The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “Why Government is the Problem?” was published on September 15, 1994, and was authored by Prof. Milton Friedman. The author addresses some of the fundamental questions on government spending, incentives and the differential treatment of a public enterprise and a private enterprise. He argues that self-interest is served by different actions in the private sphere than in the public sphere as the bottom line is different. He illustrates this argument with an example; if a private enterprise is a failure, it closes down – unless it can get a government subsidy to keep it going, but if a government enterprise fails, it is expanded. He further points out that the problem is the government spending too much on the wrong things and the end result has been that the government has become a self-generating monstrosity. He notes that bureaucrats are not necessarily bad people, it’s just that the self-interest of people in government leads them to behave in a way that is against the self-interest of the rest of us.