Milton Friedman: Politically Profit

Meaning of Milton Friedman Money Quote: saying that we have both wrong people involved with issues they shouldn’t be involved in and the right people who should. Milton Friedman said:

 

 

“I do not believe that the solution to our problem is simply to elect the right people. The important thing is to establish a political climate of opinion which will make it politically profitable for the wrong people to do the right thing. Unless it is politically profitable for the wrong people to do the right thing, the right people will not do the right thing either, or it they try, they will shortly be out of office” — Milton Friedman

Milton Friedman is arguing that simply electing leaders who have good intentions is not enough on its own to solve policy problems. He believes the most important thing is to shape broader public opinion in a way that creates political incentives for any leader, even those who may hold different views, to still make decisions that lead to good outcomes.

Unless the political environment rewards leaders for doing what is right over what is expedient, even well-meaning politicians will not be able to effectively implement the right solutions or policies.

His view is that public support for certain policies needs to be strong enough that it becomes in the self-interest of all elected officials to pursue those solutions, regardless of their own ideological leanings, in order to remain in power.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Inflation Taxation

Milton Friedman Money Quote saying inflation is the only government gain without needing to legislate it. Milton Friedman said:
 

 

“Inflation is taxation without legislation” — Milton Friedman

Milton Friedman is suggesting that inflation has the effect of functioning as a hidden or indirect tax. When inflation raises prices overall in an economy, the value of money held by individuals and businesses decreases over time.

Even though taxes have not been raised through the legislative process, people experience higher costs of living and the real value of their money being taxed away through inflation.

So Friedman’s point is that inflation erodes purchasing power and acts as a tax on the value of money in one’s possession, even if it was not approved through the traditional tax legislation process.

In this view, inflation transfers wealth from citizens to the government in a way that is hard to see but still burdens people financially.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Scarcity in Plenty

Milton Friedman Money Quote saying the biggest problem is lack when there is excess and people are idle when they need work. Milton Friedman said:
 

 

“My major problem with the world is a problem of scarcity in the midst of plenty … of people starving while there are unused resources … people having skills which are not being used” — Milton Friedman

Milton Friedman is expressing frustration with the paradox of scarcity existing alongside plenty or surplus. While there are unused resources and skills going underutilized, some people still experience scarcity through starvation or lack of opportunities.

Friedman sees this as an unnecessary problem, since in theory the available but unused resources and skills could help address the scarcity felt by others.

His point is that scarcity for some persists even when there are ample means and abilities available in society to help alleviate it, if those resources and skills were better distributed or coordinated.

Friedman views the mismatch between surplus and scarcity as an issue that reflects flaws in how the world economy and opportunities are organized.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Scarcity in Midst of Plenty

Milton Friedman Money Quote saying he could not abide by the conflicting existence of poverty when there is wealth everywhere surrounding us. Milton Friedman said:
 

 

“My major problem with the world is a problem of scarcity in the midst of plenty … of people starving while there are unused resources … people having skills which are not being used” — Milton Friedman

Milton Friedman is expressing frustration with scarcity and lack of access to resources in a world where abundance exists.

He notes the paradox of people starving even though there are unused resources and skills that could help address food shortages if put to use. Friedman seems to be criticizing an inefficient allocation and distribution of the world’s resources, where wealth and necessities are not being shared equitably.

His quote suggests that with better coordination and cooperation, global problems like hunger could potentially be solved or mitigated by making use of readily available assets and skills that currently go underutilized.

Overall, Friedman is highlighting the disconnect between widespread plenty on the one hand, and localized scarcity causing real hardship on the other, due to failures of coordination and access rather than any absolute lack of means.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Spending National Income

Milton Friedman Money Quote saying government spending is not accountable because few care how much is spent once allocated. Milton Friedman said:
 

 

“If I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40% of our national income” — Milton Friedman

Milton Friedman is criticizing how government spending tends to be less restrained compared to individual spending. He argues that since the government spends money taken from taxpayers, there is less incentive to minimize costs or carefully consider the value of programs, unlike individuals spending their own funds.

Friedman notes that around 40% of the national income at that time was being spent by the government, much of it coming from taxes rather than the government’s own revenue.

His point is that when the government spends such a large portion of the economy’s resources, there will likely be inefficiencies and waste since it is spending “somebody else’s money” rather than carefully managing its own budget.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Cutting Taxes Any Excuse

Milton Friedman Money Quote saying no matter the reason, taxes should be reduced because the problem is never taxes, but expenditures. Milton Friedman said:
 

 

“I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible … because I believe the big problem is not taxes, the big problem is spending” — Milton Friedman

Milton Friedman is expressing his view that reducing taxes should always be a priority, and that the real issue governments should focus on is reining in spending. He argues “the big problem is not taxes” but rather excessive government expenditures.

Friedman implies that lowering taxes is desirable in itself, but the main goal should be limiting how much money governments take from citizens through spending on programs, administration, etc.

The quote conveys Friedman’s belief that the best way to give more power to individuals is by decreasing the amount of money governments collect from and control through taxation policies, since this both puts more funds in citizens’ hands and pressures governments to control their own outlays.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Taxes Someone Else Pays

Milton Friedman Money Quote saying congress can only increase taxes when a minority believes it will affect them personally. Milton Friedman said:
 

 

“Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay” — Milton Friedman

Milton Friedman is commenting on how Congress is able to raise taxes despite public opposition. He suggests that Congress can enact higher taxes because they are able to convince some people that the tax increases will mainly impact “somebody else”, not themselves.

Friedman implies that many taxpayers support raising levies as long as they think other taxpayers or groups will shoulder most of the burden.

The quote conveys Friedman’s view that Congress exploits this “somebody else” mindset to pass tax hikes that are actually broadly felt. He seems to be criticizing how politicians downplay the widespread impacts of taxation for political gain.

Birthday: July 31, 1912 Death: November 16, 2006

Milton Friedman: Internet Taxes Difficult

Milton Friedman Money Quote saying collection of internet related income and expense will make taxes more complex for government. Milton Friedman said:
 

 

“The most important ways in which I think the Internet will affect the big issue is that it will make it more difficult for government to collect taxes” — Milton Friedman

Milton Friedman is predicting that the internet will make it harder for governments to collect taxes effectively. He seems to believe the internet will enable new forms of commerce and economic activity that are difficult for tax authorities to monitor and regulate.

Friedman may be suggesting that digital transactions and cross-border online sales in particular pose challenges for identifying taxable income and enforcing tax compliance.

The quote implies the internet will give rise to loopholes that reduce governments’ ability to collect all the revenue they aim to through taxation policies.

Overall, Friedman views the internet as a technology that will complicate governments’ tax collection efforts by facilitating hard-to-track economic activity.

Birthday: July 31, 1912 Death: November 16, 2006