Saturday, January 26, 2008

One Thing Luskin And Schiff Agrees On

In the past, Ron Paul said he had no economic advisors and that his economic advisors are dead Austrian economists like Sennholz, Mises and Hayek. Now he has actually named two economic advisors: Donald Luskin and Peter Schiff. Almost ironic considering how they not only have widely different views of the U.S. economy, but more importantly because of the hard feelings created during a heated TV-debate and subsequent communication. But apparently, they are willing to set that aside for the good cause of Ron Paul.

Luskin has previously written an article on NRO endorisng Ron Paul and Schiff has written a letter to all his 60,000 clients urging them to donate the maximum $2,300 per person to Paul's campaign.

Despite all of this, Paul looks highly unlikely to win the Republican nomination. Which is too bad, as the nomination of anyone else will ensure a Democratic victory in the Presidential election (And probably also an expanded Congressional majority, ensuring dramatic tax and spending increases). Most Republican candidates cannot explain the recession as they until now have all said the U.S. economy is in great shape because of the Bush tax cuts. They have either ignored or endorsed the Fed policies which created the current problems. Ron Paul, with his understanding of Austrian economics, can by contrast point out how the Fed is responsible for the problems and how he is the only one to have opposed these policies. As Schiff wrote in his letter:

"Unfortunately, most of the criticism of our phony economic expansion has come from the left. The mindless cheerleading of the right will leave them devoid of any credibility on economic issues. Ron Paul is the only Republican who can say “I told you so.” If, as a result of right wing rhetoric, voters blame capitalism for our problems, this nation will take a giant turn to the left. While many on the left have criticized the economy, they have mainly done so for the wrong reasons and their “solutions” will only make the situation worse."


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