Borrowing Quote by Ludwig von Mises
“Government spending cannot create additional jobs. If the government provides the funds required (think stimulus) 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
Source Book: Human Action by Ludwig von Mises, 1949
Government stimulus funded by taxes or borrowing merely shifts resources, cancelling out many jobs it aims to create.
In simple terms: Stimulus can neutralize jobs it creates.
Consider financing methods before policy.
Themes
Mood
Type
When to use this quote
- budget planning
- tax reform
- public works
- economic forecasting
Key Concepts
Questions to Reflect On
- How do you measure net job impact?
- Can alternative funding avoid job loss?
Assumes all jobs are directly replaceable; ignores multiplier effects.