A Brief Guide to Government Spending

This is a simple chart which represents four quadrants based on the different approach to purchasing.

1) When I buy something with my money for myself, I care about quality and price.

2) When I buy something with other peoples’s money for myself, I care about quality, but not about price.

3) When I buy something with my money for somebody else, I care about price, but not about quality.

4) When I buy something with other peoples’s money for somebody else, I don't care about quality or price.

It’s obvious that individuals purchase in quadrant 1, while governments purchase in quadrant 4. And this is why individuals will always manage their own money better than the government.