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Milton Friedman on politics, voting, and legislators

What Friedman said about political incentives, and about making it profitable for the wrong people to do the right thing.

31 passages in the archive24 checked against the source7 not yet checked
  1. I am a libertarian with a small "l" and a Republican with a capital "R". And I am a Republican with a capital "R" on grounds of expediency, not on principle.
    Charlie Rose Show
    Speech, 2005
    Not yet checked
  2. The emphasis of that talk was that free markets would undermine political centralization and political control. And incidentally, I should say that I was not in Chile as a guest of the government. I was in Chile as the guest of a private organization.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On His Role in Chile Under Pinochet,” interview conducted October 1, 2000
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  3. The Chilean economy did very well, but more important, in the end the central government, the military junta, was replaced by a democratic society. So the really important thing about the Chilean business is that free markets did work their way in bringing about a free society.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On His Role in Chile Under Pinochet,” interview conducted October 1, 2000
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  4. You cannot explain those activities of government, and there are hundreds more, as reflecting the will of "we the people." They reflect a system in which concentrated vested interests have been able to obtain great power and impose costs on a diffused consumer interest.
    Interview with Milton Friedman
    Interview, 1992, Federal Reserve Bank of Minneapolis, The Region, Interview by David Levy, June 1, 1992
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  5. Congress is at it again. Once more it is in the process of legislating an increase in unemployment. Of course, the legislation is not labeled “A Bill to Create Unemployment.” After all, Congress can teach big business a thing or two about deceptive labeling. No, the bill is labeled “A Bill to Increase the Minimum-Wage Rate.”
    Legislating Unemployment
    Column, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100
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  6. Right or left are very ambiguous terms, but conservative is a very definite, clear term. A conservative is somebody who wants to conserve, who keeps things as they are. … I want to change them. I’m a radical.
    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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  7. I must say, it's such a wonderful example of a double standard, because I had spent time in Yugoslavia, which was a communist country. I later gave a series of lectures in China. When I came back from communist China, I wrote a letter to the Stanford Daily newspaper in which I said, '"It's curious. I gave exactly the same lectures in China that I gave in Chile. I have had many demonstrations against me for what I said in Chile. Nobody has made any objections to what I said in China. How come?"
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On His Role in Chile Under Pinochet,” interview conducted October 1, 2000
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  8. 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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  9. The essence of the problem is that once we begin to allow exceptions for special interests, we move from a system of private arrangements to a political system where everyone’s freedom is limited and government becomes a matter of trying to balance those interests. Nobody really wins under these terms.
    Interview with Milton Friedman
    Interview, 1973, Playboy
    Not yet checked
  10. It matters little whether the Federal Reserve is unable or unwilling to exercise its independence in deeds as well as words. In either case, let us be done with the fiction that “independence” is somehow or other a bastion against inflation. Let us put the responsibility for the rate of monetary growth—and therewith for the subsequent rate of inflation—squarely and openly on the Administration and Congress.
    Why Inflation Persists
    Column, 1977, Newsweek (October 3, 1977); reprinted in full in the Congressional Record, Extensions of Remarks, September 29, 1977, p. 31684, introduced by Representative Parren J. Mitchell of Maryland, who gives it as appearing “in the October 3, 1977, issue of Newsweek”, Congressional Record, September 29, 1977, p. 31684
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  11. The first victory came in Tennessee on March 7, 1978, when a 2-to-1 majority approved an amendment to limit the “rate of growth” of state spending to the “estimated rate of growth of the state’s economy.”
    A Progress Report
    Column, 1978, Newsweek (April 10, 1978); reprinted in the Congressional Record, Extensions of Remarks, April 4, 1978, pp. 8709 to 8710, introduced by Representative John H. Rousselot of California, who describes it as “his byline article which appeared in the April 10, 1978 issue of Newsweek”, Congressional Record, April 4, 1978, pp. 8709 to 8710
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  12. I gave a talk at the Catholic University of Chile under the title "The Fragility of Freedom." The essence of the talk was that freedom was a very fragile thing and that what destroyed it more than anything else was central control; that in order to maintain freedom, you had to have free markets, and that free markets would work best if you had political freedom. So it was essentially an anti-totalitarian talk.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On His Role in Chile Under Pinochet,” interview conducted October 1, 2000
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  13. Abraham Lincoln talked about a government of the people, by the people, for the people. Today, we have a government of the people, by the bureaucrats, for the bureaucrats, including in the bureaucrats the elected members of Congress because that has become a bureaucracy too.
    Interview with Milton Friedman
    Interview, 1992, Federal Reserve Bank of Minneapolis, The Region, Interview by David Levy, June 1, 1992
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  14. Inflation is the one form of taxation that can be imposed without legislation.
    Monetary Correction: A Proposal for Escalator Clauses to Reduce the Costs of Ending Inflation
    Journal article, 1974
    Not yet checkedRead the sourceFind the book
  15. Whatever the merits or demerits of “majority rule” as an abstract principle, the imposition of sanctions against Rhodesia on this ground is a striking example of a double standard. The other former African colonies of Britain that were granted independence without question and without sanctions do not have anything approximating what Americans regard as majority rule. They have minority rule by a black elite that controls the one party permitted to exist.
    Rhodesia
    Column, 1976, Newsweek, May 3, 1976; reprinted in the Congressional Record, Extensions of Remarks, April 29, 1976, pp. 11979 to 11980, introduced by Representative John Ashbrook of Ohio, who gives it as “an excellent article on Rhodesia by Milton Friedman, which appeared in the May 3 edition of Newsweek”, Congressional Record, April 29, 1976, p. 11979
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  16. Neither country is an ideal democracy—just as we are not. Both have serious racial problems—just as we have. Both can be justly criticized for not moving faster to eliminate discrimination—just as we can. But both provide a larger measure of freedom and affluence for all their residents—black and white—than most other countries of Africa.
    Rhodesia
    Column, 1976, Newsweek, May 3, 1976; reprinted in the Congressional Record, Extensions of Remarks, April 29, 1976, pp. 11979 to 11980, introduced by Representative John Ashbrook of Ohio, who gives it as “an excellent article on Rhodesia by Milton Friedman, which appeared in the May 3 edition of Newsweek”, Congressional Record, April 29, 1976, p. 11979
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  17. Nixon was the most socialist of the presidents of the United States in the 20th century. ( … ) Well, his ideas were not socialist, quite the opposite, but if you look at what happened during his administration, first of all, the number of pages in the Federal Register, which is full of regulations about business, doubled during his regime.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On Richard Nixon,” interview conducted October 1, 2000
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  18. The problem with Nixon was not intelligence and not prejudices. The problem with him was that he was willing to sacrifice principles too easily for political advantage.
    Commanding Heights: Milton Friedman interview
    Interview, 2000, PBS, “On Richard Nixon,” interview conducted October 1, 2000
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  19. He may have values and beliefs of his own, but no man becomes President who has not developed the capacity to rise above principle.
    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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  20. It is my view that it is desirable for the people to limit their government's budget, to decide how much in total they are willing to pay for their government. Having done this, it is desirable for them to delegate to their elected representatives the difficult task of dividing that budget among competing good proposals.
    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. 14069
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  21. Well, I have always argued that you will not solve problems by electing the right man to the White House. Certainly not by electing the wrong man. … The only way you will ever solve problems, in my opinion, and move in the direction we want to move is by making it in the political interest of the wrong people to do the right thing.
    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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  22. There is a real danger, but it arises from a strong armed force not from the method of recruiting enlisted men. Napoleon and Franco both rose to power at the head of a conscript army. However we recruit, the essential need is to maintain close links between the officer corps and the body politic.
    A Volunteer Army
    Column, 1966, Newsweek (December 19, 1966); reprinted in the Congressional Record, Senate, January 22, 1969, p. 1438, under the heading “From Newsweek magazine, Dec. 19, 1966”. Later collected in An Economist’s Protest (1972)., Congressional Record, January 22, 1969, p. 1438
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  23. The political objections are perhaps more obvious than the economic ones. Is it really tolerable in a democracy to have so much power concentrated in a body free from any kind of direct, effective political control?
    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. 208 of the 1968 House reprint
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  24. It's nice to elect the right people, but that isn't the way you solve things. The way you solve things is by making it politically profitable for the wrong people to do the right things.
    About changing congress
    Speech, 1977
    Not yet checkedWatch it
  25. The smaller the unit of government and the more restricted the functions assigned government, the less likely it is that its actions will reflect special interests rather than the general interest.
    Free to Choose
    Book, 1980, Ch. 10 “The Tide Is Turning”, p. 314
    Not yet checked
  26. [A] society which is socialist cannot also be democratic, in the sense of guaranteeing individual freedom.
    Capitalism, Socialism, and Democracy: A Symposium
    Column, 1978, Commentary
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  27. However, there is no reason for proponents of tax limitation to despair. Five years is a short time to effect a basic change in our governmental structure. The defeats are less impressive than the growing strength of taxpayer resentment at zooming governmental budgets.
    A Progress Report
    Column, 1978, Newsweek (April 10, 1978); reprinted in the Congressional Record, Extensions of Remarks, April 4, 1978, pp. 8709 to 8710, introduced by Representative John H. Rousselot of California, who describes it as “his byline article which appeared in the April 10, 1978 issue of Newsweek”, Congressional Record, April 4, 1978, pp. 8709 to 8710
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  28. There is an invisible hand in politics that operates in the opposite direction to the invisible hand in the market.
    An Economist's Protest: Columns in Political Economy
    Book, 1966, p. 143
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  29. 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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  30. Why would Congress do such a thing? Because the adverse effect on the poor is diffuse and its source misunderstood and hence produces little political pressure. Effective pressure is exerted by organized groups that welcome the effect of a high minimum-wage rate in strengthening unionized and skilled workers vis-a-vis nonunionized and unskilled workers and in protecting employers in high-wage areas (the North) from the competition of employers in low-wage areas (the South). These organized groups find ready allies in the liberal reformers whose lack of understanding of economics misdirects their sincere concern for the disadvantaged.
    Legislating Unemployment
    Column, 1972, Newsweek (1972; the issue current on June 28, 1972); reprinted in full in the Congressional Record, Extensions of Remarks, June 28, 1972, p. 23100, Congressional Record, June 28, 1972, p. 23100
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  31. Without the support of public opinion all the written laws or constitutions you can think of are fundamentally worthless. One has only to look at the results of trying to transplant versions of the American and British constitutions to other nations around the world.
    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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