Friedberg argues voters consistently choose increased government spending despite economic growth providing tax revenue.
“And if the government taxes everyone just the same amount, now the government has more money to spend. Consumers, voters have a choice. They have a choice to say tax less and spend less.”
Friedberg argues that change in income predicts happiness, which drives government spending through voter demand.
“Your change in income is your predictor of happiness. So if we start with that premise of like human behavior, the government now has an incredible the federal government in The United States has an incredible role in supporting a lot of people through active programs that pump money into businesses.”
“there are reports that they've given out 17 shots of vodka in a single night to a homeless person. And this is like a 5 to $10,000,000 a year program”
Friedberg states San Francisco's managed alcohol program costs $5-10 million yearly and has given 17 vodka shots nightly to individuals.
“And this is like a 5 to $10,000,000 a year program for the city of San Francisco.”
Friedberg estimates over half of Americans rely on government income directly or indirectly.
“So you're either employed by the federal, state, or local government or its agencies or one of its contractors or you're receiving one of the retirement checks from a government agency.”
Friedberg argues government spending of $300B housing, $200B education, $2T healthcare makes things more expensive, questioning government role.
“And the more that the government provides, 300,000,000,000 a year in housing support, 200,000,000,000 a year in education, over a trillion dollars, $2,000,000,000,000 almost in health care, the more things get more expensive.”