Ron Paul Says Bailout is Morally Wrong

By Nicholas Ballasy | October 6, 2008 | 7:34 PM EDT

( - The House of Representatives passed on Friday a $700 billion bailout package that says the government can lower the interest and loan principal on mortgages of people who cannot pay their monthly mortgage bill – and that policy is “morally wrong,” Rep. Ron Paul (R-Tex.) told

“They borrowed 120 percent on their houses and they expect to get bailed out? It’s wrong morally and it won’t solve our problems,” said Paul.

Further, the government being able to lower the interest and loan principal for people who did not pay their mortgages is an injustice for the rest of Americans who do pay their monthly mortgage, said Paul.

“Well, it’s unjust because it’s interference with contract and the government is supposed to protect contracts,” he said. “The government should be very limited in scope and power, but one of the mandates in the Constitution is that it enforces contracts. If you and I had a contract with a mortgage on a house and you didn’t pay your bills, I have a right to foreclose and the government has no right to interfere in the contract.”

Paul added that the government “coming in” and “manipulating contracts” violates the “principle of private property.” also asked Paul if people paying their mortgage on time are right in saying the government should not pay for other people who are not paying their mortgage bill.

“They are right morally, economically, and constitutionally, but they are just not right politically because the political forces here are always to be politically correct and you can’t do anything to hurt somebody,” he said.