Budget deficit Quote by Henry Hazlitt
“If a government resorts to inflation, that is, creates money in order to cover its budget deficits or expands credit in order to stimulate business, then no power on earth, no gimmick, device, trick or even indexation can prevent its economic consequences.”
About This Quote
Source Book: Economics in One Lesson, 1946
Government money creation to cover deficits inevitably leads to inflation that cannot be avoided by tricks or indices.
In simple terms: Printing money to fix budget gaps causes unavoidable inflation.
Key Takeaway
Avoid deficit financing by balancing budgets.
Themes
economics
inflation
fiscal policy
Mood
cautious
analytical
Type
economic
educational
When to use this quote
- national budgeting
- corporate finance
- personal finance
- policy making
Key Concepts
monetary theory
budget deficits
price stability
Questions to Reflect On
- How can governments fund priorities without creating money?
- What alternatives exist to deficit spending?
A Different Perspective
Inflation may be mitigated by other tools like monetary tightening, but deficits still drive price rises.
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