Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Wouldn't less govt revenue mean less govt spending?

Answered (Verified) This post has 4 verified answers | 4 Replies | 2 Followers

Top 100 Contributor
814 Posts
Points 16,290
No2statism posted on Fri, Feb 15 2013 3:24 PM

I was thinking so, but I need some sources to back me up.  Any links?

  • | Post Points: 65

Answered (Verified) Verified Answer

Top 50 Contributor
2,493 Posts
Points 39,355
Verified by No2statism

it would not necessarily mean that. they can operate at a loss, and infact they do.

Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
  • | Post Points: 25
Top 500 Contributor
317 Posts
Points 6,805
Verified by No2statism

If you mean tax revenue, maybe, but not necessarily. They can sell bonds and go into debt if they can get someone to loan them the money.

Would the state spend more if it had more tax revenue? Probably, because it is politically (and probably technically) easier to spend tax money than borrowed money.

  • | Post Points: 25
Top 10 Contributor
6,953 Posts
Points 118,135
Verified by No2statism

If there were no central banking system that could create money out of thin air, essentially yes.  Of course the government could always borrow as well, but less revenue (and no ability to print money) would necessarily mean less capacity to make debt service overall, it's fair to say it would mean less spending, and even more fair to say it would put an upper limit on spending (or at least one much stronger than the useless Congressional "ceiling" we have now.)

For more, see:

Gold standard

Fiat money advocates, aka "Greenbackers"

Fractional & full reserve banking & the Federal Reserve

from: The Ultimate Beginner meta-thread


  • | Post Points: 25
Top 50 Contributor
2,439 Posts
Points 44,650
Verified by No2statism

No. This is entirely inaccurate. This is called a "deficit" and to my knowledge it has never stopped the rate of government growth or spending.

At last those coming came and they never looked back With blinding stars in their eyes but all they saw was black...
  • | Post Points: 25
Page 1 of 1 (5 items) | RSS