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Quote by James M. Buchanan

“I have long been in favor of a balanced budget restriction at the level of the federal government of the United States. Because the federal government has money-creating powers it can, in fact, be very damaging if it runs a series of budget deficits. With the state government in the United States, they don't have money-creating powers. The automatic discipline imposed by the fact that they are in a common monetary unit and don't have control over the money power means that the balanced budget restriction is less needed.”

Quote by James M. Buchanan

Author

James M. Buchanan

James M. Buchanan was a distinguished economist known for his contributions to the theory of public choice. He was born on October 3, 1919, and passed away on January 9, 2013. Buchanan's theories had a profound impact on understanding government behavior and market mechanisms. more

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“It is much more difficult to get implemented politically what might be desirable economically. Even if you came out with an economic argument in favor of equalization - and I think there are arguments on both sides - I would still come down in favour of some sort of a scheme on strict economic grounds.”

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Author:James M. Buchanan

“Once you have an equalization instrument in place, as you have in Canada, there arise tremendous bureaucratic values - bureaucratic rent so to speak - in maintaining the system that you have. To shift to a system that paid the transfers directly to individuals, by having differential rates of federal income tax levied to adjust to provincial fiscal capacities, which would be my preference, you would have huge bureaucratic opposition. People would try to protect the rents they have in the current system of institutions.”

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People Ifs Way Trying Facts Past Values Higher Waste Resources Areas Capacity Including Seeking Valuable Access Immigration Income One Way Range Sheep Peasants Medieval Receiver Pastures

Author:James M. Buchanan

“We want to limit the exploitation of the fiscal capacity of the richer regions by keeping down the rate of immigration to a level that would be meaningful and efficient. One way to do that is to have a scheme of equalization which essential bribes people to stay in the poorer regions.”

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Ends Sometimes Enough America Community Economy Stability Mobile Dynamism

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“If politicians get money to spend and don't have to be responsible for taxation, then of course that will bias their attitude toward more spending as opposed to cutting back on spending.”

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“You can get a coalition of senators from particular states in America, for example, who want to construct highways or dams or ports which may well be very inefficient. The taxes would be paid by the people over the whole country, but the benefits would go to the few people in those particular locations. This type of spending is a rather gross waste of resources that worsened over the years as the government has been allowed to do more particularized things.”

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Author:James M. Buchanan