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Ron Paul didn't go far enough - unleash the retirement accounts
from Braincrave Second Life staff
Oct 21, 2011
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Ron Paul just came out with a plan to cut $1 trillion from the US's federal budget and severely curtail entitlement programs. According to the "Plan to Restore America," it cuts $1 trillion in spending during the first year of Ron Paul's presidency, eliminating five cabinet departments (Energy, HUD, Commerce, Interior, and Education), abolishing the Transportation Security Administration and returning responsibility for security to private property owners, abolishing corporate subsidies, stopping foreign aid, ending foreign wars, and returning most other spending to 2006 levels.

No doubt a lot of good would come from decreasing government spending significantly, both long-term and short-term. Keynesians who insist that government spending is the way to prosperity is as silly as telling drug addicts that more drugs are beneficial to their health. Of course, there are commentators who claim that Ron Paul's plan is "crazy" and "will destroy the US economy." To use their word, these Keynesians have this crazy idea that employing government is actually good for the economy and, by cutting back on government, many more people will be out of work. They believe in the broken window fallacy. There are some Keynesians that are actually so ignorant that they actually believe building a $2 trillion pyramid to the sky would be good for the economy. Why not just reduce Madoff's sentence and ask him to do what he does best to turn the economy around? At least the writers at The Onion understand how silly these ideas are.

In other words, Keynesians admit we have a drug problem but, because weaning the addict off of drugs will cause some pain, they don't want to do it. They'd prefer to have more addicts. "Here, have another needle. You want some blow with that?"

Be that as it may, Ron Paul can't, as President, implement much of what he wants to do by himself. It would require the Congress to send the bills to him. And he gets that - as his website states, he could only do it "through the bully pulpit of the presidency [and] the power of the Veto."

A $1 trillion cut to the federal budget in one year is more than any candidate or party has proposed. And all of the other candidates and parties are loosy-goosy (dare we say pathetic?) when it comes to naming specific things they would cut (likely because they don't have any intention of cutting anything). Even the Joint Select Committee on Deficit Reduction will only get us $1.2 trillion in cuts from projected spending over the next decade. Ron Paul's plan gets Americans to "confront their contradictions." His plan would balance the books in three years. He commits to real numbers. He spares no one.

Total U.S. retirement assets were $17.5 trillion as of December 31, 2010
But perhaps he didn't go far enough and missed a major opportunity. He left $17.5 trillion on the table that could have immediately gone into consumers' pockets.

We're talking about the total retirement assets in the US, made up of investment vehicles like 401(k)s, IRAs, and the like. People can't touch this money without huge penalties. They put this money away, before taxes, for retirement. There are many who desperately need this money now and the only way to get it is by paying huge amounts in taxes and penalties.

Ron Paul could have called for a tax and penalty holiday for all withdrawals from retirement accounts. Yes, the government would be out a lot of money. But isn't that the idea? Reduce spending so they don't need as much money? Given his past animosity toward taxes, clearly this is something of which he'd be in favor.

What do you think would happen if Ron Paul, as president, was able to push this tax holiday through? Would the stock market crash because so many would sell their retirement investments and use that money right now? Do you think it would help the economy to have $17.5 trillion immediately available? If the government is planning to seize and nationalize retirement accounts anyway, isn't it better to take that money out now? Would people be in better or worse shape at retirement time if they took their retirement funds out now? If you had a tax holiday on retirement funds, what would you do with your retirement savings? What do you think of Ron Paul's plan? How does it compare to your favorite candidate's plan?
SYNOPSIS:

America is the greatest nation in human history. Our respect for individual liberty, free markets, and limited constitutional government produced the strongest, most prosperous country in the world. But, we have drifted far from our founding principles, and America is in crisis. Ron Paul's "Restore America" plan slams on the brakes and puts America on a return to constitutional government. It is bold but achievable. Through the bully pulpit of the presidency, the power of the Veto, and, most importantly, the united voice of freedom-loving Americans, we can implement fundamental reforms.

DELIVERS A TRUE BALANCED BUDGET IN YEAR THREE OF DR. PAUL'S PRESIDENCY:

Ron Paul is the ONLY candidate who doesn't just talk about balancing the budget, but who has a full plan to get it done.

SPENDING:

Cuts $1 trillion in spending during the first year of Ron Paul's presidency, eliminating five cabinet departments (Energy, HUD, Commerce, Interior, and Education), abolishing the Transportation Security Administration and returning responsibility for security to private property owners, abolishing corporate subsidies, stopping foreign aid, ending foreign wars, and returning most other spending to 2006 levels.

ENTITLEMENTS:

Honors our promise to our seniors and veterans, while allowing young workers to opt out. Block grants Medicaid and other welfare programs to allow States the flexibility and ingenuity they need to solve their own unique problems without harming those currently relying on the programs.

CUTTING GOVERNMENT WASTE:

Makes a 10% reduction in the federal workforce, slashes Congressional pay and perks, and curbs excessive federal travel. To stand with the American People, President Paul will take a salary of $39,336, approximately equal to the median personal income of the American worker.

TAXES:

Lowers the corporate tax rate to 15%, making America competitive in the global market. Allows American companies to repatriate capital without additional taxation, spurring trillions in new investment. Extends all Bush tax cuts. Abolishes the Death Tax. Ends taxes on personal savings, allowing families to build a nest egg.

REGULATION:

Repeals ObamaCare, Dodd-Frank, and Sarbanes-Oxley. Mandates REINS-style requirements for thorough congressional review and authorization before implementing any new regulations issued by bureaucrats. President Paul will also cancel all onerous regulations previously issued by Executive Order.

MONETARY POLICY:

Conducts a full audit of the Federal Reserve and implements competing currency legislation to strengthen the dollar and stabilize inflation.
RON PAUL "PLAN TO RESTORE AMERICA"


DISCUSS!


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