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See ya November 16, 2006

Posted by Sharath Rao in economics.
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You have done well old man. Its been worth it. Must read this sometime.

Other memorable quotes from Friedman.

This is some India related trivia.

“A FIVE per cent per annum rate of increase in real national income seems entirely feasible on the basis of both the experience of other countries and of India’s own recent past. The great untapped resource of technical and scientific knowledge available to India for the taking is the economic equivalent of the untapped continent available to the United States 150 years ago.”

– Nov 5, 1955, Friedman in a note during his visit to the Ministry of Finance, Government of India.

Less than 5,000 words long, today the contents of this memorandum have become standard thinking among reform-minded economists in India. But at the time it was written, it must have been nothing less than heresy. It certainly did not see light of the day for 37 years until it was published in a volume edited by Subroto Roy and William E James.

[ Linked from here. ]

And I reserve the best for the last.

There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40% of our national income.

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