The 4 Ways to Spend Money by Milton Friedman

1. You spend your own money on yourself.
2. You spend your own money on someone else.
3. You spend someone else's money on yourself.
4. You spend someone else's money on someone else.

Sorry for the horrible quality on this one. The original source was a low quality .rm file from http://freetochoose.net/media.html

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[Heinz Meng]

He is the philosopher I been searching for and a positive human, wish I could have met him or seen him at a lecture. That is why YOUTUBE is so great !

[kamaujackson811]

It's comical that people think that the two semesters of economics they took in college gives them the ability to debate one of the greatest minds in modern economics.

That's why you're commenting on youtube.....

[urb8t]

this is a great video! everyone should watch this video!

[urb8t]

you will find out in nov.

[UCSDEngineerDoctor]

OBAMA's actions speaks for ITSELF.

[urb8t]

don't put words into someone else mouth. let obama defend himself.

[urb8t]

so true!

[masterskyrunner]

Hoover cut taxes and raised spending... just like Reagan. When Hoover issued his $160 million tax cut, it was coupled with a doubling of public infrastructure spending, eating into reserves that could be used to offset recession. In the GD we just needed more consumers, which the war provided, to offset over-production. Had we lowered the poor and middle class taxes down into a deep dark abyss, perhaps we could have stimulated consumer purchasing and made the GD much shorter.

[fububalla]

Hoover actually did alot. He cut taxes and raised taxes (just like reagan). I do think your right though after looking that he probably ended up raising them more after seeing what the tax cuts did.

I agree that there are ways the govt can help w/o direct intervention but tax cuts/increases are not direct interventions. If so, you would have to consider tariff so as well.

[masterskyrunner]

No, you can give your muscles a tax cut by eating right and losing weight. The weight of fees and taxes makes it heavier on business owners to exercise the economic muscle. Hoover didn't lessen regulations and taxes, he actually raised tariffs to generate more income for the federal government in 1930, generating recoil in 1931. Hoover did absolutely nothing, like Nero who played the fiddle as Rome burned beneath him. There are still ways the government can help without direct intervention.

[fububalla]

Also i don't get the analogy of the economy being like a muscle in the body. I've given my abs tax cuts for years and I still don't have a six pack

[fububalla]

My bad, I read post-WWII not WWI. Yea, you do know what happened after coolidge "fixed" that depression... the great depression which hoover did the fix-all tax cut policy which sunk us even lower. Taxes have little to do with it. Its about monetary policy and booms and busts of credit which is all controlled by the Fed.

The issue of taxes is one aspect of fiscal policy... they don't control the economy genius.