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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.” quote by Ludwig von Mises
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“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.”

Ludwig von Mises

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.

Key Takeaway

Consider financing methods before policy.

Themes

economics public policy employment taxation government spending

Mood

cautious analytical

Type

economic policy

When to use this quote

  • budget planning
  • tax reform
  • public works
  • economic forecasting

Key Concepts

Opportunity cost resource allocation crowding out

Questions to Reflect On

  • How do you measure net job impact?
  • Can alternative funding avoid job loss?
A Different Perspective

Assumes all jobs are directly replaceable; ignores multiplier effects.

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