--- title: "Meaning & Key Takeaway of: A federal bailout would spare California…" description: "\"A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since ..." image: "https://sms4smile.com/quotes/i/5dd/peter-schiff-8095_bailouts_a-federal-bailout-would-spare-california_2211826.png" --- # A federal bailout would spare California from having to… ![“A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since California voters rejected several tax-hiking ballot initiatives. Rather than taking the vote as a signal to dramatically curtail spending, the…” quote by Peter Schiff](https://sms4smile.com/quotes/i/5dd/peter-schiff-8095_bailouts_a-federal-bailout-would-spare-california_2211826.png) [Download](https://sms4smile.com/quotes/i/5dd/peter-schiff-8095_bailouts_a-federal-bailout-would-spare-california_2211826.png) [Open image](https://sms4smile.com/quotes/i/5dd/peter-schiff-8095_bailouts_a-federal-bailout-would-spare-california_2211826.png) > “A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since California voters rejected several tax-hiking ballot initiatives. Rather than taking the vote as a signal to dramatically curtail spending, the state turned to the feds. If they get a free pass, the politicians can avoid fixing any of their past mistakes or preparing California for the future.” [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Reliance on federal aid can prevent necessary fiscal reforms and perpetuate past errors. **In simple terms:** Federal aid may delay needed budget fixes. Key Takeaway Demand fiscal responsibility. Themes fiscal policy government budget Mood cautious critical Type analytical political When to use this quote - state budgeting - tax policy - federal aid decisions Key Concepts economic theory public finance Questions to Reflect On - What reforms are postponed due to aid? - How can states balance aid with reform? A Different Perspective Aid can create dependency and reduce accountability. ★ ★ ★ ★ ★ No ratings yet [Bailouts](https://sms4smile.com/quotes/about/bailouts/) [Balance](https://sms4smile.com/quotes/about/balance/) [Ballots](https://sms4smile.com/quotes/about/ballots/) [Budgets](https://sms4smile.com/quotes/about/budgets/) [California](https://sms4smile.com/quotes/about/california/) [California Voters](https://sms4smile.com/quotes/about/california-voters-1367340/) [Curtail Spending](https://sms4smile.com/quotes/about/curtail-spending-4900770/) [Cutting](https://sms4smile.com/quotes/about/cutting/) [Federal Bailout](https://sms4smile.com/quotes/about/federal-bailout-4900768/) [Feds](https://sms4smile.com/quotes/about/feds/) [Fixing](https://sms4smile.com/quotes/about/fixing/) [Hiking](https://sms4smile.com/quotes/about/hiking/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Initiative](https://sms4smile.com/quotes/about/initiative/) [Matter](https://sms4smile.com/quotes/about/matter/) [Mistake](https://sms4smile.com/quotes/about/mistake/) [Needed](https://sms4smile.com/quotes/about/needed/) [Past](https://sms4smile.com/quotes/about/past/) [Past mistakes](https://sms4smile.com/quotes/about/past-mistakes/) [Politician](https://sms4smile.com/quotes/about/politician/) [Preparing](https://sms4smile.com/quotes/about/preparing/) [Rejected](https://sms4smile.com/quotes/about/rejected/) [Signals](https://sms4smile.com/quotes/about/signals/) [Spare California](https://sms4smile.com/quotes/about/spare-california-4900769/) [Spares](https://sms4smile.com/quotes/about/spares/) [Spending](https://sms4smile.com/quotes/about/spending/) [Spending cuts](https://sms4smile.com/quotes/about/spending-cuts/) [Spending State](https://sms4smile.com/quotes/about/spending-state-4900771/) [States](https://sms4smile.com/quotes/about/states/) [Taxes](https://sms4smile.com/quotes/about/taxes/) [Urgent](https://sms4smile.com/quotes/about/urgent/) [Vote](https://sms4smile.com/quotes/about/vote/) [Voters](https://sms4smile.com/quotes/about/voters/) ## Related quotes > [California voters are very aware that the Trump administration has been disproportionately awful for the Golden State.](https://sms4smile.com/quotes/ted-lieu/california-voters-are-very-aware-that-the-trump-administration-has/) [Ted Lieu](https://sms4smile.com/quotes/author/ted-lieu/) > [You can only win the 'war' with ideas, not with spending cuts](https://sms4smile.com/quotes/klaus-kleinfeld/you-can-only-win-the-war-with-ideas-not-with-spending-cuts/) [Klaus Kleinfeld](https://sms4smile.com/quotes/author/klaus-kleinfeld/) > ['Austerity' is a real weasel word because it's an attempt to make something value-based and abstract out of something which, in reality, consists simply…](https://sms4smile.com/quotes/john-lanchester/austerity-is-a-real-weasel-word-because-it-s-an-attempt-to-make/) [John Lanchester](https://sms4smile.com/quotes/author/john-lanchester/) > [Under current law, on January 1, 2013, there's going to be a massive fiscal cliff of large spending cuts and tax increases.](https://sms4smile.com/quotes/ben-bernanke/under-current-law-on-january-1-2013-there-s-going-to-be-a-massive/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Put on top of that the fact that the whole world is looking at Britain and saying how is this country going to pay…](https://sms4smile.com/quotes/george-osborne/put-on-top-of-that-the-fact-that-the-whole-world-is-looking-at/) [George Osborne](https://sms4smile.com/quotes/author/george-osborne/) > [The sequestration is a bad idea, all around. It is something that is out of the question. If you have spending cuts, education of…](https://sms4smile.com/quotes/nancy-pelosi/the-sequestration-is-a-bad-idea-all-around-it-is-something-that-is/) [Nancy Pelosi](https://sms4smile.com/quotes/author/nancy-pelosi/) > [I do not intend to dispute in any way the need for defence cuts and the need for government spending cuts in general. I…](https://sms4smile.com/quotes/stephen-harper/i-do-not-intend-to-dispute-in-any-way-the-need-for-defence-cuts-and/) [Stephen Harper](https://sms4smile.com/quotes/author/stephen-harper/) > [We have to have structural entitlement reform, major spending cuts and not tax increase-retardants on economic growth to reverse our current course toward national…](https://sms4smile.com/quotes/david-limbaugh/we-have-to-have-structural-entitlement-reform-major-spending-cuts-and/) [David Limbaugh](https://sms4smile.com/quotes/author/david-limbaugh/) > [Look, I am not worried about Washington cutting too much spending too fast. I mean, the kinds of spending cuts we're talking about just…](https://sms4smile.com/quotes/paul-ryan/look-i-am-not-worried-about-washington-cutting-too-much-spending-too/) [Paul Ryan](https://sms4smile.com/quotes/author/paul-ryan/) > [You've got to either say you're going to cut taxes and find some spending cuts. I think we ought to reform long-term entitlement spending…](https://sms4smile.com/quotes/anonymous/you-ve-got-to-either-say-you-re-going-to-cut-taxes-and-find-some/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Well, you have the public not wanting any new spending, you have the Republicans not wanting any new taxes, you have the Democrats not…](https://sms4smile.com/quotes/michael-bloomberg/well-you-have-the-public-not-wanting-any-new-spending-you-have-the/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [I will veto any effort to get rid of those automatic spending cuts to domestic and defense spending. There will be no easy off…](https://sms4smile.com/quotes/barack-obama/i-will-veto-any-effort-to-get-rid-of-those-automatic-spending-cuts-to/) [Barack Obama](https://sms4smile.com/quotes/author/barack-obama/) > [If the US Government was a family—they would be making $58,000 a year, spending $75,000 a year, & are $327,000 in credit card debt.…](https://sms4smile.com/quotes/dave-ramsey/if-the-us-government-was-a-family-they-would-be-making-58-000-a-year/) [Dave Ramsey](https://sms4smile.com/quotes/author/dave-ramsey/) > [Historically, defense spending cuts have preceded increased international turmoil as America's global enemies sense a failure of will.](https://sms4smile.com/quotes/ben-shapiro/historically-defense-spending-cuts-have-preceded-increased/) [Ben Shapiro](https://sms4smile.com/quotes/author/ben-shapiro/) > [When Obama's economic advisers - a greater group of schlemiels would be hard to find - warn that failure to raise the limit will…](https://sms4smile.com/quotes/dick-morris/when-obama-s-economic-advisers-a-greater-group-of-schlemiels-would-be/) [Dick Morris](https://sms4smile.com/quotes/author/dick-morris/) ## More by Peter Schiff > [Most paper money initially existed as a substitute for gold. That's what gave it value. But right now what gives a currency value is…](https://sms4smile.com/quotes/peter-schiff/most-paper-money-initially-existed-as-a-substitute-for-gold-that-s/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Every time the market has corrected, since 2008, it's always been the Fed that's made the bottom. The Fed has always saved the market…](https://sms4smile.com/quotes/peter-schiff/every-time-the-market-has-corrected-since-2008-it-s-always-been-the/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [“Boom/bust cycles are not inevitable and would not occur were it not for the inflationary monetary policies that always precede recessions.”](https://sms4smile.com/quotes/peter-schiff/boom-bust-cycles-are-not-inevitable-and-would-not-occur-were-it-not/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [We had a very upwardly mobile economy, and that peaked around the 1950s when the typical middle-class American family consisted of a father with…](https://sms4smile.com/quotes/peter-schiff/we-had-a-very-upwardly-mobile-economy-and-that-peaked-around-the/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Printing money creates inflation, which weakens an economy. Unfortunately, this kind of common-sense thinking never seems to penetrate academic circles.](https://sms4smile.com/quotes/peter-schiff/printing-money-creates-inflation-which-weakens-an-economy/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The fiat-based system has produced enormous global imbalances that are straining the global economy. Ultimately, I think the whole thing gives way and what…](https://sms4smile.com/quotes/peter-schiff/the-fiat-based-system-has-produced-enormous-global-imbalances-that/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Central banks are choosing to increase their gold holdings as a percentage of total reserves. They obviously think there is a reason to do…](https://sms4smile.com/quotes/peter-schiff/central-banks-are-choosing-to-increase-their-gold-holdings-as-a/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Once the government runs out of foreign and private sector bidders for new Treasurys, the Federal Reserve will be the only buyer, and the…](https://sms4smile.com/quotes/peter-schiff/once-the-government-runs-out-of-foreign-and-private-sector-bidders/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The real bubble in China is in US Treasuries, in US dollars.](https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [My mother always taught me that two wrongs don't make a right. We shouldn't bail out Wall Street. We shouldn't bail out Detroit. It…](https://sms4smile.com/quotes/peter-schiff/my-mother-always-taught-me-that-two-wrongs-don-t-make-a-right-we/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The one place that bitcoins seem to be used as money is in crime.](https://sms4smile.com/quotes/peter-schiff/the-one-place-that-bitcoins-seem-to-be-used-as-money-is-in-crime/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Gold has worked for thousands of years, but now with the Internet, it works even better.](https://sms4smile.com/quotes/peter-schiff/gold-has-worked-for-thousands-of-years-but-now-with-the-internet-it/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Most governments, not all of them, but most, certainly don't want their citizens using gold. They want them in the currency that they are…](https://sms4smile.com/quotes/peter-schiff/most-governments-not-all-of-them-but-most-certainly-don-t-want-their/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) [Explore all 84 Peter Schiff quotes ](https://sms4smile.com/quotes/author/peter-schiff/) ## More Bailouts quotes > [Mother Nature does not do bailouts.](https://sms4smile.com/quotes/al-gore/mother-nature-does-not-do-bailouts/) [Al Gore](https://sms4smile.com/quotes/author/al-gore/) > [Repeal the entire Banking Act of 1933, and Austrian School economists will cheer, especially if the current system were replaced by a 100%-reserve competitive…](https://sms4smile.com/quotes/llewellyn-rockwell/repeal-the-entire-banking-act-of-1933-and-austrian-school-economists/) [Llewellyn Rockwell](https://sms4smile.com/quotes/author/llewellyn-rockwell/) > [The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially…](https://sms4smile.com/quotes/nouriel-roubini/the-treasury-plan-is-a-disgrace-a-bailout-of-reckless-bankers-lenders/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [I dont know of one group of people thats more disliked than politicians -- it may be the folks who gave us the Wall…](https://sms4smile.com/quotes/rick-santorum/i-dont-know-of-one-group-of-people-thats-more-disliked-than/) [Rick Santorum](https://sms4smile.com/quotes/author/rick-santorum/) > [Financial institutions are not being bailed out as a favor to them or their stockholders. In fact, stockholders have come out worse off after…](https://sms4smile.com/quotes/thomas-sowell/financial-institutions-are-not-being-bailed-out-as-a-favor-to-them-or/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [I do know that all of the Michigan delegation worked very hard as related to the revival of the auto industry. There was really…](https://sms4smile.com/quotes/fred-upton/i-do-know-that-all-of-the-michigan-delegation-worked-very-hard-as/) [Fred Upton](https://sms4smile.com/quotes/author/fred-upton/) > [If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye.…](https://sms4smile.com/quotes/mitt-romney/if-general-motors-ford-and-chrysler-get-the-bailout-that-their-chief/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [The government - the ultimate short-term-oriented player - cannot withstand much pain in the economy or the financial markets. Bailouts and rescues are likely…](https://sms4smile.com/quotes/seth-klarman/the-government-the-ultimate-short-term-oriented-player-cannot/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [At some point the Japanese, Chinese and Saudi buyers of US and European Government bonds will see just what miserable value they offer. Then…](https://sms4smile.com/quotes/luke-johnson/at-some-point-the-japanese-chinese-and-saudi-buyers-of-us-and/) [Luke Johnson](https://sms4smile.com/quotes/author/luke-johnson/) > [I didn't know you were Catholic.](https://sms4smile.com/quotes/nancy-pelosi/i-didn-t-know-you-were-catholic/) [Nancy Pelosi](https://sms4smile.com/quotes/author/nancy-pelosi/) > [Anyone believing the TPP is good for Americans take note: The foreign subsidiaries of U.S.-based corporations could just as easily challenge any U.S. government…](https://sms4smile.com/quotes/robert-reich/anyone-believing-the-tpp-is-good-for-americans-take-note-the-foreign/) [Robert Reich](https://sms4smile.com/quotes/author/robert-reich/) > [We should not be borrowing money from the Chinese to bail out the Greeks. What's coming next? Intergalactic bailouts?](https://sms4smile.com/quotes/jeb-hensarling/we-should-not-be-borrowing-money-from-the-chinese-to-bail-out-the/) [Jeb Hensarling](https://sms4smile.com/quotes/author/jeb-hensarling/) > [Do you realize that the 850 billion dollar bank bailout, that sum of money is greater than the entire 50 year running budget of…](https://sms4smile.com/quotes/neil-degrasse-tyson/do-you-realize-that-the-850-billion-dollar-bank-bailout-that-sum-of/) [Neil deGrasse Tyson](https://sms4smile.com/quotes/author/neil-degrasse-tyson/) > [Our bailout of Detroit will be remembered as the equivalent of pouring billions of taxpayers' money into the mail-order catalogue business on the eve…](https://sms4smile.com/quotes/thomas-friedman/our-bailout-of-detroit-will-be-remembered-as-the-equivalent-of/) [Thomas Friedman](https://sms4smile.com/quotes/author/thomas-friedman/) > [We are living in a time when the very integrity of the Constitution is being threatened daily, from federal bailouts to federal assumption of…](https://sms4smile.com/quotes/david-limbaugh/we-are-living-in-a-time-when-the-very-integrity-of-the-constitution/) [David Limbaugh](https://sms4smile.com/quotes/author/david-limbaugh/) [Browse all 42 Bailouts quotes ](https://sms4smile.com/quotes/about/bailouts/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since California voters rejected several tax-hiking ballot initiatives. Rather than taking the vote as a signal to dramatically curtail spending, the state turned to the feds. 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