Quote:
Originally Posted by BearFlagRepublic
I'm amazed that Paul would say that, considering that everything on his web-site regarding trade is extremely anti-tariff. As I quoted earlier, he has said that unilateral elimination of our tariffs (again, China keeping theirs) would be a good thing for America. His site has nothing but negative things to say about tariffs.
New user here, I hope you don't mind me chiming in.
I think Ron Paul's answer is confusing here because it is a question between personal Ideology and Constitutional authority.
Ron Paul considers the Income tax unconstitutional and immoral.
"It is not ok to steal something from your neighbor, but if the government does it for you, then it is ok?" So one of his top priorities is to eliminate the Income Tax.
Tariff's on the other hand ARE Constitutional. So, even though he is an avid "free trader" ideologically, he recognizes that if our government needs to acquire funds in order to operate, tariffs would be an acceptable method, as they are constitutional and not immoral or as immoral.
Also, when considering Ron Paul's ideology in regards to "Free Trade", you have to take into account his entire monetary policy beliefs. Our Federal Reserve system and "fiat money" are responsible for our job loss,
not free trade. It is easier and cheaper for us to "print money" out of thin air and spend it than it is to actually produce goods to sell to other countries. This works fine as long as other countries are willing to accept this money. (This is coming to an end quickly)
With a monetary system where the dollars are backed by a hard asset, (such as the gold standard). You don't have trade deficits. If you keep spending money without making any money you go bankrupt and can't buy anymore goods. So, a hard-asset based currency requires you (the U.S.) to be productive and export, if you are going to import.
Note: he has not proposed going back to the gold standard immediately. He wants to legalize competing currencies (backed by gold and silver).
Personally: I think he wants to use this method so that people quickly learn the true level of inflation.