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NY Times: Ron Paul was right

December 14, 2010 3 comments

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Monday’s issue of the New York Times featured a rather remarkable article titled Rep. Ron Paul, G.O.P. Loner, Comes In From Cold. An improbable divergence from the Times’ history of mostly (though not completely) ignoring the world’s most prominent living libertarian, this article serves to illustrate the increasingly mainstream nature of Dr. Paul’s anti-government philosophy. Yet it is even more than that. The article does not simply observe and comment on Dr. Paul’s stance; it admits that many other mainstream figures who once criticized and mocked him now feel they should have listened to him all along. As former New Mexico governor and now 2012 presidential candidate Gary Johnson has observed, the news media feel they missed out on the movement in 2008, and they wish they had been on board. I wish to analyze and respond to the Times’ piece, item by item, in its entirety.

Rep. Ron Paul, G.O.P. Loner, Comes In From Cold

WASHINGTON — As virtually all of Washington was declaring WikiLeaks’s disclosures of secret diplomatic cables an act of treason, Representative Ron Paul was applauding the organization for exposing the United States’ “delusional foreign policy.”

For this, the conservative blog RedState dubbed him “Al Qaeda’s favorite member of Congress.”

A video of Dr. Paul speaking confirms this is true – and important. I’m glad the article opens with a strong statement relevant to current events. The dust hasn’t settled yet on the Cablegate controversy, but as of this writing, The Journal’s public opinion poll shows 89% of responders calling Wikileaks founder Julian Assange a “hero” as opposed to just 11% who regard him as a “villain.” This contrasts starkly with the views of the political establishment, who almost unanimously seek to silence or assassinate Assange.

There’s no sense in being timid about this. Dr. Paul believes wholeheartedly that the federal government is an excessively secretive and destructive organization which lies and deceives in order to achieve devious goals, especially regarding the occupation of foreign countries. He supports (and I support) anyone who, by peaceful means, attempts to expose the government’s deception to the public, and that includes Wikileaks. If anyone out there disagrees, he or she may as well stop reading and move on to another article.

It was hardly the first time that Mr. Paul had marched to his own beat. During his campaign for the Republican presidential nomination in 2008, he was best remembered for declaring in a debate that the 9/11 attacks were the Muslim world’s response to American military intervention around the globe. A fellow candidate, former Mayor Rudolph W. Giuliani of New York, interrupted and demanded that he take back the words — a request that Mr. Paul refused.

Once again video confirms that this debate occurred. What the Times fails to clarify here is that a myth sprung up surrounding this particular debate – namely, that Dr. Paul claimed the United States “invited” a terrorist attack – which is a pure fabrication. His true stance is much more matter-of-fact. He simply believes that blowback is a predictable consequence of an interventionist foreign policy, rightly or wrongly. Dr. Paul does not claim – and no libertarian claims – that the 9/11 attacks were morally justified or that Osama bin Laden should continue his vendetta against the American people. Rather, the non-interventionist philosophy holds simply that such attacks will occur as a result of United States meddling, regardless of whether they should, and as such policy-makers need to adjust their strategy from intervention to peace in order to keep the American people safe.

During his 20 years in Congress, Mr. Paul has staked out the lonely end of 434-to-1 votes against legislation that he considers unconstitutional, even on issues as ceremonial as granting Mother Teresa a Congressional Gold Medal. His colleagues have dubbed him “Dr. No,” but his wife will insist that they have the spelling wrong: he is really Dr. Know.

Correct again. A more interesting example in recent memory would be when Ron Paul cast the only “No” vote against granting subpoena power to an executive commission designed to investigate the Deepwater Horizon (BP) oil spill. Public opinion on Dr. Paul’s decision was low, but he cited the absence of any clause in the Constitution authorizing such a subpoena, explained that there were already other procedures in place for cleaning up oil spills which did not involve the shifting of power from the legislature to the executive branch, and lambasted the federal government for dealing with the oil spill inefficiently and using unprecedented executive authority.

Now it appears others are beginning to credit him with some wisdom — or at least acknowledging his passionate following.

After years of blocking him from a leadership position, Mr. Paul’s fellow Republicans have named him chairman of the House subcommittee on domestic monetary policy, which oversees the Federal Reserve as well as the currency and the valuation of the dollar.

I want to thank the author of this article, Kate Zernike, for going out on a limb here. I have heard from many fairly trustworthy people that the last time Ron Paul was in line to chair this subcommittee, the GOP simply abolished the subcommittee entirely rather than permit him to speak out. However, I can’t for the life of me find any primary source confirmation dated to the time this allegedly happened, 2008 or earlier. Everyone agrees that Ms. Zernike is right, but I can’t prove it. If you have a source for this information, please share.

Mr. Paul has strong views on those issues. He has written a book called “End the Fed”; he embraces Austrian economic thought, which holds that the government has no role in regulating the economy; and he advocates a return to the gold standard.

This is not true at all. I guess I shouldn’t be surprised, but I continuously am, at how even reporters who seem to care about their subject and do research can remain agonizingly ignorant of very simple economic issues. It’s par for the course for the NY Times to fail to be clear about how economics actually work, but to make an outright false statement … well, that’s par for the course, too.

Dr. Paul emphatically does not advocate the gold standard. He advocates for freely issued hard-asset currency in the long-term and legalized competing currencies in the short-term. Neither of these two things is the gold standard. Ron Paul firmly believes that no one should be forced to accept a currency which he or she does not value, whether that currency is a Federal Reserve note or a gold coin or anything else.

Furthermore, Austrian economics is not a political ideology, nor any opinion of any other form. Austrian economics is an objective method of studying economic phenomena. It makes no value judgments about what people should or shouldn’t do. A great economics professor, author, and personal friend of mine, Dr. Steven Horwitz, wrote at length to explain what Austrian economics is and what it is not, in case any reporters from the NY Times want to educate themselves.

Nevertheless, the real gem of this article consists of the subsequent several paragraphs:

Many of the new Republicans in the next Congress campaigned on precisely the issues that Mr. Paul has been talking about for 40 years: forbidding Congress from any action not explicitly authorized in the Constitution, eliminating entire federal departments as unconstitutional and checking the power of the Fed.

He has been called the “intellectual godfather of the Tea Party,” but he also is the real father of the Tea Party movement’s most high-profile winner, Senator-elect Rand Paul of Kentucky. (The two will be roommates in Ron Paul’s Virginia condominium. “I told him as long as he didn’t expect me to cook,” the elder Mr. Paul said. “I’m not going to take care of him the way his mother did.”)

Republicans had blocked Mr. Paul from leading the monetary policy panel once before, and banking executives reportedly urged them to do so again. But Republicans on Capitol Hill increasingly recognize that Mr. Paul has a following — among his supporters from 2008 and within the Tea Party, which helped the Republicans recapture the House majority by picking up Mr. Paul’s longstanding and highly vocal opposition to the federal debt.

Aides, supporters and television interviewers now use words like “vindicated” to describe him — a term Mr. Paul, a 75-year-old obstetrician with the manner of a country doctor, brushes off.

“I don’t think it’s very personal,” he said in an interview in his office on the Hill, where he has represented the 14th District of Texas on and off since 1976. “People are really worried about what’s happening, so they’re searching, and I think they see that we’ve been offering answers.”

If there is vindication here, Mr. Paul says, it is for Austrian economic theory — an anti-Keynesian model that many mainstream economists consider radical and dismiss as magical thinking.

This quality of journalism coming out of the NY Times is nearly unheard of. Rarely if ever have reporters been willing to take up this stance with such clarity: The establishment said one thing. The libertarians said the opposite. Time passed, and more and more people are thinking the libertarians were right. That’s just not an easy thing to admit to.

Even framing the debate that way is rare. Typically mainstream papers do their absolute best to portray every issue as a conflict between one vague tyranny and some other vague tyranny. When the NY Times summons the will to talk about monetary theory, it almost invariably discusses the arguments for government-created inflation versus government-created deflation. The idea of monetary choice is never mentioned, either because the mainstream reporters don’t want us to know about it, or because they sincerely can’t even imagine it.

But that is changing – fast – and this article proves it. I wonder how many people read the NY Times on Monday and then Googled Keynesian or Austrian economics. I wonder how many of them managed to find the rap video which explains the difference between Keynesian and Austrian views on the causes of and cures for the Great Recession.

Freedom comes when libertarians take control of the dialogue of the day and define the terminology to be used in discussion. As long as people are taught to think in terms of what kind of lifestyle will be forced upon them, progress cannot be made. But when ideas like those of the Austrian economists and others who identified the nature and significance of individual choice start to enter the discussion, the genie is let out of the bottle. A human being, once taught that he is capable of making decisions different from those of others around him without entering into violent conflict with them, cannot be de-educated, and cannot be silenced.

It is unnecessary for me to continue to pick a part the minutiae of this article with commentary. You can see the significance. Now read the remainder of it, observing the terms which I have chosen to emphasize. You will find that they have certain key characteristics. Namely, they are specific, which is to say, they refer to a definable idea or object which can be qualified and observed, they are relevant to serious issues that face America today, and they are oriented around a discussion of choice, meaning that they either are associated with advocates for violent intervention in the lives of peaceful people or associated with advocates for peace and freedom. By helping to shift the dialogue of our day to center around these words, the NY Times has (perhaps inadvertently) made a substantive contribution to the libertarian movement.

The theory argues that markets operate properly only when they are unfettered by government regulation and intervention. It holds that the government should not have a central bank or dictate economic or monetary policy. Once the government begins any economic planning, such thinking goes, it ends up making all the economic decisions for its citizens, essentially enslaving them.

The walls of Mr. Paul’s Congressional office are devoid of the usual pictures with presidents and other dignitaries. Instead, there are portraits of Ludwig von Mises and Murray Rothbard, titans of the Austrian school. For years, Mr. Paul would talk about their ideas and eyes would glaze over. But during his presidential campaign, he said he began to notice a glimmer of recognition among those who attended his events, particularly on college campuses.

Mr. Paul now views his exchange with Mr. Giuliani in 2008 as a crucial moment in his drive for more supporters. “A lot of them said, ‘I’d never heard of you, and I liked what you said and I went and checked your voting record and you’d actually voted that way,’ ” he said. “They’d see that the thing that everybody on the House floor considered a liability for 20 years, my single ‘no’ votes, they’d say, ‘He did that himself; he really must believe this.’ ”

His campaign that year attracted a coalition that even he recognizes does not always stand together: young people who liked his advocacy of greater civil liberties and the decriminalization of marijuana; conservatives who nodded at his antidebt message; and others who agreed with his opposition to the Iraq war.

During George W. Bush’s presidency, he was out of favor with the reigning neoconservatives who were alarmed at his anti-interventionism. He still gives many conservatives fits with comments like his praise for WikiLeaks.

And many of those who follow the Fed closely say his ideas are “very strange indeed,” in the words of Lyle E. Gramley, a former governor of the Fed who is now a senior economic adviser at the Potomac Research Group. “I don’t think he understands what central banking is all about,” Mr. Gramley said.

Putting such a critic of the Federal Reserve chairman, Ben S. Bernanke, in such a prominent role, he added, could damage economic confidence. [Editor’s note: Business is driven by the animal spirits!]

The public doesn’t understand how serious the problem was and why the Fed had to take the action it did,” Mr. Gramley said. “Having someone in Congress taking shots at the Fed makes the situation uneasy.”

Still, Mr. Paul says, his colleagues respect his following outside Washington. “I was on the House floor today,” he said, “and somebody I don’t know real well, another Republican, he was talking to two other members, and he knew I was listening. He pointed at me and said, ‘That guy has more bumper stickers in my district than I do!’ ”

Interview requests are so common that Mr. Paul has set up a camera and studio backdrop in his district office to save him the hour’s drive to television stations in Houston.

His bill demanding a full audit of the Fed, which he had unsuccessfully pushed for years, attracted 320 co-sponsors in the House this year.

And the lunches that he has held in his office every Thursday, where lawmakers can meet intellectuals and policymakers who embrace Austrian economics, have become more crowded, drawing Tea Party celebrities like Congresswoman Michele Bachmann of Minnesota.

“For a long time, a lot of people in Congress on both sides of the aisle agreed with Ron a lot of the time but felt it wasn’t safe to go there,” said Jesse Benton, a longtime Ron Paul aide who ran Rand Paul’s Senate campaign.

The father is about to gain even greater visibility. He says he will use his new chairmanship to renew his push for a full audit of the Fed and to hold a series of hearings on monetary policy.

On Web sites for Ron Paul fans, there are urgent pleas for a father-son (or son-father) “Paul/Paul 2012” ticket. But in an interview, the senior Mr. Paul seemed taken by surprise by the suggestion of teaming up. While he is bursting-proud of his son, he is not necessarily ready to yield the spotlight: He is pondering another presidential run on his own.

“I’d say it’s at least 50-50 that I’ll run again,” he said, adding that he would look at where the economy is. (Aides add that it would depend a lot on what his wife, Carol, says.)

But for all the ways the Tea Party echoes Mr. Paul on fiscal issues, it is not clear such support would carry over into a presidential campaign. The last time he ran, he won less than 2 percent of the vote, though that was before the Tea Party became a force in politics.

Even many Tea Party conservatives are not on board with Mr. Paul’s beliefs about scaling back the United States military worldwide. And Paul supporters look on the Tea Party with some disdain.

Mr. Paul acknowledged the sometimes competing interests among Tea Party supporters and his fans. “What brings them together is this acceptance that there’s something really wrong, that we’ve spent too much money and government’s too big,” he said.

That, he added, was why he had to work at keeping up his influence, particularly in spreading the word about the cost of foreign interventions.

Still, he noted: “We’re further along than I would have expected in getting our message out in front. I thought I’d be long gone from Congress before anybody would pay much attention.”


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