Milton Friedman Answers Question on Free-Markets and Role of Government

Summary

Milton Friedman highlights the importance of what people produce. Confiscating money only for it to be spent back into the economy ignores the fact that nothing is being produced. That is not to say that all government spending is bad. If the people get their money’s worth, and the government can provide such service more effectively, then such government service can be justified. However, this is rarely the case. And the farther away your money is spent, the more waste occurs. If your money was spent within a local gated community, you can immediately see the benefit and judge the effectiveness of your expenditure. If your town takes your money, you can probably still see and judge whether your money is being wasted. As your money is taken by the State, your ability to track waste and see waste is less obvious and the propensity for waste becomes great. As your dollar hits the federal level, or even the world stage, waste and abuse is rampant.