Milton Friedman - The Four Ways to Spend Money

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  • čas přidán 30. 07. 2012
  • Milton Friedman discusses the only four ways to spend money.
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Komentáře • 120

  • @stratocaster1986able
    @stratocaster1986able Před 9 lety +760

    Was an amazing man. I noticed that most of the time he was smiling and was very friendly, even in heated debates.

    • @9879SigmundS
      @9879SigmundS Před 7 lety +29

      MarcusAurelius, Walter Williams related that he received a phone call from Friedman after appearing on TV, telling Williams to smile more.

    • @chahahc
      @chahahc Před 5 lety +40

      @Bobby Brady When your intellectual prowess is so overwhelming that you can detach your emotion from the argument to such an extent that your limbic system goes off dilly dallying in happy land.

    • @lendavidhart9710
      @lendavidhart9710 Před 4 lety +22

      Marcus, your right, he treated people with great respect, while he instructed them and taught them, he handled with care!

    • @peterhunt135
      @peterhunt135 Před 4 lety +20

      Although it was often a dry wit -- he had a very keen sense of humor, too.

  • @jimhalfpenny442
    @jimhalfpenny442 Před 5 měsíci +145

    1) YOUR money on YOU.
    2) YOUR money on ANOTHER PERSON.
    3) ANOTHER PERSON'S money on YOU.
    4) ANOTHER PERSON'S money on ANOTHER PERSON.
    With decreasing care and decreasing incentive to spend carefully.

  • @zombiejon
    @zombiejon Před 11 lety +246

    Perfect example as to why all government procurement offices should be audited annually.
    Thanks for posting.

    • @guyfromdubai
      @guyfromdubai Před 3 lety +22

      And whos money are you going to use to pay for annual auditors?

  • @CarbonGlassMan
    @CarbonGlassMan Před 11 lety +53

    Thank you Milton. Happy 100th Birthday.

  • @fastica
    @fastica Před 3 lety +113

    "When you spend your money on yourself, you're very careful"
    My Steam backlog of hundred of games says otherwise.

  • @LiberRaider
    @LiberRaider Před 11 lety +185

    Thank you Milton, FreetoChoose and CZcams, You all have done more to free my mind in the last 2 years than my previous 17 in state-ran schools.

  • @seanrobinson2270
    @seanrobinson2270 Před 5 lety +109

    This is such a brilliant thought and so simply put

    • @Edmund_Mallory_Hardgrove
      @Edmund_Mallory_Hardgrove Před 4 lety +9

      The truth is usually simple. Complexity hides lots of faults. The more steps in a process the more opportunity for errors and faults.

  • @ianpatrick23
    @ianpatrick23 Před 5 měsíci +2

    This is one of my favorite videos of all time

  • @phantomsuccour
    @phantomsuccour Před 11 lety +179

    I was pretty much brainwashed at school and by the media to believe in collectivism. Now I'm starting to see the light. Thank God for youtube!! I actually began by watching Noam Chomsky!! Lol What a load of bull now that I've got to hear the other side and judge based on the FACTS rather than feelings and slogans.

    • @Krontok
      @Krontok Před 6 lety +19

      The wonder of the marketplace of ideas.

    • @julianblake8385
      @julianblake8385 Před 6 lety +23

      Same story man, i used to be quite a leftist, now I'm like "what the hell was i thinking". And yes, Chomsky sucks so bad. And to think that I used to love the guy... I have like 4 of his books.

    • @owlblocksdavid4955
      @owlblocksdavid4955 Před 5 lety +8

      I admire Noam Chomsky. He's one of the great linguists of the 20th century. I gloss over his economic views ;)

    • @rishi2791
      @rishi2791 Před 4 lety +19

      Chomsky is not an economist, he is a linguist. His views suck. I too actually started out believing in socialism and welfare states. Milton showed me how flawed my thinking was.

  • @lars123mc
    @lars123mc Před 7 lety +35

    This fact is the basis for most of my economic thinking

  • @easygoing2479
    @easygoing2479 Před rokem +54

    So simple, so brilliant! There's NO WAY the government is interested in this.

  • @silas232003
    @silas232003 Před 9 lety +119

    I think many people have a misconception of Mr. Friedman. His Four Ways to Spend Money is a simple yet brilliant! As a fellow libertarian, the problem has always been governments and the political economy. The main emphasis on this idea is synonyms with the taxation system. As a Canadian, I would sure love to an elimination of the federal tax code. Minimize government roles, put more money into people pockets. Average Salary in Canada is 48,250.. under the current system I would owe $8,149. Surely this money can be used much more efficiently then its current distribution. If people would actually take their time and do some schooling in economy, they would figure things out much more clearly.

    • @sixtrumpetwarnings
      @sixtrumpetwarnings Před 5 lety +8

      but that would lead to LESS GOVERNMENT CONTROL and we cannot have that nosiree!!!!

  • @Nardz024
    @Nardz024 Před 5 měsíci

    Thank you

  • @Rambleon444
    @Rambleon444 Před 5 měsíci +6

    Spending your own money on yourself. For example, buying groceries or lunch. ... Carefully and you get the most for your dollar
    Spending your own money on someone else. ... Onse again you earned this money so you don't waste it.
    Spending someone else's money on yourself. ... You can be careless, and wasteful there is no incentive to be frugal.
    Spending someone else's money on someone else. This is done to make you look good and to take credit but you have no skin in the game so you waste it.

  • @ClintOlsen
    @ClintOlsen Před 3 lety +3

    This video seems truncated compared to the original quote I saw. Is there a way to get the full-length summary restored?

  • @rizalukman7982
    @rizalukman7982 Před 5 měsíci +4

    Thank you for the video.I studied banking and finance for 3 years but I get a lot of lesson from this video.Thank you Mr Milton Friedman

  • @manjunathagopalakrishna794
    @manjunathagopalakrishna794 Před 5 měsíci +6

    "दानं भोगं नशस्तिस्त्रो गतयो भावनाति विथस्य" has already been quoted by the Indian ancient texts, meaning there are only 3 ways the money can be spent, you either give or spend or see the wealth perish in due course..

  • @rishi2791
    @rishi2791 Před 4 lety +14

    Milton is so kool !!! I wish I could meet him :)

  • @brianshobe7177
    @brianshobe7177 Před 5 měsíci

    great

  • @jongreen9171
    @jongreen9171 Před rokem +5

    Simple yet still very clever

  • @begut41
    @begut41 Před 5 lety +3

    Totally agree

  • @chuckdiesal83
    @chuckdiesal83 Před 5 měsíci +3

    Is there a name for this economic principle?

  • @RandDickson
    @RandDickson Před 5 lety +1

    Wow

  • @wmoli872
    @wmoli872 Před 15 dny

    Still waiting on the second coming of Milton Friedman.

  • @robertfrancis4876
    @robertfrancis4876 Před 5 měsíci +5

    Brilliant
    Man he is greatly missed

  • @karolgolden231
    @karolgolden231 Před 4 lety +16

    4th way its the way politicians spend our money, they don't care how much they spend or what quality we get for it.

    • @guyfromdubai
      @guyfromdubai Před 3 lety +1

      He actually mentioned two ways gov spends your money, the last two, cause the gov still has military/judicial/law and order/infastructure spending that still affects the taxpayer for what they get, even though they get the money from the people to do it, which is reflective of his third option of how money can be spent.

  • @USSResolute
    @USSResolute Před 5 měsíci +2

    I see lots of people disagree. The most important part of this is that, when you spend OPM on OP, you don't have to care how it gets distributed, because it won't hurt you one bit. You can be as free with it as you like, especially if there is no accounting.
    That's the problem with government spending is that it's not traded for the same kind of potential value as any other money.

  • @williamfarnham1635
    @williamfarnham1635 Před 6 měsíci +2

    I believe that he or another economist fromChicago was awarded a Nobel Prize for economics for the proposition that spending other people's money. like the government, on other people does not rewire the same amount of prudence as spending your own money one yourself.

  • @guitarman394
    @guitarman394 Před 5 měsíci +2

    This says a lot about how he feels and what he is thinking when he spends money in those four ways, but it does not say anything about the truth... necessarily.

    • @noobling8313
      @noobling8313 Před 5 měsíci +1

      Glad to see someone say that! I'm sure what he says speaks to some people, but I just can't relate to it at all on a personal level. that's just not how people I know behave. He's presumably talking about his own personal attitude, he's talking about a specific cultural attitude that I have seen more prevalent in some countries than others, but there is no objective universal truth here. Still, his is a useful frame of reference to be able to see the world through.

  • @danielltoth3789
    @danielltoth3789 Před 5 měsíci +1

    These comments seem to say more about him than any universal truth.

  • @the_original_dude
    @the_original_dude Před 5 měsíci +4

    If I buy something as a gift, I approach it the same way if I were buying it for myself

  • @xeflatio93
    @xeflatio93 Před 5 měsíci

    Wild of Milton to assume that I have any money to spend

  • @aliendroneservices6621
    @aliendroneservices6621 Před 2 měsíci +1

    This is an argument for UBI.

  • @djtim06
    @djtim06 Před 4 lety +4

    The 3rd party payer problem

  • @darienflett1752
    @darienflett1752 Před 5 měsíci

    Actually there’s millions of ways to spend money,even more ways that I’m unaware of still.

  • @sccello
    @sccello Před 5 měsíci +2

    Bro if I'm spending somebody else's money on somebody else, my first priority is going to be getting the need met, and making very sure that the need is met. If the priority was going to be conserving the resource at the expense of getting the need met, then the owner of that money should have not put someone else in charge of getting it done. If we're talking finding better ways of getting the need met, or improving efficiency, though, I'm here for it.
    In government distribution, getting the need met should always be the first priority. That's the reason that instance of government distribution was deemed necessary in the first place. There should be no budget surplus in the government if the citizens' needs are not getting met.

  • @DSan-kl2yc
    @DSan-kl2yc Před 5 měsíci

    Public funds is number 2. Not sure why hes creating a 4th category. In fact its 1 and 2 simultaneously. We use our money for ourselves and others.

  • @Anti-Ratshield-vel-Antysystem

    Government does't spend money but currency, fiduciary debt based currency to be exact. He didn't know that?

  • @captainnutsack8151
    @captainnutsack8151 Před 5 měsíci

    One of the smartest men I have ever heard speak.

  • @dhruvaism
    @dhruvaism Před 3 lety +7

    If only this were to taught to every person entering govt. service....

  • @Petesworkshop2225
    @Petesworkshop2225 Před 5 měsíci +1

    I do purchasing at my work.
    I treat it like it was my own.

  • @nephilimshammer9567
    @nephilimshammer9567 Před 5 měsíci

    Same with Casinos you will start with your money on averages you will raise upwards into their money. Now you think ohhh boy awesome ill spend their money now you lose and start the process again until you lose it all

  • @PonderDuke
    @PonderDuke Před 5 měsíci +1

    Maybe we should let ai spend it on us like we would spend it on ourselves

  • @LaughingStock55
    @LaughingStock55 Před 5 měsíci +8

    Okay. So what should we make of this short clip? To eliminate welfare? What costs would that incur? Financial costs are but one category of cost. What are the economic costs? The social costs? Let’s say eliminating welfare would improve the financial costs for those who control capital, but it would come at high social cost. Would it be worth it? Is it worth letting the wealthy keep more of their money if the consequences include a decreased standard of living and lower quality of life for everyone else? What if high income inequality costs us the democratic society in which we derive our freedoms?
    I’ve always found Friedman to be a glib pseudo-intellectual. His theories make perfect sense in a fantasy world where money is the only thing that matters and people don’t need food to survive.

    • @tdb517
      @tdb517 Před 5 měsíci

      I love your ending statement. These thinkers are obsessed with money, and have very little (if at all) consideration for culture, talent, pleasure, love, family,....

    • @mouisehay930
      @mouisehay930 Před 5 měsíci +2

      False; it would not come with a high social cost. It would in fact come with a high social benefit.

  • @Studentofgosset
    @Studentofgosset Před 5 měsíci +16

    It really seems like he was interested in convincing himself and others of an ideology, more than working out how the real world works. Kind of comical how the weak-minded flock to him without blushing.

    • @tdb517
      @tdb517 Před 5 měsíci +1

      Yep,just like most pro capitalism people. There are so many huge flaws that are never acknowledged. Some of his ideas are interesting, but the fact that most of what he says is very subjective and ideological, while most of his fans believe he just "spit facts" and is just "describing how the real world works" is annoying.

    • @GaudiumEssendi
      @GaudiumEssendi Před 5 měsíci +1

      Indeed. "Libertarianism" itself is a term of marketing. It should properly be called "proprietarianism", because they're mostly concerned with upholding property rights, and not at all concerned with advancing the greatest amount of liberty for the greatest number.

    • @luiztosk
      @luiztosk Před 5 měsíci

      Everything is based on ideology, just choose your favorite evil.

  • @damianbartlett4868
    @damianbartlett4868 Před 5 měsíci +2

    My favorite Uncle Miltie bit is that part where his Chicago Boys birthed Pinochet. So endearing.
    Edit: For the lazy: en.wikipedia.org/wiki/Chicago_Boys

  • @tabbycat8511
    @tabbycat8511 Před 12 dny +1

    The West explained in a minute thirty.

  • @internalfusion
    @internalfusion Před 10 lety +1

    Do you have any idea what you're talking about? His policies? Are you on something?

  • @x-pilot6180
    @x-pilot6180 Před 5 měsíci

    That is why a democracy is better than a dictator. The people control if the money is spent wisely.
    A efficient and effective state offers services to the public where one dollar is more worth than one dollar spend by a single person.
    This applies to spending in military, infrastructure, education, social security like healthcare, pension system and unemployment benefits.

  • @apuravonline
    @apuravonline Před 5 měsíci

    Disagree to fact that when you spend on others you are worried how much you have spent

  • @villevalste1888
    @villevalste1888 Před 5 měsíci +17

    Well, that argument fell flat on its face real fast. Like, who would actually be more strict, when spending their own money on someone else than themselves? If you're buying a watch for yourself, any old watch that performs the function will do, but if you're buying a watch for your friend, obviously you're going to spend more money and make sure that it's a really good watch, that your friend will treasure for a long time.
    Right from the get-go, what Mr. Friedman is saying just doesn't make a lick of sense. What matters in government spending, to make sure that the money is spent well, is to ensure the independence of the government from private interests. Now, this is something that doesn't really happen in the US, like, at all. And it shows. You folks managed to separate the different branches of government from each other just fine, but completely failed to separate the public from the private.
    I'm not saying it's easy, but you can't even bring your ideas of reduced government intervention to the government, when the government officials have one foot in their current public office and one in their future private office and vice versa. The revolving door simply has to be closed. Fixing corruption is simply the first step that needs to be taken, before any other steps can even be considered.

    • @tdb517
      @tdb517 Před 5 měsíci

      100% agree. All the libertarian anti government rant is basically just addressing critics to the corruption happening in government. They pretend to ignore corruption happens in private fields as well. As you say it's hard but far from impossible.

    • @alexandereast4072
      @alexandereast4072 Před 5 měsíci

      One of the most comprehensive and complete comments on CZcams. Was thinking similarly.

  • @eamonnmckeown6770
    @eamonnmckeown6770 Před 5 měsíci

    um. No on number one. Just no. Very few of us are like George Costanza unfortunately.
    As we get older sure. But rarely until then. lol.

  • @AE-pv9vc
    @AE-pv9vc Před 5 měsíci

    This comment is not a slight on Milton Friedman. I really respect him amd his intelligence, but the fact that he took time to summarize something so basic underscores lack of financial intelligence in the general population. How sad.

  • @Mephy29
    @Mephy29 Před 5 měsíci

    Hell has a new angel

  • @good-questions
    @good-questions Před 5 měsíci

    Economists are the shaman of today.

  • @Nyghl0
    @Nyghl0 Před 5 měsíci

    The other side to the coin is all the detrimental effects that come about from loss aversion. There is much less likelihood of taking risks/being creative/generous and/or spending on necessary tasks that won't make a return for you.
    We actually rely the *benefits* of spending money that isn't ours to get the best results for society as a whole, which indirectly come back to you as well as everyone else.
    There's all these implicit assumptions built into Milton's grossly simplistic model here, all for the sake of promoting an unhealthy, alienating economic ideology that is quietly doing so much harm to the vast majority on the wrong side of it, mostly through no fault of their own.

  • @beck2929
    @beck2929 Před 9 měsíci +5

    This guy is really brilliant at assuming and thinking that only the worst sides of human beings are the driving traits of society. What a narrow minded view…

  • @mrparkerdan
    @mrparkerdan Před 5 měsíci

    Duh. That’s the problem. What’s the solution? 🤨

  • @sac22833
    @sac22833 Před 9 měsíci

    He looks like Danny Devito.

  • @endcorruptio
    @endcorruptio Před 5 měsíci +2

    "Somebody elses money". Interesting. If we acknowledge REALITY,, the conniving corporate-freeloader class, extract "somebody elses money" daily, when they receive and enjoy the fruits of other peoples labor, talents, and innovatuons. In reality that is

  • @MrTexasArcane
    @MrTexasArcane Před 11 lety

    Read Murray Rothbard if you want to read an honest man.

  • @josipbajcer9977
    @josipbajcer9977 Před 5 měsíci +3

    People love symmetrical arguments, no matter how meaningless they are 😅

    • @metalema6
      @metalema6 Před 5 měsíci

      The commie bitch comes out of the woodworks

  • @beste5349
    @beste5349 Před 5 měsíci +1

    Wait a second, is he saying that distributors of welfare funds are actually going out and buying groceries and stuff for the people on welfare?

    • @JunkCCCP
      @JunkCCCP Před 5 měsíci +2

      Do you have developmental problems?

  • @notmedude
    @notmedude Před 5 měsíci

    All he's saying is very much common sense any 25 year old should have.

  • @drumhed
    @drumhed Před 5 měsíci +2

    Wrong on its face, even with the examples he uses. Say I am a salesman with an expense account, and as one of the tools in my toolbox, I can take clients out to lunch. I'm going to be very careful about which clients receive those perks, and I'm going to be even more careful making sure said client benefits from it. A profitable customer will stay with you longer, sure. But a customer that influences other actual and/or potential customers is going to pay you massive returns when you spend money keeping them happy. Likewise, a customer that isn't placing orders and is out there bad-mouthing your brand is not a customer you would continue courting with your expense account.

  • @dtla5052
    @dtla5052 Před 5 měsíci

    Thr best decision i made was to get arrested and have all my medical paid for. Now that I'm better they let me free

  • @dvnshow
    @dvnshow Před 5 měsíci

    There are four ways you can do stuff, you can do stuff, you can do stuff with another person or a person can do stuff and tell you about it blah blah blah
    just a bunch of nonsense.

  • @HAPPY_DAYS-wz8xy
    @HAPPY_DAYS-wz8xy Před 5 měsíci

    first you should have money and healthy free products market and workers market you do not have that in America anymore majority of Americans wealth owned by stock holder and BlackRock ....your only hope to destroy them and that almost impossible so other option to create new small markets communities with open cryptocurrency or paper money backed with gold silver bonds any mineral with real value

  • @bartholomewlyons
    @bartholomewlyons Před 5 měsíci

    Not true on point 2. I pay more attention to buy stuff for family and friends than myself. Ridiculous take. Clown

  • @1515732
    @1515732 Před 5 měsíci

    Dead right!

  • @Nousmourronsseuls
    @Nousmourronsseuls Před 5 měsíci

    Hardly profound.

  • @js-wq6zy
    @js-wq6zy Před 5 měsíci

    Yawn, folksy answer dealing with a psychological question when he is an economist....

  • @webuser2014
    @webuser2014 Před 5 měsíci +2

    That's why communism is bad. Spending someone ekse money on someone else 😂😂😂

  • @kadiryoruk4076
    @kadiryoruk4076 Před 5 měsíci +1

    This is an evil man.

  • @cosmai23
    @cosmai23 Před 5 měsíci +1

    Ugh. Nonsense. His theories have long been debunked.

  • @enemdisk6628
    @enemdisk6628 Před 5 měsíci

    This out-of-context short just serves an agenda and disrespects Milton Friedmans work. It's stupid.

  • @k17741
    @k17741 Před 10 lety +3

    This is the only somewhat intelligent talk I have ever heard Friedman give.

    • @seanrobinson2270
      @seanrobinson2270 Před 5 lety +60

      Perhaps it is the only one you have been able to grasp

  • @TruthOnly142
    @TruthOnly142 Před 5 měsíci

    *G* *O* *V* *E* *R* *N* *M* *E* *N* *T*