Ron Paul is Wrong. Bankruptcy is Not the Answer

Ron Paul recently confessed that he is OK with the U.S. defaulting on its debt. He stated on Iowa’s WHO radio that bankruptcy is “absolutely” the cure for the United States. I understand his fixation on the gold and silver standard and abolishing the Federal Reserve is guiding his judgment here. I am a firm believer in both those ideas but bankruptcy is irresponsible, as irresponsible as the rest of Congress. We need to take responsibility for our actions. We got ourselves into this fiscal mess by voting these leaders into power. We made promises that couldn’t be kept. We have demanded entitlements for ourselves to be paid for by everyone but ourselves. The time for irresponsibility is behind us. Let us accept the mess we are in and start paying off our debts and massively cutting spending. There is no quick and easy fix. It is going to hurt and it should.

Congress and voters are used to the constant spend and borrow procedure the Federal Government engages in. The results of this self-imposed policy needs to be felt. The repercussions of a nation destroying itself through the voting process must be felt before we can begin to learn from our mistakes. It is inevitable that we will repeat these same mistakes but let us hope we can provide a better future for our children and grandchildren and their generations before it happens again.

Psalm 37:21
The wicked borrows and does not pay back, but the righteous is gracious and gives.

Ecclesiastes 5:5
It is better that you should not vow than that you should vow and not pay.

Update 11:31 am: As I’m reading the comments, I get the feeling that most people aren’t thinking logically on this.

First off, as a side note. Everyone who thinks I’m “putting words into Ron Paul’s mouth” needs to listen to the interview.

Secondly, since when does a group of people (Libertarians) who believe in personal responsibility suddenly believe that responsibility goes no further? We collectively got into this mess as a country. I didn’t vote for any of these entitlements. I didn’t even vote for the people in power who voted for them. I wasn’t born or old enough when most of this mess began. My ability to be responsible as an individual extends to all areas of life. Businesses and government must be responsible as well. Our nation has screwed itself on a continual basis. This didn’t happen over the past 4 or 10 years. It has been happening over the past 200 or so years.

The reality is that it is not the time to throw our hands up and wipe the slate clean and start over. We aren’t there yet. Gut the Federal Government down to its Constitutional duties and lower taxes. That’s the reality. Paying off the debt is realistic, but it is not going to happen over night. It may not happen within a generation. My responsible self sees this as the moral conclusion. Enormous debt is immoral and it’s destruction is a reality that must be faced. Wiping the slate clean shows there are no real consequences of bad policies. All it does is ingrain into the minds of our nation that there are no consequences to our actions.

What example is that for a Government to default on its debt? What if the entire nation defaulted on its personal debt?

Lastly, those who are complaining about my criticism of Ron Paul need to stop whining. I generally like Ron Paul’s ideas. I don’t like this one. Should I silence my political criticism of those I believe are doing good because it hurts your feelings? You sound like a bunch of Liberals. You shout for joy when we bash Democrats, Liberalism, and fellow Republicans, but when we touch “your” candidate you can’t handle it.

Update 12:37 pm: Follow-up post.