"We're focused on doing the things that make the economy perform well, and as you do that, reduce deficits, for one, very important; secondly, keep growth rates high, very important"
About this Quote
John W. Snow links economic stewardship to two priorities that are often portrayed as opposites: shrinking deficits and sustaining strong growth. He treats them as mutually reinforcing outcomes of getting the fundamentals right. The phrasing is pragmatic rather than ideological, stressing execution and performance over abstract doctrine. Do the things that make the economy perform well, he says, and fiscal health will follow; keep growth rates high, and the budget arithmetic gets easier.
The context is the early 2000s, when Snow served as U.S. Treasury Secretary under President George W. Bush. The country was recovering from the 2001 recession and the shock of 9/11, while grappling with rising deficits from tax cuts, defense spending, and weaker revenues. Snow repeatedly argued that pro-growth policies would expand the tax base and bring deficits down, reflecting a supply-side sensibility: lower marginal tax rates, investment incentives, openness to trade, and a predictable regulatory and monetary environment. The message was directed as much to markets and businesses as to voters, aiming to reassure them that fiscal responsibility did not require throttling the expansion.
There is a real tension behind the confidence. Deficit reduction can dampen demand if done abruptly, yet persistent deficits can undermine growth by lifting interest rates, crowding out private investment, or constraining future crisis response. Snow’s formulation implies a sequencing and design challenge: prioritize measures that raise productivity and employment while exercising spending discipline over the medium term. The mid-2000s did see headline deficits narrow as growth picked up, but much of the improvement rode a cyclical upswing and a housing-fueled revenue surge, a reminder that relying solely on growth to heal the budget is precarious. The enduring lesson is that smart growth policy and credible fiscal plans are complements. When they move together, they reinforce confidence; when they diverge, the economy may boom for a time, but the fiscal anchor can slip.
The context is the early 2000s, when Snow served as U.S. Treasury Secretary under President George W. Bush. The country was recovering from the 2001 recession and the shock of 9/11, while grappling with rising deficits from tax cuts, defense spending, and weaker revenues. Snow repeatedly argued that pro-growth policies would expand the tax base and bring deficits down, reflecting a supply-side sensibility: lower marginal tax rates, investment incentives, openness to trade, and a predictable regulatory and monetary environment. The message was directed as much to markets and businesses as to voters, aiming to reassure them that fiscal responsibility did not require throttling the expansion.
There is a real tension behind the confidence. Deficit reduction can dampen demand if done abruptly, yet persistent deficits can undermine growth by lifting interest rates, crowding out private investment, or constraining future crisis response. Snow’s formulation implies a sequencing and design challenge: prioritize measures that raise productivity and employment while exercising spending discipline over the medium term. The mid-2000s did see headline deficits narrow as growth picked up, but much of the improvement rode a cyclical upswing and a housing-fueled revenue surge, a reminder that relying solely on growth to heal the budget is precarious. The enduring lesson is that smart growth policy and credible fiscal plans are complements. When they move together, they reinforce confidence; when they diverge, the economy may boom for a time, but the fiscal anchor can slip.
Quote Details
| Topic | Money |
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