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article imageRon Paul: The government can't change welfare, warfare state

By Andrew Moran     Jan 28, 2010 in Politics
Republican Congressman Ron Paul appeared on Neil Cavuto's Fox News business show to discuss President Barack Obama's proposal to enact a spending freeze but Paul believes it's just more rhetoric.
This week, United States President Barack Obama announced his initiative to freezing spending but this has bothered fiscal liberals who say this is the time the government needs to increase spending and fiscal conservatives who say this doesn’t go far enough.
The former 2008 Republican President candidate and Congressman from Texas Ron Paul spoke on Fox Business News with Neil Cavuto about the President’s proposals and is quite cynical of Obama actually being sincere of his rhetoric because it just will not happen, says Paul.
“I think they are responding to what they’re hearing but they still don’t quite understand it, and I would say Congress as well as the president. They know there’s something going on but they’re lost as to what to do because they can’t change the philosophy of government, they can’t change the welfare state or the warfare state. So they have to talk about this.”
Paul went onto state that the freezing of a few expenditures will not happen until 2011 and won’t happen at all. The author of “The Revolution: A Manifesto” and “End the Fed” added that foreign aid will go up but salaries of air traffic controllers would be frozen, “could you imagine that passing Congress?”
Generally, the Congressman believes this decision by Obama is contradictory to the view on Capitol Hill and the government has been spending over the last several months like there is no tomorrow. The view in Washington, says Paul, is to spend more money when there is a slump in the country, “We’re going to slip and slide, we may have another major crisis. The way we’re going, since we think that spending money and borrowing money and printing money works, we will end up with a dollar crisis and then all these number won’t have any meaning whatsoever.”
Something worse will occur than the stagflation of the 1970s because revenues will go dramatically down and inflation costs will go up, Paul explains. The market wants people to stop spending and save money, while paying off debt but the government is doing the exact opposite because they want you to spend and borrow and inflate.
Paul concludes that the government wants inflation because then they will never be able to pay off the debt so they purposely devalue the dollar so they can pay back ten cents on the dollar, “They are frustrated because they don’t have the inflation that they are looking for, because they equate inflation with a healthy economy, and that is not the case at all.”
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