"Deficits do not in themselves produce inflation, nor does a balanced budget assure a stable price level"
- William Vickrey
About this Quote
This quote by William Vickrey is highlighting the truth that a deficit spending does not always lead to inflation, and a balanced budget does not ensure a steady cost level. To put it simply, a budget deficit does not always imply that prices will rise, and a well balanced budget does not ensure that prices will remain stable. This is due to the fact that there are other aspects that can influence inflation, such as the accessibility of resources, the level of economic activity, and the level of need. Therefore, a deficit spending or a well balanced budget plan is not the only factor that can affect inflation. It is very important to think about all of the aspects that can influence inflation when making financial choices.
"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists"
"I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments"
"The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens"
"Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation"
"And so our goal on health care is, if we can get, instead of health care costs going up 6 percent a year, it's going up at the level of inflation, maybe just slightly above inflation, we've made huge progress. And by the way, that is the single most important thing we could do in terms of reducing our deficit. That's why we did it"
