Deficits

A policy of deficit spending saps the very foundation of all interpersonal relations and contracts. It frustrates all kinds of savings, social security benefits and pensions.

Planning for Freedom, p. 89

It is always an inflationist policy, not “economic conditions,” which bring about the monetary depreciation. The evil is philosophical in character.

On the Manipulation of Money and Credit, p. 48

If one regards inflation as an evil, then one has to stop inflating. One has to balance the budget of the government.

Economic Policy, pp. 72–73

If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely. The purchasing power of the monetary unit will decline more and more, until finally it disappears completely.

On the Manipulation of Money and Credit, p. 5

Can anyone doubt that the warring people of Europe would have tired of the conflict much sooner, if their governments had clearly, candidly, and promptly, presented them with the bill for military expenses?

On the Manipulation of Money and Credit, p. 38

In public administration there is no connection between revenue and expenditure.

Bureaucracy, p. 47

What the doctrine of balancing budgets over a period of many years really means is this: As long as our own party is in office, we will enhance our popularity by reckless spending. We do not want to annoy our friends by cutting down expenditure. We want the voters to feel happy under the artificial short-lived prosperity which the easy money policy and rich supply of additional money generate. Later, when our adversaries will be in office, the inevitable consequence of our expansionist policy, viz., depression, will appear. Then we shall blame them for the disaster and assail them for their failure to balance the budget properly.

Planning for Freedom, p. 87

The two pillars of democratic government are the primacy of the law and the budget.

Bureaucracy, p. 41

If it is unnecessary to adjust the amount of expenditure to the means available, there is no limit to the spending of the great god State.

Planning for Freedom, p. 90

What the government spends more, the public spends less. Public works are not accomplished by the miraculous power of a magic wand. They are paid for by funds taken away from the citizens.

Human Action, p. 655; p. 659