If there is anyone unaware of our nation being mired in an economic slowdown, I would be surprised. The dollar’s value is shrinking; government’s cost is rising; and "somebody ought to do something" is the cry of the hour.

So government leaders have decided to give virtually every American some money. The problem here is that the government doesn’t have any money to give. Pointing his finger at government leaders of both parties, Texas Congressman Ron Paul told radio host Glenn Beck yesterday: "They either have to borrow it from China or print it." Borrowing incurs interest payments in addition to adding to the burden faced by today’s children who will have to pay off the loan. Borrowing from China places the entire nation’s future in the hands of sworn enemies. And printing more money will lower the value of all existing money, while simultaneously impacting the value of insurance policies, retirement investments, and anything else denominated in dollars.

The weakening of the dollar and the rising cost of government programs are the main causes of the economic slowdown. Few want to admit that our nation is in a recession, but that’s where we are. And the plans to address the malaise just announced by congressional leaders — eagerly backed by President Bush — amount to throwing gasoline on an already blazing fire.

Congressman Paul urges a freeze on spending. Among other steps, he wants to end the enormous cost of having U.S. forces defend Europe, Japan and South Korea. He also wants to end the American presence in Iraq. "We could save hundreds of billions of dollars" with just these sensible steps, says the Texas congressman.

If government were on a diet, the value of the dollar wouldn’t be shrinking. That would be a much more sound way to help the American people than delivering more weakened dollars hither and yon. It would not see our nation become beholden to communist China or any other lender. As Ron Paul pointed out, every newly borrowed dollar weakens our nation, and every newly printed dollar very quickly "buys 80 cents worth of goods instead of a dollar’s worth."

While it’s comforting to know that someone seeking the presidency understands basic economics and is willing to obey its laws, it’s very unsettling to know how lonely he is among presidential aspirants. As Ron Paul says, "I just want to make sure we wake up before the dollar totally collapses." Many can ignore what he says, but none can disagree once pinned down to facing economic realities.

John F. McManus

www.jbs.org