If government buys you a coat—wrong coat, wrong price.

I don't believe I have seen this formulation before.  From What Went Wrong? 3/24 by Arnold Kling.

There is an argument that I believe is due to Milton Friedman, but I cannot find a source. It uses the example of buying a coat.

If you buy a coat for yourself, you pick the right coat for the right price

If someone else (a parent, perhaps) says that they will pay for any coat you choose, you pick the right coat for the wrong price (you spend more on a coat than you would using your own money).

If someone gives you a coat as a present, they pay the right price (what they are willing to spend) but get you the wrong coat (one you would not have picked for that price).

If government buys you a coat—wrong coat, wrong price.