"Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work."
"A wise and frugal Government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circlue of our felicities."Martin Feldstein on Thomas Jefferson
"The best argument against democracy is a five-minute conversation with the average voter."Martin Feldstein on Winston Churchill
"I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country."Martin Feldstein on Thomas Jefferson
"Government is not reason it is not eloquent it is force. Like fire, it is a dangerous servant and a fearful master."Martin Feldstein on George Washington
"Government, even in its best state, is but a necessary evil in its worst state, an intolerable one."Martin Feldstein on Thomas Paine
"A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output."
"The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit."
"To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world."
"But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries."
"A second reason why science cannot replace judgement is the behavior of financial markets."
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