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Milton Friedman on Spending other people's money

Nobody spends somebody else's money as carefully as he spends his own. Nobody uses somebody else's resources as carefully as he uses his own.
Commanding Heights: Milton Friedman interview
Interview, 2000, PBS, “On Freedom and Free Markets,” interview conducted October 1, 2000
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  1. Equally important, you cannot spend somebody else's money unless you first get it. … So the concept of doing good with somebody else's money has force or coercion built into it as an essential feature.
    The Open Mind
    Interview, 1977, The Open Mind, hosted by Richard Heffner, Episode “A Nobel Laureate on the American Economy” (May 3, 1977)
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  2. Our problems have arisen from good people who are trying to do good, but trying to do good in a fundamentally flawed way. The welfare state is in many ways a noble construct, a noble concept. It's the concept that we ought to help our fellow men. What flaws it is that it's one thing for you to help me out of your pocket. It's another thing for you to help me out of his pocket. And the fundamental flaw of the welfare state, in my opinion, is the idea that you should do good with somebody else's money.
    The Open Mind
    Interview, 1977, The Open Mind, hosted by Richard Heffner, Episode “A Nobel Laureate on the American Economy” (May 3, 1977)
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  3. That is a widespread myth, that it is possible to spend money with nobody paying for it. You have everybody screaming that we ought to have new, bigger, more generous government programs. Where are we going to raise the money? Tax business. But business corporations can’t pay any taxes. A corporate executive may sign the check, but where does he get the money? From his stockholders or from his customers or from his employees. Unlike the federal government, he doesn’t have a printing press in his basement. So the only way he can pay money to the government is imposing a burden on somebody. Government cannot spend money at nobody’s expense.
    Economic Myths and Public Opinion
    Column, 1976, The Alternative: An American Spectator, vol. 9
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