--- title: "Meaning & Key Takeaway of: Whether government finances its added…" description: "\"Whether government finances its added spending by increasing taxes, by borrowing, or by inflating the currency, the added spending will be offset by re..." image: "https://sms4smile.com/quotes/i/b4e/richard-wagner-7708_borrowing_whether-government-finances-its-added-sp_2922984.jpg" --- # Whether government finances its added spending by… ![“Whether government finances its added spending by increasing taxes, by borrowing, or by inflating the currency, the added spending will be offset by reduced private spending. Furthermore, private spending is generally more efficient than the government spending that would replace it because people…” quote by Richard Wagner](https://sms4smile.com/quotes/i/b4e/richard-wagner-7708_borrowing_whether-government-finances-its-added-sp_2922984.jpg) [Download](https://sms4smile.com/quotes/i/b4e/richard-wagner-7708_borrowing_whether-government-finances-its-added-sp_2922984.jpg) [Open image](https://sms4smile.com/quotes/i/b4e/richard-wagner-7708_borrowing_whether-government-finances-its-added-sp_2922984.jpg) > “Whether government finances its added spending by increasing taxes, by borrowing, or by inflating the currency, the added spending will be offset by reduced private spending. Furthermore, private spending is generally more efficient than the government spending that would replace it because people act more carefully when they spend their own money than when they spend other people's money.” [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Government spending crowds out private spending; private money is spent more efficiently than public money. **In simple terms:** Public spending reduces private efficiency. Key Takeaway Prefer private investment over public spending. Themes economics public policy efficiency taxation inflation Mood analytical critical neutral Type policy economic theoretical When to use this quote - budget planning - tax policy - public finance - private investment decisions Key Concepts crowding out behavioral economics resource allocation Questions to Reflect On - How does government spending affect economic growth? - Can private spending always be more efficient? A Different Perspective Assumes all private spending is efficient, which may not hold. ★ ★ ★ ★ ★ No ratings yet [Borrowing](https://sms4smile.com/quotes/about/borrowing/) [Currency](https://sms4smile.com/quotes/about/currency/) [Finance](https://sms4smile.com/quotes/about/finance/) [Government](https://sms4smile.com/quotes/about/government/) [Government spending](https://sms4smile.com/quotes/about/government-spending/) [Money](https://sms4smile.com/quotes/about/money/) [People](https://sms4smile.com/quotes/about/people/) [Politics](https://sms4smile.com/quotes/about/politics/) [Taxes](https://sms4smile.com/quotes/about/taxes/) ## Related quotes > [“Except for spending to protect property rights, enforce the law, and protect citizens from foreign aggressors, all government spending crowds out private spending and…](https://sms4smile.com/quotes/thomas-j-dilorenzo/except-for-spending-to-protect-property-rights-enforce-the-law-and/) [Thomas J. DiLorenzo](https://sms4smile.com/quotes/author/thomas-j-dilorenzo/) > [In reality, every time the government takes an additional dollar in taxes out of someone's pocket, it's a dollar that person will not be…](https://sms4smile.com/quotes/maxime-bernier/in-reality-every-time-the-government-takes-an-additional-dollar-in/) [Maxime Bernier](https://sms4smile.com/quotes/author/maxime-bernier/) > [Any so-called stimulus program is a ruse. The government can increase its spending only by reducing private spending equivalently.](https://sms4smile.com/quotes/richard-wagner/any-so-called-stimulus-program-is-a-ruse-the-government-can-increase/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [You're having government spending on the economy being cut almost everywhere. That means that the only source of spending for growth has to come…](https://sms4smile.com/quotes/michael-hudson/you-re-having-government-spending-on-the-economy-being-cut-almost/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Government spending cannot create additional jobs. If the government provides the funds required (think stimulus) by taxing the citizens or by borrowing from the…](https://sms4smile.com/quotes/ludwig-von-mises/government-spending-cannot-create-additional-jobs-if-the-government-2/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers…](https://sms4smile.com/quotes/ron-paul/government-spending-is-always-a-tax-burden-on-the-american-people-and/) [Ron Paul](https://sms4smile.com/quotes/author/ron-paul/) > [Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it…](https://sms4smile.com/quotes/ludwig-von-mises/government-spending-cannot-create-additional-jobs-if-the-government/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [“When it is a question of taxes, gentlemen, prove their usefulness by reasons with some foundation, but not with that lamentable assertion: “Public spending…](https://sms4smile.com/quotes/frederic-bastiat/when-it-is-a-question-of-taxes-gentlemen-prove-their-usefulness-by/) [Frédéric Bastiat](https://sms4smile.com/quotes/author/frederic-bastiat/) > [We could curtail private spending by several trillion dollars a year without requiring painful sacrifices from anyone. That would be more than enough to…](https://sms4smile.com/quotes/robert-h-frank/we-could-curtail-private-spending-by-several-trillion-dollars-a-year/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [POTUS already got tax increases. Now he wants more tax increases to fund more bloated government spending. Not going to happen.](https://sms4smile.com/quotes/anonymous/potus-already-got-tax-increases-now-he-wants-more-tax-increases-to/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Hillary Clinton: putting big government spending financed by the Chinese ahead of good-paying jobs for middle-class Americans. Is she guilty or not guilty?](https://sms4smile.com/quotes/chris-christie/hillary-clinton-putting-big-government-spending-financed-by-the/) [Chris Christie](https://sms4smile.com/quotes/author/chris-christie/) > [The idea that more taxes and more government spending is the best way to help hardworking middle class taxpayers - that's an old idea…](https://sms4smile.com/quotes/marco-rubio/the-idea-that-more-taxes-and-more-government-spending-is-the-best-way/) [Marco Rubio](https://sms4smile.com/quotes/author/marco-rubio/) > [Various economists and experts had suggested increasing government spending to fight COVID-19, to help the poor survive. On the other hand, businesses were helped…](https://sms4smile.com/quotes/anurag-thakur/various-economists-and-experts-had-suggested-increasing-government/) [Anurag Thakur](https://sms4smile.com/quotes/author/anurag-thakur/) > [I think the government lost control over fiscal policy in UPA-2. But it is possible to suggest that the momentum of the populism of…](https://sms4smile.com/quotes/sanjaya-baru/i-think-the-government-lost-control-over-fiscal-policy-in-upa-2-but/) [Sanjaya Baru](https://sms4smile.com/quotes/author/sanjaya-baru/) > [Right now, the government is spending billions of dollars supporting the problem-makers in the U.S. economy - the polluters, despoilers, incarcerators, and warmongers.](https://sms4smile.com/quotes/van-jones/right-now-the-government-is-spending-billions-of-dollars-supporting/) [Van Jones](https://sms4smile.com/quotes/author/van-jones/) ## More by Richard Wagner > [Joy is not in things; it is in us.](https://sms4smile.com/quotes/richard-wagner/joy-is-not-in-things-it-is-in-us/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [My destiny is solitude, and my life is work.](https://sms4smile.com/quotes/richard-wagner/my-destiny-is-solitude-and-my-life-is-work/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [In contrast to reincarnation and karma, all other views seem petty and narrow](https://sms4smile.com/quotes/richard-wagner/in-contrast-to-reincarnation-and-karma-all-other-views-seem-petty-and/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [The oldest, truest, most beautiful organ of music, the origin to which alone our music owes its being, is the human voice.](https://sms4smile.com/quotes/richard-wagner/the-oldest-truest-most-beautiful-organ-of-music-the-origin-to-which/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [Any so-called stimulus program is a ruse. The government can increase its spending only by reducing private spending equivalently.](https://sms4smile.com/quotes/richard-wagner/any-so-called-stimulus-program-is-a-ruse-the-government-can-increase/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [I hate this fast growing tendency to chain men to machines in big factories and deprive them of all joy in their efforts -…](https://sms4smile.com/quotes/richard-wagner/i-hate-this-fast-growing-tendency-to-chain-men-to-machines-in-big/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [What a wonderful work Wagner has done for humanity in translating the toil of life into the readable script of music! For those who…](https://sms4smile.com/quotes/richard-wagner/what-a-wonderful-work-wagner-has-done-for-humanity-in-translating-the/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [Here, everything is tragic through and through, and the will, that fain would shape a world according to its wish, at last can reach…](https://sms4smile.com/quotes/richard-wagner/here-everything-is-tragic-through-and-through-and-the-will-that-fain/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [The error in the art-genre of Opera consists herein: a Means of expression (Music) has been made the end, while the End of expression…](https://sms4smile.com/quotes/richard-wagner/the-error-in-the-art-genre-of-opera-consists-herein-a-means-of/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [I have only a mind to live, to enjoy - i.e., to work as an artist, and produce my works; but not for the…](https://sms4smile.com/quotes/richard-wagner/i-have-only-a-mind-to-live-to-enjoy-i-e-to-work-as-an-artist-and/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [Richard Wagner, a musician who wrote music which is better than it sounds.](https://sms4smile.com/quotes/richard-wagner/richard-wagner-a-musician-who-wrote-music-which-is-better-than-it/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [...you know my faithfulness to you, never can another own my heart, never - never - never...](https://sms4smile.com/quotes/richard-wagner/you-know-my-faithfulness-to-you-never-can-another-own-my-heart-never/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [From its first faint glimmerings, History shews Man's constant progress as a beast of prey. As such he conquers every land, subdues the fruit-fed…](https://sms4smile.com/quotes/richard-wagner/from-its-first-faint-glimmerings-history-shews-man-s-constant/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [When religion becomes artificial, art has a duty to rescue it. Art can show that the symbols which religions would have us believe literally…](https://sms4smile.com/quotes/richard-wagner/when-religion-becomes-artificial-art-has-a-duty-to-rescue-it-art-can/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) > [The measures and acts which show us violently disposed towards the outer world can never stay without a violent reaction on ourselves.](https://sms4smile.com/quotes/richard-wagner/the-measures-and-acts-which-show-us-violently-disposed-towards-the/) [Richard Wagner](https://sms4smile.com/quotes/author/richard-wagner/) [Explore all 83 Richard Wagner quotes ](https://sms4smile.com/quotes/author/richard-wagner/) ## More Borrowing quotes > [I would borrow money all day long, if the cost of borrowing is less than the expected return.](https://sms4smile.com/quotes/brad-schneider/i-would-borrow-money-all-day-long-if-the-cost-of-borrowing-is-less/) [Brad Schneider](https://sms4smile.com/quotes/author/brad-schneider/) > [ When the fountains of government \[borrowing\] abundance began to dry up, when through lack of funds and the impossibility of negotiating fresh loans the… ](https://sms4smile.com/quotes/john-t-flynn/when-the-fountains-of-government-borrowing-abundance-began-to-dry-up/) [John T. Flynn](https://sms4smile.com/quotes/author/john-t-flynn/) > [By taking out a loan, I am committing myself to years of interest repayments, and therefore to years of wage slavery. And the UK…](https://sms4smile.com/quotes/tom-hodgkinson/by-taking-out-a-loan-i-am-committing-myself-to-years-of-interest/) [Tom Hodgkinson](https://sms4smile.com/quotes/author/tom-hodgkinson/) > [Perhaps art criticism cannot be reformed in a logical sense because it was never well-formed in the first place. Art criticism has long been…](https://sms4smile.com/quotes/james-elkins/perhaps-art-criticism-cannot-be-reformed-in-a-logical-sense-because/) [James Elkins](https://sms4smile.com/quotes/author/james-elkins/) > [It’s always going to be easy to live like others or other’s life, because creating or innovating something of own is always difficult in…](https://sms4smile.com/quotes/anuj/it-s-always-going-to-be-easy-to-live-like-others-or-other-s-life/) [Anuj](https://sms4smile.com/quotes/author/anuj/) > [A poet ought not to pick nature's pocket. Let him borrow, and so borrow as to repay by the very act of borrowing. Examine…](https://sms4smile.com/quotes/samuel-taylor-coleridge/a-poet-ought-not-to-pick-nature-s-pocket-let-him-borrow-and-so-borrow/) [Samuel Taylor Coleridge](https://sms4smile.com/quotes/author/samuel-taylor-coleridge/) > [Several southern actors are coming to Mumbai. Likewise, many Bollywood actors are appearing down South or borrowing ideas from southern films.](https://sms4smile.com/quotes/ram-charan/several-southern-actors-are-coming-to-mumbai-likewise-many-bollywood/) [Ram Charan](https://sms4smile.com/quotes/author/ram-charan/) > [As for borrowing Mr. Whistler's ideas about art, the only thoroughly original ideas I have heard him express have had reference to his own…](https://sms4smile.com/quotes/oscar-wilde/as-for-borrowing-mr-whistler-s-ideas-about-art-the-only-thoroughly/) [Oscar Wilde](https://sms4smile.com/quotes/author/oscar-wilde/) > [Saints and ordinary folks are the same from the start. Inquiring about a difference is like asking to borrow string when you've got a…](https://sms4smile.com/quotes/hsu-yun/saints-and-ordinary-folks-are-the-same-from-the-start-inquiring-about/) Hsu Yun > [Borrowing money on what's called 'easy terms,' is a one-way ticket to the Poor House. If you think it ain't a Sucker Game, why…](https://sms4smile.com/quotes/will-rogers/borrowing-money-on-what-s-called-easy-terms-is-a-one-way-ticket-to/) [Will Rogers](https://sms4smile.com/quotes/author/will-rogers/) > [What I'm concerned about is endless borrowing, which is going to compromise our economy not only today but in the future. Because we know…](https://sms4smile.com/quotes/paul-ryan/what-i-m-concerned-about-is-endless-borrowing-which-is-going-to/) [Paul Ryan](https://sms4smile.com/quotes/author/paul-ryan/) > [Debt is a bottomless sea.](https://sms4smile.com/quotes/anonymous/debt-is-a-bottomless-sea/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [There is a big problem. The problem is the country borrowed too much. 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We're borrowing a million dollars a minute.](https://sms4smile.com/quotes/rand-paul/we-do-not-project-power-from-bankruptcy-court-we-re-borrowing-a/) [Rand Paul](https://sms4smile.com/quotes/author/rand-paul/) [Browse all 303 Borrowing quotes ](https://sms4smile.com/quotes/about/borrowing/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Whether government finances its added spending by increasing taxes, by borrowing, or by inflating the currency, the added spending will be offset by reduced private spending. 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