Ron Paul's Economic Stimulus Plan:
Ron Paul's Four Point Plan:
- Eliminate taxes on dividends, savings, capital gains and tips.
- Freeze non-defense discretionary spending at current levels. (CBO already is budgeted for reducing it.)
- Allow gold and silver to be used as money, televise FOMC meetings, report money supply weekly.
- Repeal Sarbanes/Oxley. Remove some regulations on community banks.
Ron Paul's Long-Term Economic Platform:
- Repeal the death tax. Eliminate taxes on Social Security and cut taxes for working seniors.
- Accelerate depreciation on business investment.
- Make all medical expenses tax deductible, reduce regulations to allow small businesses to provide health coverage, and allow doctors to negotiate with insurance companies.
- Allow pharmacists and nurses to perform more health care, and allow everyone to have a health savings account.
- Reduce troops in Europe, Japan and S. Korea.
- Withdraw from WTO, NAFTA and the UN.
- No war without Congressional approval.
Impact on the Economy:
His proposals to cut taxes will eliminate revenue, which could be offset by the savings from his proposal to reduce the military. Paul is generally in favor of a fiscally responsible balanced budget, which would help support the value of the dollar and strengthen the economy. (See The U.S. Budget Deficit)
His proposal to withdraw from the WTO and other trade organizations, if accompanied by an increase in tariffs on imported goods, will hurt our trade relations with Europe and other countries. They could retaliate by raising prices, thus increasing inflation, and adding tariffs, thus decreasing our ability to export.
Ron Paul Advocates a Return to the Gold Standard:
Likewise, eliminating the Federal Reserve could cripple the economy. That's because monetary policy is needed to adjust liquidity in the financial markets. Without this guidance, investors would have less trust in the markets, increasing volatility. Furthermore, without controls on inflation, expectations of inflation alone could cause it to spiral out of control.
It would also isolate it from global trade. That's because every other country now has a central bank, and these central bankers coordinate economic policy between countries. Without the Fed, these countries would have less trust in the U.S. economy.
