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Milton Friedman on Government spending and deficits

The vested interests are not some big bad people sitting on money bags; the vested interests are you and me. Each of us is strongly in favor of small measures that will benefit us and each of us is not too strongly opposed to any one small measure that will benefit someone else. We are not going to vote anybody out of office because he imposes a $3 a year burden on us. Consequently, when each measure is considered separately, there is considerable pressure to pass it.
The Limitations of Tax Limitation
Journal article, 1978, Policy Review (The Heritage Foundation); reprinted in the Congressional Record, Extensions of Remarks, June 7, 1979, pp. 14069 to 14071, introduced by Representative Hamilton Fish, Jr. of New York as “an article by Dr. Friedman published in Policy Review, the quarterly journal of The Heritage Foundation”, Congressional Record, June 7, 1979, p. 14070
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  1. Why do we have inflation? Because we, the citizens, have demanded it. We have sent a message to Washington. We said, we want you to spend more on roads. We want you to spend more on health. We want you to spend more on education. But don't tax us for it. … And so the difference is paid for by the hidden tax of inflation, which is the only tax that can be imposed on the American people without anybody having to vote for it.
    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. Enforced service by a conscript is a tax imposed on him no less than the check you send to Internal Revenue is a tax imposed on you. The size of his tax is the difference between the sum of money for which he would have served voluntarily and the pay he actually receives. Currently, this tax amounts to about 50 per cent of the potential civilian income of draftees. So unfair a tax imposed on so small a minority would never be passed explicitly by Congress. It persists only because it is hidden.
    The End of the Draft?
    Column, 1970, Newsweek (1970); reprinted in full in the Congressional Record, Extensions of Remarks, March 20, 1970, p. 8443, introduced by Representative William A. Steiger as one of “two recent articles on the volunteer army which were published in Newsweek.” The bracketed header “[From Newsweek, Mar. 23, 1970]” stands above the Stewart Alsop column printed first; this column carries no date of its own in the reprint, Congressional Record, March 20, 1970, p. 8443
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  3. It is immediately clear that if we were to take up each case separately, a majority would almost surely vote to deny free speech in most cases and perhaps even in every case. ( … ) Exactly the same considerations apply in the monetary area. If each case is considered on its merits, the wrong decision is likely to be made in a large fraction of cases because the decisionmakers are examining only a limited area and are not taking into account the cumulative consequences of the policy as a whole.
    Should There Be an Independent Monetary Authority?
    Journal article, 1962, In Search of a Monetary Constitution, ed. Leland B. Yeager (Harvard University Press, 1962), pp. 219–243; reprinted in the House Banking and Currency Committee’s 1968 Compendium on Monetary Policy Guidelines and Federal Reserve Structure, pp. 205–214, p. 213 of the 1968 House reprint
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