Federal government Quote by Murray Rothbard
“Leading the boom of 1838 were state governments, who, finding themselves with the unexpected windfall of a distributed surplus from the federal government, proceeded to spend the money wildly and borrow even more extravagantly on public works and other uneconomic forms of 'investment.'”
About This Quote
Source Book: Man, Economy, and State, 1962
State governments overspent and borrowed extravagantly after receiving federal windfalls in 1838.
In simple terms: Government wasteful spending after windfalls.
Key Takeaway
Beware fiscal irresponsibility.
Themes
economics
government
history
Mood
critical
historical
Type
analytical
economical
When to use this quote
- budget planning
- policy analysis
- public administration
Key Concepts
public finance
fiscal policy
Questions to Reflect On
- What safeguards can prevent such waste today?
- How do political incentives shape spending?
A Different Perspective
Some argue such spending spurred economic growth despite inefficiencies.
![“[States and the Federal government are] coordinate departments of one simple and integral whole... The one is the domestic, the other the foreign branch of the same government.” quote by Thomas Jefferson](https://sms4smile.com/quotes/img-quotes/401/thomas-jefferson-43_branches_states-and-the-federal-government-are-co_2619.jpg)
