When Ron Paul met Piers Morgan

"Once you become a Ron Paul supporter you remain a Ron Paul supporter."

Despite his poor performance in the Republican primaries thus far, Ron Paul spoke to Piers Morgan with characteristic optimism and enthusiasm. Arguably more self-assured than Rick Santorum who appeared on the show two weeks ago, Ron Paul refuted claims that he can't win the nomination, telling Piers Morgan: "I have steady growth -- once you become a Ron Paul supporter you remain a Ron Paul supporter."

In his interview with Rick Santorum, Morgan referred to Ron Paul as "barking". While the Texas Congressman has been criticised for his slightly eccentric views, the one thing he cannot be accused of is flip-flopping, unlike fellow candidate Mitt Romney.

Despite being the oldest candidate in the field at 76, Paul has a significant youth following. "My principles of liberty are inviting to young people," he told Morgan. "Their minds are more open; they won't just accept the status quo."

Morgan went on the attack about health care, telling the Congressman that his view -- that if you can't afford health insurance you should essentially fend for yourself -- is uncompassionate. In his defence, Paul argued that the Soviet system wasn't actually able to medically care for its people because it ended up totally bankrupt. In this respect, for Paul, the worst thing possible would be to depend on the government. Speaking as a child of the Great Depression, he said: "You have to assume responsibility for yourself."

However, he failed to mention quite how people should afford backbreaking insurance prices without government assistance. So, what would vulnerable people have to do in Ron Paul's society to get healthcare? The Congressman dodged the question with the sweeping generalisation that "to produce the best middle class you have to do it through freedom, not through redistribution of wealth."

Morgan asked Paul what he thought about Romney's comment that he "isn't concerned about the very poor" -- a statement that has been taken wildly out of context. Refusing to take the talk show host's bait and go on the attack, which is undoubtedly what Newt Gingrich would have done, Paul said: "I don't have many agreements with Mitt on policy - not on foreign policy, spending policy, bailout policy - but I've ended up defending him on this." Unlike the other Republican candidates, Paul doesn't play dirty politics.

Paul did, however, sum up his political ideology: "Sound currency, limited government, contract rights, don't bail out anyone -- that's when the poor get benefits and jobs will come. I'm as concerned about the poor as much as anyone else, but I don't think robbing from one group works."

On foreign policy, Paul is a stark contrast to the views Rick Santorum expressed on the show a few weeks ago. He categorically denies that he is pacifist, but says he only believes in war when it's justified. "From a strict constitutional viewpoint I don't want to fight any wars that aren't declared and, since World War II, nothing has been justifiable because we haven't gone through the proper process." Paul said that he did not support US forces in Afghanistan following the 9/11 attacks because "the country didn't attack us -- a bunch of thugs did."

His foreign policy views stand in particular contrast to the other Republican candidates' with regard to Iran. Santorum, speaking to Morgan a number of weeks ago, said that he would have no qualms about bombing Iran. However, Ron Paul said that a pre-emptive strike would be aggression and "aggression is for dictators." His view on the pre-emptive issue has caused him to appear weak on national security. He said: "Iran is the same principle as Iraq. We were wrong to go in there and we lost 8,500 US lives."

He confirmed his isolationist philosophy by saying that the British should be the ones to "take care of Israel," not America. "Why is it assumed that we are the policemen of the world, that it's our moral obligation? Besides, we're broke!"

Paul's non-interventionist policies are certainly seen as radical and, in many ways, deeply un-Republican. Fellow GOP candidate Newt Gingrich said that Paul's views "are totally out of the mainstream," although this is a little rich coming from the man who is planning a moon colony.

Morgan bizarrely asked the Congressman whether he was "a spanker" with his children. Comparing his parenting and foreign policy views, Paul told him: "I reject the use of force and intimidation with children, as I do with politics."

The interview made for uncomfortable viewing as Morgan rarely let Paul finish a sentence. While his rigidity and firmness in his policy ideas has been praised, Paul did demonstrate a willingness and ability to modify his opinions and bend where necessary. However, the self-proclaimed "conservative liberal" is perhaps the man you want as your grandfather, not your president.

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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR