Abolish Quote by Ludwig von Mises
“Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other.”
About This Quote
Government spending funded by taxes or borrowing merely shifts resources, eliminating jobs elsewhere as it creates them elsewhere.
In simple terms: Spending shifts jobs, not creates new ones.
Key Takeaway
Consider the net employment impact of fiscal policy.
Themes
economics
public policy
employment
taxation
budgeting
Mood
analytical
critical
Type
policy
economic
When to use this quote
- budget planning
- tax reform
- public investment
- business cycles
Key Concepts
resource allocation
crowding out
opportunity cost
Questions to Reflect On
- Can fiscal stimulus ever produce net job growth?
- What sectors benefit most from government spending?
A Different Perspective
Effectiveness depends on how efficiently funds are used.
