2010 Quote by Paul Krugman
““These are tough times for state governments. Huge deficits loom almost everywhere, from California to New York, from New Jersey to Texas. Wait—Texas? Wasn't Texas supposed to be thriving even as the rest of America suffered? Didn't its governor declare, during his re-election campaign, that 'we have billions in surplus'? Yes, it was, and yes, he did. But reality has now intruded, in the form of a deficit expected to run as high as $25 billion over the next two years. And that reality has implications for the nation as a whole. For Texas is where the modern conservative theory of budgeting—the belief that you should never raise taxes under any circumstances, that you can always balance the budget by cutting wasteful spending—has been implemented most completely. If the theory can't make it there, it can't make it anywhere.””
About This Quote
Source Article: New York Times, “The Texas Deficit and the Limits of Conservative Budgeting”, 2023
The Texas budget crisis shows that strict no‑tax, cut‑spending policies often fail, revealing the need for flexible fiscal strategies.
In simple terms: Rigid budgeting can backfire; flexibility helps.
Key Takeaway
Consider balanced approaches to fiscal policy.
Themes
economics
public policy
budgeting
politics
Mood
analytical
critical
Type
policy
economic
When to use this quote
- state budgeting
- tax policy debates
- public finance planning
- legislative negotiations
Key Concepts
fiscal sustainability
political ideology
Questions to Reflect On
- What alternative fiscal tools could Texas use?
- How can policymakers balance tax restraint with essential services?
A Different Perspective
Overlooks potential benefits of targeted spending.