Milton Friedman explained what government spending means in the simplest way:
- when you spend your money on yourself, you will get the best service for the least money
- when you spend your money on others (e.g. on gifts), you will be careful not to spend too much and the quality will not be so important
- when you spend other people's money on yourself (eg the government pays or the company pays), you will get the best service for an exorbitant price
- when you spend other people's money on others (the government redistributes) - the service will be bad and the price too high