While still a medical resident in the 1960s, Paul was influenced by Friedrich Hayek’s The Road to Serfdom, which led him to read many works of Ayn Rand and Ludwig von Mises. He came to know economists Hans Sennholz and Murray Rothbard well, and credits to them his interest in the study of economics. He came to believe that what the Austrian school economists wrote was coming true on August 15, 1971, when President Richard Nixon closed the "gold window" by implementing the U.S. dollar's complete departure from the gold standard. That same day, the young physician decided to enter politics, saying later, "After that day, all money would be political money rather than money of real value. I was astounded."

First campaigns

Inspired by his belief that the monetary crisis of the 1970s was predicted by the Austrian School and caused by excessive government spending on the Vietnam War and wholesale welfare, Paul became a delegate to the Texas Republican convention and a Republican candidate for the United States Congress. In 1974, incumbent Robert R. Casey defeated him in the 22nd district. When President Gerald Ford appointed Casey to head the Federal Maritime Commission, Paul won an April 1976 special election to fill the empty seat. Paul lost some months later in the general election, to Democrat Robert Gammage, by fewer than 300 votes (0.2%), but defeated Gammage in a 1978 rematch, and was reelected in 1980 and 1982.

Paul was the first Republican representative from the area; he also led the Texas Reagan delegation at the national Republican convention. His successful campaign against Gammage surprised local Democrats, who had expected to retain the seat easily in the wake of the Watergate scandal. Gammage underestimated Paul's support among local mothers: "I had real difficulty down in Brazoria County, where he practiced, because he'd delivered half the babies in the county. There were only two obstetricians in the county, and the other one was his partner."

House of Representatives

Paul proposed term-limit legislation multiple times, at first in the 1970s in the House where he also declined to attend junkets or register for a Congressional pension while serving four terms. His chief of staff (1978—1982) was Lew Rockwell. In 1980, when a majority of Republicans favored President Jimmy Carter's proposal to reinstate draft registration, Paul argued that their views were inconsistent, stating they were more interested in registering their children than they were their guns. He also proposed legislation to decrease Congressional pay by the rate of inflation; he was a regular participant in the annual Congressional Baseball Game; and he continued to deliver babies on Mondays and Saturdays during his entire 22nd district career.

During his first term, Paul founded a think tank, the Foundation for Rational Economics and Education (FREE). Also in 1976, the foundation began publication of the first monthly newsletter connected with Paul, Dr. Ron Paul's Freedom Report (or Special Report). It also publishes monographs, books, radio spots, and (since 1997) a new series of the monthly newsletter, Ron Paul's Freedom Report, which promote the principles of limited government.

On the House Banking Committee, Paul blamed the Federal Reserve for inflation, and spoke against the banking mismanagement that led to the savings and loan crisis. The U.S. Gold Commission created by Congress in 1982 was his and Jesse Helms's idea, and Paul's commission minority report was published by the Cato Institute in The Case for Gold; it is now available from the Ludwig von Mises Institute, to which Paul is a distinguished counselor.

In 1984, Paul chose to run for the U.S. Senate instead of re-election to the House, but lost the Republican primary to Phil Gramm. He returned to full-time medical practice and was succeeded by former state representative Tom DeLay. In his House farewell address, Paul said, "Special interests have replaced the concern that the Founders had for general welfare. Vote trading is seen as good politics. The errand-boy mentality is ordinary, the defender of liberty is seen as bizarre. It's difficult for one who loves true liberty and utterly detests the power of the state to come to Washington for a period of time and not leave a true cynic."

In 2009, Paul was featured by CBS on Up to the Minute as one of two members of the U.S. Congress that have pledged not to receive pension from the United States government. The other is Howard Coble of North Carolina.

In the 1988 presidential election, Paul defeated American Indian activist Russell Means to win the Libertarian Party nomination for president. Paul criticized Ronald Reagan as a failure and cited high deficits as exhibit A. On the ballot in 46 states and the District of Columbia, Paul placed third in the popular vote with 432,179 votes (0.5%), behind Republican winner George H. W. Bush and Democrat Michael Dukakis. Paul was kept off the ballot in Missouri, and received votes there only when written in, due to what the St. Louis Post-Dispatch called a "technicality".

As the "Libertarian standard bearer", Paul gained supporters who agreed with his positions on gun rights, fiscal conservatism, homeschooling, and abortion, and won approval from many who thought the federal government was misdirected. This nationwide support base encouraged and donated to his later campaigns. Kent Snyder, Paul's 2008 campaign chair, first worked for Paul on the 1988 campaign.

According to Paul, his presidential run was about more than reaching office; he sought to spread his libertarian ideas, often to school and university groups regardless of vote eligibility. He said, "We're just as interested in the future generation as this election. These kids will vote eventually, and maybe, just maybe, they'll go home and talk to their parents." He traveled the country for a year speaking about issues such as free market economics and the rising government deficits: "That's why we talk to a lot of young people. They're the ones who are paying these bills, they're the ones who are inheriting this debt, so it's most likely these young people who will move into this next generation in government."

After the election, Paul continued his medical practice until he returned to Congress. He also co-owned a coin dealership, Ron Paul Coins, for twelve years with Burt Blumert, who continued to operate it after Paul returned to office. He spoke multiple times at the American Numismatic Association's 1988 convention. He worked with FREE on such projects as establishing the National Endowment for Liberty, producing the At Issue public policy series that aired on Discovery Channel and CNBC, and continuing publication of Dr. Ron Paul's Freedom Report.

Ron Paul & Associates (RP&A), Inc. was founded in 1984 by Ron Paul who served as President, Llewellyn H Rockwell Jr. served as Vice President, Ron Paul's wife Carol served as Secretary and Lori Pyeatt as Treasurer. The corporation was dissolved in 2001. In 1985 Ron Paul & Associates began publishing The Ron Paul Investment Letter and The Ron Paul Survival Report; it added the more controversial Ron Paul Political Report in 1987. Many articles lacked a byline, yet often invoked Paul's name or persona.

After his unsuccessful presidential bid in 1988, Paul returned to private medical practice and continued to allow the newsletters to be published bearing his name. For 1992, RP&A earned $940,000 and employed Paul's family as well as Lew Rockwell (its vice-president and occasional editor) and seven other workers. Murray Rothbard and other libertarians believed Rockwell ghostwrote the newsletters for Paul; Rockwell later acknowledged involvement in writing subscription letters, but attributed the newsletters to "seven or eight freelancers".

Paul considered running for President in 1992, but instead chose to support Pat Buchanan that year, and served as an adviser to his Republican presidential campaign against incumbent President George H. W. Bush.

Campaigns

1996 campaign

In 1996, Paul was re-elected to Congress after the toughest campaign race he had faced since the 1970s. As Republicans had taken over both houses of Congress in the 1994 election, Paul entered the race hopeful that his Constitutionalist policies of tax cuts, closing federal agencies, and curbing the U.N. would have broader support than in the past. The Republican National Committee focused instead on encouraging Democrats to switch parties, as Paul's primary opponent, incumbent Greg Laughlin, had done in 1995. The party threw its full weight behind Laughlin, including support from House Speaker Newt Gingrich, Texas Governor George W. Bush, and the National Rifle Association. Paul responded by running newspaper ads quoting Gingrich's harsh criticisms of Laughlin's Democratic voting record 14 months earlier. Paul won the primary with support from baseball pitcher, constituent, and friend Nolan Ryan (as honorary campaign chair and ad spokesman), as well as tax activist Steve Forbes and conservative commentator Pat Buchanan (both of whom had run presidential campaigns that year).

Paul's Democratic opponent in the fall general election, trial lawyer Charles "Lefty" Morris, received assistance from the AFL-CIO, but Paul's wider contributor base out-raised Morris two-to-one, giving the third-highest amount of individual contributions received by any House member (behind Gingrich and Bob Dornan). While Paul was able to paint Morris as a tool of trial lawyers and big labor, Morris ran numerous ads about Paul's advocacy of federal drug law repeal.

Morris also accused Paul of authoring questionable statements in past newsletters, some of which were characterized as racially charged. Paul's congressional campaign countered the statements were taken out of context. and that voters might not understand the "tongue-in-cheek, academic" quotes out of context. Further, the campaign rejected Morris' demand to release all back issues.

Paul went on to win the election in a close margin. It became the third time Paul had been elected to Congress as a non-incumbent. Upon his returning to Washington, Paul quickly discovered "there was no sincere effort" by Republicans toward their declared goal of small government.

Later campaigns

In 1998 and again in 2000, Paul defeated Loy Sneary, a Democratic Bay City rice farmer and former Matagorda County judge, running ads warning voters to be "leery of" Sneary. Paul accused Sneary of voting to raise his pay by 5%, increasing his travel allotment by 400% in one year, and using increased taxes to start a new government bureaucracy to handle a license plate fee he enacted. Sneary's aides said he had voted to raise all county employees' pay by five percent in a cost-of-living increase. Paul countered that he had never voted to raise Congressional pay. In both campaigns, the national Democratic Party and major unions continued to spend heavily on targeting Paul.

An online grassroots petition to draft Paul for the 2004 presidential election garnered several thousand signatures. On December 11, 2001, he told the independent movement that he was encouraged by the fact that the petition had spread the message of Constitutionalism, but did not expect a White House win at that time. Further prompting in early 2007 led him to enter the 2008 race.

Unlike many political candidates, Paul receives the overwhelming majority of his campaign contributions from individuals (97 percent in the 2006 cycle), and receives much less from political action committees (PAC's) than others, ranging from two percent (2002) to six percent (1998). The group Clean Up Washington, analyzing from 2000 to mid-2006, listed Paul as seventh-lowest in PAC receipts of all House members; one of the lowest in lobbyist receipts; and fourth-highest in small-donor receipts. He had the lowest PAC receipts percentage of all the 2008 Republican presidential candidates.

Paul was re-elected to his tenth term in Congress in November 2006. In the March 4, 2008, Republican primary for his Congressional seat, he defeated Friendswood city councilman Chris Peden, obtaining over 70 percent of the vote. On the 2008 ballot, Paul won his eleventh term in Congress running unopposed. In the 2010 Republican primary for his Congressional seat, Paul defeated three opponents with 80 percent of the vote.

Relationship with district

After 2003 Texas redistricting, Paul's district is larger than Massachusetts, with of Gulf of Mexico coastline between Houston and Rockport, Texas, covering some 22 counties. Even so, Paul opposes programs like federally funded flood insurance (typically supported by coastal and rural representatives) because it requires those outside flood zones to subsidize those within, but prohibits those within from choosing their own insurers. In an overwhelmingly rural region known for ranching and rice farms, Paul opposes farm subsidies because they are paid to large corporations rather than small farmers. Despite his voting against heavily supported legislation like farm bills, Paul's devotion to reducing government resonates with 14th district voters: in a survey, 54% of his constituency agreed with his goal of eliminating the U.S. Department of Education.

Paul adds his own earmarks, such as for Texas shrimp promotion, but he routinely votes against most spending bills returned by committee. Earmarks permit members of Congress, rather than executive branch civil servants, to designate spending priorities for previously authorized funds directed otherwise. Paul compared his practice to objecting to the tax system yet taking all one's tax credits: "I want to get their money back for the people."In A Manifesto, Paul states his views on earmarks this way: "The real problem, and one that was unfortunately not addressed in the 2007's earmark dispute, is the size of the federal government and the amount of money we are spending in these appropriations bills. Cutting even a million dollars from an appropriations bill that spends hundreds of billions will make no appreciable difference in the size of government, which is doubtless why politicians and the media are so eager to have us waste our time on [earmarks]."

Paul also spends extra time in the district to compensate for "violat[ing] almost every rule of political survival you can think of," traveling over daily to attend civic ceremonies for veterans, graduates, and Boy Scouts, often accompanied by his grandchildren. His staff helps senior citizens obtain free or low-cost prescription drugs through a little-known drug company program; procures lost or unreceived medals for war veterans, holding dozens of medal ceremonies annually; is known for its effectiveness in tracking down Social Security checks; and sends out birthday and condolence cards.

In 2001, he was one of only eight doctors in the House; even fewer had continued to practice while in office. He is occasionally approached by younger area residents to thank him for attending and assisting their deliveries at birth.

Legislation

Paul authors more bills than the average representative, such as those that impose term limits, or abolish the income tax or the Federal Reserve; many do not escape committee review. He has written successful legislation to prevent eminent domain seizure of a church in New York, and a bill transferring ownership of the Lake Texana dam project from the federal government to Texas. By amending other legislation, he has barred funding for national identification numbers, funding for federal teacher certification, International Criminal Court jurisdiction over the U.S. military, American participation in any U.N. global tax, and surveillance on peaceful First Amendment activities by citizens.

In March 2001, Paul introduced a bill to repeal the 1973 War Powers Resolution (WPR) and reinstate the process of formal declaration of war by Congress. Later in 2001, Paul voted to authorize the president, pursuant to WPR, to respond to those responsible for the September 11, 2001, attacks. He also introduced Sunlight Rule legislation, which requires lawmakers to take enough time to read bills before voting on them, after the Patriot Act was passed within 24 hours of its introduction. Paul was one of six Republicans to vote against the Iraq War Resolution, and (with Oregon representative Peter DeFazio) sponsored a resolution to repeal the war authorization in February 2003. Paul's speech, 35 "Questions That Won't Be Asked About Iraq", was translated and published in German, French, Russian, Italian, and Swiss periodicals before the Iraq War began.

Paul says his fellow members of Congress have increased government spending by 75 percent during George W. Bush's administration. After a 2005 bill was touted as "slashing" government waste, Paul wrote that it decreased spending by a fraction of one percent and that "Congress couldn't slash spending if the members' lives depended on it." He said that in three years he had voted against more than 700 bills intended to expand government.

Paul has introduced several bills to apply tax credits toward education, including credits for parental spending on public, private, or homeschool students (Family Education Freedom Act); for salaries for all K—12 teachers, librarians, counselors, and other school personnel; and for donations to scholarships or to benefit academics (Education Improvement Tax Cut Act). In accord with his political positions, he has also introduced the Sanctity of Life Act, the We the People Act, and the American Freedom Agenda Act.

List of bills sponsored and cosponsored

The following tables link to the Congressional Record hosted by the Library of Congress. All the specifics and actions taken for each individual bill Ron Paul has either sponsored or cosponsored can be reviewed further there. "Original bills" and "Original amendments" indicate instances where Ron Paul had pledged to support the legislation at the time the bill was initially introduced rather than at some other point during the legislative process of the bill.

Note: The numbers for the current session of Congress may no longer reflect the actual numbers as they are still actively in session.

Affiliations

Paul serves on the House Foreign Affairs Committee (having been on the Western Hemisphere and the Asia and Pacific subcommittees); the Joint Economic Committee; and the Committee on Financial Services (as Ranking Member of the Domestic and International Monetary Policy, Trade and Technology subcommittee, and Vice-Chair of the Oversight and Investigations subcommittee).

Paul was honorary chair of, and is a current member of, the Republican Liberty Caucus, a political action committee which describes its goal as electing "liberty-minded, limited-government individuals". Paul also hosts a luncheon every Thursday as chair of the Liberty Caucus, composed of 20 members of Congress. Washington DC area radio personality Johnny "Cakes" Auville gave Paul the idea for the Liberty Caucus and is a regular contributing member. He is a founding member of the Congressional Rural Caucus, which deals with agricultural and rural issues, and the 140-member Congressional Wildlife Refuge Caucus. He remains on good terms with the Libertarian Party and addressed its 2004 convention. He also was endorsed by the Constitution Party's 2004 presidential candidate, Michael Peroutka.

Paul was on a bipartisan coalition of 17 members of Congress that sued President Bill Clinton in 1999 over his conduct of the Kosovo war. They accused Clinton of failing to inform Congress of the action's status within 48 hours as required by the War Powers Resolution, and of failing to obtain Congressional declaration of war. Congress had voted 427—2 against a declaration of war with Yugoslavia, and had voted to deny support for the air campaign in Kosovo. A federal judge dismissed the lawsuit, ruling that since Congress had voted for funding after Clinton had actively engaged troops in the war with Kosovo, legislators had sent a confusing message about whether they approved of the war. Paul said that the judge's decision attempted to circumvent the Constitution and to authorize the president to conduct a war without approval from Congress.

Committee assignments

Rep. Paul serves on the following committee and subcommittees.

• Committee on Financial Services
• Subcommittee on Domestic Monetary Policy and Technology
• Subcommittee on International Monetary Policy and Trade
• Subcommittee on Oversight and Investigations
• Committee on Foreign Affairs
• Subcommittee on International Organizations, Human Rights, and Oversight
• Subcommittee on the Western Hemisphere
• Joint Economic Committee