Factoría Libertatis

Tag: Public Spending

What If Approving a Deficit Were a Crime?

Illustration of Guatemala's budget deficit, public debt and a proposal to penalize the approval of government spending without adequate funding.

In 1993, Guatemala effectively closed the door to financing government spending through monetary issuance, helping usher in decades of greater price stability. This essay asks whether the country should take the next step: prohibit deficit budgets by law and impose consequences on officials who authorize spending without identifying the resources to finance it.

How Much Equality Can Freedom Bear?

Illustration of the balance between equality and freedom and the distinction between equality before the law and equality of outcome.

Equality before the law gives everyone the same rules; equality of outcome requires continuous intervention to equalize what people ultimately receive. From Tocqueville and Bastiat to Guatemala’s taxes, exemptions and public spending, this essay asks how far equality can advance before it begins to replace freedom.