- You spend your money on yourself. You're motivated to get the thing you want most at the best price. This is the way middle-aged men haggle with Porsche dealers.
- You spend your money on other people. You still want a bargain, but you're less interested in pleasing the recipient of your largesse. This is why children get underwear at Christmas.
- You spend other people's money on yourself. You get what you want but price no longer matters. The second wives who ride around with the middle-aged men in the Porsches do this kind of spending at Neiman Marcus.
- You spend other people's money on other people. And in this case, who gives a s**t?
Most government spending falls into category four. Which is why the government keeps buying us Hoover Dams, B-1 bombers, raids on Waco cults, and 1972 Federal Water Pollution Control Acts.
Note: As PJ himself notes, these four ways were first described by Milton and Rose Friedman in their book, Free to Choose.