Martin Feldstein Quotes

Powerful Martin Feldstein for Daily Growth

About Martin Feldstein

Martin S. Feldstein, born on August 13, 1939, in New York City, is an esteemed American economist who has significantly contributed to the field of macroeconomics. He graduated summa cum laude from Princeton University with a Bachelor's degree in economics, and later earned a Ph.D. in Economics from MIT in 1965. Feldstein's career began at the Department of Economics at Harvard University, where he would later serve as the Paul A. Samuelson Professor of Economics after 1977. He also served as the President of the National Bureau of Economic Research from 1977 to 2008, and as a member of the U.S. President's Council of Economic Advisers during the Reagan administration from 1982 to 1984. Feldstein is renowned for his work on tax policy, Social Security reform, education, and macroeconomics. His research has influenced the understanding of savings, investment, and fiscal policy, particularly in the context of government debt. Notable works include "The Role of Saving in Economic Growth" (1968) and "Federal Tax Reform: A Handbook for Citizens" (1975). In 2014, Feldstein was awarded the National Medal of Science by President Barack Obama. His work continues to shape economic policy discussions globally. He is a fellow of the American Academy of Arts and Sciences, the Econometric Society, and the British Academy, among others. Martin S. Feldstein's insights into fiscal policy, savings, investment, and Social Security reform remain influential in contemporary economic discourse.

Interpretations of Popular Quotes

"The key to successful fiscal policy is not to overburden future generations with excessive debt."

This quote by Martin Feldstein emphasizes the importance of prudent financial management in government, advocating for a responsible approach to public debt. The idea is that governments should avoid saddling future generations with unmanageable levels of debt, as excessive indebtedness can limit their opportunities and potentially burden them financially. It's a call for fiscal policies that prioritize sustainability and intergenerational equity.


"Tax cuts for high-income people are not likely to have a significant effect on the economy as a whole because they save such a large fraction of their additional income."

Martin Feldstein's quote suggests that tax reductions for wealthy individuals may not stimulate economic growth significantly, as these high-income individuals tend to save a substantial portion of any extra income they receive, rather than spending it, which could limit its overall impact on the economy.


"Government policies that encourage people to work less, or that make work unnecessary, will reduce productivity growth over time."

Martin Feldstein's quote implies that government policies which incentivize reduced work hours or eliminate the need for work may have a long-term negative impact on productivity growth. By reducing work hours, individuals have less opportunity to gain skills, acquire knowledge, and develop innovative ideas – all factors essential to increased productivity. Furthermore, work provides motivation and purpose, so policies that make it unnecessary could potentially lead to decreased drive and ambition among the population. In summary, Feldstein suggests that striking a balance between work and leisure is crucial for maintaining and fostering long-term productivity growth.


"Economic policy should always be designed with an eye toward promoting long-term economic growth as well as meeting the needs of current citizens."

Martin Feldstein's quote emphasizes the importance of striking a balance between short-term goals and long-term vision in economic policymaking. He suggests that policies should be designed to promote sustainable, long-term economic growth while also addressing the needs and concerns of current citizens. This approach highlights the interconnectedness of immediate welfare with future prosperity, implying that sound policymaking considers both the present and the future wellbeing of a society. It underscores the idea that economic growth is not an end in itself but rather a means to improve the lives of people and ensure their continued success over time.


"The most important determinant of a country's long-run economic success is its ability to promote and sustain high rates of productivity growth."

This quote by Martin Feldstein emphasizes that a nation's long-term economic prosperity hinges primarily on its capacity to foster and maintain consistent high levels of productivity growth. In simpler terms, the more efficiently a country can produce goods and services using its resources (labor, capital, technology), the greater its chances of achieving sustained economic success over time. This perspective underscores the importance of investing in research & development, education, infrastructure, and technological advancements to boost productivity and secure a nation's long-term economic growth and competitiveness on the global stage.


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

Grow, Will, Foreigners, Dividend

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

Will, American Consumers, Manufacturers

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

Art, Judgement, Depend, Inevitably

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

Strong, More, Achieve, Reserve

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

Strong, News, Good News, Global Market

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

Changes, About, Import, Exchange Rate

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

Activity, Reduce, High Level, Temporarily

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

Reason, Wanting, May, Primary

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

Like, Mortgages, Took, Consumer

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

Rest, Like, Sell, Businesses

I think that over the last few decades, we have seen better economic outcomes than in the past.

- Martin Feldstein

Think, Over, In The Past, Decades

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

Finance, Rest, Reduce, Dependence

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

Other, Move, United States, Borrowing

Domestic inflation reflects domestic monetary policy.

- Martin Feldstein

Domestic, Monetary, Reflects

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

Temporary, Crowd, Private, Higher Levels

My theme this evening is that America needs a competitive dollar.

- Martin Feldstein

Competitive, Needs, Theme, Evening

Inflation is lower and more stable and the real business cycle fluctuations are more modest.

- Martin Feldstein

Business, More, Lower, Stable

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

Could, Imply, Increased, Experiencing

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

Beginning, Began, Months, Sharp

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

Year, Source, Exports, Increase

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

Product, Purchasing, Gross, Per

The more competitive value of the dollar turned around the trade deficit.

- Martin Feldstein

Trade, More, Turned, Dollar

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

More, Buy, Exports, Dollar

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

Think, Judgement, Pilots, Planes

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

Cost, Argued, Minor, Reducing

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

Temporary, Some, Necessary, Reduced

A second reason why science cannot replace judgement is the behavior of financial markets.

- Martin Feldstein

Financial, Reason, Judgement, Markets

First, I think the science of monetary economics has clearly gotten better.

- Martin Feldstein

Economics, Think, Better, Clearly

If you're searching for quotes on a different topic, feel free to browse our Topics page or explore a diverse collection of quotes from various Authors to find inspiration.