One of the iconic economic thinkers of the 20th century was the Nobel Prize-winning economist Milton Friedman. His numerous books and articles, interviews, and television specials have left us with a treasure trove of thoughts and observations that should serve as a guide during today’s difficult economic times. His death has left a void that no contemporary thinker has been able to fill. That is very unfortunate, especially now.
I recently reviewed my copy of Professor Friedman’s signature work, Free to Choose. It is still as relevant, fresh, and moving as the day it was first published. His reasoned defense of economic and personal freedom, strictly limited government, and the rule of law needs to be proudly reviewed and protected by every citizen who values these sacred rights.
“Thank goodness we don’t get all the government we’re forced to pay for,” Professor Friedman asserted in one of his most quoted remarks. The simple yet powerful clarity of these 17 words serve as a testament to the deep understanding and concern he possessed about the ever-expanding role of distant, centrally planned government and the excessive price we pay for it. We see the dregs of an insatiable government in every aspect of our lives, and yet we seem powerless to slow, preferably stop, the rapid growth of this corrupt and inefficient monster.
The Federal Government is approaching an annual budget of 3 trillion dollars. No one really knows the exact amount of deficit spending we incur each year, but it’s huge and it’s growing. The more revenue the government gets, the faster spending increases. We have unfunded liabilities of about $53 billion for Medicare and Medicaid, and $25 billion for Social Security. These are only estimates; no one can indicate the absolute exact numbers. And remember that the government refers to these obligations as “unfunded liabilities,” not debt, since private citizens and industry should report and be held accountable.
In 1976, President Jimmy Carter created the Department of Education. Before that, education was largely a local affair. This waste has grown enormously since its inception in unfunded employees, budget, programs and mandates. Less than 7% of the DOE’s $60 billion annual budget is returned to state and local schools as grants. The rest is consumed in the “heaven of bureaucracy.” Can anyone seriously argue that public school performance has improved since we were blessed with the Department of Education and the thousands of theorists, consultants, and knowledge brokers that back this cesspool? In fact, you can graph the decline in graduation rates, the increase in unexcused absences, the decrease in standardized test scores, and achievement tests since the date we received the blessing from the DOE.
The government enjoys natural monopolies in many areas. The Postal Service, Passport Office, AMTRACK, FAA and many more government agencies provide us citizens with a one stop shop. In all cases, the result is subsidy, waste, and mismanagement. Waiting up to 90 days to receive a passport is ridiculous. The Postal Service and AMTRACK require subsidies each year, while FedEx, UPS, and the railroads make billions of dollars in profit each year. Why would a thinking person believe that government should expand into more areas of our lives?
Thomas Jefferson, Milton Friedman’s soul brother, said, “He who is least governed is best governed.” And yet, a growing segment of our citizenry constantly seeks to redress perceived grievances and poor personal decision-making by asking politicians for outcomes favorable to their wishes. We know with absolute certainty that government is too big, inefficient, deceitful, and wasteful to solve problems.
Government is not in business to solve problems: it is in business to institutionalize problems! Social Security, Medicare and Medicaid, Welfare, Food Stamps have grown exponentially. The problems that these programs, and many others, were supposed to address have grown even more exponentially. Bureaucracies are not in the business of solving problems and shrinking, then shutting down when they successfully complete their mission. The very core of the nature of a bureaucracy is to grow insatiably.
As more citizens abdicate their personal responsibilities and seek government support, there are far too many politicians, lobbyists, issue advocates, and social engineers ready to comply and satisfy this adulation. We see many people campaigning for the government to take control of the healthcare system. When the government gives free healthcare: that’s when healthcare will get really expensive! How in the world can so many people be so blind about so much?
My Company provides consulting services to inventors, small businesses, and entrepreneurs starting businesses. By their very nature, these people are fearless, independent, creative, and driven. They seek to take advantage of the incredible opportunities available to all citizens of the United States, if only they would take advantage of these possibilities. To a person, successful businessmen do not understand and generally despise dependence on the government. Simply being a citizen of this great country is the equivalent of winning the geographic lottery.
President John Kennedy famously said, “Ask not what your country can do for you, ask what you can do for your country.” The growing sentiment today seems to infer, ask not what you can do for your country; ask what can your country do for you? John Kennedy, Milton Friedman and Thomas Jefferson are symbolic characters of a feeling that must be revived. Every citizen must contribute to the public good, but the government must get out of the way and let the population live and prosper by dint of their own efforts. Shrinking this albatross is in order, and fast!