American consumers have enjoyed the lowest interest rates in decades – purchasing new homes, new cars and more. However, in light of his intense scrutiny of the Federal Reserve, a closer look at how Ron Paul feels about interest rates is warranted. Essentially, the Federal Reserve attempts to control the United States economy via calculated manipulation of interest rates. It’s the Federal Reserve that’s responsible for the low interest rates we’ve enjoyed this past decade. According to Ron Paul, the Federal Reserve should not exist. Look at some of his views explained in this article - Abolish the Fed:
“Mr. Speaker, I rise to introduce legislation to restore financial stability to America’s economy by abolishing the Federal Reserve. I also ask unanimous consent to insert the attached article by Lew Rockwell, president of the Ludwig Von Mises Institute, which explains the benefits of abolishing the Fed and restoring the gold standard, into the record.”
In a later article, Ron Paul asserts that low interest rates have made borrowing money too easy by young people who don’t borrow wisely (over-borrowing) and that the low interest rates have made life more difficult for older Americans – relying on savings accounts and certificates of deposit – wherein they earn very little money while interest rates are so low. Consider his thoughts in the aforementioned article:
“The Fed’s inflationary policies hurt older people the most. Older people generally rely on fixed incomes from pensions and Social Security, along with their savings. Inflation destroys the buying power of their fixed incomes, while low interest rates reduce any income from savings. So while Fed policies encourage younger people to overborrow because interest rates are so low, they also punish thrifty older people who saved for retirement.”
One can only surmise from the information in these articles by Dr. Paul is that he’s opposed to the low interest rates we enjoy today. Or, at the very least – he’s opposed to the manner in which these historically low interest rates have been achieved by the Federal Reserve.
E Lawrence Welch
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