Neil Cavuto: Yeah but, you can't, Congressman, we've got a pretty good economy going here, right? We've got productivity soaring. We've got retail sa… - Ron Paul

Welfarism and excessive spending and deficits and socialism divide us, because everybody has to go to Washington. Those who have the biggest clout, whose who are the best lobbyists, those who go and they grab. And whether it's the medical industrial complex, or the banking industry, or the military industrial complex, that's who ends up controlling our government... For so long, conservatives and constitutionalists have lost the argument, they lost the moral highground. Because those who want to give things away, not talking about where they steal it from, but they want to give things and take care of people, they get the moral highground and they come by as being compassionate. And we who believe in liberty, we lack compassion. But the truth is, there's only one compassionate system known to man, and that is freedom and personal responsibility, then there's enough wealth, and then we will all have personal responsibility to use this compassion that we have, first to take care of our families and friends and neighbors, and there would be so much wealth that we could spread this wealth around the world.

You can't have a government like this without an income tax, but we don't want a government like this. This is not the type of government that was designed by the founders of the country. This is not what was written in the Constitution. We've only had an income tax since 1913. But if you want a welfare state, and if you want to police the world and pay for the defense of Japan and Germany, give foreign aid to the Soviet Union. You not only need the income tax you need the Federal Reserve to print up the money when the deficit is accumulated. So we think that government should be smaller. If government is small, then you don't need the income tax.

In a free-market economy, the consumer is king: labor unions don't run things, business people don't run things, bankers don't run things, politicians don't run things, but the success of a business depends on how people spend their money.