“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.”
This is a variant expression of a sentiment which is often attributed to Tocqueville or Alexander Fraser Tytler, but the earliest known occurrence is as an unsourced attribution to Tytler in "This is the Hard Core of Freedom" by Elmer T. Peterson in The Daily Oklahoman (9 December 1951): "A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy."
Misattributed
Variant: The American Republic will endure, until politicians realize they can bribe the people with their own money.
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Alexis De Tocqueville 135
French political thinker and historian 1805–1859Related quotes

Speech in the US House of Representatives on April 2, 1828, as quoted in The Life of Colonel David Crockett (1884) by Edward Sylvester Ellis.

Newsletter (UK) http://www.newsletter.co.uk/community/columnists/maurice-neill-upholding-our-right-to-accountability-1-3856967 "MAURICE NEILL: Upholding our right to accountability", 18 May 2012.
Attributed, In the Media

Speech in parliament (19 October 1675) http://www.british-history.ac.uk/report.asp?compid=40374.
Context: The King governs by Law. Let us look back to the evils we had, in order to prevent more. There was loan, and ship-money, and extremes begat extremes. The House would then give no money. Let the King rely upon the Parliament; we have settled the Crown and the Government. 'Tis strange that we have sat so many years, and given so much money, and are still called upon for Supply. The Lords may give Supply with their own money, but we give the peoples; we are their proxies. The King takes his measures by the Parliament, and he doubts not but that all the Commons will supply for the Government; but giving at this rate that we have done, we shall be "a branch of the revenue." They will "anticipate" us too. But, let the officers say what they will, we will not make these mismanagements the King's error. 'Tis better it should fall upon us than the King. We give public money, and must see that it goes to public use. Tell your money, fix it to public ends, and take order against occasions of this nature for the future. We cannot live at the expence of Spain, that has the Indies; or France, who has so many millions of revenue. Let us look to our Government, Fleet, and Trade. 'Tis the advice that the oldest Parliament-man among you can give you; and so, God bless you!

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“There is no such thing as public money; there is only taxpayers’ money.”
Speech to Conservative Party Conference (14 October 1983) http://www.margaretthatcher.org/document/105454
Second term as Prime Minister
Context: Let us never forget this fundamental truth: the State has no source of money other than money which people earn themselves. If the State wishes to spend more it can do so only by borrowing your savings or by taxing you more. It is no good thinking that someone else will pay – that ‘someone else’ is you. There is no such thing as public money; there is only taxpayers’ money.
John Prebble, in Disaster at Dundee http://books.google.co.in/books?id=WSxIAAAAMAAJ, 1956. p. 16.