In simple terms, the statement suggests that state governments, unlike the federal government, do not have the flexibility to spend more money than they take in through taxes and other revenue sources. This means states must balance their budgets, whereas the federal government can run a deficit by borrowing or printing money when its expenses exceed income.
The deeper meaning of this quote highlights significant differences between state and federal fiscal policies and constraints. It underscores the financial discipline that state governments face compared to the federal level. State governments are typically required by law to maintain balanced budgets, which means they must adjust spending or raise revenue if their revenues fall short of expenditures. This constraint reflects a fundamental aspect of governance in the United States, where states have historically operated under more stringent fiscal rules than the national government. The implications extend to policy-making, economic planning, and public service provision, as state officials are constantly balancing between essential services and fiscal prudence.
Marcia Angell is a renowned author and former editor-in-chief of the New England Journal of Medicine. She has contributed extensively to discussions on healthcare, science, and public health, often addressing critical issues with clarity and insight. Her expertise spans multiple disciplines, including medical ethics and policy analysis, making her commentary on fiscal matters particularly noteworthy for its analytical rigor and practical relevance.
