Deficit Quote by Ronald Reagan
“We now know that inflation results from all that deficit spending.”
About This Quote
Source Speech: 1981 Economic Address, Ronald Reagan, 1981
Inflation is caused by government spending beyond its means, creating excess money that drives prices up.
In simple terms: Too much government spending leads to inflation.
Limit deficit spending to control inflation.
Themes
Mood
Type
When to use this quote
- budget planning
- policy making
- public finance
- economic forecasting
Key Concepts
Questions to Reflect On
- How can we balance necessary public investment with inflation control?
- What alternatives exist to deficit spending?
If spending is cut, essential services may suffer.