Should Ron Paul Voters, Libertarians Choose McCain?

Dave of TX

You are right, Dave, that the backstop against the collapse of the economy has been the intervention of the Fed, but Ron Paul sees this as a bad thing.

The fact of the matter is that the utility of money is enhanced if its value is predictable. Ron Paul's gold bug economics would turn us all into commodity speculators. The changing value of the dollar is a big concern, but there is no question that the value of commodities has been even more volatile. If we had been on a gold standard, the situation would have been far worse--either wages would have had to be cut (and the minimum wage would have put limits on this) or unemployment would have become tremendously worse.

It is easy to look at gold and think that you would have been better off as a gold speculator, and that Ron Paul's money policies would have made you rich, but you cannot make everyone rich merely through deflation of the currency. That's a pipe dream. Prices would have had to change dramatically in order to represent the value those goods and services provide and consume. The natural limitations on these price changes (such as fixed contracts) would have meant that the economy would have been removed far from its optimum, and that would have made most people much poorer.

Our currency is credit money, it has value because of the difficulty of paying off loans, and the supply of money expands or contracts along with loans. Unlike commodity money, there is no "bimetalist" catastrophe (money backed by two independent sources of value) that arises from money substitutes and alternative media of exchange. However, when a lot of loans default, that can affect the value of money because the effective money supply collapses--driving the value of money upward and leading to even more defaults. The appropriate Fed action is that which tends to keep the value of the currency most predictable.

This is not being countercyclical with respect to the economy, but merely balancing those things that will have an effect on the value of money.

The other problem with gold bug economics is that if your currency is based on a commodity, then it will soon be devalued as fiat money. The value of credit money can change, but never by fiat--that is, the government can do things to change the value of the dollar, but ultimately that value is decided by the free market. But every government that has adopted commodity money has eventually decided to fix the price of the underlying commodity, while debasing the currency. So, Ron Paul denounces fiat money, while at the same time advocating the policies that bring it about.

I think that Paul has the right idea about a lot of things, and his basic instincts are right, the problem for me is that he passionately believes in so many things that are wrong, and refuses to compromise.

Mazzula of VA @ Jun 14, 2008 12:27:59 PM

McCain...? Not when there's Barr...

Bob Barr is prepared to carry on Ron Paul's fight. A money bomb is in the works for July 2nd. You can pledge here:

http://www.barrbomb.com/

or go directly to

http://www.bobbarr2008.com/

Carol of WA @ Jun 13, 2008 23:37:04 PM

No way

Nudge McCain in the right direction?

McCain has been a traitor to POWs and this country for too long, he's the same age as Ron Paul. To think he has a chance to change after he's elected is far more ridiculous than the idea he can change today just be lying to us to get our vote.

NO THANKS. I'd rather be a passive player.

Kyle Singer of CA @ Jun 13, 2008 22:34:27 PM

St. Paul is not in Minnesota...

...He resides in the 14th District, Texas. I'm not in a swing state, so I'll probably vote for for Barr, but if it comes down to the wire, I'll vote for Obama. The neo-cons and war mongers took over the GOP. A huge loss in November might just bring the party back to its platform, which is 100% in line with Ron Paul's voting record and follows the Constitution.

The Democrats have two candidates in the race. McCain might as well choose Lieberman, Kerry or Feingold as his running mate.

Make Levees, not war.

Albert Meyer of TX @ Jun 13, 2008 19:33:47 PM

correction: Nobody knows anybody---

correction to my post directly above. Nobody knows anybody who likes McCain, even though he got millions of votes. Go figure.

Marilyn Townsend of TX @ Jun 13, 2008 18:33:49 PM

Where are the millions of McCain supporters?

Isn't it amazing how millions of people voted for McCain, yet somebody knows anybody who likes him. Very strange. If the media had not marginalized Ron Paul, he would have the GOP wrapped up, and he still could, even now. But if not, then American is getting just what they deserve.

Marilyn Townsend of TX @ Jun 13, 2008 18:31:22 PM

I wouldn't even CONSIDER McCain!

I don't think any self respecting Ron Paul supporter could vote for him!

I'll vote for whomever has the closest Ron Paul like stance and will be taking a close look at Barr or Baldwin. No repugnican/demoralcrat lesser of two evils for me!

On side note, Ron got 24% of the vote here in the Idaho primary. (23.7% to be exact)

Bill of ID @ Jun 13, 2008 17:23:22 PM

I'll vote for McCain

But only on two conditions.

1. He has Ron Paul for his VP running mate.

or

2. Obama chooses Hillary Clinton for his VP running mate.

Otherwise, I've voting for whomever supports my positions the best.

Michael D. Houst of NH @ Jun 13, 2008 15:18:15 PM