Arguing Quote by Sasha Abramsky
“I argue that in the long run, the US would be on a far more financially secure footing if we recalibrate how we spend about two-to-three percent of the country's GNP, using state and federal taxes to create pools of money for spending on America's poor - which would, as numerous economists have argued in recent years, create virtuous spending circles, since those on lower incomes spend more of each extra dollar in their possession than do those on higher incomes.”
About This Quote
Source Speech: Economic Policy Forum, 2023
Investing a modest share of GDP in targeted aid for low‑income households can boost overall demand and reduce inequality, creating a virtuous cycle of growth.
In simple terms: Spending a few percent of GDP on the poor can stimulate the economy.
Key Takeaway
Allocate 2‑3% of GNP to progressive spending programs.
Themes
economics
inequality
public policy
growth
social welfare
Mood
optimistic
concerned
Type
policy
economic
social
When to use this quote
- Budget planning
- social program design
- community development
- political advocacy
Key Concepts
Fiscal multiplier
marginal propensity to consume
redistributive economics
Questions to Reflect On
- How can policymakers ensure funds reach those most in need?
- What safeguards prevent wasteful spending?
A Different Perspective
Assumes political consensus and efficient administration, which may be lacking.
![“We [Federal Government] have tried spending money. We are spending more than we have ever spent before and it does not work.” quote by Henry Morgenthau, Jr](https://sms4smile.com/quotes/img-quotes/5fc/henry-morgenthau-jr-56524_doe_we-federal-government-have-tried-spendin_914120.jpg)
