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I'll say it again. It's not about Ron Paul. No one is all good or all bad. We all make mistakes. Ron Paul included.
The fundamental issue is this: Just because you think something is good does not justify the use of force to get it. We all have the right to life, liberty and to be left alone. When one decides that he knows what's best for others and starts using force to effect his goals, violence is the result. I don't have the moral authority to tell you how to live and vice versa.
Shared sacrifice is the tragedy of the commons. To your (Schmidt) example: Health care is expensive because of insurance and government subsidies among other things. Why, in every other area of technology but health care, are things getting cheaper and cheaper? You can now hold more computing power in the palm of your hand than existed in NASA's trip to the moon, but setting a broken leg now requires some massive insurance company or government bureaucracy. This is just one example of how good intentions to provide something backfire and hurt the very people they are ostensibly supposed to help.
But the practical argument is secondary. The hubris that some idea is so good that it justifies the use of force in its implementation is repugnant. There is a twisted logic among many so-called liberals that a person does not own herself. But even though she does not own herself, she can, with the collective, own everyone else. That is the fundamental failure of progressive liberalism, which at its core, is indistinguishable from the fascism of Mussolini or the communism of Lenin. All three spring from the notion that the individual is subordinate to the collective, and ultimately can be sacrificed on the altar of the collective. Democratic processes do not make it any prettier, and do not justify the violence inherent in that philosophy.
True liberals know that freedom requires respect for the individual, tolerance for others (especially those with whom we disagree), and rejection of coercion as a political means.
As for the Federal Reserve, try reading "The Creature from Jekyll Island".
All my best.