Efficient Spending

I think this is from Milton Friedman, but it’s definitely from the Austrian-School of economics:

The most efficient way to spend money, is for someone to spend their own money on something they need. The second most efficient way to spend money is for someone to spend their own money on something that someone else needs. The least efficient way to spend money is for someone to spend someone else’s money on something someone else needs.

It is Milton Friedman, but my memory is a paraphrase.

One principle from this quote is that all government spending is the least efficient way to spend money. That’s why it cost $6,200 to distribute $1,200 to each U.S. citizen. My guess is that the China Flu response will go down as the worst decision ever made by the U.S. government, but our government may only be getting started…