Customer Quote by Andrew P. Napolitano
![“Alan Greenspan, who would later become the Federal Reserve chairman, wrote in 1966: [T]he earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the…” quote by Andrew P. Napolitano](https://sms4smile.com/quotes/img-quotes/be4/andrew-p-napolitano-41056_federal-reserve_alan-greenspan-who-would-later-become-th_1074577.jpg)
““Alan Greenspan, who would later become the Federal Reserve chairman, wrote in 1966: [T]he earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare and other purposes. . . . In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. . . . This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the “hidden” confiscation of wealth.24””
About This Quote
Source Speech: 1966 commentary by Alan Greenspan (quoted in Napolitano’s work)
Inflation erodes the purchasing power of savings, effectively transferring wealth to the government under deficit spending, especially without a gold standard.
In simple terms: Inflation steals savings, funding government spending.
Key Takeaway
Guard savings against inflation.
Themes
economics
politics
inflation
government finance
wealth preservation
Mood
cautious
analytical
critical
Type
economic
political
financial
When to use this quote
- budget planning
- personal finance
- policy analysis
- investment strategy
Key Concepts
Monetary policy
inflationary tax
hidden wealth transfer
Questions to Reflect On
- How can individuals protect wealth in inflationary periods?
- What alternatives to gold can safeguard savings?
A Different Perspective
If inflation is low, the impact may be minimal; other factors also affect wealth.
