Borrowed Quote by Alan Greenspan
“Look, I'm very much in favor of tax cuts, but not with borrowed money. And the problem that we've gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous. And my view is I don't think we can play subtle policy here.”
About This Quote
Source Speech: Testimony before the U.S. Senate Committee on Banking, 1995
Fiscal policy that relies on borrowing for both spending and tax reductions creates unsustainable debt and economic risk.
In simple terms: Borrowing to fund cuts and spending is dangerous.
Key Takeaway
Avoid financing deficits with debt.
Themes
fiscal responsibility
budgeting
economic risk
public policy
Mood
cautious
analytical
Type
policy
economic
When to use this quote
- government budgeting
- tax reform
- public investment
- debt management
Key Concepts
deficit financing
intergenerational equity
macroeconomic stability
Questions to Reflect On
- How can we balance necessary investment with debt limits?
- What alternatives exist to tax cuts that still stimulate growth?
A Different Perspective
Borrowing can be necessary during crises; not all deficits are disastrous.
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