Below The Beltway

I don’t know about you, but I missed the chapter on nepotism in the collected works of Ludwig von Mises:

Rep. Ron Paul (R-Tex.) has built a national following largely by preaching an isolationist foreign policy. Stick with your own kind, says the maverick presidential candidate.

And that’s more or less what he has been doing over the past few months, putting relatives in a slew of key positions and paying them a total of $169,063, according to the latest campaign finance reports.

Paul’s granddaughter Valori Pyeatt helps organize fundraising receptions and has been paid $17,157. Another granddaughter, Laura Paul ($2,724), handles orders for Ron Paul merchandise. Grandson Matthew Pyeatt ($3,251) manages Paul’s MySpace profile. Daughter Peggy Paul ($2,224) helps with campaign logistics. The candidate’s sons Randall and Robert and his daughter Joy Paul LeBlanc have all been paid for campaign travel and for appearing as surrogates at political events.

Who keeps track of all these finances? Paul’s brother and daughter, naturally, who have been paid a combined $62,740 to handle the campaign’s accounting.

While the practice itself is perfectly legal, it does raise questions about how much of the campaign is being used to provide jobs for family members and it’s remarkably similar to the way the company that published those controversial newsletters back in the 80’s was run:

Besides Ron Paul and Lew Rockwell, the officers of Ron Paul & Associates included Paul’s wife Carol, Paul’s daughter Lori Pyeatt, Paul staffer Penny Langford-Freeman, and longtime campaign manager Mark Elam (who has managed every Paul congressional campaign since 1996 and is currently the Texas coordinator for the presidential run), according to tax records from 1993 and 2001. Langford-Freeman did not respond to interview requests as of press time. Elam, president of M&M Graphics and Advertising, confirmed to reason that his company printed the newsletters, but said that the texts reached him as finished products.

The publishing operation was lucrative. A tax document from June 1993—wrapping up the year in which the Political Report had published the “welfare checks” comment on the L.A. riots—reported an annual income of $940,000 for Ron Paul & Associates, listing four employees in Texas (Paul’s family and Rockwell) and seven more employees around the country. If Paul didn’t know who was writing his newsletters, he knew they were a crucial source of income and a successful tool for building his fundraising base for a political comeback.

As the movement moves into a new phase, whatever that might be, those who give it money are, I think, entitled to know just what it is they’re paying for.