“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

On Functional Finance: (1943, pg.354) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=174849

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Abba Lerner 3

American economist 1903–1982

John James Cowperthwaite (1915–2006) British colonial administrator

March 29, 1967, page 249.
Official Report of Proceedings of the Hong Kong Legislative Council

“When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans. Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”

Ron Paul (1935) American politician and physician

Deficits Make You Poorer http://www.lewrockwell.com/paul/paul238.html (March 15, 2005).
2000s, 2001-2005

“In the United States, we’ve long had a free market system, but that system is not what it once was. Total government spending–state, federal, and local–has grown in real terms by more than 400 percent since 1965. Government spending is now one-third of the economy. As the private economy retreats, the importance of a new marketplace grows: the political marketplace. Products and services are no longer judged according to their usefulness to the economy at large–they’re judged according to whether or not they are politically useful or connected. The political marketplace is the marketplace of crony capitalism. Its supply and demand are lobbying expenditures and the resulting federal program or carve out. Its actors are not firms, but the political class and the politicians they influence”

Ted Budd (1971) American politician

Rep. Budd: The Political Market vs. the Private Market http://www.breitbart.com/big-government/2017/05/02/rep-budd-political-market-vs-private-market/ (May 2, 2017)

“The argument to raise taxes to pay back the debt, that's one thing, but my experience tells me that it's not possible. Government raises taxes, they're gonna spend that money in other places. I'm gonna do a better job at balancing revenues and expenditures… That was a responsibility that we had, but we prioritized what government should or shouldn't be doing and as a result of that, again showed a fiscal discipline that I don't think anyone else can demonstrate.”

Gary Johnson (1953) American politician, businessman, and 29th Governor of New Mexico

Statement on Taxes
YouTube
2011-08-23
http://youtu.be/227YyBf7-KQ
2012-02-24
Sound Government

“If inflation priced us out of world markets we should be back in the old nightmare of unemployment. What folly to risk throwing away all that we have gained. ... Our first duty at a time when there is more money about than goods to spend it on is to keep down Government expenditure. ... The second duty of the Government is to frame policies which encourage saving and discourage spending. ... in the long run there is only one answer to the 64,000 dollar question—to increase production. That is the answer. That is where the real hope lies.”

Harold Macmillan (1894–1986) British politician

Speech at Bedford (20 July 1957), quoted in "More production 'the only answer' to inflation", The Times (22 July 1957), p. 4
Prime Minister

“For several years past the revenues of the government have been unequal to its expenditures, and consequently loan after loan, sometimes direct and sometimes indirect in form, has been resorted to. By this means a new national debt has been created, and is still growing on us with a rapidity fearful to contemplate — a rapidity only reasonably to be expected in a time of war. This state of things has been produced by a prevailing unwillingness either to increase the tariff or resort to direct taxation. But the one or the other must come. Coming expenditures must be met, and the present debt must be paid; and money cannot always be borrowed for these objects. The system of loans is but temporary in its nature, and must soon explode. It is a system not only ruinous while it lasts, but one that must soon fail and leave us destitute. As an individual who undertakes to live by borrowing soon finds his original means devoured by interest, and, next, no one left to borrow from, so must it be with a government. We repeat, then, that a tariff sufficient for revenue, or a direct tax, must soon be resorted to; and, indeed, we believe this alternative is now denied by no one.”

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

Whig Circular (1843), reported in Richard Watson Gilder and Daniel Fish Complete Works of Abraham Lincoln, Volume 1 (1905)
1840s

“That is a widespread myth, that it is possible to spend money with nobody paying for it. You have everybody screaming that we ought to have new, bigger, more generous government programs. Where are we going to raise the money? Tax business. But business corporations can’t pay any taxes. A corporate executive may sign the check, but where does he get the money? From his stockholders or from his customers or from his employees. Unlike the federal government, he doesn’t have a printing press in his basement. So the only way he can pay money to the government is imposing a burden on somebody. Government cannot spend money at nobody’s expense.”

Milton Friedman (1912–2006) American economist, statistician, and writer

“Economic Myths and Public Opinion” https://miltonfriedman.hoover.org/friedman_images/Collections/2016c21/AmSpectator_01_1976.pdf, The Alternative: An American Spectator, vol. 9, no. 4, (January 1976) pp. 5-9

“I would summarize the Keynesian view in terms of four points:1. Economies sometimes produce much less than they could, and employ many fewer workers than they should, because there just isn’t enough spending. Such episodes can happen for a variety of reasons; the question is how to respond.
2. There are normally forces that tend to push the economy back toward full employment. But they work slowly; a hands-off policy toward depressed economies means accepting a long, unnecessary period of pain.
3. It is often possible to drastically shorten this period of pain and greatly reduce the human and financial losses by “printing money”, using the central bank’s power of currency creation to push interest rates down.
4. Sometimes, however, monetary policy loses its effectiveness, especially when rates are close to zero. In that case temporary deficit spending can provide a useful boost. And conversely, fiscal austerity in a depressed economy imposes large economic losses.”

Paul Krugman (1953) American economist

Keynesianism Explained http://krugman.blogs.nytimes.com/2015/09/15/keynesianism-explained (September 15, 2015)
The Conscience of a Liberal blog

“It is not for its own sake that men desire money, but for the sake of what they can purchase with it.”

Adam Smith (1723–1790) Scottish moral philosopher and political economist

Source: (1776), Book IV, Chapter I, p. 471.

“The desperate policies of panic-driven governments involve throwing huge amounts of money at the economies collapsed in response to the coronavirus threat. Monetary authorities create money and lend it at extremely low interest rates to the major corporations and especially big banks "to get them through the crisis." Government treasuries borrow vast sums to get the collapsed economy back into what they imagine is "the normal, pre-virus economy."”

Richard D. Wolff (1942) American economist

Capitalism's leaders are rushing into policy failures because of their ideological blinders.
COVID-19 and the Failures of Capitalism (2020)

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