“There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get.”
Milton Friedman (Free to choose) (via efficiency) (via thusspokezarathustra) (via ilgobbomalefico) (via rispostesenzadomanda)
Wrong, wrong and wrong (and wrong and wrong) Anyone who trusts anyone with some sort of universal rules for or of money is asking for trouble.
1) There are plenty of ways to spend money. What about spending money donated to you? What about spending money given to you? What about spending money inherited by you? All of these aspects can have very significant social ramifications and can effect how you (or at least I) decide to spend said money.
2) When I spend money on myself I don’t think in terms of “really watching out what I’m doing” nor do I think in terms of “getting the most for my money.” I weigh what I need against what I want against what I need to spend my money on. Sometimes I waste money for fun, sometimes I buy only useful things. Deciding how everyone uses their own money is a mistake because I’ll prove you wrong, because I don’t think about money like that.
3) When I spend my money on friends or family, say, for a birthday present, I usually make something for them, buy something I *know* they’ll like or want, or I just give them a gift card—in short, I give them something I’ve thought about. I do care about the content and depending on how much money I have to spend, I generally don’t care for the cost.
4) When I spend someone else’s money on myself I am more responsible than I am with my own money. Someone else shows trust in my decision making ability—I’m going to earn that trust by choosing how I spend that money well.
5) When I spend someone else’s money on someone else, then I treat it the same way as if I’m spending on myself. With respect and I try to make the best purchase, weighing value, against usefulness, against need.
Milton Friedman is widely regarded as a master of economy. Have a look around at the economies of the developed world—still think he’s someone to trust?
Of course, that’s just my ¥2—I’m no economist and that means I might be wrong, too.
The important thing is that you think for yourself—challenge everything. Don’t believe anyone wholesale.