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Understanding Ron Paul: Foreign Aid

Foreign Aid

Although $25 billion per year in foreign aid seems like a drop in the bucket to our annual $2.7 trillion dollars national revenue, however, one should put into perspective that our budget is over $3 trillion per year and our national debt is over $15 trillion. A rational person understands that this is simply unsustainable, in its most basic math. However, this is the obvious argument and I find no value in pressing this issue further. I will, however, stay on the argument of economics for the time being as I feel we are missing something that should resonate with American’s and is consistently ignored. That argument is a rudimentary economics lesson written by William Graham Sumner, called the forgotten man.

The Forgotten Man Applied

As we all understand, the $25 billion dollars has to, at some point, come from the productive sector of society; the taxpayers, whom we will call group A. This money is then provided as financial aid to foreign bureaucrats to their benefit alone, we’ll call this party, group B. We, as a species, have a predilection for considering only what we can immediately see in front of us. We can see the charity of group A (albeit a forced charity) and we can see the benefits reaped by group B. However, no one stops to consider that what we cannot see, which is group C; the forgotten man.

Group C is the car manufacturer, the clothing maker, electronics manufacturer, the bread maker, the paper miller, the restaurant owner, the bookseller, the small businessman; the list goes on ad infinitum. Since our government took the money from group A and gave it to group B, group C was never realized. Essentially we are giving charity to the foreign group B at the loss of what group C would have had to offer. Let me stress the magnitude of productive loss and potential unemployment we suffer due to this forced “charity”.

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