“To pay off the debt was to destroy the money supply.”

—  John Kenneth Galbraith

Source: Money: Whence It Came, Where It Went (1975), Chapter VIII, The Great Compromise, p. 90
Context: In numerous years following the war the Federal government ran a heavy surplus. It could not pay off it's debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "To pay off the debt was to destroy the money supply." by John Kenneth Galbraith?
John Kenneth Galbraith photo
John Kenneth Galbraith 207
American economist and diplomat 1908–2006

Related quotes

G. Gordon Liddy photo

“A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.”

G. Gordon Liddy (1930) American lawyer in Watergate scandal

As quoted in "The Best Of The Rest: 20 More Quotes About Liberals" at Right Wing News (24 November 2010) http://rightwingnews.com/quotes/the-best-of-the-rest-20-more-quotes-about-liberals/

“Debt can rob you of your future because you are using the money you earn today to pay off things from the past”

Andrew Lokenauth (1987) Personal finance expert, writer and public speaker

Source: https://www.bankrate.com/finance/credit-cards/how-credit-cards-can-help-during-a-recession/

Lauren Southern photo

“and they [the boomers] definitely pranked us fiscally with debt that [we] will never be able to pay off.”

Lauren Southern (1995) Canadian libertarian commentator

0:25-30
2017 New Year's Resolutions for Millennials

Hillary Clinton photo

“We’re going to refinance everyone’s existing student debt, 40 million Americans have student debt. … Under my plan, you will be able to also lower your debt, move into a program to pay it back as a percentage of your income and more than that, my plan for debt-free tuition at public colleges and universities will eventually eliminate any student debt. But for people who have it, I’m going to put a date certain that after a certain number of years, you no longer have to pay anything. The government has to quit making money off of lending money to young people to get their education.”

Hillary Clinton (1947) American politician, senator, Secretary of State, First Lady

Presidential campaign (April 12, 2015 – 2016), Democratic Presidential Debate in Miami (March 9, 2016)

Ralph Waldo Emerson photo

“Solvency is maintained by means of a national debt, on the principle, "If you will not lend me the money, how can I pay you?"”

Ralph Waldo Emerson English Traits

English Traits (1856), reprinted in The Prose Works of Ralph Waldo Emerson, Vol. 2 (Boston: Fields, Osgood, & Co., 1870), p. 206 ( full text at GoogleBooks http://books.google.com/books?id=21IRAAAAYAAJ&pg=PA206)

John Buchan photo

“We can pay our debts to the past by putting the future in debt to ourselves.”

John Buchan (1875–1940) British politician

Address to the people of Canada on the coronation of George VI (12 May 1937)

Abraham Lincoln photo

“What is now combated is the position that secession is consistent with the Constitution — is lawful and peaceful. It is not contended that there is any express law for it, and nothing should ever be implied as law which leads to unjust or absurd consequences. The nation purchased with money the countries out of which several of these States were formed. Is it just that they shall go off without leave and without refunding? The nation paid very large sums (in the aggregate, I believe, nearly a hundred millions) to relieve Florida of the aboriginal tribes. Is it just that she shall now be off without consent or without making any return? The nation is now in debt for money applied to the benefit of these so-called seceding States in common with the rest. Is it just either that creditors shall go unpaid or the remaining States pay the whole? A part of the present national debt was contracted to pay the old debts of Texas. Is it just that she shall leave and pay no part of this herself?”

Abraham Lincoln (1809–1865) 16th President of the United States

1860s, Fourth of July Address to Congress (1861)

Jeremy Corbyn photo

“My hon. Friend must be aware of the words used by the Chancellor on Tuesday, when he said that, this year, the Government expect to make a surplus of £14 billion—part of which will be used to pay off the national debt. In those circumstances, would it not be more appropriate and beneficial to the rest of the world if more money were given for overseas aid and to assist the very poor countries in the usary levels of debt repayments that they are forced into at present?”

Jeremy Corbyn (1949) British Labour Party politician

Question http://hansard.millbanksystems.com/commons/1989/mar/17/overseas-development in the House of Commons (17 March 1989).
1980s

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.”

Norm Franz
Mark Twain photo

“Worrying is like paying a debt you don't owe.”

Mark Twain (1835–1910) American author and humorist

Related topics