In the video segments below, famed economist Milton Friedman explains why people gravitate toward collectivism and sway from the preferred state of liberty and personal freedom. He then goes on to explain the raw deal people get when they turn to government to establish fairness and solve their problems:
People think that when you argue that way, you’re arguing for selfishness, for greed. That’s utter nonsense! The people who are in positions in a political hierarchy, are also selfish... Read More→
What is waste exactly? Waste in this context happens whenever someone who could be doing something productive, ends up doing something non-productive instead. Waste results in wealth that’s taken out of the economy, and consequently, everyone suffers as goods and services become less abundant.
How is wealth taken out of the economy? Let me illustrate with a silly but effective example:
Suppose we have country with a very simple one-product economy consisting of 100 loaves of bread produced... Read More→
It’s well known that an increase in taxes on an activity results in less of that activity. This is because taxes make an activity cost more. Therefore, a sure way for government to reduce income producing activity, is to increase income taxes. And a sure way for government to reduce investment activity is to increase taxes on investment profits, a.k.a. capital gains. Less income and less investment means a slower economy.
It’s the Poor and Middle Class Who Get Hurt Most by a Slow... Read More→
In any mechanical system, you put energy in, some of it is wasted by friction, and when you get the energy out, it’s necessarily less than what you first put in. Government is like friction!
Why is government wasteful?
The answer to this question is actually very simple! Government is wasteful because it spends other people’s money.
Anyone who’s ever had an employee’s expense account knows that when you’re spending money that isn’t yours, you have very little... Read More→
The following is an excerpt from the book Free to Choose by Milton & Rose Friedman, pp. 115-19:
The Fallacy of the Welfare Sate
Why have all these programs been so disappointing? Their objectives were surely humanitarian and noble. Why have they not been achieved? At the dawn of the new era all seemed well. The people to be benefited were few; the taxpayers available to finance them, many – so each was paying a small sum that provided significant benefits to a few in need. As welfare... Read More→
