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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.

Martin Feldstein
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We are particularly poor at the open economy issues.
Martin Feldstein
Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more.
Martin Feldstein
Domestic inflation reflects domestic monetary policy.
Martin Feldstein
We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation.
Martin Feldstein
After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive.
Martin Feldstein
But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months and by a total of 37 percent by the beginning of 1988.
Martin Feldstein
I think that over the last few decades, we have seen better economic outcomes than in the past.
Martin Feldstein
Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit.
Martin Feldstein
First, I think the science of monetary economics has clearly gotten better.
Martin Feldstein
But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion.
Martin Feldstein
The more competitive value of the dollar turned around the trade deficit.
Martin Feldstein
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.
Martin Feldstein
A second reason why science cannot replace judgement is the behavior of financial markets.
Martin Feldstein
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.
Martin Feldstein
The price of imported oil in the US doubled between summer 2003 and summer 2005, reducing consumers' purchasing power by more than 1 per cent of gross domestic product.
Martin Feldstein
The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar.
Martin Feldstein
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.
Martin Feldstein
Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.
Martin Feldstein
And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets.
Martin Feldstein
An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers.
Martin Feldstein
Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high a price to pay. No one would make those arguments today.
Martin Feldstein
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.
Martin Feldstein
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.
Martin Feldstein
Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.
Martin Feldstein
My theme this evening is that America needs a competitive dollar.
Martin Feldstein
In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation or decreased economic growth.
Martin Feldstein
So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls.
Martin Feldstein
Inflation is lower and more stable and the real business cycle fluctuations are more modest.
Martin Feldstein
If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth.
Martin Feldstein
Criticism of government finds sanctuary in several portions of the 1st Amendment. It is part of the right of free speech. It embraces freedom of the press.
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For a country to have a great writer is like having another government. That's why no regime has ever loved great writers, only minor ones.
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This is how psychiatry has functioned-as a kind of property arm of the government, who can put you away if your husband doesn't like you.
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I don't like government, it's just that simple.
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And while the U.S. can never be 100 percent safe from a future strike, our government is working around the clock on measures to protect the American people.
Roger Wicker
It was also during my tenure of office that the Japanese Government agreed to the conclusion of a Nuclear Non-Proliferation Treaty and signed it, pursuing a policy in harmony with the avowed desire of the people.
Eisaku Sato
You know why there's a Second Amendment? In case the government fails to follow the first one.
Rush Limbaugh
It was an idea we had when Al was in the Senate - to organize and moderate an annual conference that would look at government policy through the lens of the family to help identify ways that the family can be supported and strengthened.
Tipper Gore
What the F.D.I.C. does is to put the full faith and credit of the United States government behind every savings account in the nation, up to a limit that has changed over the years and stands now at $100,000.
Nick Clooney
All that a good government aims at... is to add no unnecessary and artificial aid to the force of its own unavoidable consequences, and to abstain from fortifying and accumulating social inequality as a means of increasing political inequalities.
James F. Cooper
Neither these statesmen nor their constituents sought in any way to use the Government for the interest of themselves or their section, or for the injury of a single member of the Confederacy.
Robert Toombs
The government must do all it can to help reduce interest rates for business.
Pauline Hanson
The time has come for the American government to recognize the damage that has occurred to our economy, and to take firm action to curtail what I believe is both unfair and illegal foreign competition.
Norm Dicks
All of us who are convinced that our military needs all the support the government and public will provide are pleased that he will have his chance to do just that.
Alex Morrison
War is just one more big government program.
Joseph Sobran
The transfer is a monumental occasion as the Iraqi people take control of their government and their future and forge ahead with creating a society governed by the tenets of life, liberty and freedom.
Jim Gerlach
Let's say there are 500 sons and daughters like you in each state. Then we could control the government.
Sun Myung Moon
Government of the people, by the people, for the people, shall not perish from the Earth.
Abraham Lincoln
A government for the people must depend for its success on the intelligence, the morality, the justice, and the interest of the people themselves.
Grover Cleveland