The Role of Incentive in Government and Private Behavior

This is a transcription of a speech delivered October 24, 1991 at the Sharon Siegan Memorial Lecture series at the University of San Diego. Mr. Friedman, a Nobel Laureate Economist, advocated privatization of markets in the United States and less government spending. He noted the fall of communism in Eastern Europe, and recommended that the United States decrease the size of government and privatize markets in order to achieve economic prosperity. He compared government officials' incentives to the incentives of private individuals, and concluded that the economy would be more successful without excessive government regulation.