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President Rand Paul would give libertarian economics a bad name
Howard Richman, 4/8/2015

I watched Senator Rand Paul's announcement that he was running for president. He had good goals, but his economic ignorance was dismaying.  For example, he argued that allowing American corporations to bring back profits from overseas at a low tax rate would encourage investment in American manufacturing.

Exactly the opposite. Doing so would not only make outsourcing more profitable, but it would also bid up the exchange rate of the dollar (American corporations would convert foreign profits to dollars), which would put even more American manufacturing workers out of work.

On the other hand, many of his goals were excellent:

  1. Balanced Budget. He called for a balanced budget, one of the requirements for stable economic growth. Unfortunately, balancing budgets can cause recession unless monetary growth and trade are also balanced. 
  2. Bringing Back American Manufacturing. He called for increasing U.S. manufacturing jobs. Unfortunately, his program for doing so would reduce U.S. manufacturing jobs.
  3. Auditing the Federal Reserve. The Federal Reserve has been supporting financial losers by buying their bad loans at above-market prices. It has been awarding those with political power, contributing to crony-capitalism. 

He may be the candidate for President who is least tied to the crony-capitalist system that is becoming entrenched in U.S. economic policies. If he only understood economics, he could be a great president. Unfortunately, his economic policies would backfire. They would result in recession and increased loss of American manufacturing jobs, giving economic libertarianism a bad name.

We need a president who not only understands the need for smaller government and balanced budgets, but who also understands the need for balanced monetary growth and balanced trade. The combination of balanced budgets, balanced monetary growth and balanced trade would restore American prosperity. 

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    Wikipedia:

  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]