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.
Key Takeaway
Recognize how war can strain national budgets.
Themes
economics
war
public finance
deficit
taxation
Mood
analytical
critical
Type
historical
informative
When to use this quote
- budget planning
- policy analysis
- historical research
- public finance education
- debt management
Key Concepts
Fiscal policy
government borrowing
inflation
war economy
Questions to Reflect On
- How do governments fund large wars?
- What are the long‑term impacts of war debt?
A Different Perspective
The figures may be inflated for rhetorical effect; sources vary.
![“When America began, government cost every citizen $20 (in [2003] money) per year. Taxes rose during wars, but for most of the life of America, spending never exceeded a few hundred dollars per person. During World War II, government got much bigger. It was supposed to shrink again after the war…” quote by John Stossel](https://sms4smile.com/quotes/img-quotes/420/john-stossel-5146_every-man_when-america-began-government-cost-every_2163596.jpg)
