americans? And what impact did they ultimately have?

WASHINGTON -- Rep. Ron Paul (R-Texas) looked slightly out of place at a black tie dinner last December, as he accepted a Lifetime Achievement Award at the National Charity Awards. Dressed in a bolo tuxedo and accompanied by his wife, Carol, the presidential hopeful barely mentioned charity in his speech to the group, choosing to focus on two favorite topics: the unconstitutionality of high taxes and the abuses of the Federal Reserve Bank. Nearing the end, he summed up his view of charity in one deceptively simple sentence. "We should take care of ourselves and our families, and for those who need special help, a generous society [is the answer]," he said.

This "generous society" forms a pillar of Paul's libertarian vision of a nation with radically limited government. If Paul were to get his way, he would abolish Medicare, Medicaid and Social Security, and in their place, he believes private, donor-funded charities would step in to voluntarily assume the responsibilities of America's three biggest social safety nets -- programs that cost the federal government $440 billion in 2008.

More than perhaps any other presidential candidate, Paul believes that private philanthropy is capable of providing assistance on par with what the federal government provides today, Of course, certain conditions need to be met before private donors will step into these roles. Chief among them, Paul said in 2003 on the House floor, is that the federal government must free the American people "from the excessive tax burden, so they can devote more of their resources to charity."

In Paul's opinion, high taxes and inflation deprive Americans of money that they would otherwise give to charity. Programs like Medicare, he says, brought about the demise of "voluntary charities and organizations, such as friendly societies, that devoted themselves to helping those in need" during the early 20th century. These civic groups, he claims, "flourished in the days before the welfare state turned charity into a government function."

But according to Dr. Leslie Lenkowsky of Indiana University's Center on Philanthropy, data on decades of American philanthropy squarely contradicts Paul's opinion. "All things being equal, Americans today give more than twice as much of our GDP to charity than they did in 1930," he told The Huffington Post. "And Mr. Paul's notion that private donors could ever wholly replace government social welfare programs? Well, it's a fantasy."

Lenkowsky served in three presidential administrations, most recently that of George W. Bush, where he was CEO of the Corporation for National and Community Service. "No one, not even Herbert Hoover, ever seriously advocated for the idea that government has no role to play in providing social services," he added.

Like much of his economic libertarianism, Paul's theory on charity relies on proving a negative, namely that if only the government would cease to aid the poor, then private philanthropy could finally achieve its full potential -- something that's never been proven in the real world. A spokesman for Paul declined to respond to questions from HuffPost.

Theory Vs. Practice

Despite the gaps in Paul's theories, on an individual scale, the lawmaker appears to practice what he preaches. An obstetrician by trade, Paul frequently reminds voters that he refused to accept government-issued Medicare or Medicaid payments from patients during his time in private practice. Instead, he chose to offer services at reduced prices for those struggling to pay -- implying that in a society free of subsidized healthcare, more doctors would do as he did.

Paul also opposes funding the Federal Emergency Management Agency, arguing that citizens were better off before in disasters before the agency was created. Last month, he inexplicably cited 1900 as a model year for disaster relief. That year, more than 6,000 people died as a result of hurricanes in his own state of Texas.

Like the candidate himself, Paul's intensely loyal supporters occasionally band together to offer an example of how individuals can improve their communities. This June, a group called "Charity for Liberty" organized two days of community-based charity activities via Facebook. The group wrote, "Liberty loving supporters of Ron Paul are organizing to spend a weekend doing charitable outreach -- not to promote Ron Paul or his candidacy, but to show that individuals through voluntary action don't have to wait for political solutions, but that they are the solution."

The site also encouraged volunteers to "Go wearing a Ron Paul t-shirt or hat, but don't bring up the election unless asked and focus on being the change us liberty lovers are advocating for."

The group's organizer, Alex Merced, declined to respond to an email about the events, but 29 people had signed up for the Facebook page.

Limits of Generosity

But there are limits to how far Paul's concept of citizen responsibility can be applied to the real world. A striking example is the case of Paul's own longtime fundraising guru, Kent Snyder, who died of pneumonia this past July. The case of pneumonia resulted from a pre-existing condition that excluded him from access to private health insurance. As a result, Snyder, 49, died owing more than $400,000 in unpaid hospital bills.

During a Sept. 13 Republican debate, Paul said that private charities and religious groups should provide medical care for the uninsured -- a strategy which been labeled unrealistic by both liberals and conservatives .

Does Paul really think that private charities could have taken care of the costs of treating a patient like Snyder? "Not today," Paul told CNN after the debate. The reason, Paul believes, is that "government has run up the cost" of healthcare so much that it is artificially unaffordable. The elimination of Medicare and Medicaid, he claims, would drive down prices.

Fundamentally, Paul believes healthcare is a consumer good, which should be available to those who can afford to buy it. This view differs sharply from President Obama's belief that healthcare is the right of every American citizen.

A campaign spokesman said Paul made a personal donation to help with Snyder's bills, part of a grand total of approximately $32,000 raised by Snyder's friends and colleagues to help offset the costs of his care. Snyder's mother will be responsible for the remainder -- approximately $368,000.

If friends can't make up the costs of medical care, Paul said at the Sept. 13 debate that "our churches" used to assist with medical care for the uninsured. HuffPost blogger Dr. Bob Crittenden asked the General Secretary James Winkler of the Society of the United Methodist Church whether his 33,000 congregations could fill the gap for their uninsured members' healthcare. Winkler answered with a resounding no. "A great many of these churches struggle simply to pay the health care premiums of the pastor," he said. "It is inconceivable that local churches in the United States could possibly cover the medical expenses of the uninsured. They do not do so now and could not do so if the Medicare program were terminated."

As Dr. Lenkowsky put it, "Paul's theory misreads the nature of American philanthropy. And the facts just don't back it up."

For Part 1 on Texas Gov. Rick Perry's charitable giving, click here. For Part 2 on Mitt Romney, click here. For Part 3 on Michele Bachmann, click here. For Part 4 on Herman Cain, click here. For Part 4 on Jon Huntsman, click here.

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A review of Texas Governor Rick Perry's tax records from the mid-1990s through 2009 show he has contributed very little to charity. When he has, Perry has given mainly to charities connected to his family, and even then, his donations have sometimes been slight.


CLICK HERE for the full story on Rick Perry.
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01:14 PM on 11/16/2011
As a non american, I can vouch that americans are probably the most generous people in the world. It ties together with there sense of independence from interference, free a natural desire to give. When we give up the fear of letting go of a system of dependency, we realise that freedom promotes generosity. It would be good if the media got it right occasionally, and this is said by someone who works in the media.
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
11:10 PM on 09/30/2011
tomveil calls Obama "Bush III" But he's wrong. Obama is very different.

1. Obama has gotten most of the troops out of Bush's lying, unpaid-for disaster, Iraq

2. Obama has gotten our troops back into the REAL war, Afghanistan, that Bush abandoned for Iraq oil money for his cronies.

3. Obama has DESTROYED most of Al Qaeda, got Bin Laden and top AQ, and hit them in the tribal Pakistan region where the rest are.

4. Obama saved the nation and the world from the second Republican Great Depression after Bush and the Republican¬s wrecked the economy.

5. Obama saved most of the US Auto industry, saved banks, and made TARP have teeth instead of the Biush giveaway to the wealthy.

AND on and on and on...

continued:
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HUFFPOST SUPER USER
Ram Samudrala
Give more to the world than what I take from it
11:27 AM on 10/21/2011
And Ted Kennedy hadn't died, more would've been accomplished. Remember, all of the legislative accomplishments were all done in the first year before he died. The Democrats had only one year of filibuster proof majority. If anyone doubts that's necessary these days, check out what's happening with the jobs bill and every other idea advanced by the Democrats and the Obama administration since Scott Brown came to the Senate. Even before that, people like Lieberman and other conservative Democrats were the flies in the ointment.

http://whatthefuckhasobamadonesofar.com/

I actually was most critical of the Obama administration until Kennedy died. After that, since we don't live in a dictatorship, it all was out of Obama's hands. He's tried to work with the Republicans and they've made it clear that they will crash the country rather than work together with him to help the American people.

Both parties are bad. But one is the lesser of two evils. And one nominates saner people to the SCOTUS instead of people like Scalia or Thomas who claim to be originalists but these days are blatantly taking money from the Koch brothers to advance their agenda of setting this country back by 100 years.
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
09:43 PM on 09/30/2011
continued:
TomVeil: “Obama was supposed to be against the wars”

WRONG! Obama in 2002, before the Iraq war:

“I don't oppose all wars. What I am opposed to is a dumb war. What I am opposed to is a rash war. What I am opposed to is the cynical attempt by Richard Perle and Paul Wolfowitz and other armchair, weekend warriors in this administration to shove their own ideological agendas down our throats, irrespective of the costs in lives lost and in hardships borne.

"What I am opposed to is the attempt by political hacks like Karl Rove to distract us from a rise in the uninsured, a rise in the poverty rate, a drop in the median income, to distract us from corporate scandals and a stock market that has just gone through the worst month since the Great Depression.

"You want a fight, President Bush? Let's finish the fight with Bin Laden and al-Qaeda, through effective, coordinated intelligence, and a shutting down of the financial networks that support terrorism, and a homeland security program that involves more than color-coded warnings."

Obama has been doing that, and that's why he's gotten more Al Qaeda in three years than Bush got in seven.

Tomveal: “you claim that he saved us from the great depression II when we're in the middle of it.”

Prove it.
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HUFFPOST SUPER USER
Giovanni Campanella
08:24 AM on 09/30/2011
You're taking a very extreme example and dishonestly painting the idea as wrong or unrealistic. You're taking a a single brush fiber and trying to paint a red mark over thousands of miles.

$400,000, first of all, did you ever figure out why it costs that much? Not really.

If people weren't paying nearly half of everything they earn to the government and through inflation, don't you think, that people would have more money to give?

Like I said, you're taking one massive example where people failed and painting over every possible act of generosity and voluntary contribution and ignoring glaring factors.
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Sorenson
Time for a Revolt of No Confidence
02:37 PM on 09/30/2011
"Nearly half of everything they earn?" Did you even THINK before you blurted this out?

US personal income was about 12.36 trillion dollars in 2010 (http://bber.unm.edu/econ/us-tpi.htm) and yet total revenue for the FY2011 budget was set at 2.17 trillion (http://en.wikipedia.org/wiki/2011_United_States_federal_budget) or an effective income tax rate of 17.6% - and hell, that includes FICA, business taxes, tarriffs and other stuff, so the actual income-based rate is even less. With a GDP of 14.66 trillion dollars (https://www.cia.gov/library/publications/the-world-factbook/geos/us.html) that gives us a 14.8% federal-spending-versus-GDP ratio whereas in 1995, during perhaps the greatest stage of economic and technological development in this country's history, we had 7.2696 trillion GDP versus 1.51913 trillion in spending, or 20.9% (http://www.infoplease.com/year/1995.html).

You're either incredibly ignorant or you're just a lying sack of crap.
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HUFFPOST SUPER USER
Giovanni Campanella
09:13 PM on 10/05/2011
I don't think you can compare revenue based towards GDP because GDP represents borrowed and inflated dollars. What you're presenting is true if dollars were actually worth dollars. I'm talking about higher prices via inflation, which GDP does not count, or does not count accurately. I'm also not talking about income by itself, but everything else that is taxed (not the purchase of ownership but non-tax items that are still taken by the state, such as registration fees, etc.) Those by themselves are small, I know, but GDP is based on dollar amounts and not actual value of the dollar. That is why no one knew a recession was coming and some even still think we are 'doing great' just because 'we have the biggest economy in the world, or 'look at the gross domestic product'. A lot of the money earned is also concentrated to a few percent of the American population, to me, those people don't count or represent the majority of Americans even though they have a bigger piece of the pie.
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Amin Khad
10:47 PM on 09/29/2011
Paul predicted this in 2002:

"During the next decade, the American people will become poorer and less free, while they become more dependent on the government for economic security.

The war will prove to be divisive, with emotions and hatred growing between the various factions and special interests that drive our policies in the Middle East.

Agitation from more class warfare will succeed in dividing us domestically, and believe it or not, I expect lobbyists will thrive more than ever during the dangerous period of chaos.

I have no timetable for these predictions, but just in case, keep them around and look at them in 5 to 10 years. Let us hope and pray that I am wrong on all accounts. If so, I will be very pleased."
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
10:32 PM on 10/02/2011
LOL! At the start of the Bush administration in 2002 most Democrats would be on board with the prediction that "During the next decade, the American people will become poorer and less free"

Because of Bush and the Republicans!

Women are certainly less free because of Ron Paul's hypocritical attempts to use Federal power to intervene with their Constitutional abortion rights.

Obama also said that Bush and the Republican's attempts to invade Iraq would prove divisive in the world, and he was right.

Predictions like that are EASY!
HUFFPOST SUPER USER
Amin Khad
07:03 AM on 10/03/2011
And the Democrats extended the Patriot Act, while Paul and his son, who you hate, tried to prevent them, and you still support the Democrats, LOL!

You support the Democrats even after they supported the Federal Reserve's secret bailout that made Wall Street even richer than it was before!

I would laugh, but your attitude will destroy the US economy. It's just an utter waste.
10:49 AM on 10/21/2011
Women are certainly less free because of Ron Paul's hypocritic­al attempts to use Federal power to intervene with their Constituti­onal abortion rights.

I don't think Ron Paul and federal power belong in the same sentence.
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HUFFPOST SUPER USER
PiedType
Old editors never die, they just revert to type
08:02 PM on 09/29/2011
I don't know about anyone else, but I can't afford to be charitable anymore. In this day and age I am, of necessity, my own favorite charity. Methinks Mr. Paul is overestimating my capacity to be charitable.
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TomVeil
02:21 AM on 09/30/2011
How much of your money do you give to the government?

42.7% of my last check ended up in the government coffers. At least I have part of a freedom bomb to show for it!!
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
06:00 PM on 10/04/2011
Good point.
12:31 PM on 09/29/2011
More Democrat Federal "charity": DEA, TSA, War on Drugs, Drone strikes in Libya, Troop surges in Afghanistan, Bank Bailouts... Sooooo civilized....
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RepublicanDepression
Of the1% by the1% for the Gerrymandering One% =GOP
06:07 PM on 10/04/2011
LOL!

DEA: NIXON! (Republican)
TSA: BUSH2! (Republican)
War on Drugs -invented by Nixon (Republican) and flogged by Reagan and two Bushes. Bailouts were begun by BUSH (Republican)

Democratic President:
Drone strikes in Libya worked great, got the job done, no US life lost and didn't make us a nation of new enemies (unlike the Republican strategy.)

Troop surges in Afghanistan got the job done where REPUBLICANS FAILED! Obama got bin Laden, baby!

How'd your party do? Oops! Invaded the wrong country! Trillions of dollars wasted and millions of radicalized potential enemies!

buddharocket FAIL!
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HUFFPOST SUPER USER
SlammoFandango
08:00 PM on 10/21/2011
More US troops killed in Afghanistan in 32 month of Obama than 8 years of Bush. As it was Bush should have already left entirely after all the criminal al-CIA-da members were killed. Why does Obama want to stay and kill Taliban? Taliban never attacked the US. Taliban never even attacked US solgers until it became apparent the invading US Army simply wasn't going to leave. The US is there just to spend money and make the banksters rich from all of the borrowining...Barry is STILL getting huge donations from Goldman Sachs...why wouldn't he - he's working for them right?
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Celebrindan
M=1∞/R=dM>1
09:23 AM on 09/29/2011
"...programs that cost the federal government $440 billion in 2008."

This is part of the lie.

FICA is NOT part of the federal government.

It is an account the people of America pay into for their health and future.

The money does NOT belong to the federal government, despite the fact than since the sixties, Congress has made several changes the law, allowing them to raid the account.

They used to promise to pay us back.

Now they tell us its all gone, and it will never work.

I say we start arresting the thieves.

What sense does it make to 'not just' let them stay in charge, but to let them change the game and make the rules too?

Liars and thieves working together, to rob us all.
02:35 AM on 09/29/2011
"data on decades of American philanthropy"

This doesn't sound realistic to me. Were you able to count the number of times neighbors sent their poorer neighbors a basket of muffins? Or when communities offered their labor for free in times of crisis, or, just to build the local church, community center, or even to help their neighbor complete some renovations? I think one would have to live in those times and live in these times to really make a comparison. How old is this Dr. Leslie?

I'd be willing to speculate that the difference in the data between now and then is that charitable contributions have become more formalized and more traceable because of the business-like nature that our modern world works. Which is exactly what Ron Paul is trying to emphasize. We have lost touch with our neighbors and communities because the government has stepped in to replace our interdependence on one another.

If anything, Dr. Leslie's data shows that we've replaced relationships with cash transactions.
HUFFPOST SUPER USER
jbouti
04:46 PM on 09/29/2011
Well said .
02:37 PM on 10/01/2011
Not to mention the number of times people looked at how much the government is taking, supposedly to take care of these problems, and decided they have been forced to give enough already.

The more government gears everything to help the poorest among us, the more desirable it is to remain poor, to remain entitle to receive. At least with private giving, the giver can at least pay attention to the object of his charity to see whether its working and change his strategy if is not working.

The government left the exact same failed public housing policy in place for decades, regardless of the fact that it was putting all the poor into ghettos and breeding crime.

It also helps the poor buy candy and soda with food stamps and subsidizes the production of corn syrup and the ubiquitous transfat in all the factory foods.

What the poor need is not entitlement. They need someone to have demands made upon them. They need to learn good character and habits.

Government cannot do this. All it has to offer is the drug of dependency.
01:08 AM on 09/29/2011
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08:07 PM on 09/28/2011
The reality test Ms. Wilkie imposes on the idea that we can take care of one another without govt. force, in itself a brutal capitulation to a hopeless view of humanity, that free people can't be civilized, collapses when the numbers are crunched. It's much less realistic to believe govt. can take care of us. Social Security is scheduled to engulf the GDP(!) in a logarithmic curve. Every deduction from every paycheck in our lifestimes, went to the general fund, nothing was set aside, yet politicians talk of a "lockbox". American federal govt. was conceived and instituted to protect individual Liberty. It is very specific about how to do that, and its authorized powers are clearly enumerated. Health care, food, housing, education are all aspects of life left to "the States and the People Respectively". Dr. Paul has a been a physician, and a Constitutionalist since before govt. took over the free market in health care. My Doctor has given up(!) trying to make sense of her own business.
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HUFFPOST SUPER USER
Chixsngr
My ancestors fought the Revolutionary War, and the
07:26 PM on 09/28/2011
So I can't figure out how this guy gets a Charity award. Seems like he's the most anti-giving person ever.
08:54 PM on 09/28/2011
Charity means when you part with your money voluntarily. You're confused.

You think that charity is when people with guns (government) extract the wealth of innocent peaceful people, then keep some for themselves, and give a way the remainder to people who will vote for them.
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jbouti
04:48 PM on 09/29/2011
Some people just don't get this simple fact.
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HUFFPOST SUPER USER
sociocanuck
Red Tory mind / Progressive voting history
06:56 PM on 09/28/2011
I'm confused by one thing: if Paul is pro-charity, is he at all aware of the party at whose table he's sitting?

Republicans routinely disparage (if not try to defund) charitable organizations. Republican voters, at least the odd segment displayed by the ones they let loose on 'liberal' websites to be angry contrarians, display an almost universal disgust for the concept of charity as one and the same thing as "socialism" (complete with a few dozen implied exclamation points).

It's like he wants to ride on the small government rugged individualism of Tea Party types, but doesn't seem to get that they also constantly parrot a "don't tread on me"/"I am not my brothers keeper" mentality which is 100% anathema to charity. As soon as you over-emphasize the "voluntary" part (including the provocateurs who insist that somehow "liberal" charity would not be voluntary) they'll just assume somone else will participate for them. And then nobody does.

...Not that they won't find a way to justify giving to hopeless causes that just happen to be running for office with an (R) next to their name...
07:18 PM on 09/28/2011
Your confusion is due to your assumption that Ron Paul's views and the GOP establishment & its coopted Tea Party are similar. You have to actually read or hear Dr. Paul's statements to understand how dissimilar his principles and policies are from the status quo. It is libertarianism that acually trusts people, to create, produce, cooperate, take care of each other peacefully with no force. All other political views are in a grabbing contest for power to make everyone else mind the rules they impose via the police state. That is not charity. All of your good intentions and kind feelings are nullified once the federal bureaucracy uses its guns to enforce those lovely fantasies of benevolence. Study history. Coercion always increases when authoritarians are in power, and "services" and economies always decline.
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sociocanuck
Red Tory mind / Progressive voting history
09:11 PM on 09/28/2011
Except that I assumed nothing of the sort about his own policies. If anything, I was agreeing that they're vastly different and thereby questioning the wisdom of sticking with a party that's so completely committed to their own brand of status quo as to get personal any time a policy is threatened. Which you kinds of did too. So who are you learning from, anyway?

Your inclination to attack those posting in your vicinity as persons who conform to 'the establishment' (including making sweeping assumptions about persons with legitimate beefs with the establishment whose legitimate beefs don't match your own) definitely is not going to attract new converts so much as alienate them even more.
06:58 AM on 09/29/2011
umm, Republicans disparage *private* charitable organizations? Please elaborate.
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Joseph Peeler
05:40 PM on 09/28/2011
The "journalist" remarks that Americans give twice as much as they used to as a percentage of GDP. This is flawed in many ways. GDP today is heavily dependent on consumption spending that is only possible because the American government is borrowing much of that money.

The other problem is that the GDP must have an inflation deflator. If old inflation measures are used (pre-Boskin), the real dollar debasement rate is almost 10%. If that deflator is used, GDP is negative 1.6%.


Also, private charity wouldn't have to match watch the government (read: you, me, and everyone else) dollar for dollar for a number of reasons. The government is very inefficient. It eats up over over 50% in bureaucratist costs. Charities are far more efficient.

The other reason is that many people collect welfare who don't need it. Many well-off seniors collect S.S. checks and have medical care subsidized. These people could pay their own freight.

Paul's ideas worked for our ancestors. The current system is imploding.

Paul doesn't want to transition over night. He envisions a gradual change over a generation.
06:12 PM on 09/28/2011
Robin hood keeping 50% of the loot and giving some of it to people who don't need it. And the receivers of the loot, keep voting for Robin Hood.

What happens when the victims run out of money? Austerity? Riots?

Bastiat said: "Government is the great fiction through which everybody endeavors to live at the expense of everybody else."

Advice to all liberals and progressives: Google him and watch some videos.
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Joseph Peeler
08:12 PM on 09/28/2011
I've read Bastiat. In fact, I use that quote all the time. I've been reading classical liberals and Austrian economists for the last 15-years. It's not as new to me as it is to most Paul supporters. Many of them are still learning.
02:50 PM on 09/28/2011
Christina Wilkie fails herself and her readers in that she has a disconnect between the dynamics involved in the healthcare issue. The major contributor to this problem is the inaffordability aspect. Reduce federal govt involvement, solve the economic and monetary policy issues, and you reduce the cost of services and put more money in the pockets of charitable people and organizations (Lenkowsky suffers from this disconnect as well). For those who do not want to contribute to charity, you cannot force them to do so. It's fundamentally wrong, unconstitutional, enslaving, controlling, an infringement on personal liberty, makes people to want to fight, and leads to totalitarianism. If you want socialized medicine, you should move to another country that supports that. As for me and my country, "give me liberty or give me death.".

Do you ever wonder why goods and services continue to become more expensive year after year for the consumer, but the politicians in DC continue to receive special care, including healthcare, wear expensive suits, ride in limos, and take nice vacations? And they are supposed to be public servants? Wake up, please. You cannot justify taking our income to pay for this. We need to make changes and we need to make them soon.
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Jesster
03:08 PM on 09/28/2011
Why change now? We're winning the race to the bottom - in fact we seem to be accelerating the closer we get to the point of impact (it's just a little past the point of "no return.")
03:23 PM on 09/28/2011
"Do you ever wonder why goods and services continue to become more expensive year after year for the consumer, but the politician­s in DC continue to receive special care, including healthcare­, wear expensive suits, ride in limos, and take nice vacations?"

no, because i am aware that over half the members of Congress are millionaires, including Ron Paul.
05:35 PM on 09/28/2011
Google - Ron Paul Fights to Block Congressional Pay Raises
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Joseph Peeler
05:45 PM on 09/28/2011
Ron Paul has invested wisely over the years. He didn't get rich by being corrupt.

Prices are going up because the dollar is going down. The average life expectancy of a fiat paper currency is 27-years. That is a historical fact. Since August 15, 1971 the world has been on a fiat dollar standard. This experiment is imploding. The system is built on debt.

The governement like fiat money because it can monetize part of its liabilities. Direct taxes are unpopular, so the government oftentimes will result to a stealth tax on inflation. They government monetizes its debts by paying its creditors back with a debased currency. Programs like S.S. that are indexed to the government's fraudulent CPI are part of this debt monetization. The Federal Reserve just creates more credit money, and then the BLS underreports the real dollar debasement rate. It's a fraud.