Why Government Is the Problem (Essays in Public Policy) (Volume 39)

The author explains the “Why” which I found interesting. Plenty of A ha moments.

In this essay, Milton Friedman is not against complete absence of a government. Government is a necessary entity, but not in the matters of business and in certain public interests (such as medicare, postal services, etc.) that he believes can be run in the private sector. He points out what makes the government incapable and why with other published sources to support his argument. The following is a section from one of my favorite points:"We all complain about highway congestion. That is interesting for a different reason. The private automobile industry is able to produce all the automobiles anybody wants to drive, but the government is apparently not able to produce a comparably adequate highway system, a clear contrast." (p.95)He then offers his elaborations to the points he made in the previous portion of his essay. The following piece is a section of another favored segment of this essay:"With the best intentions in the world, they can try to persuade the people who hold the purse strings to finance the enterprise on a larger scale, to dig deeper into the pockets of the taxpayers to keep the enterprise going. That illustrates a general rule: If a private enterprise is a failure, it closes down—unless it can get a government subsidy to keep it going; if a government enterprise fails, it is expanded. I challenge you to find exceptions. The general rule is that government undertakes an activity that seems desirable at the time. Once the activity begins, whether it proves desirable or not, people in both the government and the private sector acquire a vested interest in it. If the initial reason for undertaking the activity disappears, they have a strong incentive to find another justification for its continued existence." (p. 151-156)He offers some light humor to entertain readers as well--it's not all serious and monotone. A great read.

The United States have gone too far the socialist route that it would take a lot of effort educating the voters that their decisions in the ballot box on the federal level have made this country what it is today.

In this very short piece, Friedman tries to make a brief argument on why government is in fact the main obstacle to development. Given the very limited space (18 pages), it is impossible to make a very strong argument on such a broad topic. Friedman makes some good points, but most of them do not provide supporting evidence, so it leaves a hesitant reader unconvinced. It seems to me that this book is sufficient for good argument over cocktail conversation.For a more thorough analysis of the same arguments presented in this short book, I would recommend either Capital and Freedom or Free to Choose by Friedman as well.

A quick read, Milton Friedman’s essays on why government is the problem explain very clearly how the government, no matter how well intentioned, messes things up. One important fact for every reader to note, though, is how many libraries do not have Friedman’s books on their shelves. I searched online for ebooks owned by libraries around the country, and about half of them did not have even his most famous book, “Free to Choose.” It’s scary that the gatekeepers of wisdom have so much power that they can stop people from learning the ideas of this Noble Prize winning economist. It’s important, therefore, for people to ask their libraries to buy Friedman’s books.That being said, one of the interesting points that Friedman says comes from a story he tells: “I once attended a breakfast with Senator Long when he was chairman of the Senate Finance Committee; I remember very well his saying, ‘You know we never could have adopted by legislation the rates of tax we now impose on low and middle incomes. When those rates were adopted, they were on high-income people, but inflation made them applicable to low-income people.’ I believe that was an important effect of inflation on expanding government.” What an amazing strategy that the government uses to increase taxes on everyone, including those who are in the lower and middle earning levels. The government sets rate for the high-income folks, and then waits for inflation to raise everyone’s salary (not their real earnings, just their nominal take-home pay), and then all those folks get swept into the net of taxes. Pretty sneaky!I also appreciated his pointing out that the freer a nation is, the less likely racism will rear its head. Friedman writes, “The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.”This booklet, as well as “Free to Choose,” should be required reading in all high schools (“required,” that is, unless the government will finally get out of the business of forced schooling and allow for greater competition in the education realm).

I like this essay which highlights very important discrepancies with government. I used this book to gain some good knowledge on why the government does some of the things it does. One of the point that Milton points out is the government does bad the things it should do well, and puts its hands on things it has not hand in needing to do. Example would be the DMV, the government regulates the roads but go to the DMV and you'll wait for a license, or the government should be taking care of the national roads and does a horrible job at it. An area where the government does not need to have it hands in is telling individuals what to do with its body or the government should not be subsiding businesses that fail. Its a great essay and it does bring many more good points. Hope everyone enjoys it as much as I did.

The Government is the enemy of prosperity, freedom, and the pursuit of happiness. Government produces (make) nothing. It can only take. It's objective is power.

It's super short text, around 20 pages or so. The material is excellent, I love Friedman. Easy to understand, argument is pretty solid, the structure is simple to understand. In general terms is a good investment if you like to have a collection of Friedmans material.

Milton Friedman’s “Why Government is the Problem” is a short but potent essay originally published in 1993, which articulates his views on the limitations and inefficiencies of government intervention. Friedman, a Nobel Prize-winning economist, was a leading proponent of free-market economics and a critic of expansive government involvement in economic and social affairs. In this essay, he argues that many of the problems attributed to private markets are, in fact, caused or worsened by government actions.Overview of Main IdeasFriedman’s central thesis is that government intervention often causes more harm than good. He explains that while governments are typically seen as the solution to societal problems, they are frequently the root of the issues. His key points include: 1. Inefficiency of Government Action: Friedman argues that government actions are inherently inefficient compared to private markets because of bureaucratic incentives. In a market, individuals and businesses are motivated by profit, which leads to competition, innovation, and efficiency. In contrast, government bureaucrats lack such incentives and are often more concerned with maintaining power or preserving their departments, leading to waste, inefficiency, and poor decision-making. 2. Unintended Consequences: Friedman highlights that government programs, even when well-intentioned, often result in unintended negative consequences. For example, welfare programs designed to alleviate poverty can inadvertently create dependency, reduce the incentive to work, and trap people in poverty. Similarly, regulatory measures meant to protect consumers can stifle competition and innovation. 3. Government Growth and Individual Freedom: Friedman contends that the growth of government inevitably leads to a reduction in individual freedoms. As government expands its role in areas like health care, education, and the economy, it restricts the ability of individuals to make choices for themselves. He sees this as a fundamental threat to personal liberty. 4. Private vs. Public Solutions: In Friedman’s view, the private sector is generally better equipped to solve problems because it operates under market principles that promote accountability and efficiency. When individuals and businesses fail, they face consequences, whereas government programs can continue even when they are clearly ineffective, sustained by taxpayer funding and political interests. 5. Decentralized Decision-Making: Friedman emphasizes the importance of decentralized decision-making. He believes that individuals and private entities are better positioned to make informed decisions that align with their needs and circumstances. Government interventions, on the other hand, are typically one-size-fits-all, ignoring local variations and individual preferences.Strengths of the Essay 1. Clarity and Accessibility: Friedman’s writing is clear, concise, and accessible, making complex economic ideas understandable to a general audience. He uses straightforward examples to illustrate how government policies can backfire, drawing on real-world examples to make his case. 2. Timeless Arguments: Despite being written in the early 1990s, the essay’s core arguments remain relevant today. Many of the issues Friedman discusses—such as the inefficiency of government programs, the unintended consequences of regulation, and the growth of government power—continue to be hotly debated topics in modern politics and economics. 3. Logical Consistency: Friedman’s essay is logically consistent with his broader body of work, particularly his defense of individual freedom and free markets. His arguments in this essay complement his earlier work in books like Capitalism and Freedom and Free to Choose. 4. Challenge to Conventional Wisdom: At a time when government intervention was often viewed as a necessary solution to social problems, Friedman challenges this conventional wisdom by turning the lens back on the state itself. His critical perspective encourages readers to reconsider the assumption that more government involvement is always better.Criticisms of the Essay 1. Over-Simplification: Some critics argue that Friedman’s arguments can be overly simplistic. While he points out the inefficiencies and unintended consequences of government action, he doesn’t fully address cases where government intervention is necessary or where private markets fail to provide adequate solutions. For instance, issues like public health, environmental protection, and social welfare often require collective action that markets alone may not adequately provide. 2. Underestimating Market Failures: Friedman’s essay emphasizes government failures but downplays the significance of market failures, such as monopolies, externalities (like pollution), and inequality. While he advocates for private solutions, critics argue that markets also have limitations that require some degree of government oversight to correct or mitigate. 3. Lack of Nuance on Social Welfare: Friedman’s critique of welfare programs may seem harsh to some readers. While he acknowledges that these programs can create dependency, he doesn’t spend much time discussing the moral or social obligations to provide a safety net for the most vulnerable members of society. His focus on economic efficiency sometimes overlooks the importance of social equity. 4. Minimal Focus on Political Realities: While Friedman makes a strong theoretical case for limiting government intervention, he doesn’t delve deeply into the political realities that often drive government expansion. Politicians may act in response to public demands or crises, and the political process can lead to compromises that aren’t always aligned with economic efficiency. His essay doesn’t fully engage with the complexities of governance.Conclusion“Why Government is the Problem” is a succinct and powerful argument in favor of limited government and free-market solutions, consistent with Milton Friedman’s broader philosophy. He makes a compelling case that government intervention often leads to inefficiency, unintended consequences, and a reduction in individual freedoms, and he encourages readers to rethink the assumption that government is the best answer to societal problems.However, the essay’s focus on government failures may oversimplify the role of the state in addressing market failures and social issues. While Friedman offers a sharp critique of government inefficiencies, his arguments may feel incomplete to those who see a greater role for the state in ensuring social welfare, regulating markets, or addressing inequality.For those who are already skeptical of government intervention, this essay will resonate deeply. For others, it serves as a thought-provoking challenge to more interventionist perspectives. Regardless of one’s stance, “Why Government is the Problem” remains an influential and relevant piece in the ongoing debate about the proper role of government in society.

Existem muitos textos melhores, mais densos, mais completos, sobre economia de livre mercado e sobre os males do intervencionismo (e monopolismo) estatal. A lista é enorme e certamente inclui trabalhos de Friedman também. Por que CINCO estrelas, então? Estou julgando este texto pelo que ele se propõe a ser. Trata-se da transcrição (ligeiramente adaptada) de uma palestra que ele proferiu em novembro de 1991 para um público de leigos, com o objetivo de argumentar que a principal fonte dos principais problemas sociais é o governo, não a iniciativa privada. Na versão impressa, o texto ocupa apenas 18 páginas. Obviamente, falta aprofundamento para os que buscam isso. Mas, a julgar pelo que o texto é, trata-se de um ótimo material. A palestra começa meio "fria" e previsível pra quem - como eu - já leu uma quantidade razoável de material sobre o tema escrito por autores comparáveis a Friedman. Mas rapidamente ela "esquenta" e fica interessante, mesmo para quem já está acostumado aos argumentos básicos. Friedman lista vários problemas e, para cada um deles, consegue argumentar de modo muito sintético e eficaz a tese central dele (i.e. o governo é o grande culpado). Rapidamente, ele vai falando sobre (i) educação (que ele prefere chamar de ecolarização, gostei disso, me lembra Rothbard); (ii) criminalidade; (iii) moradores de rua; (iv) valores familiares; (v) moradia e mercado imobiliário; (vi) saúde pública e privada; (vii) sistema financeiro; (viii) congestionamento no transporte rodoviário urbano e inter-urbano; (ix) sistema aeroportuário; e finalmente (x) uma miscelânea de outros pequenos pontos aglutinados. A partir da página 7, então, após ter argumentado que o governo é o grande culpado, ele começa a argumentar sobre o porquê disso ser assim. É aí que o texto fica mais interessante, e a argumentação se prolonga até a página 13, que demarca o fim da palestra. Essencialmente, Friedman fala que tanto em empresas privadas como em estatais, as pessoas que lá trabalham agem visando seus próprios interesses. A diferença é que no primeiro caso ou o trabalho é bem feito ou o negócio quebra, então há mais cautela, mais responsabilidade; enquanto no segundo caso o trabalho, independentemente de haver corrupção ou omissão (maus maiores), o trabalho pode sair mal feito sem maiores consequências imediatas para as pessoas que fazem bobagem. Se uma empresa privada dá errado, ela fecha as portas. Se uma empresa pública dá errado, o governo insiste mais e mais até ela dar certo, sendo que na maioria das vezes não dá certo nunca, e isso custa muito dinheiro, dinheiro de todo mundo, dinheiro gerado na economia privada. Há um fragmento em que ele fala da máfia dos táxis, dos preços elevados das licenças, do preço caro do serviço por ser escasso, e é escasso porque o governo trava o número de licenças eliminando a concorrência, porque os donos das frotas têm representantes fortes nas câmaras de vereadores. Ele fala que se não tivesse nada disso haveria mais mercado, mais empregos pra motoristas, competição que torna o serviço melhor e mais barato pro consumidor. Ou seja, tecnologias de smartphone à parte, quem inventou o Uber foi o Miltão em 1991! Ele fecha a palestra com um tiro certeiro adaptando a metáfora de Adam Smith da mão invisível. Ele fala que também existe a mão invisível inversa (isso está na página 11, e não vou falar aqui pra não dar spoiler). Da página 14 à 18, tem-se uma sessão de perguntas e respostas, com o típico Friedman reagindo de forma bastante sagaz, rápida e certeira a perguntas que variam entre as mais simpáticas ao seu posicionamento até aquelas que tentam colocá-lo em saia justa. A discussão é toda contextualizada na realidade dos EUA daquele tempo (os anos de Regan e Bush pai na presidência). Mas é interessante perceber o quanto que tudo aquilo se aplica a várias outras realidades, outros países e épocas, incluindo o Brasil de hoje. É interessante o modo como ele diagnostica ali, naquele ponto, um declínio na sociedade dos EUA, o governo ficando mais inchado e menos eficiente. É fácil falar hoje que o país pessimamente gerido por Bush filho, Obama e Trump está em decadência. Miltão cantou essa pedra em 1991. Os ancaps mais fervorosos (e confesso aqui que dessa turma toda o meu autor favorito é Rothbard, portanto não me levem a mal) provavelmente não vão gostar quando ele fala das funções essenciais do estado mínimo (sistema judiciário, segurança pública interna e defesa de fronteiras). Mas eles hão de reconhecer que o pensamento de Friedman é equilibrado e coerente. Eu adquiri este livro na forma impressa. É até estranho chamar de livro; parece mais uma daquelas edições tipo separata de artigo de periódico. É charmoso ter aquele volumezinho na biblioteca encaixado em meio aos calhamaços. Mas, pelo preço, eu recomendaria a versão Kindle, sai mais em conta.

Fun to read. Wouldn't base your opinions on it, thought it was fun to think about the points made and the topic discussed.

This book reveals how government actions often provide substantial benefits to a few while imposing small costs on many. Why people in positions of power are corrupted, and why failing government programs are expanded instead of being shutdown for good.