Private charity is more effective than government welfare from "summary" of Free to Choose by Milton Friedman
The idea that private charity is more effective than government welfare is a contentious one. Proponents of government welfare argue that it is necessary to ensure that all individuals have access to basic necessities such as food, shelter, and healthcare. However, Milton Friedman takes a different view. He believes that private charity is not only more effective at addressing the needs of the poor, but also more efficient in terms of resource allocation. Friedman argues that private charity is more effective because it is based on voluntary donations. When individuals give to charity, they are more likely to feel a personal connection to the cause and be more invested in ensuring that their donations are used wisely. In contrast, government welfare programs are funded through taxation, which is coercive in nature. This means that individuals have less say in how their money is spent and may be less inclined to hold government programs accountable for their results. Furthermore, Friedman points out that private charity is often more responsive to the unique needs of individuals. Unlike government welfare programs, which are often one-size-fits-all, private charities can tailor their services to the specific needs of the communities they serve. This flexibility allows them to provide more personalized and effective assistance to those in need. In terms of efficiency, Friedman argues that private charity is superior to government welfare because it operates in a competitive environment. Private charities must compete for donations and demonstrate their effectiveness in order to attract support. This competition incentivizes charities to operate efficiently and innovate in order to maximize the impact of their programs. In contrast, government welfare programs do not face the same pressure to perform, which can lead to waste and inefficiency.- Friedman's argument is that private charity is more effective than government welfare because it is based on voluntary donations, more responsive to individual needs, and operates in a competitive environment that promotes efficiency. While government welfare has a role to play in providing a safety net for those in need, Friedman believes that private charity is better equipped to address the complex and varied needs of the poor.
