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Ron Paul: We Already Went Over the Fiscal Cliff

Written by Gary North on December 4, 2012

Are you worried about the fiscal cliff? You should be. Not the one that faces us on January 1. The one the government has already taken us over. Ron Paul explains:

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as “saving” the economy. While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy. Congress should have just cut taxes. But instead, we have a crisis that is sure not to go to waste.

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar. Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.” This is nonsense.

This rhetoric is based on the belief that government spending sustains the economy, when in fact the opposite is true. Every dollar the government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans. Politicians who claim to support the free market and the lower and middle-class should take this to heart.

This is like the carnival sharpie who takes your money by means of a pea under one of three cups. The cups are the House, the Senate, and the White House. Round and round they go. Can you spot the pea? Keep your eyes on those cups.

Meanwhile, the sharpie’s assistants are burglarizing your home.

The truth is that there is no excuse for government spending being as high as it is, nor for taxes being as high as they are. Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent. Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances. Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up. But it is not cuts to spending or reduced government “revenue” that will send us over the cliff, it is continued government spending that will. Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow government, and Democrats caving on defense cuts in exchange for tax increases. This is how the government has always grown: both sides will sacrifice their pro-liberty, small government stances in certain areas in order to grow the government where they prefer.

He called it right. The Republicans are caving in on some forms of new taxes.

For specifics on what Ron Paul would cut, click the link.

Continue Reading on www.lewrockwell.com

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6 thoughts on “Ron Paul: We Already Went Over the Fiscal Cliff

  1. He's right. This whole made up crisis/catastrophe is and was created by the politicians. Let them go off the deep end. Let them go home and quit spending OUR money!

  2. Glen Ganges says:

    In your example, politicians in Washington and carnies are equal. Your are giving carnies an undeserbed rap.

  3. screw the crooks in dc let it fail we can't depend on boner boehner to do the peoples will

  4. I agree.. We went over the cliff years ago! If the Republicans cave one bit, I’m done with them. Obama has set out to destroy us.Watch 2016 and look into his,sick disgusting mind. All of them are so out of touch with working people, people who want to work. Thay are the most reckless spenders and takers of us bill payers. Our money is like water in their hands. This Administration is the most disrespecting politicians I’ve come across in 54 years. We have to stand up. For 3 mil republicans to be no shows on election night, blows my mind. We are drowning out at sea here with obama holding the life jacket that’s out of air. I’ll march, stand with, email, call, write or whatever I need to do. They just don’t care. They are big babies that play with our lives, our childrens lives.. What to do…….

  5. I have heard comments about what blame Republicans will receive if a deal is reached vs if one is not. We LOST that battle the day the sequester deal was agreed to. Actually, we lost that battle a few decades ago. Republicans get blame and Democrats get credit regardless of facts.

  6. Seems we are going through exactly the same deal with Obama in the first round! Threats like "If we can not come to an agreement on a budget, I cant promise the Social Security and Military checks will go out". Republicans tremble and cave-in and the can gets kicked down the road again. I dont see or hear anybody in congress saying Nay, thats not going to happen! I dont know what the solution is, but just raising taxes is not it Im pretty sure. I guess all those big name college degrees dont mean a thing in politics. If the job is too tough for these politicians, then they should look for work elsewhere… Enough is enough!