Ron Paul on Kudlow Report Jan 13/12

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"It is unlikely to see growth derailed by the housing market." --Ben Bernake, 2006

Kudlow: The federal reserve system has hundreds of PhD economists - how is it possible that they completely missed the worst meltdown since the 1930's?


H/T Paul S.

Not on the fringe anymore: the Ron Paul Effect

Persistence has paid off for Ron Paul. That's rare in politics, usually repetitive attempts at election create fatigue of one sort or another.

The fact that Ron Paul is still in the thick of things after his second place finish in New Hampshire, and a strong third in Iowa, is evidence that his message resonates with many Republicans. Why not, of the six candidates remaining in the GOP race, he is the only one that has policy ideas significantly different from those of the incumbent Democratic President Obama. That is an insult to those five other GOP candidates, but welcome to the world of collectivist, mainstream thinking.

In the US, a deep and never ending recession seems to have a grip on "main street" even though government statistics show that weak growth is occurring in some parts of the economy. Jobless rates are still high, many American workers have given up.

The housing market has yet to recover from a collapse that Rep. Paul and other "Austrians" predicted some years ago.

The price of gold has hit new highs as the American dollar continues to lose value, again, as predicted by Ron Paul and other Austrians.

The endless, pointless and expensive wars that Americans are entangled in, has made Ron Paul the darling of soldiers and combat veterans alike because of his anti-war stance.

This time Ron Paul is playing an important role in the election cycle because “he’s giving American voters a choice – for much smaller government, much lower taxes, eliminating government debt, bringing our troops home – choices the Republican and Democratic Party have refused to give them,” says Carla Howell, executive director of the US Libertarian Party.

Most importantly, Ron Paul can no longer be dismissed as 'fringe' by establishment Republicans because of his message of constitutional limited government.

Give a listen to what these two libertarians said about Ron Paul this week after New Hampshire:

Most importantly in the States, Ron Paul has succeeded in uniting some of the disparate factions of libertarianism. This despite recent attempts to discredit his cause by dragging up yet again, the newsletter scandal of years ago.

Because libertarians everywhere focus on principles rather than pragmatism, they have had the tendency to 'shoot themselves in the foot' during US elections. Though most libertarians agree on 95% of the issues, they get hung up on the 5% that they disagree on, and never seem to unite. To get a feel for what I mean, the video below does a pretty good job of describing historical differences in the American conservative and libertarian community, and what Ron Paul has done to unify them. Have a look:

 
Of course for Canadian libertarians, like me, living beside the American media elephant, Ron Paul is, and has been a blessing, in the non-religious sense of course. Not just here in Canada, in Australia, in Europe, everywhere libertarians exist, a new awareness in the media and the population has taken root. The spillover effect could be considerable and positive for all libertarians everywhere, if we capitalize on it; and we must.

A well know conservative writer even credits Paul with a remarkable achievement. Charles Krauthammer refers to Ron Paul's second place finish as the biggest story coming out of the New Hampshire Primary. He goes on to suggest that if Ron Paul stays in the race until the GOP Convention in August: "Libertarianism will have gone from the fringes — those hopeless, pathetic third-party runs — to a position of prominence in a major party." And, "the Republican convention could conceivably feature a major address by Paul calling for the abolition of the Fed, FEMA and the CIA; American withdrawal from everywhere; acquiescence to the Iranian bomb — and perhaps even Paul’s opposition to a border fence lest it be used to keep Americans in. Not exactly the steady, measured, reassuring message a Republican convention might wish to convey. For libertarianism, however, it would be a historic moment: mainstream recognition at last." 

That could be the legacy of the Ron Paul effect, and 2012 could be a new beginning for libertarians and classical liberalism. I'm reminded of a great line from one of my favourite movies, Inherit the Wind: "An idea is a greater monument than a cathedral!" Ron Paul has been instrumental in exposing the libertarian idea.

Screwing up Education and shafting the poor too

"Our elementary schools really need to focus on the basics, on the foundations of learning for all students…..we need to have high-quality, consistent, inclusive programs." That's the view of a school board trustee for the York Region D. S. B., a large Ontario school board that is considering cutting specialized arts and sports programs because they might be elitist. Another trustee counters with: "How could everybody learn the same way? We don't think that (way) educationally, and here we're trying to do it." At the same time Annie Kidder, the Director of People for Education a non-profit lobby group, says specialty schools attract wealthier students. Ms. Kidder fears "social polarization" in the specialty schools but then goes on to admit that, "Choice is open to those with the capacity to choose." Apparently she has no fear of polarization there, wealthier families can give their children an enriched and varied learning experience, because they are wealthier. 

But aren't the schools Ms. Kidder supports, the government public schools, supposed to ensure that education is equally available to all, rich or poor? Shouldn't parents and children of poor families have the opportunity to choose the way they want to learn and have some choices at least? Apparently Ms. Kidder is more interested in homogeneity in the school system rather than catering to the needs of students. Let the children of poor families get the one-size-fits-all education, right Ms. Kidder?

 

Contrast the YRDSB story above to the stated policy of the largest Ontario School Board, the Toronto D. S. B. Almost two years ago the TDSB proposed the creation of specialized schools to give free market private school opportunities to children within the government public school system. In my view, since we are currently forced to have government public schools, at least provide some choice within them. Who knows, all the remaining TDSB government schools might need to improve in order to compete with their own specialty government schools. It could be win-win for TDSB students.

Meanwhile at the other end of the educational spectrum in Ontario, the McGuinty Liberal government is offering a 30% tuition  reduction to the majority of post-secondary students. I say majority even though there is an income qualification. The student's family must have a gross income of less than $160,000. Since the average personal income in Ontario is less than $38,000, qualifying for this rebate should be dead simple unless your parents are really rich. So, as Ken Coates points out in this column:
"Clearly this social program was targeted, for political reasons, at middle- and upper-middle-class families, whose children already attend university in large numbers. The 2011 Ontario election was vacuous. There were no defining issues, little public interest. All three parties worked extremely hard to avoid controversial positions. The tuition rebate was transparent. Vote Liberal, those of you with university-aged children, and the cheque will be in the mail." Exactly right, buy some votes. McGuinty is spending money that the province must borrow, because there is already a $16 billion deficit, and a debt close to $250 billion. Things are so tight that, Moody's the rating agency, has issued a warning on Ontario's credit rating. Can we afford this rebate? Are you kidding?

Again, poor families with less capacity to choose are being shafted. If you are going to have an income qualification, make the cut off $75,000 and increase the rebate. At least the lower income families will be targeted and maybe helped. 

Having said all of that, I would prefer a competitive system of schools, with as little government interference as possible, but we are in very deep with a system that serves teachers, and administrators, best of all.     

Taking the Red Pill....

Your worldview is shaped by the sum total of the events and people that have impacted your life thus far. By the time you reach adulthood your life rolls along down a rut of your own creation, and its very difficult to dislodge most people from their worldview rut. Because of this, arguing worldview with people is difficult or pointless. It's the reason I don't argue with theists anymore. At some level in their thinking they do not accept reason and evidence in the fundamental things, the way I do. But even these people can be moved if they harbour any doubts at all.
Its true in politics as well. Generally arguments are pointless and only deepen the ruts if beliefs are firmly held.
People that drastically change their views may have been hiding something that allows them to make the change abruptly. Some good advice given in Shakespeare's Hamlet works here, "To thine own self be true." 


In the movie The Matrix the hero, Neo, takes the red pill to affirm his hidden suspicions and finally accept reality as it is. He was true to himself, but he was likely halfway there already.

So it is with the announcement this weekend by a veteran Toronto newspaper writer and editor who came out of the closet, as he put it, and declared himself a libertarian. Like Neo he was finally true to himself as well, it was just a matter of announcing it.
Of course this still takes courage, maybe less so when you are established in your career, but never underestimate how such a declaration seems to make horns sprout from your head in the view of some people.
Over the years, the generally held view of members of my party has been to seek out those people who are already leaning toward libertarianism, and help them screw their courage to the sticking post, to use a Shakespearean metaphor (this time from Macbeth). Literally, to help them take the Red Pill by offering it to them. I think this is a good time to come out, the lines are being drawn and closets tend to be stuffy.