Milton Friedman on Healthcare and the Poor

Friedman addresses the age old fallacy: "If government doesn't provide free healthcare to the poor, then the poor will never have healthcare."

[Capitalism]

Youtube "Milton Friedman- The Negative Income Tax" where he explains his position in more detail, it is meant to replace welfare and at least give the poor some form of incentive of getting out of poverty. He said that if there was no welfare state he would oppose it, but its better compared to what we have now, also politically feasible, its actually quite a good idea

[rajeshchahal]

That does not make Friedman inconsistent or a semi socialist. That makes him an intelligent and nuanced libertarian. Actually when he takes into account the state's follies he is being a purer libertarian than many superficial types who will not.

[carecup]

This is 2019 would go something like this







Lady: Dr. Friedman...
Dr. Friedman: Yes ma'am.
Lady: HOW DARE YOU ASSUME MY GENDER.

[rajeshchahal]

The lady asked a wrong question really. As soon Milton started with one income for everything... she had already got her answer.

[rajeshchahal]

Friedman was a pragmatist. He advocated negative income tax as a practical mechanism and would have rejected it in his ideal world. But another important thing to note in the short term, even in his ideal world he favored negative income tax. Because once the state makes people and families dependent on dole or distorts society such that a large section of population get trapped in poverty for state's actions. It is responsible in the short term to provide some relief to these people.

[EricFalch]

But would the negative income tax be sufficient to cover the cost of the cheapest medical care insurance?

[driverM]

he proposed this as a replacement to multiple welfare programs. in a country that demands a safety net, his idea would likely work out better than having the federal government administer a hundred different programs.

as always, you have to ask "compared to what?"

compared to our current welfare state, the NIT would be better. compared to my libertarian fantasy, the NIT would be worse. milton friedman was well aware that libertarian fantasies would never be implemented in the US.

[jackstueve]

The key to his Negative Income Tax idea, which he published in the 40's, was to gear it to give the poor incentive to work. Today's system disincents going to work; a single mother can't take a minimum wage job, lose benefits, pay for child care while they work, etc. His system gave them an incentive to get in the workforce. I can't do it justice in the space here, but google it. I read it 40+ years ago working on my senior thesis and I don't understand why we didn't do it 70 years ago.

[stevemcgee]

Keep in mind, Friedman is talking about 'the poor' - a class of people at a given time who ARE NOT the same as 'the poor' at a different time.

The 'negative income tax' is a safety net that gets people back on their feet. It is not a lifelong stipend. At least, it is not meant to be.

Of course there are those who can't or won't develop skills that are worth enough to others to maintain a minimum standard that 'WE' want them to have (for the sake of crime reduction, etc.). That's life...

[MontyPython]

Isn't that what the so-called "earned income tax credit" basically is?

[AmerDemirovic]

Instead of spending fortunes to administer a million of programmes, one universal, easy to administer programme is a no-brainer. Milton Friedman is so missed.

[Milton_Friedmanite]

Friedman ended up changing his mind on negative income tax towards the end of his life. I’m not sure exactly what he said, I’ve been trying to find something, but that is my understanding.

[ludwigbeethoven]

What level of health coverage? Statists still stating in 2020

[stuboy]

And when a percentage of them dont spend it on that and we get the same cries of unfairness and poverty? When giving people the money was tried in the UK suddenly loads of people were homeless because they were incompetent with money, some will certainly do better with the money but this doesnt address the problem.

[jayutley]

I have to agree with all of you, fellas. Can't believe Friedman said that. Usually he's real good at this stuff. Anybody know how old this video is?

[strengthaxlesystem]

Wow, the only MF clip I don't agree with. Negative Income tax?!?!?! The problem with the poor is not money, it's that they produce less than what their needs are. The government is horrible at filtering real need from false need. Private charities do much better at this type of thing. Lets look at a place like Thailand where people manage without the welfare state.

[paulaegraham]

The problem with poverty is not money. Its mentality

[natkojurdana]

"The problem of poverty is money" - The guy is a genious!

What's next, the problem of death is dying? The problem of sickness is disease? Such a mind.