So ends the month that makes me cringe as I hear Feb-ew-ary or Febr-rary.
Here follows one of the most important ideas in economics and psychology, anticipated and articulated by thousands, but articulated by Adam Smith and Milton Friedman, centuries apart.
from the book: Shadow Dancing on the Grave of Hope:
Human affairs follow paths determined by “The Law of Contingencies”, which is as valid as any law in physics. If effectiveness is not required, effectiveness does not occur. If one is spending other people’s money, profligacy occurs. If competition is absent, inefficiency occurs. The Law of Contingencies pays no attention to the Screed of Intentions.
INCENTIVES, REAL CUSTOMERS AND REAL PRODUCTION
Milton Friedman, economist, and Nobel Laureate, noted:
"When a man spends his own money to buy something for himself, he is very careful about how much he spends and how he spends it.
When a man spends his own money to buy something for someone else, he is still very careful about how much he spends, but somewhat less what he spends it on.
When a man spends someone else’s money to buy something for himself, he is very careful about what he buys, but doesn’t care at all how much he spends.
And when a man spends someone else’s money on someone else, he doesn’t care how much he spends or what he spends it on. And that’s government for you."
Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies
