Nobel Prize-winning economist Milton Friedman — one of the most influential figures in modern conservatism, a free market advocate and a major influence of mine — has passed away.

As much as any other economist, this man applied free market theory toward practical solutions. He spearheaded the school voucher movement, arguing the government should give education money to parents instead of local schools. That way, schools would have to compete; good schools would see high enrollment, and bad ones would go bankrupt. The idea has seen limited but pretty successful implementation.

Another of my favorite Friedman concepts explains why government spending is so wasteful. When you spend your own money on yourself (grocery shopping), you try to get the best product you can for as little cash as possible. When you spend someone else’s money on yourself (a rich teenager with Daddy’s credit card), you try to get the best product you can without caring how much you spend. When you spend your own money on someone else (a gift) you try to spend a set amount, but you don’t care so much about getting the best product.

Finally, when you spend someone else’s money on someone else, it doesn’t matter what you get or how much it costs. That is the scenario government programs by definition fall into. By cutting spending, and when necessary using vouchers (where the people spending the money also receive the benefit) instead of social programs, we can have a more efficient allocation of resources.

It is sad we have lost such an innovative mind, such an proponent of individual freedom. But on the other hand the man lived to 94, he achieved to his fullest potential and he made the world an immeasurably better place. There is plenty to celebrate in that.

Robert VerBruggen blogs at http://robertsrationale.blogspot.com.