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Exchanging Quote by Robert Higgs

“Government spending either is completely wasteful, merely transfers income, purchases an intermediate rather than a final good, or purchases valuable final services whose value cannot be ascertained because the transaction is not made by private parties exchanging their own resources in a market…” quote by Robert Higgs
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“Government spending either is completely wasteful, merely transfers income, purchases an intermediate rather than a final good, or purchases valuable final services whose value cannot be ascertained because the transaction is not made by private parties exchanging their own resources in a market setting.”

Robert Higgs

About This Quote

Source Book: The Tragedy of American Diplomacy, 2005

Government spending often lacks market discipline, making it hard to assess true value.

In simple terms: Public spending can be inefficient.

Key Takeaway

Demand transparent cost‑benefit analysis.

Themes

economics public policy efficiency

Mood

analytical skeptical

Type

policy economic

When to use this quote

  • budget planning
  • tax policy
  • program evaluation
  • public debates
  • accountability

Key Concepts

market failure public goods fiscal responsibility

Questions to Reflect On

  • How can we measure public value?
  • What reforms improve accountability?
A Different Perspective

Political motives may distort efficiency goals.

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