#time

"If simply printing and spending more money would cure our problems we should by now be one of the wealthiest nations in the Western world.—In the lifetime of the last Labour Government the amount of money in the economy went up by £20 thousand million but the number of jobs did not increase. Indeed, unemployment doubled and prices more than doubled too.—In the last three years the amount of money in the economy went up by 50%; but yet only 4%; went into output, the rest into higher prices and imports. The record is clear, printing money doesn't create jobs, it only creates more inflation. But there is another word for printing money—they call it “reflection”. It is a cosy word but a fraudulent device. It cuts the value of every pound in circulation, of every pound the thrifty have saved. It means spending money you can't afford, haven't earned and haven't got. You would accept that it is neither moral nor responsible for a family to live beyond its means. Equally it is neither moral nor responsible for a Government to spend beyond the nation's means, even for services which may be desirable. So we must curb public spending to amounts that can be financed by taxation at tolerable levels and borrowing at reasonable rates of interest."

React to this quote

More by Margaret Thatcher

See all

“I have enormous admiration for the Jewish people, inside or outside Israel. There have always been Jewish members of my staff and indeed my Cabinet. In fact I just wanted a Cabinet of clever, energetic people – and frequently that turned out to be the same thing. My old constituency of Finchley has a large Jewish population. In the thirty-three years I represented it I never had a Jew come in poverty and desperation to one of my constituency surgeries. They had always been looked after by their own community.”

“You will quite often hear people say: “Well look, she is the best man in politics,” and I say: “Oh no, much better than that; she is the best woman.”

“You know, if you just set out to be liked, you would be prepared to compromise on anything, wouldn't you, at any time? And you would achieve nothing!”

“Under the Socialists, rapid strides have been taken towards the Iron Curtain State. We have seen increased nationalisation measures, increased powers of central Government over both large and small companies, increased levels of tax on the pay packet and on savings alike, and an increased proportion of the national income spent not by the wage-earner but by the Government or Government agencies. In the result, the Prime Minister has become the first Socialist Minister since the Chancellor of the Exchequer in 1951 to say that his policies will mean a reduced standard of living for our people...it is clear that Socialist systems are not good at creating wealth; they can only spend the wealth that others create.”

“This is what we believe.”

“The fightback begins now!”