Milton Friedman held that the government’s role in the guidance of the economy should be restricted severely.
Taking over car companies is not restricted government economics from any sense of the concept. A health care program which will cost taxpayers dearly and continuing to expand all social programs cut into the economic freedoms of everyone working.
We should be cutting programs that Milton says, ‘enslave those who are supposed to benefit from the very program that is supposed to help.’
Unions continue to hurt much more than they help. Unions have a bad name in our country. More on that here: Milton Friedman on Labor Unions.
For too long we have lived with improper spending. Living as if lunch were free.
“There is No Free Lunch”
– Milton Friedman
Countries taking ‘no heed’ of proven Friedman economic fiscally responsible theories are now suffering with huge cuts in social programs resulting in violent protests from an under-informed public. Irresponsible governments are defaulting on financial obligations and are on the brink of bankruptcy.
Where does that leave US in Friedman’s eyes?
Right now all we have are Milton Friedman approved ‘promises’ from newly elected conservative lawmakers. If congress puts together a budget this year, that would be a good first step. Last year the democrat controlled congress failed to put forth a budget for the first time in history. Never before has the house failed to pass a budget, yet that same congress passed huge spending bills without a financial forecasted budget.
The next step to being more Milton Friedman-like would be to honor federal spending cut promises.
Here are some highlights, thanks Daniel Foster for putting this list together:
– Reducing the federal workforce by 15 percent through attrition, and eliminating automatic pay increases for the next five years.
– Eliminating all remaining “stimulus” funding. $45 billion
– Privatizing Fannie Mae and Freddie Mac. $30 billion
– Prohibiting any funding of the implementation — or legal defense — of Obamacare.
– Cutting the federal travel budget in half. $7.5 billion annually
– Cutting the federal vehicle budget by 20 percent. $600 million annually
– Eliminating the Corporation for Public Broadcasting subsidy. $445 million annually
– Eliminating Amtrak subsidies. $1.565 billion annually
– Repealing Title X Family Planning. $318 million annually
– Repealing the Davis-Bacon Act (which sets “prevailing wages” for workers on federal projects). $1 billion-plus annually
– Prohibiting taxpayer funded union activities by federal employees. $1.2 billion savings over ten years
Next, let states declare bankruptcy. Lawmakers are working on a way to let states declare bankruptcy and get out from under crushing debt, including pensions promised to retired public workers. The New York Times reported on Friday that House Republicans, and senators from both parties, have taken an interest in the issue.
More cuts and bankruptcies are needed. It will be a painful catharsis. You can’t pay for this lunch with “lunch money”. You’re going to need allot more.