“To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.”

— Ben Bernanke

Speech given on Apr. 7, 2010 to the Dallas Regional Chamber of Commerce, "Economic Challenges: Past, Present and Future" http://www.federalreserve.gov/newsevents/speech/bernanke20100407a.pdf. (See pages 13-14 of the speech transcript).

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Ben Bernanke 10

American economist 1953

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“Good morning. This coming week I will be making the trip up Pennsylvania Avenue to address a joint session of Congress. We have some business to attend to called the budget of the United States. The federal budget is a document about the size of a big city phone book, and about as hard to read from cover to cover. The blueprint I submit this week contains many numbers, but there is one that probably counts more than any other – $5.6 trillion. That is the surplus the federal government expects to collect over the next 10 years; money left over after we have met our obligations to Social Security, Medicare, health care, education, defense and other priorities. The plan I submit will fund our highest national priorities. Education gets the biggest percentage increase of any department in our federal government. We won't just spend more money on schools and education, we will spend it responsibly. We'll give states more freedom to decide what works. And as we give more to our schools we're going to expect more in return by requiring states and local jurisdictions to test every year. How else can we know whether schools are teaching and children are learning? Social Security and Medicare will get every dollar they need to meet their commitments. And every dollar of Social Security and Medicare tax revenue will be reserved for Social Security and Medicare.”

George W. Bush (1946) 43rd President of the United States

2000s, 2001, Radio Address to the Nation (February 2001)

“A tax cut means higher family income and higher business profits and a balanced federal budget…. As the national income grows, the federal government will ultimately end up with more revenues. Prosperity is the real way to balance our budget. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: "Radio and Television Address to the Nation on the Test Ban Treaty and the Tax Reduction Bill" (18 September 1963) http://www.presidency.ucsb.edu/ws/?pid=9413

“Our true choice is not between tax reduction, on the one hand, and the avoidance of large Federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenue to balance our budget just as it will never produce enough jobs or enough profits. Surely the lesson of the last decade is that budget deficits are not caused by wild-eyed spenders but by slow economic growth and periodic recessions, and any new recession would break all deficit records. In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now. The experience of a number of European countries and Japan have borne this out. This country's own experience with tax reduction in 1954 has borne this out. And the reason is that only full employment can balance the budget, and tax reduction can pave the way to that employment. The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

“EU countries lose approximately €1,000 billion with tax avoidance. If Finland would receive of this €1,000 billion 1 % in relation to its population in the EU, it would be €10 billion. The famous deficit would be fixed up. If tax avaidance is not restricted we continue to have deficits and budget cuts.”

Satu Hassi (1951) Finnish politician and MEP

Variant: EU countries lose approximately €1,000 billion with tax avoidance. If Finland would receive of this €1,000 billion 1 % in relation to its population in the EU, it would be €10 billion. The famous deficit would be fixed up. If tax avaidance is not restricted we continue to have deficits and budget cuts.
Source: Satu Hassi: Veronkierto vai hyvinvointivaltio, Voima 10/213 In Finnish: EU-maiden arvioidaan menettävän veronkierron vuoksi 1000 miljardia euroa. - Jos Suomi saisi tuosta 1000 mrd eurosta prosentin, eli väestöosuutemme EU:ssa, se olisi 10 mrd. euroa. Kuuluisa kestävyysvaje olisi hoidettu. Ellei veronkiertoa suitsija, vajeista ja budjettileikkauksista päästä eroon.

“A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual death.”

Martin Luther King, Jr. (1929–1968) American clergyman, activist, and leader in the American Civil Rights Movement

1960s, Why I Am Opposed to the War in Vietnam (1967)
Context: A true revolution of values will soon cause us to question the fairness and justice of many of our present policies. On the one hand, we are called to play the Good Samaritan on life's roadside, but that will be only an initial act. One day we must come to see that the whole Jericho Road must be changed so that men and women will not be constantly beaten and robbed as they make their journey on life's highway. True compassion is more than flinging a coin to a beggar. A true revolution of values will soon look uneasily on the glaring contrast of poverty and wealth with righteous indignation. It will look across the seas and see individual capitalists of the West investing huge sums of money in Asia, Africa, and South America, only to take the profits out with no concern for the social betterment of the countries, and say, "This is not just." It will look at our alliance with the landed gentry of Latin America and say, "This is not just." The Western arrogance of feeling that it has everything to teach others and nothing to learn from them is not just. A true revolution of values will lay hands on the world order and say of war, "This way of settling differences is not just." This business of burning human beings with napalm, of filling our nation's homes with orphans and widows, of injecting poisonous drugs of hate into the veins of peoples normally humane, of sending men home from dark and bloody battlefields physically handicapped and psychologically deranged, cannot be reconciled with wisdom, justice, and love. A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual death.

“In any case of the budget deficit the private sector of the economy receives more from government expenditure than it pays in taxes.”

Michał Kalecki (1899–1970) Polish economist

Source: Theory of Economic Dynamics (1965), Chapter 3, The Determinants of Profits, p. 51

“Returning Medicare to solid footing represents our greatest entitlement challenge.... Like Social Security, Medicare is currently being rocked by the swelling numbers of baby-boomer retirees.... [However] the rising cost of health care adds just as much to the weight of the Medicare burden as does the age wave.... So it is healthcare itself that must be brought under control if we are to keep our Medicare bills from overwhelming the next generation.”

Mitt Romney book No Apology: The Case for American Greatness

Source: No Apology: The Case for American Greatness, 2010, Chapter 6, pgs. 162 - 163

“Once we have funded our national security and our homeland security, the final great priority of my budget is economic security for the American people. To achieve these great national objectives — to win the war, protect the homeland, and revitalize our economy — our budget will run a deficit that will be small and short-term, so long as Congress restrains spending and acts in a fiscally responsible manner. We have clear priorities and we must act at home with the same purpose and resolve we have shown overseas: We'll prevail in the war, and we will defeat this recession.”

George W. Bush (1946) 43rd President of the United States

2000s, 2002, State of the Union address (January 2002)

“I repeat: our practical choice is not between a tax-cut deficit and a budgetary surplus. It is between two kinds of deficits: a chronic deficit of inertia, as the unwanted result of inadequate revenues and a restricted economy; or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, increase tax revenues, and achieve--and I believe this can be done--a budget surplus. The first type of deficit is a sign of waste and weakness; the second reflects an investment in the future.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

“While there are periodic calls from libertarians and others for the privatization or elimination of the program, given the first political opportunity to dramatically influence the Medicare program, a conservative White House and Congress sought to strengthen, not weaken, the program. To be sure, debates will linger about whether Medicare is too large or too small. Debates remain about the allocation of Medicare dollars. But December 8, 2003, demonstrated that there is no debate on this most fundamental fact: Medicare must survive.”

Michael Johns (1964) American businessman

"The Great Society Meets the 21st Century," Orthopedic Technology Review, January 2004, by Michael Johns: 'Medicare Must Survive'

“To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.”

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