Republican presidential hopeful and Texas Congressman Ron Paul recently unveiled an economic reform plan rooted in Austrian free market economics.

Free market economics differs from Keynesian economics in that it calls for a sound, commodity-backed monetary system (such as a precious metal standard) with little government interference. Such a standard enforces fiscally conservative government spending.

In contrast, Keynesian economists generally support a central bank (Federal Reserve) to artificially intervene in the economy to regulate interest rates, with the discretion to print money from thin air. Keynesian proponents support the notion of fiat currency, which usually removes all commodity-backing, and relies on global investing and borrowing to prop up the value of a country's currency.

When the Federal Reserve lowers interest rates, inflation results, and your savings suffer. For example, a middle-class working family in Rochester with $5,000 in the bank at an inflation rate of 10 percent would, by year' end, have the purchasing power of $4,500. This is especially harmful to those on fixed incomes.

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Paul's plan works toward addressing monetary, regulatory, spending and tax reform.

The Federal Reserve operates in relative secrecy, and one point of this plan calls for "full public scrutiny" of its meetings. Article I, Section 8 of the Constitution delegates Congress with the power to regulate currency value. Nonetheless, the Fed has zero accountability to Congress. Paul's plan calls for transparency to restore our lawmakers' involvement in preserving our currency.

In addition, gold and silver would be legalized as a competing currency. Currency-based competition would drive the Fed to be more fiscally responsible. This benefits the working class by encouraging savings and decreasing inflation.

America spends $1 trillion in overseas commitments. This money is mostly borrowed from China at a high interest rate. If we decrease overseas expenditures, domestic programs such as Medicare can be preserved.

By reducing federal regulations, jobs will begin to trickle back onto American soil. Sadly, over-taxation now discourages capitalism in America.

Elders now receive fewer Social Security benefits if they have another source of income. Paul's tax reform plan would call for an end to gross income inclusion in Social Security benefits, and let our elderly keep all the fruits of their labor. Taxes on dividends and savings also would be eliminated, thus spurring investment in the economy.

In conclusion, while Paul's plan may not completely address every issue our economy is facing, it is a giant step in the right direction. The Bush tax cuts do encourage short-term economic growth, but long-term growth is badly needed. To read the complete plan, visit ronpaul2008.com/prosperity.