Milton Friedman - The Invisible Hand in Politics

Milton Friedman on the consequences of trying to solve our problems by turning them over to government. “When reformers get a measure through, they go on their next crusade, leaving no one behind to protect the public interest. But they do leave behind some money and some power. And the special interest that can benefit from that money and from that power are quick to gain it at the expense of most of the rest of us.” This video is an excerpt from the famous Free to Choose documentary series. Source: LibertyPen YouTube channel.

(see video at the bottom of transcript)

Transcript:

Adam Smith wrote over 200 years ago: In the economic market, people who intend to serve only their own private interests are led by an invisible hand to serve public interest that it was no part of their intention to promote. In the political market, there's an invisible hand operating as well. But unfortunately, it operates in the opposite direction. People who intend only to serve the public interest, are led by an invisible hand to serve private interests that it was no part of their intention to promote.

The reason is simple. As we have seen in case after case, the general interest is defused among millions and millions of people. The special interest is concentrated. When reformers get a measure through, they go on their next crusade, leaving no one behind to protect the public interest. But they do leave behind some money and some power. And the special interest that can benefit from that money and from that power are quick to gain it at the expense of most of the rest of us. By now, after fifty years of experience, it is clear that it doesn't really matter who lives in that house.

Government will continue to grow so long as the rest of us believe that the way to solve our problems is to turn them over to government.

Translated by: Jadranko Brkic