For all ye Ron Paul fans who want to abolish the Federal Reserve System and go back to a gold standard, I have sad news for you: the federal budget needs to be balanced first.
And not just balanced now and then. It needs to be balances on average. That means surpluses during good years to offset any deficits during bad years. Given that the Baby Boomers are beginning to retire, we cannot simply assume that real economic growth will take care of tomorrow’s problems.
If we drop back towards a more neutral foreign policy, end the Drug War, and let the states handle education, then we come closer to a balanced budget — but these reforms are likely not enough. And so I recommend some revenue enhancements for Ron Paul supporters. They are part of my new tax reform series.