Gary Johnson on Budget & Economy Libertarian presidential nominee; former Republican NM Governor

Lay out a process for state bankruptcies

"If Gary Johnson were president, he would immediately cut all federal spending--entitlements, defense, education, everything--by 43% to rectify our fiscal blunders. And he'd just be getting started. What is [Johnson's] philosophy? In 2 words: limited government.

"He suggests that to encourage fiscal discipline, the federal government should pass a law that lays out a process for state bankruptcies--which are impossible under current law and would be hard to square with sovereign immunity--and makes it clear that federal bailouts are off the table. 'Everybody would scream' if a state went into bankruptcy, Johnson admits, but a federal bailout would only encourage profligacy."

No bank bailout; no farm subsidies; no stimulus

A: No, I'm against any type of federal stimulus.

Q: Should the U.S. have bailed out the major banks during the financial crisis of 2008?

A: No.

Q: Should the federal government subsidize U.S. farmers?

A: No.

Cut federal budget by 43% to bring it into balance

Trillion-dollar stimulus failed; so will another $450B?

Government is absolutely a big part of the jobs problem, but it is not the solution--other than by getting out of the way. Congress and the Administration have almost helped us to death.

We could have avoided default without raising debt ceiling

A: We would have still brought in $200 billion a month. How we make payments [determines] whether we default on any bills. But obviously going forward, we have to put the brakes on spending. I just argue that it will never be easier than now. In the bond market, if no one was buying our debt, that would mean the Federal Reserve printing money as opposed to individuals or countries loaning us money; that's the bond market collapsing--so when that happens, that is a whole lot of money and it has to result in inflation. Russia is the most recent example. As frightening as that scenario is, that's what going to happen. But we can fix this--there's going to be a lot of hardship and pain, but that's better than killing the patient and, the way we're going, we're going to kill the patient in a monetary collapse. But I am an optimist because I think it can be fixed.

Ending the fed OK, but that's only part of the solution

A: I think ending the Federal Reserve would be positive but if we end the Fed it's important to point out that that's not the end of the solution. A lot of the central banking function would have to be taken up by regional banks.

Stop incurring more debt; balanced budget by 2013

Gingrich: We don't need Obama's "balanced approach" (code for raise taxes). We need a balanced budget.

Santorum: Pass the Balanced Budget Amendment and work for its ratification across the country!

Gingrich: When you balance the budget there is no need to raise the debt ceiling. I am the only candidate who has balanced the budget.

Johnson: I'd avoid continually raising the debt ceiling by not incurring more debt! I'd submit to Congress a balanced budget in 2013, & veto any appropriation that exceeds that budget.

Santorum: DC doesn't work; we need to impose discipline on politicians who want to buy their reelection with your money. BBA is the only way.

Gingrich: We can balance the budget again by growing the economy, cutting spending and reforming government. That's how we did it before. We CAN do it again.

Our debt is greatest threat to our national security

Gingrich: The exploding debt crisis is because of exploding politician spending in Washington, not because of national security.

Santorum: The first priority of the federal government is to keep America safe. I would not cut defense--freeze it; cut waste; and then plow savings back into Defense.

Johnson: The debt is the greatest threat to national security we face today. Besides, we do not need 60,000 to 100,000 troops in Afghanistan and Iraq to protect ourselves. Nor do we need nation-building.

Gingrich: We spend less on defense today as percentage of GDP than at any time since Pearl Harbor.

Santorum: The first priority of the federal government is to keep America safe. I would not cut defense--freeze it; cut waste; and then plow savings back into Defense.

Gingrich: Controlling the border and defending America are job #1 under the Constitution.

Opposed TARP, stimulus & Fannie Mae bailout

He has said that he would cut the federal budget by 43%, "Start out with the big four - Medicaid, Medicare, Social Security and defense," Johnson said in New Hampshire in early 2011.

End the Fed; they've devalued the dollar by printing money

A: And then talking about monetary policy in the country. The fact that the dollars that we have in our bank accounts today, are worth less than they were yesterday or worth less than they were a week ago, a month ago, a year ago. That's the fact we are printing money to cover all these obligations. The Federal Reserve has devalued the dollar significantly from a monetary policy standpoint, abolishing the Federal Reserve would bring about this discipline of spending within our means. We can balance the federal budget, but we need to do that tomorrow. I don't have a plan for getting a quarter of a way there in eight years. I have a plan here or a desire that we do this in 2013.

On verge of financial collapse unless we balance budget

I'm an entrepreneur that ran for governor of New Mexico promising to bring a common sense business approach to state government that everything was going to be a cost benefit analysis. I got reelected in a state that was 2:1 Democrat. I think we're on the verge of a financial collapse unless we balance the budget and that means some really tough choices that all doable and they're all doable under the context of a commonsense business approach to the way government does business and a cost benefit analysis that goes along with everything that government is doing.

Balance budget by cutting entitlements AND Defense

"I think we should balance the federal budget tomorrow," Johnson said. "I'm optimistic. I think Americans are optimistic. We went to the moon, we can balance the federal budget. We can fix this. We're not addressing the problems that we face, and that starts with Medicaid, Medicare, reforming Social Security and Defense. And I mean cutting those areas

Uphold commitments to states before other spending.

The Issue

NGA’s Position

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