Borrowing Quotes - page 3
Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation. If in the course of such an inflation the rise in commodity prices exceeds the rise in nominal wage rates, unemployment will drop. But what makes unemployment shrink is precisely the fact that real wage rates are falling.
Ludwig von Mises
For too long, perhaps ever since the war, we postponed facing up to fundamental choices and fundamental changes in our society and in our economy. This is what I mean when I say we have been living on borrowed time. For too long this country – all of us, yes this Conference too – has been ready to settle for borrowing money abroad to maintain our standards of life, instead of grappling with the fundamental problems of British industry. Governments of both parties have failed to ignite the fires of industrial growth in the ways that countries with very different political and economic philosophies have done.
James Callaghan
You know, as I do, that we face two deep-seated problems, inflation and unemployment. Both of them are still too high. ... I have to emphasize to you that if we fail to bring down inflation, we shall never succeed in overcoming unemployment. We cannot have a prosperous industry in this country if we are unable to sell our goods overseas. No one owes Britain a living, and may I say to you quite bluntly that despite the measures of the last 12 months, we are still not earning the standard of living we are enjoying. We are only keeping up our standards by borrowing, and this cannot go on indefinitely. There is no soft option. I do not promise you any real easement for some time to come. There can be no lasting improvement in your own living standards until we can achieve it without going deeper and deeper into debt as a nation.
James Callaghan
Dialogue in Hell:
Twenty-First Dialogue
Machiavelli: I am afraid that you are somewhat prejudiced against loans;... modern economists today expressly recognize that, far from impoverishing the state, public debts enrich it. Will you allow me to explain how?
Montesquieu:.... I should first of all like to know from whom you will ask so much capital, and for what reason you will ask it.
Machiavelli: For that, foreign wars are a great help. In the great states, they permit the borrowing of five or six hundred millions; one manages so as to spend only half or two-thirds, and the rest finds its place in the treasury for domestic expenditures.
Will Eisner
Dialogue in Hell:
finally comes the liquidation which adds 15, 20, or 30 millions. In short, in the general reckoning, the total of the unforeseen expenses forms one-third of the estimated expenditures. It is upon this last figure that the legislative vote of the Chambers falls as a form of confirmation. In this way, at the end of ten years the budget can be doubles and even tripled....
Monsesquieu:... It is certain that there are few governments who are not obliged to have recourse to borrowing; but it is also certain that they are obliged to make use of them sparingly; they could not, without immorality and danger, encumber future generations with exorbitant burdens, out of all proportion to.
Will Eisner
By 1939 the national debt had reached 37.4 billion marks. The reemployment of millions of jobless and the rearmament of German military forces had been financed by borrowing gigantic sums of money. Even Goebbels, who otherwise mocked the government's financial experts as narrow-minded misers, expressed concern in his diary about the exploding deficit.
Gotz Aly
But institutional economics is the field of the public interest in private ownership, which shows itself behavioristically in buying and selling, borrowing and lending, hiring and firing, leasing and renting. The private interests become the field of intangible yet quantitative and measurable rights, duties, liberties and exposures to the liberties of others. These are various aspects of rights of ownership. What we buy and sell is not material things and services but ownership of materials and services. The correlation of engineering economics, home economics, and institutional economics makes up the whole of the science of political economics.
John R. Commons
The debt-ceiling vote isn't about what will be done in the future; it is about the integrity of America's commitment to support the bonds we issue. Elected officials have an obligation to maintain that integrity, regardless of whether they voted for the programs that required the borrowing in the first place.
John H. Sununu
Viewed from a distance, or through the eye of the All-Knowing CEO of the Universe, the crash of 2008 followed the usual pattern. A long-lived boom driven by cheap credit, going back as far as 1982 (though subject to interruptions in the mid-1980s and 1990s, and in 2001), came to grief because of a rise in the cost of borrowing money.
James Buchan