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  • The issue that I have is:

  • Where do children come in?

  • What are their rights under a negative income tax?

  • And are we, by building in a negative income tax,

  • in fact subsidizing the illegitimacy that

  • Tom Sowell is so concerned about?

  • FRIEDMAN: The major reason it is not feasible today

  • to have a negative income tax is because the

  • present welfare bureaucracy would be out of work.

  • They are the major objectors and as Senator Pat

  • - he's now a senator, Pat Moynihan demonstrated

  • in his book on the Nixon program,

  • the chief obstacle to getting it enacted

  • was the welfare bureaucracy.

  • So that I don't believe these administrative problems,

  • if you got it enacted, would be at all serious.

  • O'BANNON: I think the other assumption under

  • the negative income tax, and it's

  • one that I'm not sure I can buy,

  • is that everybody has a minimum level

  • of understanding about how to spend money.

  • In other words, how to use the

  • marketplace to satisfy wishes.

  • And I, as an economist, would say, yes, we do.

  • We - everybody from age four to a hundred

  • knows how to use money

  • to satisfy wants and that's the...

  • FRIEDMAN: But they don't. They don't!

  • There are all sorts of problems

  • of people who are not going to be able to.

  • But that's a minority problem.

  • That's a problem for private activity

  • and private charity.

  • One thing is sure: they're spending...

  • they would be spending their own money,

  • and that however knowledgeable

  • you are about spending money...

  • O'BANNON: They would be spending my money!

  • They...I...

  • FRIEDMAN: They would be spending my money,

  • but it would be one stage less bad.

  • Right now, the welfare worker is spending

  • Mr. A's money to help Mr. C.

  • And there's a big takeoff

  • in the middle as Tom Sowell said.

  • The question is not whether the people

  • on welfare or low incomes

  • can all spend their money effectively;

  • the question is: How effectively do they

  • spend it as compared to how effectively

  • the bureaucrats spend it for them?

  • Comparing anything to perfection or to

  • some arbitrary standard settles nothing.

  • The same thing is true in the education area.

  • They're saying: “Would families be able to

  • spend their - select schools for their

  • kids under a voucher system?"

  • For example: Well, the question is:

  • Could they possibly do much worse

  • than the current bureaucrats are doing

  • in the public school system?

The issue that I have is:

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B1 US income tax spending welfare tax income friedman

Free To Choose 1980 - From Cradle to Grave - Negative Income Tax

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    王惟惟 posted on 2019/08/10
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