Fiscal Responsibility

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Free markets, economic mobility, and equal opportunity are the drivers of innovation, entrepreneurship, and capital formation. Every piece of legislation should consider the impact on these drivers.

Our national debt is at a record high of $20 trillion and Congress continues to spend out-of-control.  American Treasury Securities have lost their AAA rating, which would normally place upward pressure on interest rates and exacerbate our national deficit.  Instead, the Federal Reserve continues to print money and purchase Treasury Securities to artificially bring their value up and corresponding interest rates down.  This increase in money supply weakens the value of the U.S. Dollar, making the United States an unattractive place to invest money, start a business or grow a corporation.  Joblessness is the result.  This cycle will only stop when the U.S Congress stops spending.

These are the principles that will return America to economic greatness:

  • Low taxes
  • Fiscal constraint
  • Low regulation
  • Sound monetary policy
  • Tort reform
  • Fair trade

In order to establish sound monetary policy, the Fed must focus singularly on price stability.  When the Fed attempts to use the money supply to create full employment or increase economic output, it weakens the dollar, creates inflation, causes bubbles, and intensifies the business cycle.  The financial crisis of 2008 was not caused by "unfettered free markets."  It was caused by government intervention in markets through manipulation of interest rates and money supply.  I would support repealing the Humphrey-Hawkins Act of 1978.

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