Posts Tagged ‘fiscal’

Thomas E. Mann: Debt Limit

Posted by admin on Tuesday, July 4, 2023

Meaning of Thomas E. Mann Money Quote: saying The debt limit (AKA Debt Ceiling) should be raised every budget cycle, but political posturing is applied routinely. Thomas E. Mann said:
 
fiscal discipline, even as they vote to ratify the debts their previous actions have a beginning the country to pay. The symbol of railing against debt has proven politically beneficial, even if not substantively meaningful Quote
 

“Since the debt limit simply accommodates debt that has already been incurred, raising it should, in theory, be perfunctory. But politicians have found it a useful shibboleth for showing their fealty fiscal discipline, even as they vote to ratify the debts their previous actions have a beginning the country to pay. The symbol of railing against debt has proven politically beneficial, even if not substantively meaningful” — Thomas E. Mann

 

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This quote from Thomas E. Mann suggests that while raising the debt ceiling seems like it should be a routine formality given existing spending obligations, politicians have treated it as an opportunity to signal commitment to budget responsibility even as they enable financing for prior fiscal decisions. Some key points in interpreting his perspective:

  • Mann implies that increasing the debt limit simply allows payment of debts already incurred and is therefore not substantively addressing the root issues around long-term fiscal discipline.
  • He portrays political opposition to such increases as hollow gestures that are more about appearances of fiscal conservatism than solutions, since previous actions created the conditions requiring more borrowing capacity.
  • However, reasonable experts can disagree on where exactly to draw lines around prudent versus imprudent levels of debt accumulation given changing economic conditions over time.
  • A balanced interpretation acknowledges both Mann’s viewpoint and the complex realities of governing finances in practice through incremental decisions across administrations and congresses over the long run involving good-faith debates on all sides.

Overall, the quote conveys Mann’s skepticism around using the debt ceiling as symbolism over substance. But the best analysis considers this perspective alongside other reasonable positions in ongoing discussions around balancing budgets, economic opportunities and generational responsibilities in a globalized world of complex interdependencies where experts will continue debating evidence-based solutions in good faith.

Sir Alex Fraser Tytler: Fiscal Policy

Posted by admin on Saturday, September 26, 2020

Sir Alex Fraser Tytler Money Quote saying democratic society can be at risk of dictatorship due to fiscal policy of previous administrations. Sir Alex Fraser Tytler said:
 
A democracy always collapses over loose fiscal policy, always followed by a dictatorship Quote
 

“A democracy … can only exist until the voters discover that they can vote themselves largess of the public treasury. From that time on the majority always votes for the candidates promising the most benefits from the public treasury, with the results that a democracy always collapses over loose fiscal policy, always followed by a dictatorship” — Sir Alex Fraser Tytler

 

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In this quote, Sir Alex Fraser Tytler seems to be warning about a potential downfall of democracy. Some key points:

  • He notes that once voters realize they can elect candidates who promise to spend more public funds on popular programs/benefits, democracy may be threatened.
  • Tytler suggests the “majority always votes” for such fiscal largesse, resulting in loose spending that weakens government finances over time.
  • The consequence, according to Tytler, is the eventual “collapse” of democracy due to unsustainable debt and deficits.
  • He implies democracy’s end may come through economic crisis or social unrest, paving the way for an authoritarian “dictatorship” to potentially seize power.

Overall, the quote conveys Tytler’s view that unrestrained public spending enabled by democratic elections could undermine stable self-governance if voters prioritize short-term benefits over long-term fiscal discipline and responsibility. The message is unchecked spending poses risks to democratic systems.

Michael Connolly: Printing Inflationary Evil

Posted by admin on Tuesday, January 26, 2016

Michael Connolly Money Quotation saying governments that are tempted to print money during financial crises are playing with Seigniorage fire. Michael Connolly said:
 
Seigniorage finance of fiscal deficits is often known as 'the printing press.' In a sense, money is the root of all inflationary evil Quote
 

“Seigniorage finance of fiscal deficits is often known as ‘the printing press.’ In a sense, money is the root of all inflationary evil. It helps to understand why inflation bursts out here and there periodically” — Michael Connolly

 

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Michael Connolly is explaining how governments can fuel inflation through deficit spending and money creation. The quote suggests that when governments fund budget shortfalls by essentially “printing” new money through seigniorage (profits from minting currency), this amounts to using the “printing press” to pay bills.

Connolly asserts that money itself is the underlying cause of inflation, as too much money in circulation relative to available goods will bid up prices. He’s saying periodic inflation outbreaks occur because governments will periodically resort to deficit monetization as a way to finance expenditures without raising taxes.

The overall interpretation is that Connolly views money creation as the root driver of inflation, and sees deficit spending paid for via seigniorage as a primary method by which inflation periodically emerges in various economies.

President Obama: Taxing Wealthy

Posted by admin on Thursday, November 29, 2012

President Barack Obama Money Quotation saying Politicians debate whether to raise taxes on the top 2 percent of earners – while a disaster looms as they avoid his simple proposed solution. President Obama said:
 
Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody's income. Everybody's Quote
 

“Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income. Everybody’s” — Barack Obama

 

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In this quote, Barack Obama is advocating for Congress to pass legislation preventing a tax increase on the first $250,000 of all Americans’ income. By saying “everybody’s”, Obama is emphasizing that this tax cut would benefit all individuals and families, not just the wealthy.

His point is that Congress has the power to enact a tax policy protecting all taxpayers from owing more on their first $250,000 in earnings. The quote conveys Obama’s view that Congress should take action to spare middle-class and lower-income citizens from a looming tax hike by extending tax cuts on a certain threshold of income that would impact “everybody”.

Overall, Obama appears to be pushing for across-the-board tax relief on a set level of earnings through congressional legislation.

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