Economics Made Economical

On Ron Paul & Fiscal Policy

Ron Paul, member of the United States House of...

Ron Paul, member of the United States House of Representatives from Texas. (Photo credit: Wikipedia)

Recently I wrote about why I believe Ron Paul and his average supporter are not true capitalists and lack a basic understanding of economics. A recent article was published after last Monday’s GOP debate. The author mentioned that Paul seemed out of touch with most Americans. One of the reasons why, the article explained, was Paul’s use of technical economic terms that the average American would likely not fully understand.

The terms mentioned included Keynesian Economics and Fiscal Policy. Predictably Ron Paul‘s supporters bombarded the article’s comment section, laughing off the idea that people might not understand what Fiscal Policy is. Ironically, the Paul supporters only proved the author’s point by demonstrating that Fiscal Policy is not as straightforward a concept as they might have believed.

Fiscal Policy is not something that is generally taught in high school. In fact, it’s generally not taught at the collegiate level unless you are studying economics. Even then, it’s by no means an Economics 101 concept. I didn’t learn about Fiscal vs. Monetary Policy until studying macroeconomics at the 300-level. Clearly the average American has not studied at least three years’ worth of undergraduate macroeconomics. It’s unfortunate that people often confuse the economic term Fiscal Policy with the day-to-day meaning of fiscal policy. It is for reasons like this that suggest to me that Dr. Paul is not really in it to win it. Having the support of many teenagers is great until you realize that those teens aren’t old enough to vote for you.



  1. I consider myself fairly well educated on fiscal and monetary policy, and I still don’t feel comfortable talking about all of the various implications any specific policy may have at the national level. To think that average American voters will be able to understand and make an informed decision on something as complex as returning to the gold standard is, quite frankly, comical at best.

  2. Amber Miers MD

    “A dollar collapse would be a disaster all round It would leave the international monetary system short of stability and long on fear.


  1. The Glossary, Part II: Fiscal Policy vs. Monetary Policy « econprofessor
  2. Is Herman Cain America’s Next President? « Econoblog
  3. Is Ron Paul a Serious Contender? « Econoblog
  4. Ron Paul’s Numbers Continue To Plummet « Econoblog
  5. FCC Presents Congress With Net Neutrality Regulations « Econoblog
  6. What Is Fiscal Policy? « Econoblog

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