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The tea party movement will revolutionize the GOP – and the nation’s political landscape in the process, says former House Majority Leader Dick Armey.

Armey, now the chairman of FreedomWorks, and FreedomWorks President Matt Kibbe predicted in an exclusive Newsmax.TV interview that America's 1 million-plus tea partyers will reform the GOP and remake it into a force serving the cause of liberty rather than breaking away and forming a third party.

As a result, the GOP will beat the Democrats instead of being “a Democratic Party echo chamber” that pushes the same policies, says Armey, who co-authored the book “Give Us Liberty: A Tea Party Manifesto” with Kibbe. The book details the tea party movement’s past, present and future.

“There’s been a real wave of tea party victories in Republican primaries where you’ve seen tax-and-spend Republicans being replaced by real fiscally conservatives,” Kibbe told Newsmax.TV. “That suggests to me there is going to be not just a lot of Republican victories on Nov. 2, but a real shift in the center of gravity and the focus of this new majority.

“I happen to think the Republicans are going to at least pick up [a majority of seats in] the House, and maybe the Senate.”

The tea party movement confounds Democrats because it lacks someone like billionaire George Soros behind the scenes pulling the strings, and because voters from all walks of life participate in it, Kibbe and Armey say.

“The fact of the matter is this tea party movement ? these folks who put the idea of liberty, Constitution of the United States, free markets ahead of other forms of public meddling by powerful governments ? have a number of people who they have come to trust and respect,” Armey says. “Sarah Palin’s one of them; certainly [South Carolina Sen.] Jim DeMint is probably the officeholder of greatest respect; and I think they have a lot of respect for FreedomWorks.

“I like to think they like me a little bit, too. There is no doubt about how they feel about these folks because they’ve stayed consistently loyal to the central principles and ideals that are governing all of our motives in this big, broad-based, grass-roots movement in this war against big government in this country.”

The size of government has had a negative impact on the economy because it has put more than $2 trillion of private capital on the sidelines, and that will only be made worse by allowing the Bush tax cuts to expire at the end of this year, Armey says.

“If you want to stimulate the economy, give the private sector the signal that government will not take away your profits and will not regulate your behavior, so feel free to invest,” Armey says. “That’s a better stimulus than you could ever get from the government.”

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In our new book, Former House Majority Leader Dick Armey and I discuss the fundamental problems with assuming that public officials have our best interests at heart.

Excerpt from Give Us Liberty: A Tea Party Manifesto:

The Tea Party movement adds a welcome addition to the fundamental debate over the size and scope of government: grassroots activists armed with the intellectual arguments they need to make a difference in political debates, not just scholarly discussions. What is happening is a dramatic increase in the physical infrastructure and on-the-ground personal politicking that can turn ideas into action. The new generation of limited government scholars, and the internet, provides an even wider audience for good ideas. But unlike earlier generations, the new generation as the muscle to make things happen in the political arena.

While standing for the right ideas and values is vitally important, it is naive to think that politicians will do the right thing simply because a proposed polict will benefit the general citizenry, creating the conditions for economic opportunity and individual prosperity for all. That’s simply not how things work.If there was doubt about the proposition before, today it is painfully obvious that politicians in power often act in their own self-interest at the expense of the “public interest”.

The “currency” that drives the political marketplace is fundamentally different from the private economy. In the private economy, it is enough to have a good idea, identify a new product, develop it, and sell it to an identified (or created) customer base. In the market, entrepreneurship and competition determine outcomes. Returns and values matter and are ultimately determined by individuals making choices.

In the political economy, good ideas, philosophical values, and economic efficiency have little to do with how public policy decisions are actually made. The biggest error made by advocates of government planning, from Marx to Keynes to Obama, is the assumption that bureaucrats and elected officials possess both the detailed knowledge and right motives to be able to solve the economic problems of a nation. While microeconomics correctly assumes that individuals act in their own self-interest, every macroeconomic proposal for government intervention assumes that public officials act in the public interest, somehow supressing their individual interests to the greater interests of society.

In reality, public choices are driven by the interests of those making the choices – the politicians who draft, promote, and vote on the legislation; and the special interests that work to influence the political decision-making process. Politics is driven by the need to solicit new voters to the polls. Power (to tax, spend and regulate) is used to consolidate those votes, and to buy more votes at the margin. The policy agendas of both parties are driven by this pursuit of votes and power.