Fiscal Quotes - page 3
The resolution of our current account deficit and household debt burdens does not strike me as overly worrisome, but that is certainly not the case for our fiscal deficit, which, according to the Congressional Budget Office, will rise significantly as the baby boomers start to retire in 2008. Our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances.
Alan Greenspan
[The Liberal party is a] moderate Democrat, a type of Clinton-pragmatic Democrat. It's moved in the last few years very much to the right on fiscal and economic concerns, but still believes in government intrusion in the economy where possible, and does, in its majority, believe in fairly liberal social values.
Stephen Harper
We have to remember we're in a global economy. The purpose of fiscal stimulus is not simply to sustain activity in our national economies, but to help the global economy as well, and that's why it's so critical that measures in those packages avoid anything that smacks of protectionism.
Stephen Harper
I suspect that many of the world's financial lords are somewhat embarrassed to tell Japan repeatedly at G-7 meetings and elsewhere to adopt a Keynesian solution. Within Europe, central banks and governments think Keynesian theories and policies are absolutely wrong. Despite the remarkable success of pragmatic policies in the United States, true believers in the Invisible Hand reject Keynesian diagnoses and prescriptions. Many observers of Japan have found it intellectually comforting to blame the slump on the plight of the banks, flooded with bad loans dated from the land and equity bubbles and their collapse. They hope that a governmentmanaged and -subsidized rectification of bank balance sheets will trigger overall economic recovery. I think this is a false hope. The bank problem is only a small part of the macroeconomic disaster. It has to be resolved, of course, but resolution that is no substitute for the needed fiscal and monetary stimuli.
James Tobin
The central message is still that, as Keynes argued, fiscal policy is the answer to liquidity traps, financial or political. The arguments against fiscal policy in Japan, so far as I understand them are intellectually fallacious; they would receive failing grades in an undergraduate macro exam.
James Tobin
People say monetary policy is easy and quick to implement. It can even be done overnight on the telephone, they say fiscal policy drags out in political and congressional debate in our country. It might take months to implement. But the point is that once fiscal policy is implemented, it might go to work much faster than monetary policy.
Lawrence Klein
Economic growth occurs if output grows faster than population. Given the described assumptions about the way people behave, economic growth will occur if property rights make it worthwhile to undertake socially productive activity. The creating, specifying and enacting of such property rights are costly... As the potential grows for private gains to exceed transaction costs, efforts will be made to establish such property rights. Governments take over the protection and enforcement of property rights because they can do it at a lower cost than private volunteer groups. However, the fiscal needs of government may induce the protection of certain property rights which hinder rather than promote growth; therefore we have no guarantee that productive institutional arrangements will emerge.
Douglass North
Balancing fiscal and monetary policies is a problem. If you do just one thing, it is not necessarily enough-neither monetary policy alone nor fiscal policy alone, and neither tax cuts nor expenditure increases alone. You need to mix policy. By having the right balance, you can get high employment and stable prices.
Lawrence Klein
The central idea is that government fiscal policy, its spending and taxing, its borrowing and repayment of loans, its issue of new money and withdrawal of money, shall be undertaken with an eye only to the results of these actions on the economy and not to any established traditional doctrine what is sound and what is unsound ...Government should adjust its rates of expenditure and taxation such that total spending is neither more or less than that which is sufficient to purchase the full employment level of output at current prices. If this means there is deficit, greater borrowing, "printing money," etc., then these things in themselves are neither good or bad, they are simply the means to the desired ends of full employment and price stability.
Abba Lerner
You win the presidency by connecting with the American people's gut insecurities and aspirations. You win with a concept. The concept I'd argue for is "neoliberalism." More Americans today are natural neolibs, than neocons. Neoliberals believe in a muscular foreign policy and a credible defense budget, but also a prudent fiscal policy that balances taxes, deficit reduction and government services.
Thomas Friedman
Is the Unionist party, the Conservative party, to be without a definite policy of social reform? It is to our party that they owe the whole of that body of legislation connected with the Factory Acts, free education, the distribution of lands in the shape of allotments and small holdings, the compensation for accidents to workmen in the course of their employment...The policy of resistance, of negation, is no sufficient answer to that Socialist opinion which is growing up amongst us-the Socialist opinion the objects of which are, after all, worthy of earnest and even favourable consideration...that policy, by whomsoever propounded, is a policy which means money, which means expenditure, it is closely connected with the third object of our party officially declared-that fiscal reform is the first constructive policy of the Unionist party.
Joseph Chamberlain
I like Mitch Daniels on the fiscal conservative issues. You disagree with him on this idea that social issues, you takeoff the table. I do that for two reasons. I think the fiscal issues in a sense are a symptom of a lot of the deeper cultural issues in America. I don't think they are as disconnected as he thinks.
Mark Steyn
What we want before all things is a bold retrenchment of expenditure. I may take a too one-sided view of the matter, but I consider nine-tenths of all our future dangers to be financial, and when I came home from the continent, it was with a determination to go on with fiscal reform and economy as a sequence to Free Trade.
Richard Cobden
He (Haughey) was a very promising minister in the '60s, but once he became leader all he was concerned with was staying leader. It was always about the cult of leadership. His sense of himself was much more important than any vision he had for the country. People say he discovered fiscal rectitude in '87, and people talk about his contribution to Anglo-Irish affairs, but really if you try and look for any consistency in his affairs after the late '70s you can't find it because it's just about him.
Charles Haughey
We had to dispel the notion that the way to economic success lies through a sort of fiscal levitation. That was the abiding post-war delusion-that governments could spend and borrow their way to prosperity, and fine-tune the performance of the economy through something known pretentiously as demand management...It used to be an establishment nostrum that you need a budget deficit to get economic growth. That was the belief which lay behind the notorious letter by 364 economists in March 1981. We have given the lie to that, decisively. There can no longer be any argument about it. Everyone-or almost everyone-now accepts that the proper role of macro-economic policy is to keep downward pressure on inflation and to maintain a stable framework in which the private sector can expand.
Nigel Lawson
