--- title: "Meaning & Key Takeaway of: Only the federal government has the power…" description: "\"Only the federal government has the power to spend beyond its current revenue. It shouldn't do that when the economy is at full employment. But it's an..." image: "https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png" --- # Only the federal government has the power to spend beyond… ![“Only the federal government has the power to spend beyond its current revenue. It shouldn't do that when the economy is at full employment. But it's an essential step for an economy mired in recession.” quote by Robert H. Frank](https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png) [Download](https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png) [Open image](https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png) > “Only the federal government has the power to spend beyond its current revenue. It shouldn't do that when the economy is at full employment. But it's an essential step for an economy mired in recession.” [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Government can spend beyond revenue, which is inappropriate in full employment but necessary during recession to stimulate the economy. **In simple terms:** Government deficit spending is useful in recession, not in full employment. Key Takeaway Use deficits strategically. Themes economics fiscal policy recession employment government finance Mood analytical cautious Type economic policy educational When to use this quote - policy making - budget planning - economic crises - public debates Key Concepts Keynesian economics public debt macroeconomic stabilization Questions to Reflect On - When should deficits be avoided? - What safeguards ensure responsible spending? A Different Perspective Political opposition may view deficits as harmful long‑term. ★ ★ ★ ★ ★ No ratings yet [Currents](https://sms4smile.com/quotes/about/currents/) [Economy](https://sms4smile.com/quotes/about/economy/) [Employment](https://sms4smile.com/quotes/about/employment/) [Essentials](https://sms4smile.com/quotes/about/essentials/) [Federal government](https://sms4smile.com/quotes/about/federal-government/) [Government](https://sms4smile.com/quotes/about/government/) [Politics](https://sms4smile.com/quotes/about/politics/) [Power Spend](https://sms4smile.com/quotes/about/power-spend-4909967/) [Recessions](https://sms4smile.com/quotes/about/recessions/) [Revenue](https://sms4smile.com/quotes/about/revenue/) [Revenue Shouldn](https://sms4smile.com/quotes/about/revenue-shouldn-6127816/) [Shouldn Economy](https://sms4smile.com/quotes/about/shouldn-economy-6127814/) [Spend](https://sms4smile.com/quotes/about/spend/) [Spend Current](https://sms4smile.com/quotes/about/spend-current-6127815/) [Steps](https://sms4smile.com/quotes/about/steps/) [Taxes](https://sms4smile.com/quotes/about/taxes/) ## Related quotes > [Those in power must spend a lot of their time laughing at us.](https://sms4smile.com/quotes/alice-walker/those-in-power-must-spend-a-lot-of-their-time-laughing-at-us/) [Alice Walker](https://sms4smile.com/quotes/author/alice-walker/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Getting the economy back on its feet is properly viewed as an investment in future prosperity. When businesses and consumers confront attractive investment opportunities,…](https://sms4smile.com/quotes/robert-h-frank/getting-the-economy-back-on-its-feet-is-properly-viewed-as-an/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [We're in a classic demand-shortfall recession. There aren't enough jobs because total spending is too low. Consumers won't lead the way because they're busy…](https://sms4smile.com/quotes/robert-h-frank/we-re-in-a-classic-demand-shortfall-recession-there-aren-t-enough/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [The Federal Reserve is not currently forecasting a recession.](https://sms4smile.com/quotes/ben-bernanke/the-federal-reserve-is-not-currently-forecasting-a-recession/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you've lost your trousers…](https://sms4smile.com/quotes/adam-thomson/a-recession-is-when-you-have-to-tighten-your-belt-depression-is-when/) [Adam Thomson](https://sms4smile.com/quotes/author/adam-thomson/) > [When George Bush finally leaves the White House, the satire industry will briefly join the rest of the economy in recession. It will certainly…](https://sms4smile.com/quotes/rory-bremner/when-george-bush-finally-leaves-the-white-house-the-satire-industry/) [Rory Bremner](https://sms4smile.com/quotes/author/rory-bremner/) > [The plain fact is that recent college grads aren’t in massive pain. They suffered during the Great Recession like everyone else, but all told,…](https://sms4smile.com/quotes/kevin-drum/the-plain-fact-is-that-recent-college-grads-aren-t-in-massive-pain/) [Kevin Drum](https://sms4smile.com/quotes/author/kevin-drum/) > [A recession is when your neighbour has to tighten his belt. A depression is when you have to tighten your own belt. And a…](https://sms4smile.com/quotes/tommy-douglas/a-recession-is-when-your-neighbour-has-to-tighten-his-belt-a/) [Tommy Douglas](https://sms4smile.com/quotes/author/tommy-douglas/) > [One argument goes that recessions are good for female artists because when money flies out the window, women are allowed in the house. The…](https://sms4smile.com/quotes/jerry-saltz/one-argument-goes-that-recessions-are-good-for-female-artists-because/) [Jerry Saltz](https://sms4smile.com/quotes/author/jerry-saltz/) > [It was not hard to persuade people that the market was sound; as always in such times they asked only that the dispiriting voices…](https://sms4smile.com/quotes/john-kenneth-galbraith/it-was-not-hard-to-persuade-people-that-the-market-was-sound-as/) [John Kenneth Galbraith](https://sms4smile.com/quotes/author/john-kenneth-galbraith/) > [“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've been in a recession, by any common sense definition, because if you look at the American public, they've got 20 billion - 20…](https://sms4smile.com/quotes/warren-buffett/we-ve-been-in-a-recession-by-any-common-sense-definition-because-if/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Suckers think that you cure greed with money, addiction with substances, expert problems with experts, banking with bankers, economics with economists, and debt crises…](https://sms4smile.com/quotes/nassim-nicholas-taleb/suckers-think-that-you-cure-greed-with-money-addiction-with/) [Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/) > [I realized that the artists who managed to fight through this recession have a better shot at longevity than most. The recession was a…](https://sms4smile.com/quotes/mark-edward/i-realized-that-the-artists-who-managed-to-fight-through-this/) [Mark Edward](https://sms4smile.com/quotes/author/mark-edward/) ## More by Robert H. Frank > [If the search is for examples that contradict the predictions of standard economic models, a good rule of thumb is to start in France.](https://sms4smile.com/quotes/robert-h-frank/if-the-search-is-for-examples-that-contradict-the-predictions-of/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [When people bump up against one another in the course of pursuing their goals, it is in everyone's interest to resolve any resulting problems…](https://sms4smile.com/quotes/robert-h-frank/when-people-bump-up-against-one-another-in-the-course-of-pursuing/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [It is no exaggeration to say that rising inequality has driven many of the 99 percent into a financial ditch. It also helped spawn…](https://sms4smile.com/quotes/robert-h-frank/it-is-no-exaggeration-to-say-that-rising-inequality-has-driven-many/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [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/) > [The most glaring deficiency in traditional economic models is that they completely ignore the role of context in evaluation.](https://sms4smile.com/quotes/robert-h-frank/the-most-glaring-deficiency-in-traditional-economic-models-is-that/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [Adam Smith's uncritically enthusiastic modern disciples portray his invisible hand theory as saying that market forces reliably harness selfish individuals to serve the common…](https://sms4smile.com/quotes/robert-h-frank/adam-smith-s-uncritically-enthusiastic-modern-disciples-portray-his/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [Trusting others puts us at risk. Yet failure to trust entails risk as well. The ability to navigate through this minefield successfully is one…](https://sms4smile.com/quotes/robert-h-frank/trusting-others-puts-us-at-risk-yet-failure-to-trust-entails-risk-as/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [Rising inequality hasn't really accomplished anything of value for its ostensible beneficiaries, the top one percent. They've all built bigger mansions and staged more…](https://sms4smile.com/quotes/robert-h-frank/rising-inequality-hasn-t-really-accomplished-anything-of-value-for/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [As economists have long noted, the puzzle is not that so few people vote, it's that so many do. After all, no individual's vote…](https://sms4smile.com/quotes/robert-h-frank/as-economists-have-long-noted-the-puzzle-is-not-that-so-few-people/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [Pass down values every day through your actions, your words and your time with your kids.](https://sms4smile.com/quotes/robert-h-frank/pass-down-values-every-day-through-your-actions-your-words-and-your/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [No society has ever succeeded without a decent government.](https://sms4smile.com/quotes/robert-h-frank/no-society-has-ever-succeeded-without-a-decent-government/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [When the rich build bigger, they shift the frame of reference that shapes the demands of the near rich, who travel in the same…](https://sms4smile.com/quotes/robert-h-frank/when-the-rich-build-bigger-they-shift-the-frame-of-reference-that/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [If top marginal income tax rates are set too high, they discourage productive economic activity. In the limit, a top marginal income tax rate…](https://sms4smile.com/quotes/robert-h-frank/if-top-marginal-income-tax-rates-are-set-too-high-they-discourage/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [For the three decades after WWII, incomes grew at about 3 percent a year for people up and down the income ladder, but since…](https://sms4smile.com/quotes/robert-h-frank/for-the-three-decades-after-wwii-incomes-grew-at-about-3-percent-a/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) > [“Reflect on your present blessings, of which every man has many, not on your past misfortunes, of which all men have some.”](https://sms4smile.com/quotes/robert-h-frank/reflect-on-your-present-blessings-of-which-every-man-has-many-not-on/) [Robert H. Frank](https://sms4smile.com/quotes/author/robert-h-frank/) [Explore all 39 Robert H. Frank quotes ](https://sms4smile.com/quotes/author/robert-h-frank/) ## More Currents quotes > [In the current climate, things that are true, brave human stories become political.](https://sms4smile.com/quotes/cate-blanchett/in-the-current-climate-things-that-are-true-brave-human-stories/) [Cate Blanchett](https://sms4smile.com/quotes/author/cate-blanchett/) > [I'm a candle flame that sways in currents of air you can't see. You need to be the one who steadies me to burn.](https://sms4smile.com/quotes/nadine-gordimer/i-m-a-candle-flame-that-sways-in-currents-of-air-you-can-t-see-you/) [Nadine Gordimer](https://sms4smile.com/quotes/author/nadine-gordimer/) > [If you choose to draw from the inner well of free will, then you can make choices that are outside your current karmic patterns.](https://sms4smile.com/quotes/frederick-lenz/if-you-choose-to-draw-from-the-inner-well-of-free-will-then-you-can/) [Frederick Lenz](https://sms4smile.com/quotes/author/frederick-lenz/) > [ The young man \[Turgot\] destined for an ecclesiastical career was placed within walls carefully designed to keep out all currents of new thought; his… ](https://sms4smile.com/quotes/andrew-dickson-white/the-young-man-turgot-destined-for-an-ecclesiastical-career-was-placed/) [Andrew Dickson White](https://sms4smile.com/quotes/author/andrew-dickson-white/) > [I take the seashell from my jeans pocket and rub my fingers across its silken, indented surface, shallow as my own open hand. This…](https://sms4smile.com/quotes/katrina-kenison/i-take-the-seashell-from-my-jeans-pocket-and-rub-my-fingers-across/) [Katrina Kenison](https://sms4smile.com/quotes/author/katrina-kenison/) > [Have the courage to go against the tide of current values that do not conform to the path of Jesus.](https://sms4smile.com/quotes/pope-francis/have-the-courage-to-go-against-the-tide-of-current-values-that-do-not/) [Pope Francis](https://sms4smile.com/quotes/author/pope-francis/) > [I earn my living by teaching film, mostly filmmaking but also teaching courses on current cinema. I'm interested in movies. I hope that's not…](https://sms4smile.com/quotes/thom-andersen/i-earn-my-living-by-teaching-film-mostly-filmmaking-but-also-teaching/) [Thom Andersen](https://sms4smile.com/quotes/author/thom-andersen/) > [I think that's the beauty of the current setup, is that Legends is meant to be a bit of a revolving door.](https://sms4smile.com/quotes/wentworth-miller/i-think-that-s-the-beauty-of-the-current-setup-is-that-legends-is/) [Wentworth Miller](https://sms4smile.com/quotes/author/wentworth-miller/) > [The seed of your next artwork lies embedded in the imperfections of your current piece.](https://sms4smile.com/quotes/david-bayles/the-seed-of-your-next-artwork-lies-embedded-in-the-imperfections-of/) [David Bayles](https://sms4smile.com/quotes/author/david-bayles/) > [Combining the experience of a seasoned university president with the analysis of a respected legal scholar, Derek Bok explores what he concludes are 'signs…](https://sms4smile.com/quotes/frank-h-t-rhodes/combining-the-experience-of-a-seasoned-university-president-with-the/) [Frank H. T. Rhodes](https://sms4smile.com/quotes/author/frank-h-t-rhodes/) > [The book is like the spoon, scissors, the hammer, the wheel. Once invented, it cannot be improved. You cannot make a spoon that is…](https://sms4smile.com/quotes/umberto-eco/the-book-is-like-the-spoon-scissors-the-hammer-the-wheel-once/) [Umberto Eco](https://sms4smile.com/quotes/author/umberto-eco/) > [Something I like to do a lot is just sit by water when there’s a current and just stare into the water. I don’t…](https://sms4smile.com/quotes/iggy-pop/something-i-like-to-do-a-lot-is-just-sit-by-water-when-there-s-a/) [Iggy Pop](https://sms4smile.com/quotes/author/iggy-pop/) > [Read things you're sure will disagree with your current thinking. If you're a die-hard anti-animal person, read Meat. If you're a die-hard global warming…](https://sms4smile.com/quotes/joel-salatin/read-things-you-re-sure-will-disagree-with-your-current-thinking-if/) [Joel Salatin](https://sms4smile.com/quotes/author/joel-salatin/) > [All becomes easy when we follow the current of opinion; it is the ruler of the world.](https://sms4smile.com/quotes/napoleon-bonaparte/all-becomes-easy-when-we-follow-the-current-of-opinion-it-is-the/) [Napoleon Bonaparte](https://sms4smile.com/quotes/author/napoleon-bonaparte/) > [Donald Trump said he will not decide about a possible run for the presidency until after the current season of Celebrity Apprentice wraps up.…](https://sms4smile.com/quotes/jay-leno/donald-trump-said-he-will-not-decide-about-a-possible-run-for-the/) [Jay Leno](https://sms4smile.com/quotes/author/jay-leno/) [Browse all 2,019 Currents quotes ](https://sms4smile.com/quotes/about/currents/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Only the federal government has the power to spend beyond its current revenue. It shouldn't do that when the economy is at full employment. But it's an essential step for an economy mired in recession.", "creator": { "@type": "Person", "name": "Robert H. Frank" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/robert-h-frank/only-the-federal-government-has-the-power-to-spend-beyond-its-current/", "about": { "@type": "Thing", "name": "Currents" }, "@id": "https://sms4smile.com/quotes/robert-h-frank/only-the-federal-government-has-the-power-to-spend-beyond-its-current/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png", "contentUrl": "https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png", "url": "https://sms4smile.com/quotes/i/5db/robert-h-frank-16805_currents_only-the-federal-government-has-the-powe_2421066.png", "width": 1080, "height": 1080, "caption": "“Only the federal government has the power to spend beyond its current revenue. It shouldn't do that when the…” — Robert H. Frank", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Robert H. Frank", "item": "https://sms4smile.com/quotes/author/robert-h-frank/" }, { "@type": "ListItem", "position": 4, "name": "Only the federal government has the...", "item": "https://sms4smile.com/quotes/robert-h-frank/only-the-federal-government-has-the-power-to-spend-beyond-its-current/" } ], "@id": "https://sms4smile.com/quotes/robert-h-frank/only-the-federal-government-has-the-power-to-spend-beyond-its-current/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```