Ron Paul on the Debt Ceiling Debate: Just Freeze the Budget!

by Ron Paul

One might think that the recent drama over the debt ceiling involved one side wanting to increase or maintain spending with the other side wanting to drastically cut spending, but that is far from the truth. In spite of the rhetoric being thrown around, the real debate is over how much government spending will increase. No plan under serious consideration cuts spending in the way you and I think about it. Instead, the cuts being discussed are illusory and are not cuts from current amounts being spent, but cuts in prospective spending increases. This is akin to a family saving $100,000 in expenses by deciding not to buy a Lamborghini and instead getting a fully loaded Mercedes when really their budget dictates that they need to stick with their perfectly serviceable Honda.

But this is the type of math Washington uses to mask the incriminating truth about the unrepentant plundering of the American people. The truth is that frightening rhetoric about default and full faith in the credit of the United States being carelessly thrown around to ram through a bigger budget than ever in spite of stagnant revenues. If your family’s income did not change year over year, would it be wise financial management to accelerate spending so you would feel richer? That is what our government is doing, with one side merely suggesting a different list of purchases than the other.

In reality, bringing our fiscal house into order is not that complicated or excruciatingly painful at all. If we simply kept spending at current levels, by their definition of cuts that would save nearly $400 billion in the next few years, versus the $25 billion the Budget Control Act claims to cut. It would only take us five years to cut $1 trillion in Washington math just by holding the line on spending. That is hardly austere or catastrophic.

A balanced budget is similarly simple and within reach if Washington had just a tiny amount of fiscal common sense. Our revenues currently stand at approximately $2.2 trillion a year and are likely to remain stagnant as the recession continues. Our outlays are $3.7 trillion and projected to grow every year. Yet we only have to go back to 2004 for federal outlays of $2.2 trillion, and the government was far from small that year. If we simply referred to that year’s spending levels, which would hardly do us fear, we would have a balanced budget right now. If we held the line on spending and the economy actually did grow as estimated, the budget would balance on its own by 2015 with no cuts whatsoever.

We pay 35% more for our military today than we did 10 years ago for the exact same capabilities. The same could be said for the rest of the government. Why has our budget doubled in 10 years? This country doesn’t have double the population or double the land area or double anything that would require the federal government to grow by such an obscene amount.

In Washington terms a simple freeze in spending would be a much bigger cut than any plan being discussed. If politicians simply cannot bear to implement actual cuts to actual spending, just freezing the budget would give the economy the best chance to catch its breath, recover and grow.

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11 Responses to Ron Paul on the Debt Ceiling Debate: Just Freeze the Budget!

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  6. Mary Storts says:

    The reason most Americans hate all polititians is because they are quite capable of getting things done when it concerns themselves, like raises, insurance, retirement plans and everything that helps themselves, but when it comes to helping the American people their all crooks. How do we know that you will be different than all of them?

  7. michael quinn says:

    Thanks for continuing the fight for the real sort of freedom americans are looking for. How can we expect to get the sort of representation we need from the Super Committee when they have been selected from the very same mess that they created. We need new ideas and a solid backbone to get through the mumbo jumbo political quagmire that is dragging us all down. Nice job in Iowa. Keep it going.

  8. roger majkowski says:

    Dr Paul,I have a not so simple question- How you prepose to employ all of these military personell if you stop the god forsaken wars? Sorry for misspelling

    • Laura Kuriatnyk says:

      @roger majkowski
      Roger are you saying that we should just keep Invading countries and killing tens of thousands of people around the world to keep our Military Employed?
      There was no draft most are Reserves from all the States and would still be Employed as Reserves..Ron Paul also wants to place a great amount of Our Military to protect our own borders.
      Also Don’t forget Its Ron Paul that recieves more money from our own Military than all Canadates Combined.

      • Caley says:

        I don’t think the idea is to keep the entire military employed-and I think a large number of military personnel would be okay with receiving honorable discharges and set free to pursue other careers.

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