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 setting.”
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.
Demand transparent cost‑benefit analysis.
Themes
Mood
Type
When to use this quote
- budget planning
- tax policy
- program evaluation
- public debates
- accountability
Key Concepts
Questions to Reflect On
- How can we measure public value?
- What reforms improve accountability?
Political motives may distort efficiency goals.