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Steve Hanke Quotes

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About Steve Hanke

Steven H. Hanke is an American economist, financial expert, and public policy analyst, renowned for his work on hyperinflation, exchange rates, and economic reforms in developing countries. Born on July 14, 1952, in the United States, Hanke developed a keen interest in economics at a young age. He earned his B.A. in economics from Swarthmore College and later pursued his M.A. and Ph.D. in economics at Johns Hopkins University. Hanke's academic career began at the University of Wisconsin-Milwaukee, where he taught from 1976 to 1985. In 1985, he joined The Johns Hopkins University as a professor of applied economics. During this time, Hanke also worked as a senior economist for the U.S. Congress' Joint Economic Committee and served as a consultant to the International Monetary Fund (IMF). One of Hanke's most influential works is his "Dirty Float" theory, which suggests that countries should allow their currencies to float freely but intervene when necessary to prevent excessive volatility. Another significant contribution is his research on hyperinflation, particularly in post-Mao Zedong China and post-Soviet Russia. In addition to his academic work, Hanke has been a vocal critic of economic policies in developing countries and has advised several governments on economic reforms. He served as a senior advisor to the Prime Minister of Ukraine during the country's transition to a market economy in the 1990s. Hanke is a frequent contributor to various news outlets, including The Wall Street Journal, Financial Times, and Forbes. He has also authored or co-authored over 25 books, making him one of the most prolific economists in his field. Hanke's work continues to shape economic policy discussions worldwide.

Interpretations of Popular Quotes

"The problem with socialism is that you eventually run out of other people's money."

This quote by Steve Hanke highlights a fundamental issue with socialist systems: they rely on redistributing resources, typically through heavy government intervention and high taxation. The phrase "you eventually run out of other people's money" suggests that, in such systems, the government exhausts available funds by overextending its reach into private wealth to finance public projects and programs. In essence, the quote warns against the unsustainable practice of relying on a finite pool of resources (other people's money) for unbounded spending.

"Inflation is taxation without representation."

The quote "Inflation is taxation without representation" suggests that inflation, like a hidden tax, disproportionately impacts citizens, particularly the less affluent, as it erodes purchasing power by increasing prices of goods and services. Unlike traditional taxes, which are transparent and collected through a democratic process, inflation often occurs due to economic factors such as government spending, monetary policies or supply shocks, and the burden of its effects is not evenly distributed across society. This quote emphasizes that while citizens cannot vote on inflation, they do pay for it in their daily lives. It underscores the importance of sound fiscal and monetary policies to maintain price stability and protect consumers from the hidden taxation of inflation.

"The dollar is the world's currency. The euro is not."

This quote by Steve Hanke emphasizes that, according to his perspective, the US Dollar holds a dominant position in the global financial system, serving as the primary currency for international trade and transactions. On the other hand, the Euro, being the official currency of the European Union, has not yet achieved the same level of international influence or acceptance as the dollar. This difference between the two currencies is significant due to their impact on the world economy, financial stability, and foreign exchange markets.

"Capital controls are a tax on trade and a deterrent to investment."

Capital controls, as stated by Steve Hanke, are measures taken by governments to restrict or regulate the flow of foreign capital into or out of their country. This quote suggests that such measures act as a barrier or "tax" on international trade, making it more difficult for businesses and investors to participate in global markets. Additionally, by increasing uncertainty and potentially discouraging investment, capital controls can deter economic growth and development.

"Free markets, free trade, and free people bring prosperity."

Steve Hanke's quote emphasizes that the principles of free markets, open trade, and individual freedom are integral to economic prosperity. By allowing unfettered competition (free markets), exchanging goods and services freely across borders (free trade), and ensuring individuals have autonomy over their decisions (free people), societies can foster innovation, productivity, and wealth creation. The quote suggests that these freedoms stimulate economic growth and well-being among citizens.

It turns out that the rich are much better placed to feed at the public trough. The poor get crumbs.

- Steve Hanke

Rich, Placed, Turns, Crumbs

When the dollar goes down relative to other currencies, the price of wheat, corn, rice and oil all go up in dollar terms.

- Steve Hanke

Corn, Goes, Other, Wheat

During the last two centuries, there have been many deflations throughout the world. Almost all of them have been good ones precipitated by technological innovation, rising productivity, global capital flows, and sustained economic growth. If farm mechanization cuts the price of wheat, you get a rising living standard. This is good.

- Steve Hanke

Been, Standard, Capital, Wheat

When I was operating as one of President Reagan's economic advisers, an early assignment was to analyze the federal government's landholdings and make recommendations about what to do with them. This was a big job. These lands are vast, covering an area six times that of France.

- Steve Hanke

Big, Reagan, Covering, Analyze

Government buffer-stock schemes are rife with politics, and instead of generating profits from buying low and selling high, they tend to generate losses.

- Steve Hanke

Politics, Profits, Rife, Generate

Following its recognition as a state in 1832, Greece spent most of the remainder of the 19th century under the control of creditors. The pattern started with a default in 1832. In consequence, Greece's finances were put under French administration.

- Steve Hanke

Consequence, 19th Century, Creditors

Although floating and fixed rates appear dissimilar, they are members of the same freemarket family. Both operate without exchange controls and are free-market mechanisms for balance-of-payment adjustments.

- Steve Hanke

Controls, Rates, Dissimilar, Fixed

Most economists use 'fixed' and 'pegged' as interchangeable or nearly interchangeable terms for exchange rates.

- Steve Hanke

Most, Use, Terms, Fixed

If you squeeze and squeeze, and you don't allow the Iranians to sell any oil, then what do they have to lose by shutting the Strait of Hormuz down? And if they do that, that's 35% of all the world's oil that comes through the strait and 20% of the liquefied natural gas in the world.

- Steve Hanke

Through, Allow, Squeeze, Iranians

There has never been a failure of a currency board anywhere in the world. These are tough systems, and when I say they are foolproof, that's exactly the case.

- Steve Hanke

Say, Been, Anywhere, Foolproof

The most important lesson to take away from allowing the minimum wage and unemployment benefit data to talk is that abstract notions of what is right, good and just should be examined from a concrete, operational point of view. A dose of reality is most edifying.

- Steve Hanke

Data, Away, Concrete, Dose

Since China embraced Deng Xiaoping's reforms on 22 December 1978, China has experimented with different exchange-rate regimes. Until 1994, the yuan was in an ever-depreciating phase against the U.S. dollar.

- Steve Hanke

Against, Phase, Reforms, Yuan

After the maxi yuan depreciation of 1994 and until 2005, exchange-rate fixity was the order of the day, with little movement in the CNY/USD rate.

- Steve Hanke

Rate, Until, After, Yuan

Trade balances are determined by national savings propensities, not exchange rates.

- Steve Hanke

Trade, Determined, Rates, Balances

Sanctions historically are quite counterproductive in the sense that if you impose sanctions on your enemy, it tends to strengthen your enemy.

- Steve Hanke

Sense, Counterproductive, Sanctions

In 2008, Bitcoin was mysteriously introduced to the world in an obscure, technical paper written under the pseudonym Satoshi Nakamoto. By late 2013, the financial press was filled with reportage on Bitcoin and its dramatic price increase.

- Steve Hanke

Financial, Technical, Satoshi

In April 2013, Nathaniel Popper of 'The New York Times' reported on Bitcoin in an article titled, 'Digital Money is Gaining Champions in the Real World'.

- Steve Hanke

Digital, New, Gaining, Article

Let the market, not politicians, determine the flow of rice, oil and other commodities. Lower, more stable prices will ensue.

- Steve Hanke

Will, Other, Determine, Flow

In January 2013, one could buy a Bitcoin for about $13. By late November, one Bitcoin would have set a buyer back over $1100.

- Steve Hanke

Over, Set, November, January

During the Greenspan-Bernanke era, the Fed has embraced the view that stability in the economy and stability in prices are mutually consistent. As long as inflation remains at or below its target level, the Fed's modus operandi is to panic at the sight of real or perceived economic trouble and provide emergency relief.

- Steve Hanke

Emergency, Fed, Mutually, Relief

With the passing of Milton Friedman on November 16, 2006, we lost one of the great champions of free markets.

- Steve Hanke

Great, Champions, November, Passing

When Ronald Reagan was elected president for his first term in 1980, he received strong support from the so-called Sagebrush Rebels. The Rebels wanted lands owned by the federal government to be transferred to state governments.

- Steve Hanke

Strong, Transferred, Reagan, So-Called

In Argentina, if the weather is bad, critics will blame it on the currency board.

- Steve Hanke

Bad, Critics, Argentina, Board

Following Greece's defeat at the hands of Turkey in 1897, Greece's fiscal house was entrusted to a Control Commission. During the 20th century, the drachma was one of the world's worst currencies. It recorded the world's sixth highest hyperinflation. In October 1944, Greece's monthly inflation rate hit 13,800%.

- Steve Hanke

Hands, House, Inflation, Commission

Contrary to what most people think, bank money is much more important than state money. In Greece, for example, bank money makes up 84.26% of the total money supply.

- Steve Hanke

Think, More, Makes, Greece

A minimum wage leads to higher levels of unemployment.

- Steve Hanke

Minimum Wage, Leads, Higher Levels

With interest rates artificially low, consumers reduce savings in favor of consumption, and entrepreneurs increase their rates of investment spending.

- Steve Hanke

Reduce, Interest Rates, Artificially

High mandated minimum wages will throw people out of work and onto the welfare rolls in cases where unemployment benefits exist. When it comes to welfare payments, they obey the laws of economics, too. Indeed, if something - like unemployment - is subsidized, more of it will be produced.

- Steve Hanke

Welfare, Benefits, Payments, Produced

There is always the potential for a central bank to engage in discretionary monetary policy and to break the one-to-one link between changes in foreign reserves and changes in the money supply.

- Steve Hanke

Always, Break, Discretionary, Engage

Mercantilism was an insidious economic theory that held Europe in its thrall in the 16th, 17th and 18th centuries.

- Steve Hanke

Centuries, Held, Insidious

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