Armed conflict Quote by G. Edward Griffin
“During the fiscal year ending in 1861, expenses of the federal government had been $67 million. After the first year of armed conflict they were $475 million and, by 1865, had risen to one billion, three-hundred million dollars. On the income side of the ledger, taxes covered only about eleven per cent of that figure. By the end of the war, the deficit had risen to $2.61 billion. That money had to come from somewhere.”
About This Quote
Source Historical analysis: United States Civil War finances, 1861-1865
The Civil War caused a massive surge in federal spending, far outpacing tax revenue and creating a huge deficit financed by borrowing.
In simple terms: War spending exploded, taxes stayed low, debt grew huge.
Recognize how war can strain national budgets.
Themes
Mood
Type
When to use this quote
- budget planning
- policy analysis
- historical research
- public finance education
- debt management
Key Concepts
Questions to Reflect On
- How do governments fund large wars?
- What are the long‑term impacts of war debt?
The figures may be inflated for rhetorical effect; sources vary.