Deficit Quote by Henry Hazlitt
“New taxes are so unpopular that most 'social' handout schemes are originally enacted without enough increased taxation to pay for them. The result is chronic government deficits, paid for by the issuance of additional paper money.”
About This Quote
Popular tax cuts lead to spending programs without funding, causing deficits financed by printing money.
In simple terms: Tax cuts without funding cause deficits.
Key Takeaway
Avoid unfunded spending.
Themes
fiscal policy
government deficits
inflation
public finance
taxation
Mood
cautious
critical
Type
analytical
policy
When to use this quote
- budget planning
- policy design
- government budgeting
- inflation control
Key Concepts
budgetary discipline
monetary expansion
public choice
Questions to Reflect On
- How can fiscal responsibility be enforced?
- What alternatives exist to fund social programs?
A Different Perspective
Deficits may persist despite monetary easing.
![“The place where you got to get revenues has to come from the middle class. That's where the huge number of people that are there. So the system does need to be revamped [to tax the rich less and the middle class more.]” quote by Orrin Hatch](https://sms4smile.com/quotes/img-quotes/beb/orrin-hatch-8786_class_the-place-where-you-got-to-get-revenues_1102431.jpg)
