Milton Friedman on the 4 Ways to Spend Money (VIDEO).
Posted: March 18th, 2011 | Author: Joe | Filed under: spending | Tags: economics, Milton Friedman, spending | No Comments »Here’s an interview with the late economist Milton Friedman where he talks about the 4 ways to spend money.
The core of his view rests on this chart:
The idea being that when You spend Your money on Yourself, you’re going to get the best quality for the least cost. But when you spend Someone Else’s money on somebody else (public education, healthcare, etc..) you get the worst quality with the highest cost.
The interview focuses on education spending, but the same is true for health care, or any public sector spending – and the results bear his view out!
The great thing about Friedman is his use of simple examples to get his point across, and this interview is no different. His example of the business lunch to illustrate spending Someone Else’s money on Yourself is instantly appreciable to most people.
Here’s the interview:
Special thanks to Todd for sharing this video with me!
