Higher taxes will not reduce the deficit, except for a brief interval. They will simply increase government sp... — Milton Friedman

Higher taxes will not reduce the deficit, except for a brief interval. They will simply increase government spending. That is the lesson taught by past experiences.

Author: Milton Friedman

Insight: When governments get more money, they don't actually save it—they find new ways to spend it, kind of like how a raise rarely leads to actual savings. Friedman's warning cuts deeper than left vs. right politics; it's about human nature and institutional incentives. The real deficit fighter isn't higher taxes or spending cuts alone, but redesigning how government thinks about money.

Source: ''Why Tax Cuts Are for Rich, Poor and Middle Class'', Newsweek, 1978

/Quotes

Higher taxes will not reduce the deficit, except for a brief interval. They will simply increase government spending. That is the lesson taught by past experiences.

Milton Friedman''Why Tax Cuts Are for Rich, Poor and Middle Class'', Newsweek, 1978

Insight

When governments get more money, they don't actually save it—they find new ways to spend it, kind of like how a raise rarely leads to actual savings. Friedman's warning cuts deeper than left vs. right politics; it's about human nature and institutional incentives. The real deficit fighter isn't higher taxes or spending cuts alone, but redesigning how government thinks about money.

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Milton Friedman

Milton Friedman (1912–2006) was an influential American economist and a leading advocate of free-market capitalism. He was known for his work on monetary policy, advocating for deregulation, and promoting the importance of individual choice and competition in the market. Friedman received the Nobel Prize in Economics in 1976 for his contributions to the field.

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