Spending by government currently amounts to about 45 percent of national income. By that test, government owns 45 percent of the means of production that produce the national income. The U.S. is now 45 percent socialist.
About this quote
- What does it mean?
- Friedman equates government spending as a percentage of national income with the degree of socialism in a country.
- In plain terms
- If government spends 45% of income, it owns 45% of production. That is 45% socialist.
- What can you take from it?
- High government spending indicates a high level of socialism.
Where it applies
Putting it to work
Questions to consider
- Is spending the same as ownership?
- What defines socialism?
Another view
Socialism involves ownership and control, not just spending levels.
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