Ways to Spend Money

Milton and Rose Friedman, in their book Free to Choose, showed that there are only four ways in which money can be spent.  First, your money can be spent on yourself. When you spend your money on yourself, you try your best to get what you want at the least cost. Second, you can spend your money on other people. Again, you try to get the best price you can although you may not be as concerned about getting exactly what you want.  Third, you can spend other people’s money on yourself. Here, you don’t care how much is spent and you try to get all you can (this is how special interests use government to get other people’s money). Fourth, you spend other people’s money on other people. You didn’t have to earn the money and you get credit for all the “good” you do with the money (along with the power to decide who gets the money).  Number four is the way all government programs work.