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Milton's Four Ways to Spend Money

Posted by Solver 11 years, 8 months ago to Economics
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“In his book Free to Choose, Milton Friedman described four ways to spend money.

1. You spend your own money on yourself.
2. You spend your own money on someone else.
3. You spend someone else's money on yourself.
4. You spend someone else's money on someone else.”

Guess which ones produce the most insane results? Guess which ones big governments typically use?


All Comments

  • Posted by 9 years, 12 months ago
    What happens when public officials spend more of someone else's money on someone else?
    Not so unbelievably, additional public debts and liabilities are incurred.
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  • Posted by LaissezFaire 10 years, 11 months ago
    Friedman is pretty much always right on.
    True capitalism = #1 & #2.
    Big government / socialism / fascism / communism, etc. = #3 & #4.
    Reply | Permalink  
  • Posted by jyokela 11 years, 8 months ago
    Military would be #3 and welfare would be #4 since it does not have its own money.
    Reply | Permalink  

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