Quote:
Originally Posted by Slipknot
"when managed right"
If we are talking about the government here, well there is your problem right there. Managed right? can't you just admit it has NOT been managed right?
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Milton Friedman, the famous economist, once highlighted that spending money always falls into 1 of 4 categories...
(1) spending your money on yourself - when you spend your own money on yourself, you have every reason to do it as efficiently as possible...the best quality at the best price. This is efficient spending.
(2) spending other people's money on yourself - in this case, you are likely to look for the highest quality, ragerdless of price. This is what happens when ex-wives go shopping at Tiffany's with their former husband's credit cards.
(3) spending your money on other people - in this category, you have an incentive to get the lowest price, regardless of quality. This is why we get socks at Christmas from distant relatives.
(4) spending other people's money on other people - in this case, you have no incentive to give a crap about quality or price. This is where the most inefficiency is seen. And every cent that is spent by the government, falls into this categoty. That's how you get where we are,