“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
- February 6, 1911 – June 5, 2004
- American
- The 40th President of the United States, Actor, Politician, Governor of California
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Quote
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
Explanation
In this quote, Ronald Reagan uses humor to critique the tendency of government to intervene excessively in economic activity. With each phrase—“tax it,” “regulate it,” and “subsidize it”—he highlights a different form of state interference, suggesting that no matter what stage an economic action is in, government finds a way to involve itself, often counterproductively. The underlying message is that such intervention distorts incentives, hampers productivity, and leads to inefficiency.
This remark aligns with Reagan’s broader free-market philosophy, where he emphasized limited government, low taxation, and minimal regulation as the best conditions for economic growth. During his presidency, he pursued tax cuts, deregulation, and a reduction in federal oversight, believing that entrepreneurs and private citizens, not government, were the true engines of prosperity. The quote encapsulates his view that government too often reacts rather than leads—and does so in a way that can stifle innovation and burden the economy.
Today, the quote remains a favorite among advocates of economic freedom and limited government, often cited in debates over tax policy, subsidies, and regulatory reform. It serves as a humorous but pointed reminder that good intentions in government can lead to overreach, and that sustainable growth often requires trusting markets and individuals to function without unnecessary interference. Reagan’s wit delivers a lasting warning: the more government meddles, the more it risks doing harm under the guise of help.
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