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393			<div id="post-129796" class="hentry p1 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m12 d05 h20">
394				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/12/06/friedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2/" rel="bookmark">FRIEDMAN FRIDAY Dan Mitchell: Milton Friedman was advocating what is sometimes referred to as “shareholder capitalism,” which is the notion that a company should strive to earn honest profits for its&nbsp;owners!</a></h3>
395				<div class="entry-date"><a href="https://thedailyhatch.org/2024/12/06/friedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2/" class="published" title="2024-12-06T01:40:00-0600">December 6, 2024 &#8211; 1:40 am</a></div>
396				<div class="entry-content">
397					<p>—</p>
398<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525"></a></p>
399<header class="entry-header">
400<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/06/25/shareholders-over-stakeholders-part-i/" rel="bookmark">Shareholders Over Stakeholders, Part I</a></h1>
401<div class="entry-meta"></div>
402</header>
403<div class="entry-content">
404<p>My <a href="https://danieljmitchell.wordpress.com/2020/11/20/the-case-for-capitalism-part-iv/">warm</a> and <a href="https://danieljmitchell.wordpress.com/2021/02/10/the-case-for-capitalism-part-v/">fuzzy</a> feelings for “<a href="https://danieljmitchell.wordpress.com/2022/01/08/the-case-for-capitalism-part-vi/">capitalism</a>” turn sour when someone promotes a modified version such as “<a href="https://danieljmitchell.wordpress.com/2019/11/26/fight-on-the-right-part-ii-debating-common-good-capitalism/">common-good capitalism</a>.”</p>
405<p>Why? Because I worry such terms imply a Trojan Horse for statism. And that’s definitely the case with so-called “stakeholder capitalism.”</p>
406</div>
407<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/boNoMpz9SAw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
408<p>As you can see, my core argument is that stakeholder capitalism is just another way of saying <a href="https://danieljmitchell.wordpress.com/2018/08/30/the-hidden-tax-of-cronyism/">cronyism</a>. And if I was being lazy, I would simply point out that Elizabeth Warren <a href="https://danieljmitchell.wordpress.com/2018/08/23/elizabeth-warren-wants-to-make-cronyism-great-again/">is a big proponent</a> of the idea. That, by itself, should convince every thinking person that it’s a bad idea.</p>
409<p>But I’m not going to be lazy. I’m going to cite some experts to show why stakeholder capitalism is bad news.</p>
410<p>But first, I mentioned Milton Friedman’s famous quote in the above video clip.</p>
411<p>Here’s <a href="http://websites.umich.edu/~thecore/doc/Friedman.pdf">the full quote</a>, and notice that he explicitly says companies should follow rules – both legal and ethical – as they pursue profits.</p>
412<p><a href="https://danieljmitchell.wordpress.com/2020/08/25/stakeholder-capitalism-when-big-business-curries-favor-from-big-government/"><img class="alignnone size-large" src="https://i0.wp.com/freedomandprosperity.org/wp-content/uploads/2020/08/Aug-25-20-Friedman-Quote.jpg" width="382" height="82"></a></p>
413<p>Friedman was advocating what is sometimes referred to as “shareholder capitalism,” which is the notion that a company should strive to earn <a href="https://danieljmitchell.wordpress.com/2018/01/23/im-happy-when-amazon-and-other-big-companies-prosper-assuming-profits-are-from-capitalism-rather-than-cronyism/">honest profits</a> for its owners.</p>
414<p>So what, then is stakeholder capitalism? In <a href="https://www.wsj.com/articles/profit-keeps-corporate-leaders-honest-11607449490">a column</a>for the <em>Wall Street Journal</em>, Professor Alexander William Salter warns us that it is an invitation for intervention.</p>
415<blockquote><p>…beneath the lofty rhetoric, stakeholder capitalism is mostly a front for irresponsible corporatism. …Stakeholder capitalism is used as a way to obfuscate what counts as success in business. By focusing less on profits and more on vague social values, “enlightened” executives will find it easier<a href="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Salter.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Salter.jpg" width="174" height="81"></a>to avoid accountability even as they squander business resources. While trying to make business about “social justice” is always concerning, the contemporary conjunction of stakeholder theory and woke capitalism makes for an especially dangerous and accountability-thwarting combination. …profits are an elegant and parsimonious way of promoting efficiency within a business as well as society at large. Stakeholder capitalism ruptures this process. When other goals compete with the mandate to maximize returns, the feedback loop created by profits gets weaker.</p></blockquote>
416<p>Writing for the <em>Washington Post</em>, George Will <a href="https://www.washingtonpost.com/opinions/2022/06/22/progressive-stakeholder-capitalism-esg-investing/">has</a> a similarly scathing assessment.</p>
417<blockquote><p>…everyone who values economic dynamism, and the freedom that enables this, should recoil from the toxic noun “stakeholder.â€
417 …Stakeholder capitalism violates fiduciary laws that require those entrusted with investors’ money <a href="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Will-Post.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Will-Post.jpg" width="207" height="58"></a>to employ it “<i>solely</i> in the interest of” and “for the <i>exclusive purpose</i> of providing benefits to” the investors. …In a dynamic society, resources are efficiently disposed by corporate managements whose primary duty, which other corporate activities do not compromise, is to maximize shareholder value… Self-proclaimed stakeholders, parasitic off others’ labor and accumulation, assert that <i>everything</i> is their business.</p></blockquote>
418<p>In a <a href="https://www.wsj.com/articles/stakeholder-capitalism-enlightenment-blackrock-esg-index-fund-passive-invest-elizabeth-warren-bernie-sanders-retirement-11653313715">column</a> for the <em>Wall Street Journal</em>, Phil Gramm and Mike Solon point out that today’s stakeholder capitalism is very similar to feudalism, which was a pre-industrial form of socialism.</p>
419<blockquote><p>…because of the misery Marxism has imposed, the world has a living memory and therefore some natural immunity to a system in which government takes the commanding heights of the economy. No such immunity exists to the older and therefore more dangerous socialism of the pre-Enlightenment world. <a href="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Gramm-Solon.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/06/Jun-25-22-Gramm-Solon.jpg" width="235" height="48"></a>In the communal world of the Dark Ages, the worker owed fealty to crown, church, guild and village. Those “stakeholders” extracted a share of the product of the sweat of the worker’s brow and the fruits of his thrift. …The 18th-century Enlightenment liberated…people to…own the fruits of their own labor and thrift. …These Enlightenment ideas spawned the Industrial Revolution and gave birth to the modern world… Remarkably, amid the recorded successes of capitalism and failures of socialism rooted in Marxism, pre-enlightenment socialism is re-emerging in the name of stakeholder capitalism. …the biggest losers in stakeholder capitalism are workers, whose wages will be cannibalized.</p></blockquote>
420<p>Amen. The only economic system to ever produce <a href="https://danieljmitchell.wordpress.com/2021/10/06/how-free-markets-made-us-rich/">mass prosperity for workers</a> is capitalism (or, <a href="https://danieljmitchell.wordpress.com/2021/07/11/is-capitalism-worth-defending/">if you prefer</a>, <a href="https://danieljmitchell.wordpress.com/2016/04/30/is-capitalism-a-dirty-word-and-liberal-a-good-word/">free enterprise</a> or <a href="https://danieljmitchell.wordpress.com/2016/04/30/is-capitalism-a-dirty-word-and-liberal-a-good-word/">classical liberalism</a>).</p>
421<p>And the <a href="https://danieljmitchell.wordpress.com/2015/04/07/three-cheers-for-profits-and-free-markets/">pursuit of profit</a> is what generates efficiency, which is economic jargon for higher living standards. And that’s good for rich people <a href="https://danieljmitchell.wordpress.com/2011/08/30/rich-people-should-help-the-poor-by-making-smart-investments-and-earning-big-profits/">and poor people</a>.</p>
422<p>The bottom line is that I’m not surprised when politicians support so-called stakeholder capitalism. After all, the crowd in Washington likes to have more power.</p>
423<p>Based on what I said at the end of the above video, I’m disappointed – but not surprised – when big businesses (such as the <a href="https://danieljmitchell.wordpress.com/2020/08/25/stakeholder-capitalism-when-big-business-curries-favor-from-big-government/">Business Roundtable</a> or <a href="https://danieljmitchell.wordpress.com/2018/01/17/another-chapter-in-the-never-ending-story-of-big-business-undermining-capitalism/">Larry Fink of Blackrock</a>) embrace the idea. After all, “<a href="https://danieljmitchell.wordpress.com/2022/03/02/understanding-jobs-trade-and-creative-destruction/">creative destruction</a>” is not so appealing when you’re already as the top.</p>
424<p>P.S. I was very amused by the left-leaning CEO who criticized Friedman, but <a href="https://danieljmitchell.wordpress.com/2021/07/19/left-leaning-business-executive-condemns-milton-friedman-but-did-exactly-what-friedman-recommended/">then did exactly as Friedman recommended</a>.</p>
425<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
426<header class="entry-header">
427<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
428<div class="entry-meta"></div>
429</header>
430<div class="entry-content">
431<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a>
431 of Ronald Reagan.</p>
432<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
433<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
434<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151"></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
435<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
436<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
437<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
438<blockquote><p>Krugman recently wrote a<span class="Apple-converted-space">&nbsp;</span>column<span class="Apple-converted-space">&nbsp;</span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
439<p>Samuelson first provides the historical context.</p>
440<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-space">&nbsp;</span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space">&nbsp;</span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
441<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
442<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
443<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
444<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-s
444pace">&nbsp;</span>10.8 percent<span class="Apple-converted-space">&nbsp;</span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
445<p>What’s the bottom line?</p>
446<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
447<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
448<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
449<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
450<p>If anything, Samuelson is being too kind.</p>
451<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149"></a>(the so-called Phillips Curve).</p>
452<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
453<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
454<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>
454, and<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space">&nbsp;</span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
455<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
456<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
457</div>
458<p><strong><br />
459Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
460<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose"></p>
461<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">&nbsp;“The Failure of Socialism”&nbsp;</a>and&nbsp;<a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”&nbsp;&nbsp;</a>and&nbsp;<a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”&nbsp;&nbsp;</a>and&nbsp;<a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">&nbsp;From Cradle to Grave,&nbsp;</a>and&nbsp;<a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in&nbsp;<a><b>“How to Cure Inflation”</b></a>&nbsp;from the&nbsp;<i>Free To Choose</i>&nbsp;series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
462<span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span>
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466<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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512<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation&nbsp;pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
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514<p>Volume 9&nbsp;&#8211; How to Cure Inflation</p>
515</div>
516<div>Transcript:</div>
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518<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
519<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
520<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
521<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
522<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
522s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
523<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
524<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
524hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
525<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
526<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
527<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
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531<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
532<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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536<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
537<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
538<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
539<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
540<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
541<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
542<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
543<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
544<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
545<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
546<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
547<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
548<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
549<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
550<div>Friedman: Now listen to this:</div>
551<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
552<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
552subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
553<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
554<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
555<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
556<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
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558<div>_______________________________________________</div>
559<div>
560<p>(Wage and Price Controls don&#8217;t work)</p>
561<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
562<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
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565<div>Pt 3</div>
566<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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569<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
570<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
571<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
572<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
573<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
574<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
575<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
576<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
576cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
577<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
578<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
579<div></div>
580<div>___________________________________</div>
581<div></div>
582<div>Pt 4</div>
583<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
584<div></div>
585<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
586<div></div>
587<div>DISCUSSION</div>
588<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
589<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
590<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
591<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
592<div>MARTIN: I want to say 19 years.</div>
593<div>(Laughter)</div>
594<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
595<div>FRIEDMAN: You&#8217;ve never taken it.</div>
596<div>(Laughter)</div>
597<div>MCKENZIE: He&#8217;
597s going to do some interviewing later, I warn you.</div>
598<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
599<div>(Laughter)</div>
600<div>MARTIN: __ all the time.</div>
601<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
602<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
603<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
604<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
605<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
606<div>MARTIN: Yes.</div>
607<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
608<div>MARTIN: Yeah, that&#8217;s right.</div>
609<div>(Laughter)</div>
610<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
611<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
612<div>MARTIN: Well, taxation.</div>
613<div>MCKENZIE: Yeah.</div>
614<div>MARTIN: The raising revenue.</div>
615<div>FRIEDMAN: And spending.</div>
616<div>MARTIN: And spending.</div>
617<div>FRIEDMAN: And deficits.</div>
618<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
618ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
619<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
620<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
621<div>FRIEDMAN: I know. I know.</div>
622<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
623<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
624<div>(Several people talking at once.)</div>
625<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
626<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
627<div>FRIEDMAN: That would be sufficient.</div>
628<div>EMMINGER: __ for controlling inflation. But however I __</div>
629<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
630<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
631<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
632<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
633<div></div>
634<div>_________________________________________</div>
635<div></div>
636<div>Pt 5</div>
637<div>
638<div>&nbsp;I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
639<div>BROWN:</div>
640</div>
641<div></div>
642<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
643<div></div>
644<div></div>
645<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
646<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
647<div>FRIEDMAN: I understand.</div>
648<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
649<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
650<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
650ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
650s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
651<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
652<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
653<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
654<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
655<div>MARTIN: We fear unemployment more than inflation it seems.</div>
656<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
657<div>(Laughing)</div>
658<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
659<div>MCKENZIE: Those were __ yes.</div>
660<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
661<div></div>
662<div>____________________________________</div>
663<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face.&nbsp;And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
664<div></div>
665<div>Pt 6</div>
666<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
667<div></div>
668<div></div>
669<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
670<div>FRIEDMAN: Five years.</div>
671<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
672<div>BROWN: Bad election speech.</div>
673<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
674<div>(Laughter)</div>
675<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
675orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
676<div>MCKENZIE: Yes.</div>
677<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
678<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
679<div>SPRINKEL: Yes.</div>
680<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
681<div>BROWN: That&#8217;s right.</div>
682<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
683<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
684<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
685<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
686<div>FRIEDMAN: I know you are.</div>
687<div>MCKENZIE: Some countries do that, of course.</div>
688<div>FRIEDMAN: Oh, of course.</div>
689<div>MCKENZIE: Canada does that. Indexes the __</div>
690<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
691<div>FRIEDMAN: Absolutely.</div>
692<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
693<div>MCKENZIE: Yeah.</div>
694<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
695<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
696<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
697<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
698<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
699<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
700<div>SPRINKEL: Yes.</div>
701<div>FRIEDMAN: __ I think you were making.</div>
702<div>
702SPRINKEL: The suffering idea.</div>
703<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
704<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
705<div>FRIEDMAN: Apparently nobody can learn from history.</div>
706<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
707<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
708<div>FRIEDMAN: Right.</div>
709<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
710<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face.&nbsp;And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
711<div></div>
712<div>____________________________________</div>
713<div>
714<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
715<div>BROWN</div>
716</div>
717<div></div>
718<div>Pt 7</div>
719<div></div>
720<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
721<div>BROWN: But, Dr. Friedman, let me __</div>
722<div>(Applause)</div>
723<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
724<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
725<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
726<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
727<div>BROWN: Of course, of course.</div>
728<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
729<div>MCKENZIE: Your view __</div>
730<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
731<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
732<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
733<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
734<div>FRIEDMAN: Absolutely.</div>
735<div>BROWN: To finance the growth of government.</div>
736<div>FRIEDMAN: That&#8217;s right.</div>
737<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
738<div>FRIEDMAN: That&#8217;s right.</div>
739<div>BROWN: If you __</div>
740<div>FRIEDMAN: I am all in favor of that.</div>
741<div>BROWN: All right.</div>
742<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
743<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
744<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
745<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
746<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
747<div>(Several people talking at once.)</div>
748<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
749<div>FRIEDMAN: That&#8217;s what __</div>
750<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
751<div>
751SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
752<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
753<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
754<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
755<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
756<div>(Applause)</div>
757<div>From Harper Library, goodbye.</div>
758</div>
759<div>
760<ul>
761<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
762<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
763<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
764</ul>
765</div>
766</td>
767</tr>
768</tbody>
769</table>
770</div>
771</td>
772</tr>
773</tbody>
774</table>
775</div>
776</td>
777</tr>
778</tbody>
779</table>
780</div>
781</td>
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783</tbody>
784</table>
785</div>
786</td>
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788</tbody>
789</table>
790</div>
791</td>
792</tr>
793</tbody>
794</table>
795</div>
796</td>
797</tr>
798</tbody>
799</table>
800</div>
801</blockquote>
802</td>
803</tr>
804</tbody>
805</table>
806</div>
807</div>
808</div>
809</div>
810<div id="yui_3_2_0_9_132691864631220">
811<div id="yui_3_2_0_9_132691864631244">
812<div id="quick-reply">
813<div id="yui_3_2_0_9_132691864631249"></div>
814<p>Related posts:</p>
815<div id="post-22822">
816<h3><a title="Permalink to “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)</a></h3>
817<div><a title="2012-06-21T07:39:39-0500" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/">June 21, 2012 – 7:39 am</a></div>
818<div>
819<p>Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.&nbsp; I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]</p>
820</div>
821<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;Tagged&nbsp;<a href="https://thedailyhatch.org/tag/arnold-schwarzenegger/" rel="tag">arnold schwarzenegger.</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22822&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/#respond">Comments (0)</a></div>
822<div></div>
823</div>
824<div id="post-22868">
825<h3>
825<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)</a></h3>
826<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
827<div>
828<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
829</div>
830<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>,&nbsp;<a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/#comments">Comments (1)</a></div>
831</div>
832<p>________________</p>
833<div>
834<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt=""></p>
835<div id="post-12618">
836<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of&nbsp;7)</a></h3>
837<div><a title="2011-12-30T00:12:27-0500" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/">December 30, 2011 – 12:12 am</a></div>
838<div>
839<p>
839Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
840</div>
841<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12618&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/#respond">Comments (0)</a></div>
842</div>
843<div id="post-12612">
844<h3><a title="Permalink to “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/" rel="bookmark">“Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of&nbsp;7)</a></h3>
845<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
846<div>
847<p>&nbsp; George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
848</div>
849<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12612&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/#respond">Comments (0)</a></div>
850</div>
851<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)</a></h3>
852<div><a title="2011-12-16T00:04:29-0500" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/">December 16, 2011 – 12:04 am</a></div>
853<div>
854<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
855</div>
856<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
856p-admin/post.php?post=12610&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
857<p>____________________________</p>
858</div>
859<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt=""></div>
860<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and&nbsp;video)">________________________________________________</p>
861<p>_____________________________________________</p>
862<div>
863<div id="post-14520">
864<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)</a></h3>
865<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
866<div>
867<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part&nbsp;3 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
868</div>
869<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;| Tagged&nbsp;<a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>,&nbsp;<a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>,&nbsp;<a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>,&nbsp;<a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>,&nbsp;<a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
870</div>
871<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)</a></h3>
872<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
873<div>
874<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is 
874wrong with our schools?” Part&nbsp;2 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
875</div>
876<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12571&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
877</div>
878<div>
879<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)</a></h3>
880<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
881<div>
882<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
883</div>
884<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;| Tagged&nbsp;<a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>,&nbsp;<a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>,&nbsp;<a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>,&nbsp;<a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>,&nbsp;<a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
885</div>
886<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt=""></p>
887<div id="post-12246">
888<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)</a></h3>
889<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
890<div>
891<p>
891Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other [&#8230;]</p>
892</div>
893<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12246&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
894</div>
895<div id="post-12238">
896<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)</a></h3>
897<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
898<div>
899<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other freedoms are [&#8230;]</p>
900</div>
901<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
902</div>
903<div id="post-11625">
904<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)</a></h3>
905<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
906<div>
907<p>&nbsp;Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other freedoms are not present.&nbsp;&nbsp;
907This is a seven part series. [&#8230;]</p>
908</div>
909<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>,&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>,&nbsp;<a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
910</div>
911<div id="post-10205">
912<div>
913<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)</a></h3>
914<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
915<div>
916<p>&nbsp;I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
916cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
917</div>
918<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
919</div>
920<div>
921<div id="post-9317">
922<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)</a></h3>
923<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
924<div>
925<p>&nbsp;I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
926</div>
927<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
928</div>
929<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)</a></h3>
930<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
931<div>
932<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4&nbsp;&#8211;&nbsp;From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
933</div>
934<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
934-1-of-7/#respond">Comments (0)</a></p>
935</div>
936<div></div>
937<div>
938<div id="post-16023">
939<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)</a></h3>
940<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
941<div>
942<p>&nbsp; _________________________ &nbsp; Pt3 &nbsp;Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
943</div>
944<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
945</div>
946<div id="post-16020">
947<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)</a></h3>
948<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
949<div>
950<p>&nbsp; Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
951</div>
952<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
953</div>
954<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)</a></h3>
955<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
956<div>
957<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
958</div>
959<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
959p-admin/post.php?post=16018&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
960</div>
961</div>
962<div id="post-22868">
963<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)</a></h3>
964<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
965<div>
966<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
967</div>
968<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>,&nbsp;<a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a>&nbsp;|&nbsp;Comments (1)</div>
969</div>
970</div>
971</div>
972</div>
973</div>
974</div>
975									</div>
976				<div class="entry-meta">
977					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
978					<span class="meta-sep">|</span>
979										<span class="comments-link"><a href="https://thedailyhatch.org/2024/12/06/friedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2/#respond">Comments (0)</a></span>
980				</div>
981			</div><!-- .post -->
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983
984			<div id="post-129794" class="hentry p2 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m10 d31 h20 alt">
985				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/11/01/friedman-friday-this-past-article-below-from-dan-mitchell-tells-the-story-of-ronald-reagans-successful-strategy-against-inflation-i-had-a-front-row-seat-since-i-got-to-read-the-book-and-see-2/" rel="bookmark">FRIEDMAN FRIDAY  This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation! Also Dan Mitchell rightly points out Biden shouldn’t be blamed for inflation the FED&nbsp;caused!!</a></h3>
986				<div class="entry-date"><a href="https://thedailyhatch.org/2024/11/01/friedman-friday-this-past-article-below-from-dan-mitchell-tells-the-story-of-ronald-reagans-successful-strategy-against-inflation-i-had-a-front-row-seat-since-i-got-to-read-the-book-and-see-2/" class="published" title="2024-11-01T01:39:00-0500">November 1, 2024 &#8211; 1:39 am</a></div>
987				<div class="entry-content">
988					<p>—</p>
989<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img loading="lazy" src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525" /></a></p>
990<p>—</p>
991<header class="entry-header">
992<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2023/07/16/joe-biden-and-inflation/" rel="bookmark">Joe Biden and Inflation</a></h1>
993<div class="entry-meta"></div>
994</header>
995<div class="entry-content">
996<p>I have an old-fashioned belief that it’s important to be truthful when anal
996yzing public policy. I <a href="https://danieljmitchell.wordpress.com/2018/02/15/trumpbushnixon-republicans-are-big-spenders-worse-than-democrats/">criticize Republicans</a> when they’re wrong and I <a href="https://danieljmitchell.wordpress.com/2019/01/22/the-statist-and-senseless-agenda-of-kamala-harris/">criticize Democrats</a> when they’re wrong. And I also praise politicians from <a href="https://danieljmitchell.wordpress.com/2022/05/18/in-defense-of-bill-clinton/">both</a> <a href="https://danieljmitchell.wordpress.com/2016/05/12/was-reaganomics-a-success/">parties</a> in those rare moments when they do good things. <a href="https://danieljmitchell.wordpress.com/2022/02/01/the-most-important-thing-to-understand-about-inflation/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/02/Feb-1-22-Friedman-Quote-1.jpg" width="348" height="154" /></a></p>
997<p>My disdain for empty partisanship explains why <a href="https://danieljmitchell.wordpress.com/2022/04/16/dont-blame-joe-biden-for-high-inflation/">I wrote back in 2022</a> that Joe Biden should not be blamed for <a href="https://danieljmitchell.wordpress.com/2022/10/01/understanding-inflation-and-the-federal-reserve/">high inflation</a>.</p>
998<p><a href="https://danieljmitchell.wordpress.com/2022/03/28/blame-the-federal-reserve/">I explained</a> that the Federal Reserve was the <a href="https://danieljmitchell.wordpress.com/2022/05/06/blame-the-federal-reserve-2/">culprit</a>. America’s central bank panicked during the pandemic and dramatically increased its balance sheet. In simpler terms, they created a huge amount of new money in the economy.</p>
999<p>And they continued with that flawed policy even after it became apparent the world wasn’t coming to an end.</p>
1000<p>The good news is that inflation is now coming down. Catherine Rampell of the <em>Washington Post</em> wants Joe Biden to get the credit. But she explains that he deserves credit for something he didn’t do rather than any of <a href="https://danieljmitchell.wordpress.com/2022/08/04/the-absurdly-named-inflation-reduction-act/">his policies</a>. Here are some excerpts from <a href="https://www.washingtonpost.com/opinions/2023/07/14/inflation-reduction-credit-traditional-biden/">her column</a>.</p>
1001<blockquote><p>…what do Democrats say is moderating price growth…? The White House credits “Bidenomics.” What that means is unclear; administration officials tout vague platitudes <a href="https://freedomandprosperity.org/wp-content/uploads/2023/07/Jul-16-23-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2023/07/Jul-16-23-Title.jpg" width="304" height="37" /></a>about “building the economy from the middle out and bottom up,” as well as<b> </b>big, recently passed industrial policies… But if you instead define Bidenomics as “respecting Federal Reserve independence and not interfer
1001ing with Fed decisions even when they’re unpopular,” then sure: Great job, Bidenomics! …The president has been terrific at staying out of the Fed’s way, something presidents don’t always do.</p></blockquote>
1002<p>I <a href="https://danieljmitchell.wordpress.com/2023/04/07/the-war-against-cash-part-vii/">don’t always agree</a> with Ms. Rampell, but I think this analysis is correct.</p>
1003<p>The Fed made a mess with bad monetary policy and only the Fed can fix that mistake. Biden, as Rampell noted, “has been terrific at staying out of the Fed’s way.”</p>
1004<p>If you want to understand the economics of why inflation is beginning to abate, <a href="https://fred.stlouisfed.org/series/WTFSRFA">this chart</a> from the St. Louis Federal Reserve provides the answer. Simply stated, the Fed finally has started to withdraw some of the excess money it dumped into the economy.</p>
1005<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/07/Jul-16-23-FRED.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2023/07/Jul-16-23-FRED.jpg" width="1629" height="539" /></a></p>
1006<p>By the way, while the Fed is finally doing the right thing, the central bank does not deserve praise. The nation could have avoided the pain of inflation if the Fed hadn’t started the <a href="https://danieljmitchell.wordpress.com/2019/04/01/the-federal-reserve-and-boom-bust-monetary-policy/">boom-bust cycle</a> in the first place.</p>
1007<p>P.S. Other central banks <a href="https://danieljmitchell.wordpress.com/2022/07/13/inflation-is-caused-by-bad-government-policy/">made the same mistake</a>.</p>
1008</div>
1009<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
1010<header class="entry-header">
1011<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
1012<div class="entry-meta"></div>
1013</header>
1014<div class="entry-content">
1015<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a> of Ronald Reagan.</p>
1016<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
1017<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
1018<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151" /></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
1019<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
1020<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
1021<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
1022<blockquote><p>
1022Krugman recently wrote a<span class="Apple-converted-space"> </span>column<span class="Apple-converted-space"> </span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
1023<p>Samuelson first provides the historical context.</p>
1024<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-space"> </span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space"> </span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
1025<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
1026<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
1027<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
1028<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-space"> </span>10.8 percent<span class="Apple-converted-space"> </span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
1029<p>What’s the bottom line?</p>
1030<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
1031<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
1032<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
1033<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
1034<p>If anything, Samuelson is being too kind.</p>
1035<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149" /></a>(the so-called Phillips Curve).</p>
1036<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
1037<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
1038<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>
1038,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>, and<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space"> </span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
1039<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
1040<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
1041</div>
1042<p><strong><br />
1043Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
1044<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose" /></p>
1045<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in <a><b>“How to Cure Inflation”</b></a> from the <i>Free To Choose</i> series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
1046<span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span>
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1050<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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1096<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
1097<div>
1098<p>Volume 9 &#8211; How to Cure Inflation</p>
1099</div>
1100<div>Transcript:</div>
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1102<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
1103<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
1104<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
1105<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
1106<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
1106s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
1107<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
1108<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
1108hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
1109<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
1110<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
1111<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
1112<div></div>
1113<div>_________________________________________</div>
1114<div></div>
1115<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
1116<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1117<div></div>
1118<div></div>
1119<div></div>
1120<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
1121<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
1122<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
1123<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
1124<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
1125<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
1126<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
1127<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
1128<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
1129<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
1130<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
1131<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
1132<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
1133<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
1134<div>Friedman: Now listen to this:</div>
1135<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
1136<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
1136subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
1137<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
1138<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
1139<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
1140<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
1141<div></div>
1142<div>_______________________________________________</div>
1143<div>
1144<p>(Wage and Price Controls don&#8217;t work)</p>
1145<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
1146<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
1147</div>
1148<div></div>
1149<div>Pt 3</div>
1150<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1151<div></div>
1152<div></div>
1153<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
1154<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
1155<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
1156<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
1157<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
1158<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
1159<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
1160<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
1160cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
1161<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
1162<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
1163<div></div>
1164<div>___________________________________</div>
1165<div></div>
1166<div>Pt 4</div>
1167<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
1168<div></div>
1169<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1170<div></div>
1171<div>DISCUSSION</div>
1172<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
1173<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
1174<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
1175<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
1176<div>MARTIN: I want to say 19 years.</div>
1177<div>(Laughter)</div>
1178<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
1179<div>FRIEDMAN: You&#8217;ve never taken it.</div>
1180<div>(Laughter)</div>
1181<div>MCKENZIE: He&#8217;
1181s going to do some interviewing later, I warn you.</div>
1182<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
1183<div>(Laughter)</div>
1184<div>MARTIN: __ all the time.</div>
1185<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
1186<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
1187<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
1188<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
1189<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
1190<div>MARTIN: Yes.</div>
1191<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
1192<div>MARTIN: Yeah, that&#8217;s right.</div>
1193<div>(Laughter)</div>
1194<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
1195<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
1196<div>MARTIN: Well, taxation.</div>
1197<div>MCKENZIE: Yeah.</div>
1198<div>MARTIN: The raising revenue.</div>
1199<div>FRIEDMAN: And spending.</div>
1200<div>MARTIN: And spending.</div>
1201<div>FRIEDMAN: And deficits.</div>
1202<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
1202ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
1203<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
1204<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
1205<div>FRIEDMAN: I know. I know.</div>
1206<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
1207<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
1208<div>(Several people talking at once.)</div>
1209<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
1210<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
1211<div>FRIEDMAN: That would be sufficient.</div>
1212<div>EMMINGER: __ for controlling inflation. But however I __</div>
1213<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
1214<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
1215<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
1216<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
1217<div></div>
1218<div>_________________________________________</div>
1219<div></div>
1220<div>Pt 5</div>
1221<div>
1222<div> I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
1223<div>BROWN:</div>
1224</div>
1225<div></div>
1226<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1227<div></div>
1228<div></div>
1229<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
1230<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
1231<div>FRIEDMAN: I understand.</div>
1232<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
1233<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
1234<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
1234ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
1234s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
1235<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
1236<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
1237<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
1238<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
1239<div>MARTIN: We fear unemployment more than inflation it seems.</div>
1240<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
1241<div>(Laughing)</div>
1242<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
1243<div>MCKENZIE: Those were __ yes.</div>
1244<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
1245<div></div>
1246<div>____________________________________</div>
1247<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
1248<div></div>
1249<div>Pt 6</div>
1250<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1251<div></div>
1252<div></div>
1253<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
1254<div>FRIEDMAN: Five years.</div>
1255<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
1256<div>BROWN: Bad election speech.</div>
1257<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
1258<div>(Laughter)</div>
1259<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
1259orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
1260<div>MCKENZIE: Yes.</div>
1261<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
1262<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
1263<div>SPRINKEL: Yes.</div>
1264<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
1265<div>BROWN: That&#8217;s right.</div>
1266<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
1267<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
1268<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
1269<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
1270<div>FRIEDMAN: I know you are.</div>
1271<div>MCKENZIE: Some countries do that, of course.</div>
1272<div>FRIEDMAN: Oh, of course.</div>
1273<div>MCKENZIE: Canada does that. Indexes the __</div>
1274<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
1275<div>FRIEDMAN: Absolutely.</div>
1276<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
1277<div>MCKENZIE: Yeah.</div>
1278<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
1279<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
1280<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
1281<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
1282<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
1283<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
1284<div>SPRINKEL: Yes.</div>
1285<div>FRIEDMAN: __ I think you were making.</div>
1286<div>
1286SPRINKEL: The suffering idea.</div>
1287<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
1288<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
1289<div>FRIEDMAN: Apparently nobody can learn from history.</div>
1290<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
1291<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
1292<div>FRIEDMAN: Right.</div>
1293<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
1294<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
1295<div></div>
1296<div>____________________________________</div>
1297<div>
1298<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
1299<div>BROWN</div>
1300</div>
1301<div></div>
1302<div>Pt 7</div>
1303<div></div>
1304<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1305<div>BROWN: But, Dr. Friedman, let me __</div>
1306<div>(Applause)</div>
1307<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
1308<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
1309<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
1310<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
1311<div>BROWN: Of course, of course.</div>
1312<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
1313<div>MCKENZIE: Your view __</div>
1314<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
1315<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
1316<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
1317<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
1318<div>FRIEDMAN: Absolutely.</div>
1319<div>BROWN: To finance the growth of government.</div>
1320<div>FRIEDMAN: That&#8217;s right.</div>
1321<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
1322<div>FRIEDMAN: That&#8217;s right.</div>
1323<div>BROWN: If you __</div>
1324<div>FRIEDMAN: I am all in favor of that.</div>
1325<div>BROWN: All right.</div>
1326<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
1327<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
1328<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
1329<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
1330<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
1331<div>(Several people talking at once.)</div>
1332<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
1333<div>FRIEDMAN: That&#8217;s what __</div>
1334<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
1335<div>
1335SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
1336<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
1337<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
1338<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
1339<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
1340<div>(Applause)</div>
1341<div>From Harper Library, goodbye.</div>
1342</div>
1343<div>
1344<ul>
1345<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
1346<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
1347<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
1348</ul>
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1396<div id="quick-reply">
1397<div id="yui_3_2_0_9_132691864631249"></div>
1398<p>Related posts:</p>
1399<div id="post-22822">
1400<h3><a title="Permalink to “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
1401<div><a title="2012-06-21T07:39:39-0500" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/">June 21, 2012 – 7:39 am</a></div>
1402<div>
1403<p>Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]</p>
1404</div>
1405<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="https://thedailyhatch.org/tag/arnold-schwarzenegger/" rel="tag">arnold schwarzenegger.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22822&amp;action=edit">Edit</a> | <a title="Comment on “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/#respond">Comments (0)</a></div>
1406<div></div>
1407</div>
1408<div id="post-22868">
1409<h3>
1409<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
1410<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
1411<div>
1412<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
1413</div>
1414<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/#comments">Comments (1)</a></div>
1415</div>
1416<p>________________</p>
1417<div>
1418<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
1419<div id="post-12618">
1420<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)</a></h3>
1421<div><a title="2011-12-30T00:12:27-0500" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/">December 30, 2011 – 12:12 am</a></div>
1422<div>
1423<p>
1423Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
1424</div>
1425<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12618&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/#respond">Comments (0)</a></div>
1426</div>
1427<div id="post-12612">
1428<h3><a title="Permalink to “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/" rel="bookmark">“Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)</a></h3>
1429<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
1430<div>
1431<p>  George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
1432</div>
1433<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12612&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/#respond">Comments (0)</a></div>
1434</div>
1435<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)</a></h3>
1436<div><a title="2011-12-16T00:04:29-0500" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/">December 16, 2011 – 12:04 am</a></div>
1437<div>
1438<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
1439</div>
1440<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
1440 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
1441<p>____________________________</p>
1442</div>
1443<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
1444<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
1445<p>_____________________________________________</p>
1446<div>
1447<div id="post-14520">
1448<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)</a></h3>
1449<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
1450<div>
1451<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 3 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
1452</div>
1453<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
1454</div>
1455<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
1456<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
1457<div>
1458<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
1459</div>
1460<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
1460p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
1461</div>
1462<div>
1463<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
1464<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
1465<div>
1466<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
1467</div>
1468<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
1469</div>
1470<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
1471<div id="post-12246">
1472<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
1473<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
1474<div>
1475<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
1476</div>
1477<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
1477p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
1478</div>
1479<div id="post-12238">
1480<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
1481<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
1482<div>
1483<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
1484</div>
1485<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
1486</div>
1487<div id="post-11625">
1488<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
1489<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
1490<div>
1491<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
14910;]</p>
1492</div>
1493<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
1494</div>
1495<div id="post-10205">
1496<div>
1497<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
1498<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
1499<div>
1500<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
1500cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
1501</div>
1502<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
1503</div>
1504<div>
1505<div id="post-9317">
1506<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
1507<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
1508<div>
1509<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
1510</div>
1511<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
1512</div>
1513<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
1514<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
1515<div>
1516<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
1517</div>
1518<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
1518-1-of-7/#respond">Comments (0)</a></p>
1519</div>
1520<div></div>
1521<div>
1522<div id="post-16023">
1523<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
1524<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
1525<div>
1526<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
1527</div>
1528<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
1529</div>
1530<div id="post-16020">
1531<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
1532<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
1533<div>
1534<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
1535</div>
1536<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
1537</div>
1538<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
1539<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
1540<div>
1541<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
1542</div>
1543<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
1543p-admin/post.php?post=16018&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
1544</div>
1545</div>
1546<div id="post-22868">
1547<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
1548<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
1549<div>
1550<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
1551</div>
1552<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
1553</div>
1554</div>
1555</div>
1556</div>
1557</div>
1558</div>
1559<div id="atatags-370373-6abe254168cdd">
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1571				<div class="entry-meta">
1572					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
1573					<span class="meta-sep">|</span>
1574										<span class="comments-link"><a href="https://thedailyhatch.org/2024/11/01/friedman-friday-this-past-article-below-from-dan-mitchell-tells-the-story-of-ronald-reagans-successful-strategy-against-inflation-i-had-a-front-row-seat-since-i-got-to-read-the-book-and-see-2/#respond">Comments (0)</a></span>
1575				</div>
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1577
1578
1579			<div id="post-129790" class="hentry p3 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m10 d03 h20">
1580				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/10/04/friedman-friday-dan-mitchell-article-the-absurdly-named-inflation-reduction-act-2/" rel="bookmark">FRIEDMAN FRIDAY Dan Mitchell article The Absurdly Named Inflation Reduction&nbsp;Act</a></h3>
1581				<div class="entry-date"><a href="https://thedailyhatch.org/2024/10/04/friedman-friday-dan-mitchell-article-the-absurdly-named-inflation-reduction-act-2/" class="published" title="2024-10-04T01:38:00-0500">October 4, 2024 &#8211; 1:38 am</a></div>
1582				<div class="entry-content">
1583					<p>—</p>
1584<header class="entry-header">
1585<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/08/04/the-absurdly-named-inflation-reduction-act/" rel="bookmark">The Absurdly Named Inflation Reduction Act</a></h1>
1586<div class="entry-meta"></div>
1587</header>
1588<div class="entry-content">
1589<p>I don’t like <a href="https://danieljmitchell.wordpress.com/2021/06/09/new-leak-of-taxpayer-info-is-more-evidence-of-irs-corruption/">shoveling more money at a corrupt IRS</a>, <a href="https://danieljmitchell.wordpress.com/2021/08/17/elizabeth-warrens-demagoguery-on-book-income/">hurting jobs with higher taxes</a> on “book income,” <a href="https://danieljmitchell.wordpress.com/2019/11/12/the-deadly-impact-of-pharma-price-control
1589s/">price controls on prescription drugs</a>, or <a href="https://danieljmitchell.wordpress.com/2019/07/17/green-new-deal-cronyism-on-steroids/">green-energy pork</a>.</p>
1590<p>But, as explained in this video clip, the insult added to injury is that the resuscitated “<a href="https://danieljmitchell.wordpress.com/2022/07/31/the-depressing-reincarnation-of-build-back-better/">Build Back Better</a>” is being sold as the “Inflation Reduction Act.”</p>
1591</div>
1592<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/oK56VMGTiLc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
1593<p>If a private company said that candy bars help you lose weight or that it is okay to stick your hand under a running lawnmower, it would be dragged into court for false and/or dangerous advertising.</p>
1594<p><a href="https://danieljmitchell.wordpress.com/2022/02/01/the-most-important-thing-to-understand-about-inflation/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/02/Feb-1-22-Friedman-Quote-1.jpg" width="282" height="125"></a>But when politicians make utterly dishonest claims about legislation, we have to grit our teeth and endure their lies.</p>
1595<p>The bottom line is that rising prices inevitably are&nbsp;<a href="https://danieljmitchell.wordpress.com/2022/02/01/the-most-important-thing-to-understand-about-inflation/">a consequence of bad monetary policy</a>.</p>
1596<p>That’s <a href="https://danieljmitchell.wordpress.com/2022/05/06/blame-the-federal-reserve-2/">true in the United States</a>, and that’s <a href="https://danieljmitchell.wordpress.com/2022/07/13/inflation-is-caused-by-bad-government-policy/">true elsewhere in the world</a>.</p>
1597<p>So why, then, did Biden, Schumer, and Manchin decide to affix such an inaccurate label to their tax-and-spend package?</p>
1598<p>The answer presumably is political. Inflation is a problem for the incumbent party, so why not pretend the budget plan will somehow reduce inflation. Heck, if they could get away with it, they would probably call it the “Inflation Reduction and Cancer Elimination Act.”</p>
1599<p>But, to be fair, perhaps some of them actually believe a big-government plan will have an impact on inflation. For instance, the <a href="https://danieljmitchell.wordpress.com/2018/03/14/a-primer-on-debt-deficits-and-public-finance/">misguided but honest</a>folks at the Committee for a Responsible Federal Budget <a href="https://www.crfb.org/press-releases/budget-experts-urge-congress-enact-deficit-reduction">released an endorsement letter</a> from 55 supposed experts based on the assumption that higher taxes will lead to lower prices.</p>
1600<p>Here are some excerpts.</p>
1601<blockquote><p>With inflation at a 40-year high…, we are writing to encourage you to pass legislation to reduce budget deficits in a manner that would help counter inflation… As President Biden has explained, “bringing down the deficit is one way to ease inflationary pressures.” …Given the current state of the economy, we believe passing deficit reduction would send an important message to the American people that their leaders are serious about tackling inflation.</p></blockquote>
1602<p>There are two big problems with the letter.</p>
1603<p><strong>First</strong>, it is based on <a href="https://danieljmitchell.wordpress.com/2020/06/12/the-broken-window-fallacy-of-keynesian-economics/">Keynesian economics</a>, which assumes higher prices are caused by excessive “aggregate demand” and that deficit reduction (whether from tax increases or spending restraint) can help by slowing the economy.</p>
1604<p>Yet this is the theory that also told us that it was impossible to have rising prices and rising unemployment, like we saw in the 1970s. And Keynesians also said we couldn’t have falling unemployment and falling inflation, like <a href="https://danieljmitchell.wordpress.com/2016/05/12/was-reaganomics-a-success/">we enjoyed</a>in the 1980s.</p>
1605<p><strong>Second</strong>, even if one believes in <a href="https://danieljmitchell.wordpress.com/2020/09/27/keynesian-economics-is-wrong-again/">the fairy tale</a> of Keynesian economics, all of the alleged deficit reduction occurs in future years.</p>
1606<p>And even that is nonsense since every sentient adult knows that the massive expansion of the IRS’s budget is <a href="https://danieljmitchell.wordpress.com/2021/04/21/the-1-trillion-tax-gap-is-a-self-serving-and-shoddy-make-believe-number-from-the-irs/">
1606not going to generate a windfall of new tax revenue</a>. And every honest person also knows that lawmakers plan on extending the new Obamacare handouts in the bill.</p>
1607<p>These tweets summarize why even Keynesians should realize the legislation is fraudulent.</p>
1608<div class="embed-twitter">
1609<div class="twitter-tweet twitter-tweet-rendered"></div>
1610</div>
1611<p>P.S. It is very disappointing (but perhaps <a href="https://danieljmitchell.wordpress.com/2011/05/22/since-i-want-smaller-government-mitch-daniels-wont-be-missed/">not entirely surprising</a>) that former Indiana Governor Mitch Daniels signed the CRFB letter. And it also is disappointing that a couple of people from the American Enterprise Institute added their names as well. They all deserve the <a href="https://danieljmitchell.wordpress.com/2012/06/13/by-naively-putting-tax-hikes-on-the-table-jeb-bush-and-lindsey-graham-join-the-charlie-brown-club/">Charlie Brown Award</a>.</p>
1612<p>P.P.S. As I noted in the video, deficit spending can lead to inflation if a central bank buys government bonds in order to help finance additional government spending (the crazy <a href="https://danieljmitchell.wordpress.com/2019/03/01/financing-big-government-with-the-printing-press/">Modern Monetary Theory</a> agenda). Perhaps I am being too charitable, but I <a href="https://danieljmitchell.wordpress.com/2022/03/28/blame-the-federal-reserve/">don’t think that’s the reason</a> for the Federal Reserve’s big mistake (though I fear <a href="https://danieljmitchell.wordpress.com/2022/05/24/the-european-central-bank-subsidizing-profligacy-creating-bubbles/">it may be happening</a> with the European Central Bank).</p>
1613<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img loading="lazy" src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525"></a></p>
1614<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
1615<header class="entry-header">
1616<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
1617<div class="entry-meta"></div>
1618</header>
1619<div class="entry-content">
1620<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a> of Ronald Reagan.</p>
1621<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
1622<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
1623<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151"></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
1624<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
1625<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
1626<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
1627<blockquote><p>
1627Krugman recently wrote a<span class="Apple-converted-space">&nbsp;</span>column<span class="Apple-converted-space">&nbsp;</span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
1628<p>Samuelson first provides the historical context.</p>
1629<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-space">&nbsp;</span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space">&nbsp;</span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
1630<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
1631<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
1632<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
1633<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-space">&nbsp;</span>10.8 percent<span class="Apple-converted-space">&nbsp;</span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
1634<p>What’s the bottom line?</p>
1635<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
1636<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
1637<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
1638<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
1639<p>If anything, Samuelson is being too kind.</p>
1640<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149"></a>(the so-called Phillips Curve).</p>
1641<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
1642<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
1643<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>
1643,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>, and<span class="Apple-converted-space">&nbsp;</span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space">&nbsp;</span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
1644<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
1645<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
1646</div>
1647<p><strong><br />
1648Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
1649<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose"></p>
1650<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">&nbsp;“The Failure of Socialism”&nbsp;</a>and&nbsp;<a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”&nbsp;&nbsp;</a>and&nbsp;<a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”&nbsp;&nbsp;</a>and&nbsp;<a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">&nbsp;From Cradle to Grave,&nbsp;</a>and&nbsp;<a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in&nbsp;<a><b>“How to Cure Inflation”</b></a>&nbsp;from the&nbsp;<i>Free To Choose</i>&nbsp;series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
1651<span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span>
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1655<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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1701<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation&nbsp;pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
1702<div>
1703<p>Volume 9&nbsp;&#8211; How to Cure Inflation</p>
1704</div>
1705<div>Transcript:</div>
1706<div id="yui_3_2_0_1_1326918646312224">
1707<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
1708<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
1709<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
1710<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
1711<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
1711s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
1712<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
1713<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
1713hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
1714<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
1715<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
1716<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
1717<div></div>
1718<div>_________________________________________</div>
1719<div></div>
1720<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
1721<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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1725<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
1726<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
1727<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
1728<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
1729<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
1730<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
1731<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
1732<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
1733<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
1734<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
1735<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
1736<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
1737<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
1738<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
1739<div>Friedman: Now listen to this:</div>
1740<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
1741<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
1741subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
1742<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
1743<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
1744<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
1745<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
1746<div></div>
1747<div>_______________________________________________</div>
1748<div>
1749<p>(Wage and Price Controls don&#8217;t work)</p>
1750<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
1751<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
1752</div>
1753<div></div>
1754<div>Pt 3</div>
1755<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1756<div></div>
1757<div></div>
1758<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
1759<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
1760<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
1761<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
1762<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
1763<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
1764<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
1765<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
1765cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
1766<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
1767<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
1768<div></div>
1769<div>___________________________________</div>
1770<div></div>
1771<div>Pt 4</div>
1772<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
1773<div></div>
1774<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1775<div></div>
1776<div>DISCUSSION</div>
1777<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
1778<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
1779<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
1780<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
1781<div>MARTIN: I want to say 19 years.</div>
1782<div>(Laughter)</div>
1783<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
1784<div>FRIEDMAN: You&#8217;ve never taken it.</div>
1785<div>(Laughter)</div>
1786<div>MCKENZIE: He&#8217;
1786s going to do some interviewing later, I warn you.</div>
1787<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
1788<div>(Laughter)</div>
1789<div>MARTIN: __ all the time.</div>
1790<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
1791<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
1792<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
1793<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
1794<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
1795<div>MARTIN: Yes.</div>
1796<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
1797<div>MARTIN: Yeah, that&#8217;s right.</div>
1798<div>(Laughter)</div>
1799<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
1800<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
1801<div>MARTIN: Well, taxation.</div>
1802<div>MCKENZIE: Yeah.</div>
1803<div>MARTIN: The raising revenue.</div>
1804<div>FRIEDMAN: And spending.</div>
1805<div>MARTIN: And spending.</div>
1806<div>FRIEDMAN: And deficits.</div>
1807<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
1807ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
1808<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
1809<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
1810<div>FRIEDMAN: I know. I know.</div>
1811<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
1812<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
1813<div>(Several people talking at once.)</div>
1814<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
1815<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
1816<div>FRIEDMAN: That would be sufficient.</div>
1817<div>EMMINGER: __ for controlling inflation. But however I __</div>
1818<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
1819<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
1820<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
1821<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
1822<div></div>
1823<div>_________________________________________</div>
1824<div></div>
1825<div>Pt 5</div>
1826<div>
1827<div>&nbsp;I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
1828<div>BROWN:</div>
1829</div>
1830<div></div>
1831<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1832<div></div>
1833<div></div>
1834<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
1835<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
1836<div>FRIEDMAN: I understand.</div>
1837<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
1838<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
1839<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
1839ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
1839s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
1840<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
1841<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
1842<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
1843<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
1844<div>MARTIN: We fear unemployment more than inflation it seems.</div>
1845<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
1846<div>(Laughing)</div>
1847<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
1848<div>MCKENZIE: Those were __ yes.</div>
1849<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
1850<div></div>
1851<div>____________________________________</div>
1852<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face.&nbsp;And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
1853<div></div>
1854<div>Pt 6</div>
1855<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1856<div></div>
1857<div></div>
1858<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
1859<div>FRIEDMAN: Five years.</div>
1860<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
1861<div>BROWN: Bad election speech.</div>
1862<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
1863<div>(Laughter)</div>
1864<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
1864orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
1865<div>MCKENZIE: Yes.</div>
1866<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
1867<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
1868<div>SPRINKEL: Yes.</div>
1869<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
1870<div>BROWN: That&#8217;s right.</div>
1871<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
1872<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
1873<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
1874<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
1875<div>FRIEDMAN: I know you are.</div>
1876<div>MCKENZIE: Some countries do that, of course.</div>
1877<div>FRIEDMAN: Oh, of course.</div>
1878<div>MCKENZIE: Canada does that. Indexes the __</div>
1879<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
1880<div>FRIEDMAN: Absolutely.</div>
1881<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
1882<div>MCKENZIE: Yeah.</div>
1883<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
1884<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
1885<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
1886<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
1887<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
1888<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
1889<div>SPRINKEL: Yes.</div>
1890<div>FRIEDMAN: __ I think you were making.</div>
1891<div>
1891SPRINKEL: The suffering idea.</div>
1892<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
1893<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
1894<div>FRIEDMAN: Apparently nobody can learn from history.</div>
1895<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
1896<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
1897<div>FRIEDMAN: Right.</div>
1898<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
1899<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face.&nbsp;And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
1900<div></div>
1901<div>____________________________________</div>
1902<div>
1903<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
1904<div>BROWN</div>
1905</div>
1906<div></div>
1907<div>Pt 7</div>
1908<div></div>
1909<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
1910<div>BROWN: But, Dr. Friedman, let me __</div>
1911<div>(Applause)</div>
1912<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
1913<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
1914<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
1915<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
1916<div>BROWN: Of course, of course.</div>
1917<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
1918<div>MCKENZIE: Your view __</div>
1919<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
1920<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
1921<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
1922<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
1923<div>FRIEDMAN: Absolutely.</div>
1924<div>BROWN: To finance the growth of government.</div>
1925<div>FRIEDMAN: That&#8217;s right.</div>
1926<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
1927<div>FRIEDMAN: That&#8217;s right.</div>
1928<div>BROWN: If you __</div>
1929<div>FRIEDMAN: I am all in favor of that.</div>
1930<div>BROWN: All right.</div>
1931<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
1932<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
1933<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
1934<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
1935<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
1936<div>(Several people talking at once.)</div>
1937<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
1938<div>FRIEDMAN: That&#8217;s what __</div>
1939<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
1940<div>
1940SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
1941<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
1942<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
1943<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
1944<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
1945<div>(Applause)</div>
1946<div>From Harper Library, goodbye.</div>
1947</div>
1948<div>
1949<ul>
1950<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
1951<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
1952<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
1953</ul>
1954</div>
1955</td>
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1958</table>
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1990</blockquote>
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1999<div id="yui_3_2_0_9_132691864631220">
2000<div id="yui_3_2_0_9_132691864631244">
2001<div id="quick-reply">
2002<div id="yui_3_2_0_9_132691864631249"></div>
2003<p>Related posts:</p>
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2027<div>
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2034<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
2035<div>
2036<p>&nbsp; George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
2037</div>
2038<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12612&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/#respond">Comments (0)</a></div>
2039</div>
2040<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)</a></h3>
2041<div><a title="2011-12-16T00:04:29-0500" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/">December 16, 2011 – 12:04 am</a></div>
2042<div>
2043<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
2044</div>
2045<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
2045p-admin/post.php?post=12610&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of&nbsp;7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
2046<p>____________________________</p>
2047</div>
2048<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt=""></div>
2049<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and&nbsp;video)">________________________________________________</p>
2050<p>_____________________________________________</p>
2051<div>
2052<div id="post-14520">
2053<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)</a></h3>
2054<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
2055<div>
2056<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part&nbsp;3 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
2057</div>
2058<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;| Tagged&nbsp;<a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>,&nbsp;<a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>,&nbsp;<a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>,&nbsp;<a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>,&nbsp;<a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2059</div>
2060<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)</a></h3>
2061<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
2062<div>
2063<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is 
2063wrong with our schools?” Part&nbsp;2 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
2064</div>
2065<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12571&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
2066</div>
2067<div>
2068<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)</a></h3>
2069<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
2070<div>
2071<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6. &nbsp; Volume 6&nbsp;&#8211;&nbsp;What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
2072</div>
2073<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Also posted in&nbsp;<a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a>&nbsp;| Tagged&nbsp;<a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>,&nbsp;<a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>,&nbsp;<a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>,&nbsp;<a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>,&nbsp;<a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and&nbsp;video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
2074</div>
2075<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt=""></p>
2076<div id="post-12246">
2077<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)</a></h3>
2078<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
2079<div>
2080<p>
2080Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other [&#8230;]</p>
2081</div>
2082<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12246&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2083</div>
2084<div id="post-12238">
2085<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)</a></h3>
2086<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
2087<div>
2088<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other freedoms are [&#8230;]</p>
2089</div>
2090<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2091</div>
2092<div id="post-11625">
2093<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)</a></h3>
2094<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
2095<div>
2096<p>&nbsp;Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome.&nbsp;That system does not work. In fact, our free society allows for the&nbsp;closest gap between the wealthy and the poor. Unlike other countries where free enterprise&nbsp;and other freedoms are not present.&nbsp;&nbsp;
2096This is a seven part series. [&#8230;]</p>
2097</div>
2098<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;| Posted in&nbsp;<a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>,&nbsp;<a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>,&nbsp;<a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a>&nbsp;| Tagged&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>,&nbsp;<a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and&nbsp;video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
2099</div>
2100<div id="post-10205">
2101<div>
2102<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)</a></h3>
2103<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
2104<div>
2105<p>&nbsp;I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
2105cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
2106</div>
2107<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
2108</div>
2109<div>
2110<div id="post-9317">
2111<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)</a></h3>
2112<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
2113<div>
2114<p>&nbsp;I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
2115</div>
2116<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
2117</div>
2118<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)</a></h3>
2119<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
2120<div>
2121<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4&nbsp;&#8211;&nbsp;From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
2122</div>
2123<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of&nbsp;7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
2123-1-of-7/#respond">Comments (0)</a></p>
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2128<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)</a></h3>
2129<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
2130<div>
2131<p>&nbsp; _________________________ &nbsp; Pt3 &nbsp;Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
2132</div>
2133<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
2134</div>
2135<div id="post-16020">
2136<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)</a></h3>
2137<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
2138<div>
2139<p>&nbsp; Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
2140</div>
2141<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of&nbsp;7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
2142</div>
2143<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)</a></h3>
2144<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
2145<div>
2146<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
2147</div>
2148<p>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>,&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
2148p-admin/post.php?post=16018&amp;action=edit">Edit</a>&nbsp;|&nbsp;<a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of&nbsp;7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
2149</div>
2150</div>
2151<div id="post-22868">
2152<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part&nbsp;1)</a></h3>
2153<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
2154<div>
2155<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
2156</div>
2157<div>By&nbsp;<a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a>&nbsp;|&nbsp;Posted in&nbsp;<a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>,&nbsp;<a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a>&nbsp;|&nbsp;<a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a>&nbsp;|&nbsp;Comments (1)</div>
2158</div>
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2165				<div class="entry-meta">
2166					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
2167					<span class="meta-sep">|</span>
2168										<span class="comments-link"><a href="https://thedailyhatch.org/2024/10/04/friedman-friday-dan-mitchell-article-the-absurdly-named-inflation-reduction-act-2/#respond">Comments (0)</a></span>
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2173			<div id="post-129788" class="hentry p4 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m09 d05 h20 alt">
2174				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/09/06/friedman-friday-donald-trump-and-bernie-sanders-strongly-agree-that-free-trade-is-harmful-but-as-economist-milton-friedman-says-protectionism-discriminates-against-low-pric-2/" rel="bookmark">“FRIEDMAN FRIDAY” DONALD TRUMP and BERNIE SANDERS STRONGLY AGREE THAT FREE TRADE IS HARMFUL but “As economist Milton Friedman says, protectionism discriminates against low prices!” </a></h3>
2175				<div class="entry-date"><a href="https://thedailyhatch.org/2024/09/06/friedman-friday-donald-trump-and-bernie-sanders-strongly-agree-that-free-trade-is-harmful-but-as-economist-milton-friedman-says-protectionism-discriminates-against-low-pric-2/" class="published" title="2024-09-06T01:37:00-0500">September 6, 2024 &#8211; 1:37 am</a></div>
2176				<div class="entry-content">
2177					<h1></h1>
2178<h1>&#8211;</h1>
2179<header class="entry-header">
2180<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/08/18/defending-international-trade/" rel="bookmark">Defending International Trade</a></h1>
2181<div class="entry-meta"></div>
2182</header>
2183<div class="entry-content">
2184<p>As a fan of <a href="https://danieljmitchell.wordpress.com/2019/09/27/yes-to-globalization-no-to-global-governance/">globalization</a> – but not <a href="https://danieljmitchell.wordpress.com/2018/03/13/is-good-globalism-being-undermined-by-bad-globalism/">globalism</a>, I endorse this new video from <em>Reason</em>, which punctures myths from <a href="https://danieljmitchell.wordpress.com/2020/06/26/protectionism-vs-prosperity/">protectionists</a> such as <a href="https://danieljmitchell.wordpress.com/2016/03/19/trump-sanders-and-the-snake-oil-economics-of-protectionism/">Donald Trump and Bernie Sanders</a> (and <a href="https://danieljmitchell.wordpress.com/2021/11/30/bidens-trumpian-trade-policy/">Joe Biden</a>).</p>
2185<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/unixWMmAdpM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2186</div>
2187<h1>&#8211;</h1>
2188<p>
2188If you don’t have a spare seven minutes to watch the video, it addresses three specific points.</p>
2189<ol>
2190<li>Does cross-border trade destroy manufacturing jobs?</li>
2191<li>Did liberalizing trade with China take American jobs?</li>
2192<li>Does trade make us vulnerable because of supply chains?</li>
2193</ol>
2194<p>Plenty of good material, but I also would have challenged protectionists to provide a successful example of protectionism. Today or in the past.</p>
2195<p><a href="https://danieljmitchell.wordpress.com/2019/05/31/everything-you-need-to-understand-about-protectionism-in-a-single-image/"><img loading="lazy" class="alignright " src="https://i0.wp.com/freedomandprosperity.org/wp-content/uploads/2019/05/May-31-19-Trade-Fire.jpg" width="267" height="200"></a>Did protectionism <a href="https://danieljmitchell.wordpress.com/2017/11/27/ranking-presidents-on-economic-policy-the-suffocating-statism-of-herbert-hoover/">work</a> for Herbert Hoover – or anyone else – in the 1930s?</p>
2196<p>Did protectionism <a href="https://danieljmitchell.wordpress.com/2015/08/14/pope-francis-needs-a-better-role-model-for-economic-policy/">work</a> for Juan Peron in Argentina in the 1940s and 1950s?</p>
2197<p>Is protectionism <a href="https://danieljmitchell.wordpress.com/2018/01/25/a-worrisome-assessment-of-economic-freedom-in-india/">working</a> for India’s economy in the 21st century?</p>
2198<p>Did protectionism <a href="https://danieljmitchell.wordpress.com/2018/07/09/paybacks-a-btch-americans-suffer-blowback-from-trumps-protectionism/">work</a> for Donald Trump between 2017 and 2020?</p>
2199<p>The answer is no in every single case. So it is no surprise that scholarly research (see <a href="https://danieljmitchell.wordpress.com/2022/05/30/help-the-worlds-poor-with-international-trade/">here</a>, <a href="https://danieljmitchell.wordpress.com/2022/05/20/trade-jobs-and-wages/">here</a>, <a href="https://danieljmitchell.wordpress.com/2022/03/05/the-failure-of-bidenomics-part-iii/">here</a>, <a href="https://danieljmitchell.wordpress.com/2021/05/21/equality-efficiency-and-trade/">here</a>, <a href="https://danieljmitchell.wordpress.com/2020/06/26/protectionism-vs-prosperity/">here</a>, <a href="https://danieljmitchell.wordpress.com/2020/01/02/trumps-protectionism-has-backfired-on-americas-workers/">here</a>, <a href="https://danieljmitchell.wordpress.com/2019/04/22/washing-machines-protectionism-and-net-job-losses/">here</a>, <a href="https://danieljmitchell.wordpress.com/2017/01/29/five-illuminating-charts-and-tables-about-trade-and-protectionism/">here</a>, and <a href="https://danieljmitchell.wordpress.com/2019/03/14/the-macro-damage-of-trade-taxes/">here</a>) shows that free trade is a better approach if a nation wants more jobs and higher income.</p>
2200<p>But protectionists make one accurate point. While <a href="https://danieljmitchell.wordpress.com/2019/01/29/the-evidence-based-case-for-free-trade/">free trade</a> increases overall employment, that does not mean every worker in every industry benefits.</p>
2201<p>In his <em>New York Times</em> <a href="https://www.nytimes.com/2022/01/10/opinion/free-trade-globalization.html">column</a>, Peter Coy explores this topic.</p>
2202<blockquote><p>The skepticism about free markets…has gotten only stronger…only 44 percent of Republican voters…viewed free trade mainly as an opportunity for growth through increased exports. …the standard Econ 101 argument for free trade… <a href="https://freedomandprosperity.org/wp-content/uploads/2022/08/Aug-18-22-NYT.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/08/Aug-18-22-NYT.jpg" width="127" height="47"></a>First, assert that trade increases prosperity by allowing each country to specialize in what it’s best at. …Second, acknowledge that not everyone wins from free trade… Third, state that this problem can be easily solved: Everyone in society can be made better off if the winners share some of their gains with the losers. …In reality, the winners from trade rarely share much of their gains with the losers. The losers remain losers, and they often vote for candidates who put up tariff walls. …the free traders have failed to deliver on their promises to make free trade and open markets work for all.</p></blockquote>
2203<p>A reasonably fair article, but I don’t think “free traders have failed” for reasons I explained in <a href="https://danieljmitchell.wordpress.com/2022/03/02/understanding-jobs-trade-and-creative-destruction/">one of my videos</a> from earlier this year.</p>
2204<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/DpQE5iMwy6I?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2205<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Milton Friedman - Free Trade vs. Protectionism">&#8211;</span></h1>
2206<p>If you don’t want to spend three minutes watching the video, I explain that all trade destroys jobs. And that includes trade within a nation.</p>
2207<p>It’s part of “<a href="https://danieljmitchell.wordpress.com/2014/05/12/the-economics-of-creative-destruction/">creative destruction</a>,” which I’ve labeled <a href="https://danieljmitchell.wordpress.com/2022/03/02/understanding-jobs-trade-and-creative-destruction/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/03/Mar-2-22-Job-Churning.jpg" width="297" height="224"></a>as the <a href="https://danieljmitchell.wordpress.com/2018/05/22/creative-destruction-is-the-best-and-worst-part
2207-of-capitalism/">best and worst part of capitalism</a>.</p>
2208<p>Millions of jobs get destroyed every year, in part because new technology, new competitors, and new innovations.</p>
2209<p>That’s bad news for many people, but it’s also the process that creates even more new jobs.</p>
2210<p>And it’s the process that has made all of us <a href="https://danieljmitchell.wordpress.com/2021/06/08/by-historical-standards-todays-americans-are-fantastically-wealthy/">so much richer</a> than our ancestors. And that includes the ancestors of people who lost jobs because of domestic or international trade.</p>
2211<p>P.S. Click <a href="https://danieljmitchell.wordpress.com/2018/12/28/reagans-pro-trade-wisdom/">here</a>, <a href="https://danieljmitchell.wordpress.com/2018/01/28/trumps-cramped-protectionism-vs-reagans-trade-expansionism/">here</a>, and <a href="https://danieljmitchell.wordpress.com/2018/06/19/trade-wars-and-trumps-risky-destructionism/">here</a> for some very sound observations from <a href="https://danieljmitchell.wordpress.com/2021/12/05/the-best-president-in-recent-history/">America’s best post-WWII president</a>.</p>
2212<h1></h1>
2213<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Milton Friedman - Free Trade vs. Protectionism"><br />
2214Larry Elder wrote in 2016: “As economist Milton Friedman says, protectionism discriminates against low prices!”</span></h1>
2215<div class="blog-page__header mb-5">
2216<div class="meta meta--default text-uppercase p-mb-last-child-0"><span class="date-time__date date-time__date--default">OCTOBER 19, 2021</span> <span class="date-time__time date-time__time--default">10:21AM</span></div>
2217<h1 class="h2"><a href="https://www.cato.org/blog/how-port-bottlenecks-make-case-freer-trade">How Port Bottlenecks Make the Case for Freer Trade</a></h1>
2218</div>
2219<div class="blog-page__separator d-flex align-items-center mb-5">
2220<div class="me-4 authors fs-xs fw-medium">By <a href="https://www.cato.org/people/gabriella-beaumont-smith">Gabriella Beaumont‐​Smith</a></div>
2221<hr class="blog-page__rule flex-grow-1">
2222<div class="ms-4 share-popover js-share-popover d-print-none popover-wrapper js-popover">
2223<div class="text-icon-inline text-icon-inline-- text-icon-inline--margin">
2224<div class="icon__wrapper"></div>
2225<div class="text-icon-inline__content">SHARE</div>
2226</div>
2227</div>
2228</div>
2229<div class="blog-page__content mb-5 pb-4">
2230<div class="body-text fs-lg">
2231<div class="position-relative js-read-depth-tracking-container">
2232<div>
2233<div class="body-text fs-lg">
2234<p>The pandemic has shocked every sector of the economy. Trade restrictions enacted by the Trump administration and maintained by President Biden have rippled through the U.S. economy but have particularly impacted U.S. ports. The pandemic highlighted that American ports have <a href="https://www.logisticsmgmt.com/article/cargo_congestion_on_west_coast_is_a_consequence_of_complex_issues">broader efficiency problems</a> and could use <a href="https://www.cato.org/commentary/americas-ports-problem-decades-making">some</a> serious policy and management reforms.</p>
2235<p>On the <a href="https://www.bloomberg.com/news/articles/2021-09-17/biggest-u-s-port-complex-to-work-nights-weekends-to-cut-logjam?utm_medium=social&amp;utm_content=economics&amp;utm_source=twitter&amp;utm_campaign=socialflow-organic&amp;cmpid%3D=socialflow-twitter-economics">west coast</a> in particular, ship congestion has caused severe delays, wreaking havoc on the supply chain. While factories and ports in Asia are working 24/7 to 
2235supply American consumers with valuable goods, U.S. ports have been open for far fewer hours because <a href="https://cei.org/blog/why-dont-u-s-ports-operate-24-7-ask-the-unions/">labor union contracts</a>dictate the hourly terms. However, after <a href="https://www.marketwatch.com/story/port-bottlenecks-leave-ships-stranded-businesses-stymied-01616358857">months</a> of backlog, the ports of Los Angeles (LA) and Long Beach (LB) are finally switching to 24/7 shifts to move goods more quickly.</p>
2236<p>As a&nbsp;result of these union contracts, government offices are also <a href="https://www.cbp.gov/contact/ports/los-angeleslong-beach-seaport">not open 24/7</a>. The ports of LA and LB <a href="https://www.latimes.com/politics/story/2021-10-13/biden-will-announce-expanded-operations-at-port-of-los-angeles-as-supply-chain-crunch-continues">account</a> for almost half of all U.S. imports. The Customs and Border Protection (CBP) officials who must clear and admit goods do not work nights or weekends. These limits create additional pressure to have goods shipped to the United States during a&nbsp;prohibitive time frame, or leave ships idling around the ports until they can get in. The latter is the most common response. Recently, ships have been waiting an average of <a href="https://volumes.portoptimizer.com/">12.5&nbsp;days</a> to enter the LA port. Ship idling has caused other problems too. <a href="https://steel.house.gov/media/press-releases/rep-steel-calls-ban-cargo-ships-orange-county-coast">Orange County, CA</a> was affected by an oil spill that is suspected to have been caused by a&nbsp;pipeline hit with idling ship anchors. These differences in operating hours have caused huge ports <a href="https://sgp.fas.org/crs/misc/R44831.pdf">efficiency losses</a> that are felt across the country.</p>
2237<p>While it is positive that <a href="https://thehill.com/homenews/administration/576463-white-house-says-walmart-fedex-ups-will-move-to-24-7-model-to-address?rl=1">retailers</a>, couriers, and the International Longshore and Warehouse Union (ILWU) are making changes to run ports more efficiently, permanent trade policy changes would help ease America’s coastal shipping problems.</p>
2238<p>The best policy would be to unilaterally remove tariffs by the United States. Simply eliminating tariffs would reduce an administrative burden both for traders and CBP officials. Duty‐​free trade would increase <a href="https://www.jstor.org/stable/2549223?seq=1#metadata_info_tab_contents">imports and exports</a> but all other things equal, the freed‐​up CBP resources would help to move goods more swiftly through the ports.</p>
2239<p>However, a&nbsp;few smaller reforms could be implemented now that would considerably help the efficiency of U.S. ports. Removing Section 232 tariffs on steel and aluminum imports could temper the current domestic scarcity of some transportation‐​related goods, including <a href="https://www.automotive-technology.com/articles/materials-used-in-chassis-and-body-components-of-the-vehicle">chassis</a> (the frame of a&nbsp;vehicle that holds containers). <a href="https://americandouglasmetals.com/2015/02/12/4-transportation-applications-of-stainless-steel/">These</a><a href="https://www.aluminum.org/product-markets/automotive">materials</a> are vital inputs for such products and the Section 232 tariffs are affecting American manufacturers’ ability to meet domestic demand. Eliminating duties and tariffs on transportation‐​related goods, including the 221 percent antidumping and countervailing (<a href="https://www.federalregister.gov/documents/2021/07/08/2021-14561/certain-chassis-and-subassemblies-thereof-from-the-peoples-republic-of-china-antidumping-duty-order">AD</a>/<a href="https://www.federalregister.gov/documents/2021/05/10/2021-09848/certain-chassis-and-subassemblies-thereof-from-the-peoples-republic-of-china-countervailing-duty">CVD</a>) duties and 25 percent <a href="https://www.trailer-bodybuilders.com/trailers/article/21744268/intermodal-chassis-tariff-divides-truckers-us-manufacturers">Section 301</a> tariffs on Chinese chassis, could help increase the U.S. supply of chassis. While some freighters are paying the higher prices for Chinese chassis, the supply of transportation is still constrained, which has resulted in higher sticker prices on consumer goods.</p>
2240<p>
2240As LA and LB move to 24/7 shifts, CBP offices should also be open 24/7. Given the sheer volume of trade these two ports process, it would seem sensible to make staffing 24/7 a&nbsp;permanent change at these ports, and at others depending on trade volumes.</p>
2241<p>Reforming the <a href="https://www.cato.org/project-jones-act-reform">Jones Act</a> could also help. All freight moved between U.S. ports <a href="https://www.cato.org/sites/cato.org/files/2019-09/The%20Jones%20Act.pdf">must</a> <a href="https://sgp.fas.org/crs/misc/R44831.pdf">use</a>U.S.-built, -crewed, and -flagged ships. As a&nbsp;result, traders circumvent these regulations by using alternative modes like trucks and trains. It would be prudent to reform the Jones Act to allow ships not in <a href="https://sgp.fas.org/crs/misc/R41590.pdf">compliance</a> with the Jones Act to pick up shipments in one U.S. port and unload at another. This would reduce pressure on <a href="https://www.cato.org/blog/transshipment-oft-overlooked-cost-jones-act">inland transit</a> that is currently being impacted by the aforementioned tariffs.</p>
2242<p>These bottlenecks have provided insight into the problems that exist at U.S. ports and with coastal shipping more broadly. Improvements in trade policy have a&nbsp;role to play and policymakers would be remiss not to consider permanent changes that would be beneficial now and could preempt pressures during future economic shocks.</p>
2243</div>
2244</div>
2245</div>
2246</div>
2247</div>
2248<h1></h1>
2249<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Milton Friedman - Free Trade vs. Protectionism">Milton Friedman &#8211; Free Trade vs. Protectionism</span></h1>
2250<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/zk3ruapRQZk?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2251<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman">Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman</span></h1>
2252<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/PJWLt1TmAy4?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2253<div class="copy-paste-block">
2254<h1 class="posttitle"><a href="http://www.wnd.com/2016/02/donald-trump-clueless-about-free-trade/">Donald Trump: Clueless about free trade</a></h1>
2255<h2 class="deck">Larry Elder rebuts candidate&#8217;s &#8216;they&#8217;re taking our jobs&#8217; claim</h2>
2256<p>Published: 02/03/2016 at 6:39 PM</p>
2257</div>
2258<div class="copy-paste-block">
2259<p>One of Donald Trump’s talking points and biggest applause lines is how “they” – Japan, China and Mexico – are “beating us in trade” and are “taking our jobs.” He proposes tariffs, for example, on Chinese goods in retaliation for that country’s alleged “cheating.”</p>
2260<p>To someone who is out of work in an industry where foreign workers do what he or she once did, Trump-like protectionism sounds appealing. But Trump actually proposes punishing the American consumer. As economist Milton Friedman says, protectionism discriminates against low prices.</p>
2261</div>
2262<div class="copy-paste-block">
2263<p>It is certainly true that many countries prop up or subsidize companies or even whole industries by providing capital or special privileges. This allows them to produce goods and services “below cost” – or at prices below what a competitor could charge and still make a profit. But doing so also means that taxes in that country, which could have gone to a more productive use, are squandered to keep a company in business that otherwise wouldn’t exist or would have gone out of business. This means consumers in other countries with which the “cheater” country trades can buy those imported goods at a cheaper price.</p>
2264<p>Trump proposes to retaliate by placing tariffs on those imported goods. But this prevents American consumers from benefiting from the “cheater” country’s folly of propping up companies that would not survive but for the taxes spent to keep it alive. Why compound the stupidity?</p>
2265<p>Another justification for this kind of protectionism is that a foreign country “exploits” America through the use of “slave labor” which, as to wages, c
2265auses a “race to the bottom.” Certainly forced labor, as when “blood diamonds” are mined by workers with guns pointed to their heads, is criminal and immoral. But free laborers offering to work for less money than others is how poor countries become wealthier – by allowing other countries to buy goods more cheaply.</p>
2266<p>NAFTA, the North American Free Trade Agreement, established in 1994, has become exhibit A on how “we lose” on trade. After all, many American jobs have been “outsourced” to Mexico. But that looks at but one side of the ledger. That an American pays less for certain things frees up capital to spend on something or on someone else. A machinist sees his job “shipped to Mexico,” but the planner or analyst hired by a company with the “savings” might not see the direct relationship between free trade and the fact that he or she has this new job. When NAFTA was debated, businessman and presidential candidate Ross Perot predicted “a giant sucking sound” as jobs and incomes would be lost to Mexico.</p>
2267<p>The American Enterprise Institute writes: “It is an article of faith among protectionists that NAFTA harmed American workers. … The justification may be that NAFTA went into force at the beginning of 1994 and the U.S. trade balance with Canada and Mexico, two of our top partners, then deteriorated.</p>
2268<p>“But the American job market improved as these trade deficits grew. Unemployment fell more than two points from the beginning of 1994 through the middle of 2000. Already high labor force participation edged higher to its all-time record by early 2000. Manufacturing employment rose until mid-1998 and was above its pre-NAFTA level until April 2001. Manufacturing wages rose. The strength in the American job market from 1994 to 1999 is not due primarily to NAFTA, but it is plain that the job market, including manufacturing, strengthened after NAFTA.”</p>
2269<p>Trump is also schizophrenic on this issue. On the one hand, he opposes illegal immigration, which most often is an economic decision where, for example, a poor, unskilled worker from Mexico sneaks into America to make money. On the other hand, Trump deems it unfair and a form of “cheating” if an American company relocates to or builds a factory in Mexico to take advantage of that unskilled Mexican worker’s willingness to work for less.</p>
2270<p>If Trump were talking about the excessive taxes or regulations that <i>induce</i> American companies to leave the U.S. or to put factories in foreign countries, that would be one thing. The U.S. general top marginal corporate income tax rate is the highest in the industrialized world – and, worldwide, is only exceeded by Chad and the United Arab Emirates. Unnecessary regulations also increase the cost of doing business stateside. But this is not Trump’s argument.</p>
2271<p>About free trade, the father of modern economics, Adam Smith, in 1776 wrote in “The Wealth of Nations”: “In every country it always is and must be in the interest of the great body of the people to buy whatever they want of those who sell it cheapest. The proposition is so very manifest that it seems ridiculous to take any pains to prove it; nor could it ever have been called in question had not the interested sophistry of merchants and manufacturers confounded the common sense of mankind. Their interest is, in this respect, directly opposite to that of the great body of the people.”</p>
2272<p>Trump means well. But so what?</p>
2273</div>
2274<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Trump vs Friedman - Trade Policy Debate">Trump vs Friedman &#8211; Trade Policy Debate</span></h1>
2275<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/7DhagKyvDck?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2276<div class="posttitle"></div>
2277<div class="entry"></div>
2278<div class="posttitle"></div>
2279<div class="entry"></div>
2280<p>Related posts:</p>
2281<div id="post-42558" class="hentry p1 post publish author-haltingarkansasliberalswithtruth category-uncategorized untagged y2015 m03 d19 h20">
2282<h3 class="entry-title"><a href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/" rel="bookmark">FRIEDMAN FRIDAY Milton Friedman’s FREE TO CHOOSE “The Tyranny of Control” Transcript and Video (60&nbsp;Minutes)</a></h3>
2283<div class="entry-date"><a class="published" title="2015-03-20T01:40:37-0500" href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/">March 20, 2015 – 1:40 am</a></div>
2284<div class="entry-content">
2285<p>Milton Friedman’s FREE TO CHOOSE “The Tyranny of Control” Transcript and Video (60 Minutes) In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and […]</p>
2286</div>
2287<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/uncategorized/" rel="category tag">Uncategorized</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42558">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/#respond">Comments (0)</a></span></div>
2288</div>
2289<div id="post-42022" class="hentry p2 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m11 d13 h20 alt">
2290<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 7 of 7 (Transcript and Video) “I’m not pro business, I’m pro free enterprise, which is a very different thing, and the reason I’m pro free enterprise”</a></h3>
2291<div class="entry-date"><a class="published" title="2014-11-14T01:16:35-0500" href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/">November 14, 2014 – 1:16 am</a></div>
2292<div class="entry-content">
2293<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is 
2293wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2294</div>
2295<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42022">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/#respond">Comments (0)</a></span></div>
2296</div>
2297<div id="post-42018" class="hentry p3 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m11 d06 h20">
2298<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 6 of 7 (Transcript and Video) “We are the ones who promote freedom, and free enterprise, and individual initiative, And what do we do? We force puny little Hong Kong to impose limits, restrictions on its exports at tariffs, in order to protect our textile&nbsp;workers”</a></h3>
2299<div class="entry-date"><a class="published" title="2014-11-07T01:19:36-0500" href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/">November 7, 2014 – 1:19 am</a></div>
2300<div class="entry-content">
2301<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2302</div>
2303<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42018">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/#respond">Comments (0)</a></span></div>
2304</div>
2305<div id="post-42014" class="hentry p4 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d30 h20 alt">
2306<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 5 of 7 (Transcript and Video) “There is no measure whatsoever that would do more to prevent private monopoly development than complete free&nbsp;trade”</a></h3>
2307<div class="entry-date"><a class="published" title="2014-10-31T01:13:38-0500" href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/">October 31, 2014 – 1:13 am</a></div>
2308<div class="entry-content">
2309<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is 
2309wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2310</div>
2311<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42014">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/#respond">Comments (0)</a></span></div>
2312</div>
2313<div id="post-42010" class="hentry p5 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d23 h20">
2314<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 4 of 7 (Transcript and Video) ” What we need are constitutional restraints on the power of government to interfere with free markets in foreign exchange, in foreign trade, and in many other aspects of our&nbsp;lives.”</a></h3>
2315<div class="entry-date"><a class="published" title="2014-10-24T01:09:36-0500" href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/">October 24, 2014 – 1:09 am</a></div>
2316<div class="entry-content">
2317<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2318</div>
2319<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42010">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/#respond">Comments (0)</a></span></div>
2320</div>
2321<div id="post-42006" class="hentry p6 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d16 h20 alt">
2322<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-when-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 3 of 7 (Transcript and Video) “When anyone complains about unfair competition, consumers beware, That is really a cry for special privilege always at the expense of the&nbsp;consumer”</a></h3>
2323<div class="entry-date"><a class="published" title="2014-10-17T01:04:50-0500" href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-w
2323hen-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/">October 17, 2014 – 1:04 am</a></div>
2324<div class="entry-content">
2325<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2326</div>
2327<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42006">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-when-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/#respond">Comments (0)</a></span></div>
2328</div>
2329<div id="post-42001" class="hentry p7 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d09 h20">
2330<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 2 of 7 (Transcript and Video) “As always, economic freedom promotes human&nbsp;freedom”</a></h3>
2331<div class="entry-date"><a class="published" title="2014-10-10T01:57:41-0500" href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/">October 10, 2014 – 1:57 am</a></div>
2332<div class="entry-content">
2333<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2334</div>
2335<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42001">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/#respond">Comments (0)</a></span></div>
2336</div>
2337<div id="post-41996" class="hentry p8 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d02 h20 alt">
2338<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” Milton Friedman’s FREE TO CHOOSE Part 1 of 7 (Transcript and Video) “Adam Smith’s… key idea was that self-interest could produce an orderly society benefiting everybody, It was as though there were an invisible hand at&nbsp;work”</a></h3>
2339<div class="entry-date">
2339<a class="published" title="2014-10-03T01:46:22-0500" href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/">October 3, 2014 – 1:46 am</a></div>
2340<div class="entry-content">
2341<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
2342</div>
2343<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41996">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/#respond">Comments (0)</a></span></div>
2344</div>
2345<div id="post-41991" class="hentry p9 post publish author-haltingarkansasliberalswithtruth category-milton-friedman category-president-obama untagged y2014 m08 d21 h20">
2346<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/" rel="bookmark">Open letter to President Obama (Part 654) “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 7 of 7 (Transcript and Video) “I’m not pro business, I’m pro free enterprise, which is a very different thing, and the reason I’m pro free enterprise”</a></h3>
2347<div class="entry-date"><a class="published" title="2014-08-22T01:17:18-0500" href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/">August 22, 2014 – 1:17 am</a></div>
2348<div class="entry-content">
2349<p>Open letter to President Obama (Part 654) (Emailed to White House on July 22, 2013) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you […]</p>
2350</div>
2351<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41991">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/#respond">Comments (0)</a></span></div>
2352</div>
2353<div id="post-41989" class="hentry p10 post publish author-haltingarkansasliberalswithtruth category-milton-friedman category-president-obama untagged y2014 m08 d17 h20 alt">
2354<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/" rel="bookmark">Open letter to President Obama (Part 650) “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 6 of 7 (Transcript and Video) “We are the ones who promote freedom, and free enterprise, and individual initiative, And what do we do? We force puny little Hong Kong to impose limits, restrictions on its exports at tariffs, in order to protect our textile&nbsp;workers”</a></h3>
2355<div class="entry-date"><a class="published" title="2014-08-18T01:20:01-0500" href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/">August 18, 2014 – 1:20 am</a></div>
2356<div class="entry-content">
2357<p>Open letter to President Obama (Part 650) (Emailed to White House on July 22, 2013) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you […]</p>
2358</div>
2359<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41989">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/#respond">Comments (0)</a></span></div>
2360</div>
2361<div id="nav-below" class="navigation"></div>
2362<p>__________</p>
2363									</div>
2364				<div class="entry-meta">
2365					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
2366					<span class="meta-sep">|</span>
2367										<span class="comments-link"><a href="https://thedailyhatch.org/2024/09/06/friedman-friday-donald-trump-and-bernie-sanders-strongly-agree-that-free-trade-is-harmful-but-as-economist-milton-friedman-says-protectionism-discriminates-against-low-pric-2/#respond">Comments (0)</a></span>
2368				</div>
2369			</div><!-- .post -->
2370
2371
2372			<div id="post-129783" class="hentry p5 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m07 d04 h20">
2373				<h3 class="entry-title">
2373<a href="https://thedailyhatch.org/2024/07/05/friedman-friday-if-we-could-just-stop-the-printing-presses-we-would-stop-inflation-milton-friedman-says-in-how-to-cure-inflation-from-the-free-to/" rel="bookmark">FRIEDMAN FRIDAY “If we could just stop the  printing presses, we would stop inflation,” Milton Friedman says in “How to Cure Inflation” from the Free To Choose series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the&nbsp;problem!</a></h3>
2374				<div class="entry-date"><a href="https://thedailyhatch.org/2024/07/05/friedman-friday-if-we-could-just-stop-the-printing-presses-we-would-stop-inflation-milton-friedman-says-in-how-to-cure-inflation-from-the-free-to/" class="published" title="2024-07-05T01:36:00-0500">July 5, 2024 &#8211; 1:36 am</a></div>
2375				<div class="entry-content">
2376					<p>——</p>
2377<header class="entry-header">
2378<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/10/01/understanding-inflation-and-the-federal-reserve/" rel="bookmark">Understanding Inflation and the Federal Reserve</a></h1>
2379<div class="entry-meta"></div>
2380</header>
2381<div class="entry-content">
2382<p>Today’s column is about <a href="https://danieljmitchell.wordpress.com/2022/02/01/the-most-important-thing-to-understand-about-inflation/">inflation</a> and I want to start by <a href="https://danieljmitchell.wordpress.com/2022/04/16/dont-blame-joe-biden-for-high-inflation/">recycling this clip</a> from an interview back in April.</p>
2383</div>
2384<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Bxj6Qctq8z4?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2385<p>The <a href="https://danieljmitchell.wordpress.com/2022/03/28/blame-the-federal-reserve/">main message</a> is that the Federal Reserve <a href="https://danieljmitchell.wordpress.com/2022/05/06/blame-the-federal-reserve-2/">deserves the blame</a> for inflation.</p>
2386<p>America’s central bank created <a href="https://danieljmitchell.wordpress.com/2022/07/13/inflation-is-caused-by-bad-government-policy/">dramatically expanded its balance sheet</a> starting in early 2020. This meant lots of extra liquidity sloshing around the economy<a href="https://danieljmitchell.wordpress.com/2022/08/04/the-absurdly-named-inflation-reduction-act/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/02/Feb-1-22-Friedman-Quote-1.jpg" width="336" height="149" /></a>and that inevitably led to rising prices.</p>
2387<p>As Milton Friedman explained, inflation is “always and everywhere on monetary phenomenon.”</p>
2388<p>So why am I regurgitating this type of analysis? Because someone sent me a <em>PolitiFact </em><a href="https://www.politifact.com/factchecks/2022/apr/20/jane-timken/bidens-american-rescue-plan-fueled-inflation-so-di/">article</a> from April that supposedly does a “fact check” on the claim that Biden’s spending contributed to inflation.</p>
2389<p>What shocked me is that the article never mentions the Federal Reserve or monetary policy. I’m not joking.</p>
2390<blockquote><p>We decided to look at how much of an impact Biden’s spending had on prices. …some economists, including Larry Summers, a top official under President Barack Obama, warned that the bill would lead to inflation. Fiscal conservatives joined in the warning. …How much of this can be put at Biden’s feet? Some, but not all of it, experts say. …The post-COVID-19 inflation story is more complicated than just federal spending. <a href="https://freedomandprosperity.org/wp-content/uploads/2022/10/Oct-1-22-PF-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/10/Oct-1-22-PF-Title.jpg" width="193" height="58" /></a>Other forces, including changes in the labor market, rising global energy and commodity prices, supply chain dysfunction and the war in Ukraine have all c
2390ontributed to higher prices. …Russia’s attack on Ukraine disrupted a world economy that was still sorting itself out after COVID. Sanctions aimed at cutting Russia’s energy revenues sent oil and gas prices soaring. The war’s crippling hit on Ukraine’s agricultural sector, combined with sanctions (Russia is a major wheat producer), has raised the prices of basic goods like wheat and sunflower oil. …none of the experts we reached, liberal and conservative, said Biden’s actions were responsible for all of the inflation. Past government spending, COVID’s disruptions to labor markets, energy prices and supply-chains also played significant roles. Most recently, the war in Ukraine has made a challenging situation worse.</p></blockquote>
2391<p>This is nonsense. At the risk of being boring and wonky, the factors mentioned in the article are important, but they will only change relative prices in the absence of <a href="https://danieljmitchell.wordpress.com/2018/10/13/keynesian-monetary-policy-a-recipe-for-false-booms-and-real-busts/">bad monetary policy</a>.</p>
2392<p>In other words, energy prices may increase, but that will be offset by declines in other prices. Unless, of course, the central bank is <a href="https://danieljmitchell.wordpress.com/2015/05/04/federal-reserve-easy-money-policies-impoverishing-savers-and-endangering-investors/">creating too much liquidity</a>, thus enabling an increase in the overall price level.</p>
2393<p><a href="https://danieljmitchell.wordpress.com/2012/10/02/rare-video-found-from-ben-bernankes-childhood/"><img loading="lazy" class="alignright " src="https://i0.wp.com/i.imgur.com/XaiUx.gif?zoom=2" width="217" height="161" /></a>I’ll close with a caveat. Bad monetary policy sometimes will <a href="https://danieljmitchell.wordpress.com/2019/06/08/the-federal-reserve-inflation-and-asset-bubbles/">cause rising asset prices</a> (a bubble) rather than rising consumer prices. Both outcomes are examples of inflation, but only the latter shows up when the government releases monthly data on the consumer price index.</p>
2394<p>That being said, is it possible that some of Biden’s (and Trump’s) spending policies led to more price inflation rather than more asset inflation?</p>
2395<p>Yes, but that’s merely shifting the deck chairs on the <a href="https://danieljmitchell.wordpress.com/2019/04/01/the-federal-reserve-and-boom-bust-monetary-policy/">monetary Titanic</a>. And it doesn’t change the fact that it is gross economic malpractice for <em>PolitiFact</em> to write about inflation without mentioning the Federal Reserve or monetary policy.</p>
2396<p>P.S. Here’s a <a href="https://danieljmitchell.wordpress.com/2010/11/16/bashing-the-federal-reserve/">humorous video</a> about the Federal Reserve and here’s a <a href="https://danieljmitchell.wordpress.com/2010/12/04/great-video-exposing-failures-of-the-federal-reserve/">serious tutorial video</a> about the Federal Reserve.</p>
2397<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-enabled sd-sharing-enabled"></div>
2398<p>———-</p>
2399<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img loading="lazy" src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525" /></a></p>
2400<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
2401<header class="entry-header">
2402<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
2403<div class="entry-meta"></div>
2404</header>
2405<div class="entry-content">
2406<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a>
2406 of Ronald Reagan.</p>
2407<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
2408<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
2409<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151" /></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
2410<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
2411<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
2412<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
2413<blockquote><p>Krugman recently wrote a<span class="Apple-converted-space"> </span>column<span class="Apple-converted-space"> </span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
2414<p>Samuelson first provides the historical context.</p>
2415<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-space"> </span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space"> </span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
2416<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
2417<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
2418<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
2419<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-s
2419pace"> </span>10.8 percent<span class="Apple-converted-space"> </span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
2420<p>What’s the bottom line?</p>
2421<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
2422<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
2423<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
2424<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
2425<p>If anything, Samuelson is being too kind.</p>
2426<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149" /></a>(the so-called Phillips Curve).</p>
2427<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
2428<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
2429<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>
2429, and<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space"> </span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
2430<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
2431<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
2432</div>
2433<p><strong><br />
2434Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
2435<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose" /></p>
2436<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in <a><b>“How to Cure Inflation”</b></a> from the <i>Free To Choose</i> series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
2437<span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span>
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2441<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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2487<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
2488<div>
2489<p>Volume 9 &#8211; How to Cure Inflation</p>
2490</div>
2491<div>Transcript:</div>
2492<div id="yui_3_2_0_1_1326918646312224">
2493<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
2494<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
2495<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
2496<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
2497<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
2497s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
2498<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
2499<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
2499hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
2500<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
2501<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
2502<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
2503<div></div>
2504<div>_________________________________________</div>
2505<div></div>
2506<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
2507<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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2510<div></div>
2511<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
2512<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
2513<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
2514<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
2515<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
2516<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
2517<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
2518<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
2519<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
2520<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
2521<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
2522<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
2523<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
2524<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
2525<div>Friedman: Now listen to this:</div>
2526<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
2527<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
2527subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
2528<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
2529<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
2530<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
2531<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
2532<div></div>
2533<div>_______________________________________________</div>
2534<div>
2535<p>(Wage and Price Controls don&#8217;t work)</p>
2536<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
2537<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
2538</div>
2539<div></div>
2540<div>Pt 3</div>
2541<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
2542<div></div>
2543<div></div>
2544<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
2545<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
2546<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
2547<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
2548<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
2549<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
2550<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
2551<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
2551cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
2552<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
2553<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
2554<div></div>
2555<div>___________________________________</div>
2556<div></div>
2557<div>Pt 4</div>
2558<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
2559<div></div>
2560<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
2561<div></div>
2562<div>DISCUSSION</div>
2563<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
2564<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
2565<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
2566<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
2567<div>MARTIN: I want to say 19 years.</div>
2568<div>(Laughter)</div>
2569<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
2570<div>FRIEDMAN: You&#8217;ve never taken it.</div>
2571<div>(Laughter)</div>
2572<div>MCKENZIE: He&#8217;
2572s going to do some interviewing later, I warn you.</div>
2573<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
2574<div>(Laughter)</div>
2575<div>MARTIN: __ all the time.</div>
2576<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
2577<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
2578<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
2579<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
2580<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
2581<div>MARTIN: Yes.</div>
2582<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
2583<div>MARTIN: Yeah, that&#8217;s right.</div>
2584<div>(Laughter)</div>
2585<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
2586<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
2587<div>MARTIN: Well, taxation.</div>
2588<div>MCKENZIE: Yeah.</div>
2589<div>MARTIN: The raising revenue.</div>
2590<div>FRIEDMAN: And spending.</div>
2591<div>MARTIN: And spending.</div>
2592<div>FRIEDMAN: And deficits.</div>
2593<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
2593ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
2594<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
2595<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
2596<div>FRIEDMAN: I know. I know.</div>
2597<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
2598<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
2599<div>(Several people talking at once.)</div>
2600<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
2601<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
2602<div>FRIEDMAN: That would be sufficient.</div>
2603<div>EMMINGER: __ for controlling inflation. But however I __</div>
2604<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
2605<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
2606<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
2607<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
2608<div></div>
2609<div>_________________________________________</div>
2610<div></div>
2611<div>Pt 5</div>
2612<div>
2613<div> I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
2614<div>BROWN:</div>
2615</div>
2616<div></div>
2617<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
2618<div></div>
2619<div></div>
2620<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
2621<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
2622<div>FRIEDMAN: I understand.</div>
2623<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
2624<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
2625<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
2625ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
2625s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
2626<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
2627<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
2628<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
2629<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
2630<div>MARTIN: We fear unemployment more than inflation it seems.</div>
2631<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
2632<div>(Laughing)</div>
2633<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
2634<div>MCKENZIE: Those were __ yes.</div>
2635<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
2636<div></div>
2637<div>____________________________________</div>
2638<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
2639<div></div>
2640<div>Pt 6</div>
2641<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
2642<div></div>
2643<div></div>
2644<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
2645<div>FRIEDMAN: Five years.</div>
2646<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
2647<div>BROWN: Bad election speech.</div>
2648<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
2649<div>(Laughter)</div>
2650<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
2650orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
2651<div>MCKENZIE: Yes.</div>
2652<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
2653<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
2654<div>SPRINKEL: Yes.</div>
2655<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
2656<div>BROWN: That&#8217;s right.</div>
2657<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
2658<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
2659<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
2660<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
2661<div>FRIEDMAN: I know you are.</div>
2662<div>MCKENZIE: Some countries do that, of course.</div>
2663<div>FRIEDMAN: Oh, of course.</div>
2664<div>MCKENZIE: Canada does that. Indexes the __</div>
2665<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
2666<div>FRIEDMAN: Absolutely.</div>
2667<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
2668<div>MCKENZIE: Yeah.</div>
2669<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
2670<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
2671<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
2672<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
2673<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
2674<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
2675<div>SPRINKEL: Yes.</div>
2676<div>FRIEDMAN: __ I think you were making.</div>
2677<div>
2677SPRINKEL: The suffering idea.</div>
2678<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
2679<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
2680<div>FRIEDMAN: Apparently nobody can learn from history.</div>
2681<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
2682<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
2683<div>FRIEDMAN: Right.</div>
2684<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
2685<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
2686<div></div>
2687<div>____________________________________</div>
2688<div>
2689<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
2690<div>BROWN</div>
2691</div>
2692<div></div>
2693<div>Pt 7</div>
2694<div></div>
2695<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
2696<div>BROWN: But, Dr. Friedman, let me __</div>
2697<div>(Applause)</div>
2698<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
2699<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
2700<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
2701<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
2702<div>BROWN: Of course, of course.</div>
2703<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
2704<div>MCKENZIE: Your view __</div>
2705<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
2706<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
2707<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
2708<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
2709<div>FRIEDMAN: Absolutely.</div>
2710<div>BROWN: To finance the growth of government.</div>
2711<div>FRIEDMAN: That&#8217;s right.</div>
2712<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
2713<div>FRIEDMAN: That&#8217;s right.</div>
2714<div>BROWN: If you __</div>
2715<div>FRIEDMAN: I am all in favor of that.</div>
2716<div>BROWN: All right.</div>
2717<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
2718<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
2719<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
2720<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
2721<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
2722<div>(Several people talking at once.)</div>
2723<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
2724<div>FRIEDMAN: That&#8217;s what __</div>
2725<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
2726<div>
2726SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
2727<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
2728<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
2729<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
2730<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
2731<div>(Applause)</div>
2732<div>From Harper Library, goodbye.</div>
2733</div>
2734<div>
2735<ul>
2736<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
2737<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
2738<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
2739</ul>
2740</div>
2741</td>
2742</tr>
2743</tbody>
2744</table>
2745</div>
2746</td>
2747</tr>
2748</tbody>
2749</table>
2750</div>
2751</td>
2752</tr>
2753</tbody>
2754</table>
2755</div>
2756</td>
2757</tr>
2758</tbody>
2759</table>
2760</div>
2761</td>
2762</tr>
2763</tbody>
2764</table>
2765</div>
2766</td>
2767</tr>
2768</tbody>
2769</table>
2770</div>
2771</td>
2772</tr>
2773</tbody>
2774</table>
2775</div>
2776</blockquote>
2777</td>
2778</tr>
2779</tbody>
2780</table>
2781</div>
2782</div>
2783</div>
2784</div>
2785<div id="yui_3_2_0_9_132691864631220">
2786<div id="yui_3_2_0_9_132691864631244">
2787<div id="quick-reply">
2788<div id="yui_3_2_0_9_132691864631249"></div>
2789<p>Related posts:</p>
2790<div id="post-22822">
2791<h3><a title="Permalink to “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
2792<div><a title="2012-06-21T07:39:39-0500" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/">June 21, 2012 – 7:39 am</a></div>
2793<div>
2794<p>Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]</p>
2795</div>
2796<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="https://thedailyhatch.org/tag/arnold-schwarzenegger/" rel="tag">arnold schwarzenegger.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22822&amp;action=edit">Edit</a> | <a title="Comment on “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/#respond">Comments (0)</a></div>
2797<div></div>
2798</div>
2799<div id="post-22868">
2800<h3>
2800<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
2801<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
2802<div>
2803<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
2804</div>
2805<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/#comments">Comments (1)</a></div>
2806</div>
2807<p>________________</p>
2808<div>
2809<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
2810<div id="post-12618">
2811<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)</a></h3>
2812<div><a title="2011-12-30T00:12:27-0500" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/">December 30, 2011 – 12:12 am</a></div>
2813<div>
2814<p>
2814Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
2815</div>
2816<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12618&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/#respond">Comments (0)</a></div>
2817</div>
2818<div id="post-12612">
2819<h3><a title="Permalink to “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/" rel="bookmark">“Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)</a></h3>
2820<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
2821<div>
2822<p>  George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
2823</div>
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2825</div>
2826<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)</a></h3>
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2828<div>
2829<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
2830</div>
2831<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
2831 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
2832<p>____________________________</p>
2833</div>
2834<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
2835<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
2836<p>_____________________________________________</p>
2837<div>
2838<div id="post-14520">
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2841<div>
2842<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 3 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
2843</div>
2844<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2845</div>
2846<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
2847<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
2848<div>
2849<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
2850</div>
2851<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
2851p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
2852</div>
2853<div>
2854<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
2855<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
2856<div>
2857<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
2858</div>
2859<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
2860</div>
2861<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
2862<div id="post-12246">
2863<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
2864<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
2865<div>
2866<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
2867</div>
2868<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
2868p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2869</div>
2870<div id="post-12238">
2871<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
2872<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
2873<div>
2874<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
2875</div>
2876<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
2877</div>
2878<div id="post-11625">
2879<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
2880<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
2881<div>
2882<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
28820;]</p>
2883</div>
2884<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
2885</div>
2886<div id="post-10205">
2887<div>
2888<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
2889<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
2890<div>
2891<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
2891cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
2892</div>
2893<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
2894</div>
2895<div>
2896<div id="post-9317">
2897<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
2898<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
2899<div>
2900<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
2901</div>
2902<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
2903</div>
2904<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
2905<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
2906<div>
2907<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
2908</div>
2909<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
2909-1-of-7/#respond">Comments (0)</a></p>
2910</div>
2911<div></div>
2912<div>
2913<div id="post-16023">
2914<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
2915<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
2916<div>
2917<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
2918</div>
2919<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
2920</div>
2921<div id="post-16020">
2922<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
2923<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
2924<div>
2925<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
2926</div>
2927<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
2928</div>
2929<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
2930<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
2931<div>
2932<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
2933</div>
2934<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
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2938<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
2939<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
2940<div>
2941<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
2942</div>
2943<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
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2951				<div class="entry-meta">
2952					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
2953					<span class="meta-sep">|</span>
2954										<span class="comments-link"><a href="https://thedailyhatch.org/2024/07/05/friedman-friday-if-we-could-just-stop-the-printing-presses-we-would-stop-inflation-milton-friedman-says-in-how-to-cure-inflation-from-the-free-to/#respond">Comments (0)</a></span>
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2959			<div id="post-129779" class="hentry p6 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m06 d06 h20 alt">
2960				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/06/07/friedman-friday-free-to-choose-1980-vol-02-the-tyranny-of-control-full-video-2/" rel="bookmark">FRIEDMAN FRIDAY Free To Choose 1980 &#8211; Vol. 02 The Tyranny of Control &#8211; Full&nbsp;Video</a></h3>
2961				<div class="entry-date"><a href="https://thedailyhatch.org/2024/06/07/friedman-friday-free-to-choose-1980-vol-02-the-tyranny-of-control-full-video-2/" class="published" title="2024-06-07T01:34:00-0500">June 7, 2024 &#8211; 1:34 am</a></div>
2962				<div class="entry-content">
2963					
2964<p class="wp-block-paragraph"></p>
2965
2966
2967
2968<p class="wp-block-paragraph"></p>
2969
2970
2971<h1>&#8211;</h1>
2972<p>Free To Choose 1980 &#8211; Vol. 02 The Tyranny of Control &#8211; Full Video</p>
2973<p></p>
2974<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/CWgNe8v6KFc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2975<h1>&#8211;</h1>
2976<header class="entry-header">
2977<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/12/16/the-case-for-free-trade/" rel="bookmark">The Case for Free Trade</a></h1>
2978<div class="entry-meta">&nbsp;</div>
2979</header>
2980<div class="entry-content">
2981<p>I narrated a video making <a href="https://danieljmitchell.wordpress.com/2019/01/29/the-evidence-based-case-for-free-trade/">the case for free trade</a>back in 2019.</p>
2982<p>This new video from Kite &amp; Key builds on that effort.</p>
2983<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/gM6HdX_b0es?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
2984</div>
2985<h1>&nbsp;</h1>
2986<p>Indeed, it also incorporates many of the lessons that were in my video on <a href="https://danieljmitchell.wordpress.com/2022/03/02/understanding-jobs-trade-and-creative-destruction/">the benefits of creative destruction</a>.</p>
2987<p>
2987If you don’t have six minutes to watch the video, here are the four main takeaways.</p>
2988<ul>
2989<li><a href="https://danieljmitchell.wordpress.com/2022/05/30/help-the-worlds-poor-with-international-trade/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/05/May-30-22-Figure-4.jpg" width="244" height="140"></a>Protectionism has <a href="https://danieljmitchell.wordpress.com/2014/06/30/herbert-hoovers-anti-market-policies-helped-turn-an-economic-downturn-into-a-great-depression/">a terrible track record</a> in the real world.</li>
2990<li>The world has <a href="https://danieljmitchell.wordpress.com/2021/05/17/when-capitalism-wins-poverty-loses/">become much richer</a> as trade has expanded.</li>
2991<li>We are richer when we focus on our <a href="https://danieljmitchell.wordpress.com/2018/11/30/the-economics-of-trade-specialization-and-comparative-advantage/">comparative advantage</a>.</li>
2992<li>Poor people are <a href="https://danieljmitchell.wordpress.com/2022/05/30/help-the-worlds-poor-with-international-trade/">hurt the most</a> by protectionist policies.</li>
2993</ul>
2994<p>Allow me to briefly elaborate on the first bullet point.</p>
2995<p>I’m a big believer in citing real-world examples. When I make my arguments for spending restraint, I <a href="https://danieljmitchell.wordpress.com/2014/04/07/the-golden-rule-of-spending-restraint/">share various case studies</a>.</p>
2996<p>I do the same when <a href="https://danieljmitchell.wordpress.com/2021/06/27/further-debunking-keynesian-economics/">debunking Keynesian economics</a>. And when showing the <a href="https://danieljmitchell.wordpress.com/2021/07/29/the-anti-convergence-club/">superiority of markets over dirigisme</a>.</p>
2997<p>So my challenge to protectionists is do the same thing. Show me (and everyone else) the successful examples of trade barriers.</p>
2998<ul>
2999<li>It wasn’t under <a href="https://danieljmitchell.wordpress.com/2010/06/18/government-intervention-and-the-great-depression/">Herbert Hoover</a>.</li>
3000<li>It wasn’t in <a href="https://danieljmitchell.wordpress.com/2019/04/20/can-argentina-finally-break-free-from-decades-of-economy-sapping-statist-governance/">Argentina</a>.</li>
3001<li>It wasn’t in <a href="https://danieljmitchell.wordpress.com/2022/01/30/the-impact-of-partial-economic-reform-in-india/">India</a>.</li>
3002</ul>
3003<p>I’ll preemptively note that the United States in the 1800s is not a good example. The U.S. economy did well during that century, but it was because of policies such as <a href="https://danieljmitchell.wordpress.com/2021/08/02/the-history-of-the-income-tax-in-just-seven-minutes/">no income tax</a> and <a href="https://danieljmitchell.wordpress.com/2015/09/12/by-the-numbers-americas-unfortunate-fiscal-evolution-from-madisonian-constitutionalism-to-wilsonian-statism/">no welfare state</a>.</p>
3004<p>In other words, Trump was <a href="https://danieljmitchell.wordpress.com/2018/08/17/tariffs-and-americas-early-economic-history-a-primer-for-president-trump/">wrong on that issue</a>.</p>
3005<p>P.S. If you like my two trade videos cited above, I also have ones about the <a href="https://danieljmitchell.wordpress.com/2022/05/13/dont-sweat-the-trade-deficit/">trade deficit</a> and the <a href="https://danieljmitchell.wordpress.com/2019/10/07/the-world-trade-organization-is-good-news-for-american-taxpayers-consumers-and-businesses/">World Trade Organization</a>.</p>
3006<p></p>
3007<h1>&nbsp;</h1>
3008<h1>&nbsp;</h1>
3009<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Milton Friedman - Free Trade vs. Protectionism"><br>Larry Elder wrote in 2016: “As economist Milton Friedman says, protectionism discriminates against low prices!”</span></h1>
3010<div class="blog-page__header mb-5">
3011<div class="meta meta--default text-uppercase p-mb-last-child-0"><span class="date-time__date date-time__date--default">OCTOBER 19, 2021</span> <span class="date-time__time date-time__time--default">10:21AM</span></div>
3012<h1 class="h2"><a href="https://www.cato.org/blog/how-port-bottlenecks-make-case-freer-trade">How Port Bottlenecks Make the Case for Freer Trade</a></h1>
3013</div>
3014<div class="blog-page__separator d-flex align-items-center mb-5">
3015<div class="me-4 authors fs-xs fw-medium">By <a href="https://www.cato.org/people/gabriella-beaumont-smith">Gabriella Beaumont‐​Smith</a></div>
3016<hr class="blog-page__rule flex-grow-1">
3017<div class="ms-4 share-popover js-share-popover d-print-none popover-wrapper js-popover">
3018<div class="text-icon-inline text-icon-inline-- text-icon-inline--margin">
3019<div class="icon__wrapper">&nbsp;</div>
3020<div class="text-icon-inline__content">SHARE</div>
3021</div>
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3023</div>
3024<div class="blog-page__content mb-5 pb-4">
3025<div class="body-text fs-lg">
3026<div class="position-relative js-read-depth-tracking-container">
3027<div>
3028<div class="body-text fs-lg">
3029<p>The pandemic has shocked every sector of the economy. Trade restrictions enacted by the Trump administration and maintained by President Biden have rippled through the U.S. economy but have particularly impacted U.S. ports. The pandemic highlighted that American ports have <a href="https://www.logisticsmgmt.com/article/cargo_congestion_on_west_coast_is_a_consequence_of_complex_issues">broader efficiency problems</a> and could use <a href="https://www.cato.org/commentary/americas-ports-problem-decades-making">some</a> serious policy and management reforms.</p>
3030<p>On the <a href="https://www.bloomberg.com/news/articles/2021-09-17/biggest-u-s-port-complex-to-work-nights-weekends-to-cut-logjam?utm_medium=social&amp;utm_content=economics&amp;utm_source=twitter&amp;utm_campaign=socialflow-organic&amp;cmpid%3D=socialflow-twitter-economics">west coast</a> in particular, ship congestion has caused severe delays, wreaking havoc on the supply chain. While factories and ports in Asia are working 24/7 to 
3030supply American consumers with valuable goods, U.S. ports have been open for far fewer hours because <a href="https://cei.org/blog/why-dont-u-s-ports-operate-24-7-ask-the-unions/">labor union contracts</a>dictate the hourly terms. However, after <a href="https://www.marketwatch.com/story/port-bottlenecks-leave-ships-stranded-businesses-stymied-01616358857">months</a> of backlog, the ports of Los Angeles (LA) and Long Beach (LB) are finally switching to 24/7 shifts to move goods more quickly.</p>
3031<p>As a&nbsp;result of these union contracts, government offices are also <a href="https://www.cbp.gov/contact/ports/los-angeleslong-beach-seaport">not open 24/7</a>. The ports of LA and LB <a href="https://www.latimes.com/politics/story/2021-10-13/biden-will-announce-expanded-operations-at-port-of-los-angeles-as-supply-chain-crunch-continues">account</a> for almost half of all U.S. imports. The Customs and Border Protection (CBP) officials who must clear and admit goods do not work nights or weekends. These limits create additional pressure to have goods shipped to the United States during a&nbsp;prohibitive time frame, or leave ships idling around the ports until they can get in. The latter is the most common response. Recently, ships have been waiting an average of <a href="https://volumes.portoptimizer.com/">12.5&nbsp;days</a> to enter the LA port. Ship idling has caused other problems too. <a href="https://steel.house.gov/media/press-releases/rep-steel-calls-ban-cargo-ships-orange-county-coast">Orange County, CA</a> was affected by an oil spill that is suspected to have been caused by a&nbsp;pipeline hit with idling ship anchors. These differences in operating hours have caused huge ports <a href="https://sgp.fas.org/crs/misc/R44831.pdf">efficiency losses</a> that are felt across the country.</p>
3032<p>While it is positive that <a href="https://thehill.com/homenews/administration/576463-white-house-says-walmart-fedex-ups-will-move-to-24-7-model-to-address?rl=1">retailers</a>, couriers, and the International Longshore and Warehouse Union (ILWU) are making changes to run ports more efficiently, permanent trade policy changes would help ease America’s coastal shipping problems.</p>
3033<p>The best policy would be to unilaterally remove tariffs by the United States. Simply eliminating tariffs would reduce an administrative burden both for traders and CBP officials. Duty‐​free trade would increase <a href="https://www.jstor.org/stable/2549223?seq=1#metadata_info_tab_contents">imports and exports</a> but all other things equal, the freed‐​up CBP resources would help to move goods more swiftly through the ports.</p>
3034<p>However, a&nbsp;few smaller reforms could be implemented now that would considerably help the efficiency of U.S. ports. Removing Section 232 tariffs on steel and aluminum imports could temper the current domestic scarcity of some transportation‐​related goods, including <a href="https://www.automotive-technology.com/articles/materials-used-in-chassis-and-body-components-of-the-vehicle">chassis</a> (the frame of a&nbsp;vehicle that holds containers). <a href="https://americandouglasmetals.com/2015/02/12/4-transportation-applications-of-stainless-steel/">These</a><a href="https://www.aluminum.org/product-markets/automotive">materials</a> are vital inputs for such products and the Section 232 tariffs are affecting American manufacturers’ ability to meet domestic demand. Eliminating duties and tariffs on transportation‐​related goods, including the 221 percent antidumping and countervailing (<a href="https://www.federalregister.gov/documents/2021/07/08/2021-14561/certain-chassis-and-subassemblies-thereof-from-the-peoples-republic-of-china-antidumping-duty-order">AD</a>/<a href="https://www.federalregister.gov/documents/2021/05/10/2021-09848/certain-chassis-and-subassemblies-thereof-from-the-peoples-republic-of-china-countervailing-duty">CVD</a>) duties and 25 percent <a href="https://www.trailer-bodybuilders.com/trailers/article/21744268/intermodal-chassis-tariff-divides-truckers-us-manufacturers">Section 301</a> tariffs on Chinese chassis, could help increase the U.S. supply of chassis. While some freighters are paying the higher prices for Chinese chassis, the supply of transportation is still constrained, which has resulted in higher sticker prices on consumer goods.</p>
3035<p>
3035As LA and LB move to 24/7 shifts, CBP offices should also be open 24/7. Given the sheer volume of trade these two ports process, it would seem sensible to make staffing 24/7 a&nbsp;permanent change at these ports, and at others depending on trade volumes.</p>
3036<p>Reforming the <a href="https://www.cato.org/project-jones-act-reform">Jones Act</a> could also help. All freight moved between U.S. ports <a href="https://www.cato.org/sites/cato.org/files/2019-09/The%20Jones%20Act.pdf">must</a> <a href="https://sgp.fas.org/crs/misc/R44831.pdf">use</a>U.S.-built, -crewed, and -flagged ships. As a&nbsp;result, traders circumvent these regulations by using alternative modes like trucks and trains. It would be prudent to reform the Jones Act to allow ships not in <a href="https://sgp.fas.org/crs/misc/R41590.pdf">compliance</a> with the Jones Act to pick up shipments in one U.S. port and unload at another. This would reduce pressure on <a href="https://www.cato.org/blog/transshipment-oft-overlooked-cost-jones-act">inland transit</a> that is currently being impacted by the aforementioned tariffs.</p>
3037<p>These bottlenecks have provided insight into the problems that exist at U.S. ports and with coastal shipping more broadly. Improvements in trade policy have a&nbsp;role to play and policymakers would be remiss not to consider permanent changes that would be beneficial now and could preempt pressures during future economic shocks.</p>
3038</div>
3039</div>
3040</div>
3041</div>
3042</div>
3043<h1>&nbsp;</h1>
3044<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Milton Friedman - Free Trade vs. Protectionism">Milton Friedman &#8211; Free Trade vs. Protectionism</span></h1>
3045<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/zk3ruapRQZk?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
3046<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman">Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman</span></h1>
3047<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/PJWLt1TmAy4?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
3048<div class="copy-paste-block">
3049<h1 class="posttitle"><a href="http://www.wnd.com/2016/02/donald-trump-clueless-about-free-trade/">Donald Trump: Clueless about free trade</a></h1>
3050<h2 class="deck">Larry Elder rebuts candidate&#8217;s &#8216;they&#8217;re taking our jobs&#8217; claim</h2>
3051<p>Published: 02/03/2016 at 6:39 PM</p>
3052</div>
3053<div class="copy-paste-block">
3054<p>One of Donald Trump’s talking points and biggest applause lines is how “they” – Japan, China and Mexico – are “beating us in trade” and are “taking our jobs.” He proposes tariffs, for example, on Chinese goods in retaliation for that country’s alleged “cheating.”</p>
3055<p>To someone who is out of work in an industry where foreign workers do what he or she once did, Trump-like protectionism sounds appealing. But Trump actually proposes punishing the American consumer. As economist Milton Friedman says, protectionism discriminates against low prices.</p>
3056</div>
3057<div class="copy-paste-block">
3058<p>It is certainly true that many countries prop up or subsidize companies or even whole industries by providing capital or special privileges. This allows them to produce goods and services “below cost” – or at prices below what a competitor could charge and still make a profit. But doing so also means that taxes in that country, which could have gone to a more productive use, are squandered to keep a company in business that otherwise wouldn’t exist or would have gone out of business. This means consumers in other countries with which the “cheater” country trades can buy those imported goods at a cheaper price.</p>
3059<p>Trump proposes to retaliate by placing tariffs on those imported goods. But this prevents American consumers from benefiting from the “cheater” country’s folly of propping up companies that would not survive but for the taxes spent to keep it alive. Why compound the stupidity?</p>
3060<p>Another justification for this kind of protectionism is that a foreign country “exploits” America through the use of “slave labor” which, as to wages, c
3060auses a “race to the bottom.” Certainly forced labor, as when “blood diamonds” are mined by workers with guns pointed to their heads, is criminal and immoral. But free laborers offering to work for less money than others is how poor countries become wealthier – by allowing other countries to buy goods more cheaply.</p>
3061<p>NAFTA, the North American Free Trade Agreement, established in 1994, has become exhibit A on how “we lose” on trade. After all, many American jobs have been “outsourced” to Mexico. But that looks at but one side of the ledger. That an American pays less for certain things frees up capital to spend on something or on someone else. A machinist sees his job “shipped to Mexico,” but the planner or analyst hired by a company with the “savings” might not see the direct relationship between free trade and the fact that he or she has this new job. When NAFTA was debated, businessman and presidential candidate Ross Perot predicted “a giant sucking sound” as jobs and incomes would be lost to Mexico.</p>
3062<p>The American Enterprise Institute writes: “It is an article of faith among protectionists that NAFTA harmed American workers. … The justification may be that NAFTA went into force at the beginning of 1994 and the U.S. trade balance with Canada and Mexico, two of our top partners, then deteriorated.</p>
3063<p>“But the American job market improved as these trade deficits grew. Unemployment fell more than two points from the beginning of 1994 through the middle of 2000. Already high labor force participation edged higher to its all-time record by early 2000. Manufacturing employment rose until mid-1998 and was above its pre-NAFTA level until April 2001. Manufacturing wages rose. The strength in the American job market from 1994 to 1999 is not due primarily to NAFTA, but it is plain that the job market, including manufacturing, strengthened after NAFTA.”</p>
3064<p>Trump is also schizophrenic on this issue. On the one hand, he opposes illegal immigration, which most often is an economic decision where, for example, a poor, unskilled worker from Mexico sneaks into America to make money. On the other hand, Trump deems it unfair and a form of “cheating” if an American company relocates to or builds a factory in Mexico to take advantage of that unskilled Mexican worker’s willingness to work for less.</p>
3065<p>If Trump were talking about the excessive taxes or regulations that <i>induce</i> American companies to leave the U.S. or to put factories in foreign countries, that would be one thing. The U.S. general top marginal corporate income tax rate is the highest in the industrialized world – and, worldwide, is only exceeded by Chad and the United Arab Emirates. Unnecessary regulations also increase the cost of doing business stateside. But this is not Trump’s argument.</p>
3066<p>About free trade, the father of modern economics, Adam Smith, in 1776 wrote in “The Wealth of Nations”: “In every country it always is and must be in the interest of the great body of the people to buy whatever they want of those who sell it cheapest. The proposition is so very manifest that it seems ridiculous to take any pains to prove it; nor could it ever have been called in question had not the interested sophistry of merchants and manufacturers confounded the common sense of mankind. Their interest is, in this respect, directly opposite to that of the great body of the people.”</p>
3067<p>Trump means well. But so what?</p>
3068</div>
3069<h1 class="yt watch-title-container"><span id="eow-title" class="watch-title " dir="ltr" title="Trump vs Friedman - Trade Policy Debate">Trump vs Friedman &#8211; Trade Policy Debate</span></h1>
3070<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/7DhagKyvDck?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
3071<div class="posttitle">&nbsp;</div>
3072<div class="entry">&nbsp;</div>
3073<div class="posttitle">&nbsp;</div>
3074<div class="entry">&nbsp;</div>
3075<p>Related posts:</p>
3076<div id="post-42558" class="hentry p1 post publish author-haltingarkansasliberalswithtruth category-uncategorized untagged y2015 m03 d19 h20">
3077<h3 class="entry-title"><a href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/" rel="bookmark">FRIEDMAN FRIDAY Milton Friedman’s FREE TO CHOOSE “The Tyranny of Control” Transcript and Video (60&nbsp;Minutes)</a></h3>
3078<div class="entry-date"><a class="published" title="2015-03-20T01:40:37-0500" href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/">March 20, 2015 – 1:40 am</a></div>
3079<div class="entry-content">
3080<p>Milton Friedman’s FREE TO CHOOSE “The Tyranny of Control” Transcript and Video (60 Minutes) In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and […]</p>
3081</div>
3082<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/uncategorized/" rel="category tag">Uncategorized</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42558">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2015/03/20/friedman-friday-milton-friedmans-free-to-choose-the-tyranny-of-control-transcript-and-video-60-minutes/#respond">Comments (0)</a></span></div>
3083</div>
3084<div id="post-42022" class="hentry p2 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m11 d13 h20 alt">
3085<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 7 of 7 (Transcript and Video) “I’m not pro business, I’m pro free enterprise, which is a very different thing, and the reason I’m pro free enterprise”</a></h3>
3086<div class="entry-date"><a class="published" title="2014-11-14T01:16:35-0500" href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/">November 14, 2014 – 1:16 am</a></div>
3087<div class="entry-content">
3088<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is 
3088wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3089</div>
3090<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42022">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/11/14/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is-a-very-different-thing-a/#respond">Comments (0)</a></span></div>
3091</div>
3092<div id="post-42018" class="hentry p3 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m11 d06 h20">
3093<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 6 of 7 (Transcript and Video) “We are the ones who promote freedom, and free enterprise, and individual initiative, And what do we do? We force puny little Hong Kong to impose limits, restrictions on its exports at tariffs, in order to protect our textile&nbsp;workers”</a></h3>
3094<div class="entry-date"><a class="published" title="2014-11-07T01:19:36-0500" href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/">November 7, 2014 – 1:19 am</a></div>
3095<div class="entry-content">
3096<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3097</div>
3098<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42018">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/11/07/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise-and-individual-initiative/#respond">Comments (0)</a></span></div>
3099</div>
3100<div id="post-42014" class="hentry p4 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d30 h20 alt">
3101<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 5 of 7 (Transcript and Video) “There is no measure whatsoever that would do more to prevent private monopoly development than complete free&nbsp;trade”</a></h3>
3102<div class="entry-date"><a class="published" title="2014-10-31T01:13:38-0500" href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/">October 31, 2014 – 1:13 am</a></div>
3103<div class="entry-content">
3104<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is 
3104wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3105</div>
3106<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42014">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/31/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-5-of-7-transcript-and-video-there-is-no-measure-whatsoever-that-would-do-more-to-prevent-private-monopoly-devel/#respond">Comments (0)</a></span></div>
3107</div>
3108<div id="post-42010" class="hentry p5 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d23 h20">
3109<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 4 of 7 (Transcript and Video) ” What we need are constitutional restraints on the power of government to interfere with free markets in foreign exchange, in foreign trade, and in many other aspects of our&nbsp;lives.”</a></h3>
3110<div class="entry-date"><a class="published" title="2014-10-24T01:09:36-0500" href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/">October 24, 2014 – 1:09 am</a></div>
3111<div class="entry-content">
3112<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3113</div>
3114<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42010">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/24/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-4-of-7-transcript-and-video-what-we-need-are-constitutional-restraints-on-the-power-of-government-to-interfere/#respond">Comments (0)</a></span></div>
3115</div>
3116<div id="post-42006" class="hentry p6 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d16 h20 alt">
3117<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-when-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 3 of 7 (Transcript and Video) “When anyone complains about unfair competition, consumers beware, That is really a cry for special privilege always at the expense of the&nbsp;consumer”</a></h3>
3118<div class="entry-date"><a class="published" title="2014-10-17T01:04:50-0500" href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-w
3118hen-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/">October 17, 2014 – 1:04 am</a></div>
3119<div class="entry-content">
3120<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3121</div>
3122<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42006">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/17/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-3-of-7-transcript-and-video-when-anyone-complains-about-unfair-competition-consumers-beware-that-is-really-a/#respond">Comments (0)</a></span></div>
3123</div>
3124<div id="post-42001" class="hentry p7 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d09 h20">
3125<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 2 of 7 (Transcript and Video) “As always, economic freedom promotes human&nbsp;freedom”</a></h3>
3126<div class="entry-date"><a class="published" title="2014-10-10T01:57:41-0500" href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/">October 10, 2014 – 1:57 am</a></div>
3127<div class="entry-content">
3128<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3129</div>
3130<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/42001">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/10/friedman-friday-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-2-of-7-transcript-and-video-as-always-economic-freedom-promotes-human-freedom/#respond">Comments (0)</a></span></div>
3131</div>
3132<div id="post-41996" class="hentry p8 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2014 m10 d02 h20 alt">
3133<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/" rel="bookmark">FRIEDMAN FRIDAY “The Tyranny of Control” Milton Friedman’s FREE TO CHOOSE Part 1 of 7 (Transcript and Video) “Adam Smith’s… key idea was that self-interest could produce an orderly society benefiting everybody, It was as though there were an invisible hand at&nbsp;work”</a></h3>
3134<div class="entry-date">
3134<a class="published" title="2014-10-03T01:46:22-0500" href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/">October 3, 2014 – 1:46 am</a></div>
3135<div class="entry-content">
3136<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.&nbsp; I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”&nbsp; and “Created Equal”&nbsp; and&nbsp; From Cradle to Grave, […]</p>
3137</div>
3138<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41996">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/10/03/friedman-friday-the-tyranny-of-control-milton-friedmans-free-to-choose-part-1-of-7-transcript-and-video-adam-smiths-key-idea-was-that-self-interest-could-produce-an-orderly-society-bene/#respond">Comments (0)</a></span></div>
3139</div>
3140<div id="post-41991" class="hentry p9 post publish author-haltingarkansasliberalswithtruth category-milton-friedman category-president-obama untagged y2014 m08 d21 h20">
3141<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/" rel="bookmark">Open letter to President Obama (Part 654) “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 7 of 7 (Transcript and Video) “I’m not pro business, I’m pro free enterprise, which is a very different thing, and the reason I’m pro free enterprise”</a></h3>
3142<div class="entry-date"><a class="published" title="2014-08-22T01:17:18-0500" href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/">August 22, 2014 – 1:17 am</a></div>
3143<div class="entry-content">
3144<p>Open letter to President Obama (Part 654) (Emailed to White House on July 22, 2013) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you […]</p>
3145</div>
3146<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41991">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/08/22/open-letter-to-president-obama-part-654-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-7-of-7-transcript-and-video-im-not-pro-business-im-pro-free-enterprise-which-is/#respond">Comments (0)</a></span></div>
3147</div>
3148<div id="post-41989" class="hentry p10 post publish author-haltingarkansasliberalswithtruth category-milton-friedman category-president-obama untagged y2014 m08 d17 h20 alt">
3149<h3 class="entry-title"><a href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/" rel="bookmark">Open letter to President Obama (Part 650) “The Tyranny of Control” in Milton Friedman’s FREE TO CHOOSE Part 6 of 7 (Transcript and Video) “We are the ones who promote freedom, and free enterprise, and individual initiative, And what do we do? We force puny little Hong Kong to impose limits, restrictions on its exports at tariffs, in order to protect our textile&nbsp;workers”</a></h3>
3150<div class="entry-date"><a class="published" title="2014-08-18T01:20:01-0500" href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/">August 18, 2014 – 1:20 am</a></div>
3151<div class="entry-content">
3152<p>Open letter to President Obama (Part 650) (Emailed to White House on July 22, 2013) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you […]</p>
3153</div>
3154<div class="entry-meta"><span class="author vcard">By <a class="url fn n" title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a></span> <span class="meta-sep">|</span> <span class="cat-links">Posted in <a href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a></span> <span class="meta-sep">|</span> <span class="edit-link"><a class="post-edit-link" href="https://wordpress.com/post/thedailyhatch.org/41989">Edit</a></span> <span class="meta-sep">|</span> <span class="comments-link"><a href="https://thedailyhatch.org/2014/08/18/open-letter-to-president-obama-part-650-the-tyranny-of-control-in-milton-friedmans-free-to-choose-part-6-of-7-transcript-and-video-we-are-the-ones-who-promote-freedom-and-free-enterprise/#respond">Comments (0)</a></span></div>
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3159					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
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3165
3166			<div id="post-129745" class="hentry p7 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m03 d26 h00">
3167				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-understanding-bidens-new-budget-in-three-tweets/" rel="bookmark">Dan Mitchell: Understanding Biden’s New Budget in Three&nbsp;Tweets</a></h3>
3168				<div class="entry-date"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-understanding-bidens-new-budget-in-three-tweets/" class="published" title="2024-03-26T05:13:08-0500">March 26, 2024 &#8211; 5:13 am</a></div>
3169				<div class="entry-content">
3170					<p>—</p>
3171<header class="entry-header">
3172<h1 class="entry-title">
3172<a href="https://danieljmitchell.wordpress.com/2024/03/12/understanding-bidens-new-budget-in-three-tweets/" rel="bookmark">Understanding Biden’s New Budget in Three Tweets</a></h1>
3173<div class="entry-meta"></div>
3174</header>
3175<div class="entry-content">
3176<p>I <a href="https://danieljmitchell.wordpress.com/2024/03/11/must-read-book-on-fiscal-policy/">wrote yesterday</a> to announce <a href="https://www.greatestponzischeme.com/">my new book</a> on America’s fiscal crisis.</p>
3177<p>Today, let’s look at how Joe Biden’s <a href="https://www.whitehouse.gov/omb/budget/">new budget</a> will make that bad problem even worse.</p>
3178<p>I’m going to start with two charts. The first one shows that government spending in recent years has climbed above the trendline (and the trendline showed excessive spending growth even before the fiscal orgy that took place under <a href="https://danieljmitchell.wordpress.com/2019/12/24/trumps-record-on-spending-gets-worse-every-year/">Trump</a> and <a href="https://danieljmitchell.wordpress.com/2023/09/04/bidens-reckless-spending-binge/">Biden</a>).</p>
3179<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Spending.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Spending.jpg" width="1303" height="733" /></a></p>
3180<p>The second chart shows that taxes also are above the trendline.</p>
3181<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Revenue.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Revenue.jpg" width="1297" height="728" /></a></p>
3182<p>These two charts come from <a href="https://twitter.com/wesbury/status/1767289218231922783">a tweet</a> by Brian Wesbury.</p>
3183<p>And they basically tell you everything we need to know about our current fiscal mess.</p>
3184<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Wesbury-Tweet.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Wesbury-Tweet.jpg" width="727" height="688" /></a></p>
3185<p>But there’s more bad news to share.</p>
3186<p>Next, here’s <a href="https://twitter.com/PrestonBrashers/status/1767286688630386912">a tweet</a> from Preston Brashers about Biden’s plan to further bloat the IRS budget in order to have more audits of families and small businesses.</p>
3187<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Brashers-Tweet.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Brashers-Tweet.jpg" width="736" height="456" /></a></p>
3188<p>Biden’s proposal is based on the notion that a massive expansion of the IRS will magically generate additional tax revenue to finance ever-larger government.</p>
3189<p>History <a href="https://danieljmitchell.wordpress.com/2019/02/22/debating-the-irs-budget/">tells us</a> that this perpetual-motion-machine approach <a href="https://danieljmitchell.wordpress.com/2017/12/30/the-irs-doesnt-deserve-sympathy-and-it-doesnt-deserve-a-bigger-budget/">won’t work</a>.</p>
3190<p>Last but not least, we have <a href="https://twitter.com/StephenMoore/status/1766237252173074826">this tweet</a> from Steven Moore about Biden’s preposterous claim that he has reduced red ink.</p>
3191<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Moore-Tweet.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-12-24-Moore-Tweet.jpg" width="739" height="763" /></a></p>
3192<p>All politicians lie. They are <a href="https://danieljmitchell.wordpress.com/2023/07/21/americas-wretched-hive-of-scum-and-villainy-part-iii/">not good people</a>. But Biden is an extreme example.</p>
3193<p>Here’s what really happened: Yes, the deficit fell in 2022, but only because there was a massive amount of one-time pandemic spending in 2021.</p>
3194<p>But if you look at the <a href="https://danieljmitchell.wordpress.com/2022/05/07/debunking-bidens-absurd-cut-the-deficit-claim/">actual effect of Biden’s policies</a>, he has <a href="https://danieljmitchell.wordpress.com/2022/07/14/bidens-deficit-malarkey/">increased red ink in every single year</a>.</p>
3195<p>P.S. Remember that our real fiscal problem is <a href="https://danieljmitchell.wordpress.com/2016/03/05/a-primer-on-growth-politics-and-taxation/">too much spending</a>. Red ink is merely <a href="https://danieljmitchell.wordpress.com/2018/03/14/a-primer-on-debt-deficits-and-public-finance/">one of the symptoms</a> of that problem (as are <a href="https://danieljmitchell.wordpress.com/2016/03/05/a-primer-on-growth-politics-and-taxation/">punitive tax burdens</a> and <a href="https://danieljmitchell.wordpress.com/2023/04/26/the-federal-reserve-and-fiscal-dominance/">money printing</a>).</p>
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3198<header class="entry-header">
3199<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2023/10/22/the-failure-of-bidenomics-part-viii/" rel="bookmark">The Failure of Bidenomics, Part VIII</a></h1>
3200<div class="entry-meta"></div>
3201</header>
3202<div class="entry-content">
3203<p>This series has reviewed Biden’s dismal record with regards to <a href="https://danieljmitchell.wordpress.com/2022/03/03/the-failure-of-bidenomics-part-i/">subsidies</a>, <a href="https://danieljmitchell.wordpress.com/2022/03/04/the-failure-of-bidenomics-part-ii/">inflation</a>, <a href="https://danieljmitchell.wordpress.com/2022/03/05/the-failure-of-bidenomics-part-iii/">protectionism</a>,<a href="https://danieljmitchell.wordpress.com/2022/03/07/the-failure-of-bidenomics-part-iv/">household income</a>, <a href="https://danieljmitchell.wordpress.com/2022/03/08/the-failure-of-bidenomics-part-v/">fiscal policy</a>, <a href="https://danieljmitchell.wordpress.com/2022/03/09/the-failure-of-bidenomics-part-vi/">red tape</a>, and <a href="https://danieljmitchell.wordpress.com/2022/09/03/the-failure-of-bidenomics-part-vii/">employment</a>.</p>
3204<p>Today, let’s add poverty to the mix.</p>
3205<p>We’ll start with a very depressing chart from Kevin Hassett about worsening poverty in the United States.</p>
3206<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/10/Oct-22-23-Table.jpg"><img loading="lazy" class="alignnone " src="https://freedomandprosperity.org/wp-content/uploads/2023/10/Oct-22-23-Table.jpg" width="493" height="460" /></a></p>
3207<p>The chart appeared in <em>National Review</em>. Here are some excerpts from <a href="https://www.nationalreview.com/2023/10/the-invisible-poverty-disaster/">the accompanying article</a>.</p>
3208<blockquote><p>…the latest poverty figures…extremely grim. Inflation makes the purchase of necessities more costly, forcing those with less means to make difficult trade-offs. Poverty and deprivation can also create secondary effects driven by despair or necessity. …overall poverty increased in the short period between 2021 and 2022 from 7.8 percent of the U.S. population to 12.4 percent.<a href="https://freedomandprosperity.org/wp-content/uploads/2023/10/Oct-22-23-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2023/10/Oct-22-23-Title.jpg" width="146" height="39" /></a>While that top-line number is a stunning increase, the cross-sectional detail of the numbers highlights that specific groups have been hit harder than others. Female-headed households saw their poverty rate increase from 11.7 percent to 22.6 percent. Individuals without a high-school education saw their poverty increase from 19.7 to 29.7 percent. …Why the big jump? …When goods get more costly, the same amount of income gets spread thinner and thinner. While income could in principle rise to offset the higher cost of goods, that did not happen on average… The inflationary policies that contributed to the crisis were driven recently by President Biden and the Democrats… The latest numbers are only through 2022, and they likely worsened in 2023.</p></blockquote>
3209<p>Kevin points out that some of the increase in poverty was caused by reduced redistribution (such as no more pandemic-era “stimulus” goodies and presumably no more <a href="https://danieljmitchell.wordpress.com/2022/11/29/the-economic-and-societal-case-against-per-child-handouts-part-i/">per-child handouts</a>).</p>
3210<p>So it would be interesting to find out if there was a breakdown of how much poverty rose for a bad reason (<a href="https://danieljmitchell.wordpress.com/2023/09/13/census-report-bidenomics-isnt-working/">declining inflation-adjusted income</a>) and how much it rose for a different reason (fewer goodies from Uncle Sam).</p>
3211<p>The goal, of course, is so have poverty decline because of economic growth and people becoming <a href="https://danieljmitchell.wordpress.com/2014/11/18/social-capital-culture-markets-and-institutions/">self-sufficient</a>. It’s not progress, though, if poverty falls simply because people get a lot of handouts (something Biden <a href="https://danieljmitchell.wordpress.com/2017/09/19/joe-biden-basic-income-and-societal-capital/">used to understand</a>).</p>
3212</div>
3213<div class="asset-masthead ">
3214<header class="asset-header">
3215<h1 class="headline"><a href="https://www.caledonianrecord.com/opinion/columns/geoffrey-norman-milton-friedman-vs-joe-biden-no-contest/article_94424057-1025-5569-a7f0-81ef01d3b47f.html">Geoffrey Norman: Milton Friedman vs. Joe Biden (No Contest)</a></h1>
3216<div class="meta">
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3218<li class="hidden-print"><time class="tnt-date asset-date text-muted" datetime="2021-10-15T13:00:00-04:00">Oct 15, 2021</time></li>
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3243<div id="tncms-region-article_body_top" class="tncms-region hidden-print"></div>
3244<div class="asset-content  p402_premium subscriber-premium">
3245<div class="subscriber-preview">
3246<p>Back when he was campaigning for the office he now occupies, Joe Biden asked in the rhetorical, no b.s., tough guy pose he likes to assume, “When did Milton Friedman die and become king?”</p>
3247</div>
3248<div class="subscriber-preview">
3249<p>Later in the campaign, he got in another shot, telling his audience, “Milton Friedman isn’t running the show anymore.”</p>
3250</div>
3251<div class="subscriber-preview">
3252<p>Well, Biden went on to win the election and, now that he is running the show, one looks around and thinks, “You know, wouldn’t it be better if Milton Friedman were still alive and running the show.”</p>
3253</div>
3254</div>
3255</div>
3256</div>
3257</div>
3258</div>
3259</div>
3260</div>
3261</div>
3262<div class="subscriber-preview">
3263<p>Milton Friedman was an economist whose work ranged from the densely theoretical to the immensely popular and accessible. His book Capitalism and Freedom has sold more than a million copies since it was published in 1962. In 1980, Friedman and his wife, Rose, hosted the immensely popular PBS series Free to Choose and published a companion book with the same title. It was the best-selling non-fiction book of that year.</p>
3264</div>
3265<div class="subscriber-only">
3266<p>Lots of kings never enjoyed that kind of influence.</p>
3267</div>
3268<div class="subscriber-only">
3269<p>So, to use the kind of locutions Biden prefers, what is his beef with Milton Friedman?</p>
3270</div>
3271<div class="subscriber-only">
3272<p>One suspects that it can be summed up in one word … inflation.</p>
3273</div>
3274<div class="subscriber-only">
3275<p>Friedman told people in politics and government something they didn’t want to hear. Namely, that “there is no such thing as a free lunch.” (He used that phrase as the title for another of his books.)</p>
3276</div>
3277<div class="subscriber-only">
3278<p>Government spending comes at a price in the form of taxes, debt, and inflation. One suspects that Friedman’s thinking on the matter of inflation is what peeves Joe Biden.</p>
3279</div>
3280<div class="subscriber-only">
3281<p>There is no hiding the fact of inflation, which is to say, an increase in prices and a decrease in the value of money. Which amounts to the same thing.</p>
3282</div>
3283<div class="subscriber-only">
3284<p>There is a reason that people who are on Social Security can expect their benefits to increase by almost six percent next year. That’s because those benefits are, broadly speaking, indexed to the cost of living. So everything is now more expensive by six percent.</p>
3285</div>
3286<div class="subscriber-only">
3287<p>And why is that?</p>
3288</div>
3289<div class="subscriber-only">
3290<p>Well, Milton Friedman studied that problem a lot more seriously, one thinks, than Joe Biden ever has and his answer was, “too much money chasing too few goods.”</p>
3291</div>
3292<div class="subscriber-only">
3293<p>Or, as he memorably put it, “Inflation is always and everywhere a monetary phenomenon.”</p>
3294</div>
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3301<div id="tncms-block-999077" class="tncms-block"></div>
3302</div>
3303<div class="subscriber-only">
3304<p>President Biden is indifferent to the economics but no doubt intensely interested in the politics of inflation. He is old enough to remember Jimmy Carter and, in fact, was first elected to the Senate in 1972. So Biden witnessed – or should have – what rampant inflation did not only to Carter’s ambitions but to the nation’s morale.</p>
3305</div>
3306<div class="subscriber-only">
3307<p>Inflation was brought under control during the administration of Ronald Reagan who, like most of his economic team, was a follower of King Milton Friedman.</p>
3308</div>
3309<div class="subscriber-only">
3310<p>President Biden and his team seem to believe that inflation is either not a problem or something that affects only the wealthy. “High class problems,” in the words of his Chief-of-Staff, Ron Clain.</p>
3311</div>
3312<div class="subscriber-only">
3313<p>Well, to be fair, Clain lives and works in Washington, D.C. and can’t really be expected to understand what life is like for ordinary Americans in the lands out there “beyond the beltway.”</p>
3314</div>
3315<div class="subscriber-only">
3316<p>Many of those people drive to and from work every day and the price of gas is something to which they pay close attention. The phrase “pain at the pump” has real meaning for them.</p>
3317</div>
3318<div class="subscriber-only">
3319<p>And those cars that people drive to and from work are increasingly expensive.</p>
3320</div>
3321<div class="subscriber-only">
3322<p>And, then, there is food. The kind that people buy at the grocery store, the prices of which are higher than they have been in a decade.</p>
3323</div>
3324<div class="subscriber-only">
3325<p>Eating and getting to and from work are not what most people would call “high class problems.”</p>
3326</div>
3327<div class="subscriber-only">
3328<p>President Biden’s poll numbers seem to move inversely with the cost of living. The more expensive everything gets, the more his popularity decreases. And having, evidently, not learned the lessons of the Carter years, he seems determined to repeat them. (To include presiding over a military debacle in a far-off, Islamic country. But that is another matter.)</p>
3329</div>
3330<div class="subscriber-only">
3331<p>The Biden administration is committed to a domestic agenda that the President claims if “fully paid for.” By which he means that … taxes will be raised to cover the expense. Well, tax revenues are already at a historic high but that, evidently, is not enough.</p>
3332</div>
3333<div class="subscriber-only">
3334<p>It never is.</p>
3335</div>
3336<div class="subscriber-only">
3337<p>But there is always the ultimate stealth tax … inflation.</p>
3338</div>
3339<div class="subscriber-only">
3340<p>Joe Biden may be President and Milton Friedman may not be King. But Friedman’s ideas and insights are still true. And much as President Biden and his team may wish it were not so (and insist that it is not) there is still “no such thing as a free lunch.”</p>
3341</div>
3342<div class="subscriber-only">
3343<p><em>Geoffrey Norman is a former editor of Esquire magazine and is a regular contributor to the Wall Street Journal, Weekly Standard and National Review. He has authored more than 15 books and remains active shaping public policy discu
3343ssions. He lives in Vermont.</em></p>
3344</div>
3345<p><strong><br />
3346Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
3347<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose" /></p>
3348<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in <a><b>“How to Cure Inflation”</b></a> from the <i>Free To Choose</i> series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
3349<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
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3353<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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3399<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
3400<div>
3401<p>Volume 9 &#8211; How to Cure Inflation</p>
3402</div>
3403<div>Transcript:</div>
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3405<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
3406<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
3407<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
3408<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
3409<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
3409s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
3410<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
3411<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
3411hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
3412<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
3413<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
3414<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
3415<div></div>
3416<div>_________________________________________</div>
3417<div></div>
3418<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
3419<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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3423<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
3424<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
3425<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
3426<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
3427<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
3428<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
3429<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
3430<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
3431<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
3432<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
3433<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
3434<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
3435<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
3436<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
3437<div>Friedman: Now listen to this:</div>
3438<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
3439<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
3439subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
3440<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
3441<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
3442<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
3443<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
3444<div></div>
3445<div>_______________________________________________</div>
3446<div>
3447<p>(Wage and Price Controls don&#8217;t work)</p>
3448<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
3449<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
3450</div>
3451<div></div>
3452<div>Pt 3</div>
3453<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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3456<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
3457<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
3458<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
3459<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
3460<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
3461<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
3462<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
3463<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
3463cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
3464<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
3465<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
3466<div></div>
3467<div>___________________________________</div>
3468<div></div>
3469<div>Pt 4</div>
3470<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
3471<div></div>
3472<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
3473<div></div>
3474<div>DISCUSSION</div>
3475<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
3476<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
3477<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
3478<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
3479<div>MARTIN: I want to say 19 years.</div>
3480<div>(Laughter)</div>
3481<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
3482<div>FRIEDMAN: You&#8217;ve never taken it.</div>
3483<div>(Laughter)</div>
3484<div>MCKENZIE: He&#8217;
3484s going to do some interviewing later, I warn you.</div>
3485<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
3486<div>(Laughter)</div>
3487<div>MARTIN: __ all the time.</div>
3488<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
3489<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
3490<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
3491<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
3492<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
3493<div>MARTIN: Yes.</div>
3494<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
3495<div>MARTIN: Yeah, that&#8217;s right.</div>
3496<div>(Laughter)</div>
3497<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
3498<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
3499<div>MARTIN: Well, taxation.</div>
3500<div>MCKENZIE: Yeah.</div>
3501<div>MARTIN: The raising revenue.</div>
3502<div>FRIEDMAN: And spending.</div>
3503<div>MARTIN: And spending.</div>
3504<div>FRIEDMAN: And deficits.</div>
3505<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
3505ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
3506<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
3507<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
3508<div>FRIEDMAN: I know. I know.</div>
3509<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
3510<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
3511<div>(Several people talking at once.)</div>
3512<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
3513<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
3514<div>FRIEDMAN: That would be sufficient.</div>
3515<div>EMMINGER: __ for controlling inflation. But however I __</div>
3516<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
3517<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
3518<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
3519<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
3520<div></div>
3521<div>_________________________________________</div>
3522<div></div>
3523<div>Pt 5</div>
3524<div>
3525<div> I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
3526<div>BROWN:</div>
3527</div>
3528<div></div>
3529<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
3530<div></div>
3531<div></div>
3532<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
3533<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
3534<div>FRIEDMAN: I understand.</div>
3535<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
3536<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
3537<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
3537ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
3537s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
3538<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
3539<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
3540<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
3541<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
3542<div>MARTIN: We fear unemployment more than inflation it seems.</div>
3543<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
3544<div>(Laughing)</div>
3545<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
3546<div>MCKENZIE: Those were __ yes.</div>
3547<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
3548<div></div>
3549<div>____________________________________</div>
3550<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
3551<div></div>
3552<div>Pt 6</div>
3553<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
3554<div></div>
3555<div></div>
3556<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
3557<div>FRIEDMAN: Five years.</div>
3558<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
3559<div>BROWN: Bad election speech.</div>
3560<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
3561<div>(Laughter)</div>
3562<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
3562orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
3563<div>MCKENZIE: Yes.</div>
3564<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
3565<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
3566<div>SPRINKEL: Yes.</div>
3567<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
3568<div>BROWN: That&#8217;s right.</div>
3569<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
3570<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
3571<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
3572<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
3573<div>FRIEDMAN: I know you are.</div>
3574<div>MCKENZIE: Some countries do that, of course.</div>
3575<div>FRIEDMAN: Oh, of course.</div>
3576<div>MCKENZIE: Canada does that. Indexes the __</div>
3577<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
3578<div>FRIEDMAN: Absolutely.</div>
3579<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
3580<div>MCKENZIE: Yeah.</div>
3581<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
3582<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
3583<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
3584<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
3585<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
3586<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
3587<div>SPRINKEL: Yes.</div>
3588<div>FRIEDMAN: __ I think you were making.</div>
3589<div>
3589SPRINKEL: The suffering idea.</div>
3590<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
3591<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
3592<div>FRIEDMAN: Apparently nobody can learn from history.</div>
3593<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
3594<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
3595<div>FRIEDMAN: Right.</div>
3596<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
3597<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
3598<div></div>
3599<div>____________________________________</div>
3600<div>
3601<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
3602<div>BROWN</div>
3603</div>
3604<div></div>
3605<div>Pt 7</div>
3606<div></div>
3607<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
3608<div>BROWN: But, Dr. Friedman, let me __</div>
3609<div>(Applause)</div>
3610<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
3611<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
3612<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
3613<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
3614<div>BROWN: Of course, of course.</div>
3615<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
3616<div>MCKENZIE: Your view __</div>
3617<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
3618<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
3619<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
3620<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
3621<div>FRIEDMAN: Absolutely.</div>
3622<div>BROWN: To finance the growth of government.</div>
3623<div>FRIEDMAN: That&#8217;s right.</div>
3624<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
3625<div>FRIEDMAN: That&#8217;s right.</div>
3626<div>BROWN: If you __</div>
3627<div>FRIEDMAN: I am all in favor of that.</div>
3628<div>BROWN: All right.</div>
3629<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
3630<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
3631<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
3632<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
3633<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
3634<div>(Several people talking at once.)</div>
3635<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
3636<div>FRIEDMAN: That&#8217;s what __</div>
3637<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
3638<div>
3638SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
3639<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
3640<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
3641<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
3642<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
3643<div>(Applause)</div>
3644<div>From Harper Library, goodbye.</div>
3645</div>
3646<div>
3647<ul>
3648<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
3649<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
3650<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
3651</ul>
3652</div>
3653</td>
3654</tr>
3655</tbody>
3656</table>
3657</div>
3658</td>
3659</tr>
3660</tbody>
3661</table>
3662</div>
3663</td>
3664</tr>
3665</tbody>
3666</table>
3667</div>
3668</td>
3669</tr>
3670</tbody>
3671</table>
3672</div>
3673</td>
3674</tr>
3675</tbody>
3676</table>
3677</div>
3678</td>
3679</tr>
3680</tbody>
3681</table>
3682</div>
3683</td>
3684</tr>
3685</tbody>
3686</table>
3687</div>
3688</blockquote>
3689</td>
3690</tr>
3691</tbody>
3692</table>
3693</div>
3694</div>
3695</div>
3696</div>
3697<div id="yui_3_2_0_9_132691864631220">
3698<div id="yui_3_2_0_9_132691864631244">
3699<div id="quick-reply">
3700<div id="yui_3_2_0_9_132691864631249"></div>
3701<p>Related posts:</p>
3702<div id="post-22822">
3703<h3><a title="Permalink to “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
3704<div><a title="2012-06-21T07:39:39-0500" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/">June 21, 2012 – 7:39 am</a></div>
3705<div>
3706<p>Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]</p>
3707</div>
3708<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="https://thedailyhatch.org/tag/arnold-schwarzenegger/" rel="tag">arnold schwarzenegger.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22822&amp;action=edit">Edit</a> | <a title="Comment on “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/#respond">Comments (0)</a></div>
3709<div></div>
3710</div>
3711<div id="post-22868">
3712<h3>
3712<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
3713<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
3714<div>
3715<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
3716</div>
3717<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/#comments">Comments (1)</a></div>
3718</div>
3719<p>________________</p>
3720<div>
3721<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
3722<div id="post-12618">
3723<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)</a></h3>
3724<div><a title="2011-12-30T00:12:27-0500" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/">December 30, 2011 – 12:12 am</a></div>
3725<div>
3726<p>
3726Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
3727</div>
3728<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12618&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 3 of 7)" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/#respond">Comments (0)</a></div>
3729</div>
3730<div id="post-12612">
3731<h3><a title="Permalink to “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/" rel="bookmark">“Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)</a></h3>
3732<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
3733<div>
3734<p>  George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
3735</div>
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3740<div>
3741<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
3742</div>
3743<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
3743 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
3744<p>____________________________</p>
3745</div>
3746<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
3747<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
3748<p>_____________________________________________</p>
3749<div>
3750<div id="post-14520">
3751<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)</a></h3>
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3753<div>
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3755</div>
3756<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
3757</div>
3758<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
3759<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
3760<div>
3761<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
3762</div>
3763<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
3763p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
3764</div>
3765<div>
3766<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
3767<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
3768<div>
3769<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
3770</div>
3771<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
3772</div>
3773<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
3774<div id="post-12246">
3775<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
3776<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
3777<div>
3778<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
3779</div>
3780<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
3780p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
3781</div>
3782<div id="post-12238">
3783<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
3784<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
3785<div>
3786<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
3787</div>
3788<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
3789</div>
3790<div id="post-11625">
3791<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
3792<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
3793<div>
3794<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
37940;]</p>
3795</div>
3796<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
3797</div>
3798<div id="post-10205">
3799<div>
3800<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
3801<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
3802<div>
3803<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
3803cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
3804</div>
3805<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
3806</div>
3807<div>
3808<div id="post-9317">
3809<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
3810<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
3811<div>
3812<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
3813</div>
3814<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
3815</div>
3816<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
3817<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
3818<div>
3819<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
3820</div>
3821<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
3821-1-of-7/#respond">Comments (0)</a></p>
3822</div>
3823<div></div>
3824<div>
3825<div id="post-16023">
3826<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
3827<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
3828<div>
3829<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
3830</div>
3831<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
3832</div>
3833<div id="post-16020">
3834<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
3835<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
3836<div>
3837<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
3838</div>
3839<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
3840</div>
3841<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
3842<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
3843<div>
3844<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
3845</div>
3846<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
3846p-admin/post.php?post=16018&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
3847</div>
3848</div>
3849<div id="post-22868">
3850<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
3851<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
3852<div>
3853<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
3854</div>
3855<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
3856</div>
3857</div>
3858</div>
3859</div>
3860</div>
3861</div>
3862									</div>
3863				<div class="entry-meta">
3864					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
3865					<span class="meta-sep">|</span>
3866										<span class="comments-link"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-understanding-bidens-new-budget-in-three-tweets/#respond">Comments (0)</a></span>
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3868			</div><!-- .post -->
3869
3870
3871			<div id="post-129739" class="hentry p8 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m03 d26 h00 alt">
3872				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-article-in-one-image-everything-you-need-to-know-about-californias-fiscal-troubles/" rel="bookmark">Dan Mitchell article: In One Image, Everything You Need to Know about California’s Fiscal&nbsp;Troubles</a></h3>
3873				<div class="entry-date"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-article-in-one-image-everything-you-need-to-know-about-californias-fiscal-troubles/" class="published" title="2024-03-26T05:04:59-0500">March 26, 2024 &#8211; 5:04 am</a></div>
3874				<div class="entry-content">
3875					<p>——</p>
3876<header class="entry-header">
3877<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2024/03/19/in-one-image-everything-you-need-to-know-about-californias-fiscal-troubles/" rel="bookmark">In One Image, Everything You Need to Know about California’s Fiscal Troubles</a></h1>
3878<div class="entry-meta"></div>
3879</header>
3880<div class="entry-content">
3881<p>Two days ago, I <a href="https://danieljmitchell.wordpress.com/2024/03/17/california-humor-3/">shared some California humor</a>. Today, we’re going to look at some California tragedy.</p>
3882<p>I’ve <a href="https://danieljmitchell.wordpress.com/2014/04/07/the-golden-rule-of-spending-restraint/">often explained</a> that the <a href="https://danieljmitchell.wordpress.com/2021/07/26/government-spending-is-a-problem-regardless-of-how-it-is-financed/">most important variable</a> in fiscal policy is the the <a href="https://danieljmitchell.wordpress.com/2023/12/21/spending-caps-and-the-benefit-of-fiscal-restraint/">growth of government</a>, More specifically, good fiscal policy occurs when the burden of government spending over time <a href="https://danieljmitchell.wordpress.com/2014/04/07/the-golde
3882n-rule-of-spending-restraint/">grows slower than the private sector</a>.</p>
3883<p>As you can see from this chart (based on <a href="https://www.nasbo.org/mainsite/reports-data/historical-data">data</a> from the National Association of State Budget Officers), California has the opposite of good fiscal policy.</p>
3884<p><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-19-24-California-Budget.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-19-24-California-Budget.jpg" width="1245" height="888" /></a></p>
3885<p>At the risk of understatement, it’s not good when government grows more than twice as fast as inflation.</p>
3886<p>I was motivated to create this chart after reading <a href="https://www.nationalreview.com/2024/03/californias-deficit-bring-your-alibis/">this article</a> in <em>National Review</em>.</p>
3887<p>Written by Will Swaim, it discusses how California got in trouble. It starts by looking at how red ink forecasts have dramatically worsened ins a very short period of time.</p>
3888<blockquote><p>I<span class="small_caps">n</span> the summer of 2022, California governor Gavin Newsom, apparently high on the smell of cash, announced that California had just smashed through the state-budget equivalent of the first four-minute mile: a one-year surplus of $100 billion.<a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-19-24-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-19-24-Title.jpg" width="160" height="37" /></a>…Just one year later, Newsom announced — this time without the trumpet blasts, chest-thumping and press tour — that California was $32 billion in the red. Today, the governor is staring into the business end of a $78 billion deficit. You didn’t have to be a prophet to see the financial chaos coming. In this state’s notoriously mercurial tax system, which depends largely on revenue from just 150,000 wealthy Californians and massive, occasional paydays to investors in the state’s tech sector, what went up in 2022 was certain to fall hard, fast, and soon.</p></blockquote>
3889<p>But volatile tax revenues are not the problem.</p>
3890<p>California is in trouble because of too much spending. Governor Newsom and other politicians in Sacramento can’t resist <a href="https://danieljmitchell.wordpress.com/2023/01/09/public-choice/">buying votes</a> in every possible way.</p>
3891<blockquote><p>…back in 2022, when Newsom was still feeling like the casino’s biggest whale, he spent as if there’d be money forever, boosting spending to $308 billion, more than double Jerry Brown’s last, 2019 budget of $140 billion. In the Year of the Historic Surplus, there were gifts for almost everyone and a soundtrack of Vegas slots paying off. …He announced that the state will pay $5 billion to cover health-care insurance for illegal immigrants. And though he has already spent a remarkable $20 billion to reduce homelessness — while the number of people on the street continues to grow — Newsom asked voters on March 5 to approve a $6.4 billion bond program that would feed California’s voracious homelessness–industrial complex but almost no one else.</p></blockquote>
3892<p>I did <a href="https://danieljmitchell.wordpress.com/2018/04/05/which-state-will-be-the-first-to-suffer-fiscal-collapse/">a poll back in 2018</a> about which state will be the first to go bankrupt. Illinois has a big lead, for <a href="https://danieljmitchell.wordpress.com/2022/06/24/illinois-and-fiscal-suicide-part-ii/">understandable reasons</a>. But you won’t be surprised to see that California is in second place, ahead of even the <a href="https://danieljmitchell.wordpress.com/2020/09/18/fiscal-insanity-from-new-jersey/">basket case of New Jersey</a>.</p>
3893<p>P.S. The <em>NR</em> article discussed the volatility of tax revenues. Because of its <a href="https://danieljmitchell.wordpress.com/2019/10/21/adverse-consequences-of-californias-class-warfare-tax-policy/">class warfare-based tax system</a>, California is especially vulnerable to big swings in tax revenue (and big revenue losses because of <a href="https://danieljmitchell.wordpress.com/2018/04/29/states-are-competing-on-tax-policy-and-people-are-voting-with-their-feet-against-high-tax-states-such-as-california/">successful people fleeing the state</a>). But this is <a href="https://danieljmitchell.wordpress.com/2020/01/13/a-practical-reason-to-a-support-a-spending-cap-instead-of-a-balanced-budget-requirement/">also a nationwide challenge</a>, which helps to explain why a <a href="https://danieljmitchell.wordpress.com/2017/07/11/in-just-six-minutes-everything-you
3893-need-to-know-about-spending-caps/">spending cap</a> (like <a href="https://danieljmitchell.wordpress.com/2023/06/14/americas-best-fiscal-rule-is-colorados-spending-cap/">Colorado’s TABOR</a>) is a <a href="https://danieljmitchell.wordpress.com/2022/01/19/ecb-and-imf-studies-show-spending-caps-are-the-ideal-fiscal-rule/">much better policy</a> than a balanced budget rule.</p>
3894<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-enabled sd-sharing-enabled"></div>
3895</div>
3896<header class="entry-header">
3897<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2024/02/13/the-laffer-curves-latest-victim-california/" rel="bookmark">The Laffer Curve’s Latest Victim: California</a></h1>
3898<div class="entry-meta"></div>
3899</header>
3900<div class="entry-content">
3901<p>The Laffer Curve is <a href="https://danieljmitchell.wordpress.com/2020/08/13/a-primer-on-the-laffer-curve/">the common-sense notion</a> that people respond to incentives.</p>
3902<p>And <a href="https://danieljmitchell.wordpress.com/2018/08/10/paul-krugman-supply-side-economist/">even Paul Krugman admits</a> this has implications for tax revenue.<a href="https://danieljmitchell.wordpress.com/2019/06/20/a-tribute-to-art-laffer/"><img loading="lazy" class="alignright " src="https://danieljmitchell.files.wordpress.com/2012/07/laffer-curve.jpg?w=278&amp;h=244" width="278" height="244" /></a></p>
3903<p>For instance, if tax rates increase, people may decide to earn and/or report less taxable income. When that happens, revenue won’t increase by as much as politicians hope.</p>
3904<p>And the reverse is true (in <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">some cases</a>, dramatically true) if tax rates decrease.</p>
3905<p>For today’s column, let’s look at a real-world example of the Laffer Curve.</p>
3906<p>Joshua Rauh of Stanford and Ryan Shyu of Amazon have <a href="https://www.nber.org/papers/w26349">new research</a> that looks at what happened after California voters approved a big class-warfare tax increase in 2012.</p>
3907<p>Here are some excerpts from their study.</p>
3908<blockquote><p>In this paper we study the question of the elasticity of the tax base with respect to taxation…on the universe of California taxpayers around the implementation of major 2012 ballot initiative, Proposition 30. …The Proposition 30 ballot initiative increased marginal income tax rates…by 3 percentage points for singles with over $500,000 in taxable income (married couples with over $1 million)…, the highest state-level marginal tax rate in the nation.<a href="https://freedomandprosperity.org/wp-content/uploads/2024/02/Feb-13-24-NBER-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2024/02/Feb-13-24-NBER-Title.jpg" width="244" height="36" /></a>…We…document a substantial onetime outflow of high-earning taxpayers from California in response to Proposition 30. …For those earning over $5 million, the rate of departures spiked from 1.5% after the 2011 tax year to 2.125% after the 2012 tax year, with a similar effect among taxpayers earning $2-5 million in 2012. …California top-earners on average report $522,000 less in taxable income in 2012, $357,000 less in 2013, and $599,000 less in 2014; this is relative to a baseline mean income of $4.15 million amongst our defined group of California top-earners in 2011. Compared to counterfactuals in similarly high-tax states, California top-earners on average report $352,000 less in taxable income in 2012, $373,000 less in 2013, and $481,000 less in 2014.</p></blockquote>
3909<p>So some upper-income taxpayers moved and others (<a href="https://danieljmitchell.wordpress.com/2011/09/19/one-simple-reason-and-two-easy-steps-to-show-why-obamas-soak-the-rich-tax-hikes-wont-work/">unsurprisingly</a>) earned/reported less taxable income.</p>
3910<p>Did that have an impact on tax revenue?</p>
3911<p>The answer is yes.</p>
3912<blockquote><p>…we assess the implications of our estimates for tax revenue in the context of California Proposition 30. A back of the envelope calculation based on our econometric estimates finds that the intensive and extensive margin responses to taxation combined to undo 45.2% of the revenue gains from taxation that otherwise would have accrued to California in the absence of behavioral responses within the first year and 60.9% within the first two years.</p></blockquote>
3913<p>Wow, more than 60 percent of projected revenue evaporated within two years.</p>
3914<p>By the way, these estimates are based on data only through the middle of last decade. And something significant happened after that: The state and local tax deduction <a href="https://danieljmitchell.wordpress.com/2018/01/02/restricting-the-deduction-for-state-and-local-taxes-is-a-big-expletive-deleted-deal/">was curtailed</a> as part of the Trump tax package.</p>
3915<p>The authors speculate that this will have very important implications.</p>
3916<blockquote><p>…the “Tax Cuts and Jobs Act” (TCJA). Under this law, the top rate is 37% for single and head-of-household filers earning over $500,000, and for married filers earning over $600,000. Despite this nominal cut to top rates, the legislation on net increased rates on top earners because it capped state and local deductions at $10,000 total. … we use our top line intensive margin elasticity estimate to provide a ballpark quantification of the federal tax revenue implications of TCJA for the particular set of California high earners in our treatment group. …Consider a married California taxpayer earning $4.15 million of wage income. In 2017, this taxpayer pays a federal tax b
3916ill of $1,431,305. In 2018, incorporating the 8.6% income decrease, this taxpayer pays a federal tax bill of $1,333,946. This amounts to a 6.8% decrease in tax revenue, putting the TCJA on the wrong side of the Laffer Curve for high-earning individuals in California. … the TCJA increased incentives (in terms of the level of the average tax rate gap) to leave California for zero-tax states by 2.15 times the amount of Proposition 30 for those earning over $5 million, and by a factor of 2.43 for those earning from $2-5 million. Based on these scaling factors, we would predict an out-migration effect of 1.46% of those earning $2-5 million, and 1.51% of those earning $5 million.</p></blockquote>
3917<p>None of this should be a surprise.</p>
3918<p>Indeed, I <a href="https://danieljmitchell.wordpress.com/2012/11/07/californias-economic-suicide-and-other-news-from-yesterdays-ballot-measures/">wrote back in 2012</a> that bad things would happen when Proposition 30 was approved.</p>
3919<blockquote><p>I feel safe in stating that this measure is going to accelerate California’s economic decline. Some successful taxpayers are going to tunnel under the proverbial Berlin Wall and escape to states with better (or less worse) fiscal policy. …It goes without saying, of course, that California’s politicians…will act surprised when revenues fall short of projections because of the <a href="https://danieljmitchell.wordpress.com/2011/03/03/a-laffer-curve-tutorial/">Laffer Curve</a>.</p></blockquote>
3920<p>To be fair, I don’t know if California politicians are genuinely surprised. I suspect many of them privately understand the adverse consequences of <a href="https://danieljmitchell.wordpress.com/2009/06/15/obamas-tax-policy-threatens-americas-economy/">class-warfare tax policy</a>. But they nonetheless support bad policy because they <a href="https://danieljmitchell.wordpress.com/2023/01/09/public-choice/">are motivated</a> by a selfish desire to maximize votes.</p>
3921</div>
3922<header class="entry-header">
3923<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2023/11/14/lessons-from-reaganomics-for-the-21st-century-part-ii/" rel="bookmark">Lessons from Reaganomics for the 21st Century, Part II</a></h1>
3924<div class="entry-meta"></div>
3925</header>
3926<div class="entry-content">
3927<p>In <a href="https://danieljmitchell.wordpress.com/2023/11/13/lessons-from-reaganomics-for-the-21st-century-part-i/">Part I of this series</a>, I looked at Ronald Reagan’s <a href="https://danieljmitchell.wordpress.com/2011/02/14/to-fix-the-budget-bring-back-reagan-or-even-clinton/">reasonably successful track record on government spending</a> (which could be characterized as fantastically successful when <a href="https://danieljmitchell.wordpress.com/2020/02/11/mirror-mirror-on-the-wall-which-modern-president-is-the-biggest-spender-of-all/">compared to other Republican presidents</a>) and explained why we need Reaganomics 2.0 to deal with today’s federal leviathan that is far too big and <a href="https://danieljmitchell.wordpress.com/2023/06/29/the-2023-version-of-americas-dismal-fiscal-future/">projected to get even bigger</a>.</p>
3928<p>In Part II, let’s look at Reagan’s track record on tax policy and ask whether we need another dose of “supply-side economics.”</p>
3929<p>When he took office, one of Reagan’s main goals was to lower <a href="https://danieljmitchell.wordpress.com/2021/06/20/the-importance-of-low-marginal-tax-rates/">marginal tax rates</a> on American households. This was necessary for two reasons.</p>
3930<ul>
3931<li>First, tax rates were too high, including a staggering 70-percent top rate for the personal income tax.</li>
3932<li>Second, more and more Americans were being hit by punitive tax rates because of “bracket creep.”</li>
3933</ul>
3934<p>Since I’ve already <a href="https://danieljmitchell.wordpress.com/2018/07/11/a-primer-on-marginal-tax-rates/">written a lot</a> about the problem of high tax rates, let’s address the second point.</p>
3935<p>During the 1970s, when inflation was high, there was understandable pressure to increase wages and salaries so that workers did not fall behind.</p>
3936<p>
3936But when employees got pay raises to keep pace with inflation, that often meant they had to pay higher tax rates even though their inflation-adjusted incomes stayed constant.</p>
3937<p>This was not a trivial problem. Here’s a table from <a href="https://clubforgrowthfoundation.org/policy-reports/reaganomics-for-the-21st-century/">the study I recently wrote</a> for the Club for Growth Foundation. As you can see, middle class households wound up paying much higher marginal tax rates as the 1970s came to a close.</p>
3938<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Table-1.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Table-1.jpg" width="762" height="492" /></a></p>
3939<p>President Reagan recognized this problem and he did two things to help American families.</p>
3940<ul>
3941<li>First, he lowered tax rates across board as part of his 1981 tax cut and his 1986 tax reform, with the top tax rate dropping from 70 percent in 1980 to 28 percent in 1988.</li>
3942<li>Second, he “indexed” the personal income tax for inflation, meaning households no longer would be pushed into higher tax brackets because of <a href="https://danieljmitchell.wordpress.com/2019/04/01/the-federal-reserve-and-boom-bust-monetary-policy/">bad monetary policy</a>.</li>
3943</ul>
3944<p>These reforms helped produce <a href="https://danieljmitchell.wordpress.com/2016/05/12/was-reaganomics-a-success/">an economic boom</a>.</p>
3945<p>Here’s some of what I wrote in the study.</p>
3946<blockquote><p>In 1981, Reagan convinced Congress to enact the Economic Recovery Tax Act, which phased in lower income tax rates for all taxpayers. …Equally important, Reagan got Congress to adopt “indexing,” which meant that tax brackets were automatically adjusted for inflation. <a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-13-23-Title-1.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-13-23-Title-1.jpg" width="169" height="39" /></a>That reform ensured that government no longer profited from inflation. During his second term, Reagan then worked with Congress to approve the Tax Reform Act of 1986. That legislation further lowered tax rates for all taxpayers. …the Reagan tax cuts helped trigger an economic boom. The United States experienced a record economic expansion, with millions of jobs being created and family incomes rising to record levels after the malaise and stagnation of the Carter years. Households earned more money, and they got to keep a greater share of their earnings. Net worth also increased substantially, putting America’s middle class in a very strong position.</p></blockquote>
3947<p>By the way, even though my left-leaning friends are viscerally opposed to lower tax rates for upper-income taxpayers, it’s worth noting that the IRS wound up <a href="https://danieljmitchell.wordpress.com/2009/11/27/he-reagan-tax-cuts-budget-forecasting-and-government-revenue/">collecting more money from the rich</a> after Reagan slashed tax rates. A <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lot more money</a>.</p>
3948<p>All things considered, the Reagan tax cuts were a smashing success (<a href="https://danieljmitchell.wordpress.com/2020/12/16/krugmans-failed-attack-on-reaganomics/">notwithstanding Paul Krugman’s protestations</a>).</p>
3949<p>But is Reagan’s supply-side tax policy still relevant today?</p>
3950<p>Some people think tax policy is no longer a problem because individual income tax rates are lower than they were when Reagan took office and indexing is still protecting people from inflation (which has <a href="https://danieljmitchell.wordpress.com/2022/10/01/understanding-inflation-and-the-federal-reserve/">recently been a problem</a>).</p>
3951<p>For what it’s worth, I think personal income tax rates are still far too high.</p>
3952<p>But the main reason that we need Reaganomics 2.0 is that the United States faces a major problem with <a href="https://danieljmitchell.wordpress.com/2015/04/14/tax-policy-double-taxation-tax-reform-and-the-proper-definition-of-income/">double taxation</a>. To be more specific, the IRS imposes very harsh tax rates on income that is saved and invested.</p>
3953<p>Here’s Figure 9 from the paper. You can see on the left that America’s personal income tax rate is only slightly higher than the average of other rich nations and the corporate tax rate is only somewhat higher.</p>
3954<p>But you can see on the right where America really lags, with significantly higher tax burdens on <a href="https://danieljmitchell.wordpress.com/2010/05/03/the-capital-gains-tax-rate-should-be-zero/">capital gains</a>and <a href="https://danieljmitchell.wordpress.com/2020/06/20/a-primer-on-dividend-taxation/">dividend income</a>.</p>
3955<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Figure-9.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Figure-9.jpg" width="838" height="485" /></a></p>
3956<p>Incidentally, the chart also shows that the United States would be wildly uncompetitive if <a href="https://danieljmitchell.wordpress.com/2023/03/16/the-case-against-bidens-class-warfare-tax-policy-part-vi/">Biden’s tax proposals</a> were enacted.</p>
3957<p>So the obvious takeaway is that <a href="https://danieljmitchell.wordpress.com/2021/01/21/the-case-against-bidens-class-warfare-tax-policy-part-iv/">Biden’s class-warfare plan</a> should never be resuscitated and that lawmakers instead should lower (or <a href="https://danieljmitchell.wordpress.com/2021/08/31/quantifying-the-damage-of-bidens-plan-for-higher-taxes-on-capital-gains-part-ii/">ideally eliminate</a>) the capital gains tax and to reduce (or <a href="https://danieljmitchell.wordpress.com/2022/04/05/dividend-taxation-in-europe-and-the-united-states/">hopefully eliminate</a>) the double tax on dividends.</p>
3958<p>P.S. The capital gains tax is <a href="https://danieljmitchell.wordpress.com/2019/06/30/the-case-for-capital-gains-indexing/">not indexed for inflation</a>, so people often are hit by that tax even when they lose money on an investment. That’s obviously <a href="https://danieljmitchell.wordpress.com/2010/09/20/obamas-wants-a-23-9-capital-gains-tax-but-the-rate-actually-will-be-much-higher-because-of-inflation/">another area</a> where we need Reaganomics 2.0.</p>
3959<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-en
3959abled sd-sharing-enabled"></div>
3960</div>
3961<p>———-</p>
3962<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img loading="lazy" src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525" /></a></p>
3963<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
3964<header class="entry-header">
3965<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
3966<div class="entry-meta"></div>
3967</header>
3968<div class="entry-content">
3969<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a> of Ronald Reagan.</p>
3970<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
3971<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
3972<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151" /></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
3973<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
3974<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
3975<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
3976<blockquote><p>Krugman recently wrote a<span class="Apple-converted-space"> </span>column<span class="Apple-converted-space"> </span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
3977<p>Samuelson first provides the historical context.</p>
3978<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-s
3978pace"> </span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space"> </span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
3979<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
3980<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
3981<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
3982<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-space"> </span>10.8 percent<span class="Apple-converted-space"> </span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
3983<p>What’s the bottom line?</p>
3984<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
3985<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
3986<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
3987<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
3988<p>If anything, Samuelson is being too kind.</p>
3989<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149" /></a>(the so-called Phillips Curve).</p>
3990<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
3991<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
3992<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>
3992,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>, and<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space"> </span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
3993<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
3994<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
3995</div>
3996<p><strong><br />
3997Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
3998<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose" /></p>
3999<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in <a><b>“How to Cure Inflation”</b></a> from the <i>Free To Choose</i> series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
4000<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
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4004<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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4050<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
4051<div>
4052<p>Volume 9 &#8211; How to Cure Inflation</p>
4053</div>
4054<div>Transcript:</div>
4055<div id="yui_3_2_0_1_1326918646312224">
4056<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
4057<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
4058<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
4059<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
4060<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
4060s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
4061<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
4062<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
4062hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
4063<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
4064<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
4065<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
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4067<div>_________________________________________</div>
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4069<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
4070<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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4074<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
4075<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
4076<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
4077<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
4078<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
4079<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
4080<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
4081<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
4082<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
4083<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
4084<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
4085<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
4086<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
4087<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
4088<div>Friedman: Now listen to this:</div>
4089<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
4090<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
4090subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
4091<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
4092<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
4093<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
4094<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
4095<div></div>
4096<div>_______________________________________________</div>
4097<div>
4098<p>(Wage and Price Controls don&#8217;t work)</p>
4099<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
4100<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
4101</div>
4102<div></div>
4103<div>Pt 3</div>
4104<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4105<div></div>
4106<div></div>
4107<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
4108<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
4109<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
4110<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
4111<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
4112<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
4113<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
4114<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
4114cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
4115<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
4116<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
4117<div></div>
4118<div>___________________________________</div>
4119<div></div>
4120<div>Pt 4</div>
4121<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
4122<div></div>
4123<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4124<div></div>
4125<div>DISCUSSION</div>
4126<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
4127<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
4128<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
4129<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
4130<div>MARTIN: I want to say 19 years.</div>
4131<div>(Laughter)</div>
4132<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
4133<div>FRIEDMAN: You&#8217;ve never taken it.</div>
4134<div>(Laughter)</div>
4135<div>MCKENZIE: He&#8217;
4135s going to do some interviewing later, I warn you.</div>
4136<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
4137<div>(Laughter)</div>
4138<div>MARTIN: __ all the time.</div>
4139<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
4140<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
4141<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
4142<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
4143<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
4144<div>MARTIN: Yes.</div>
4145<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
4146<div>MARTIN: Yeah, that&#8217;s right.</div>
4147<div>(Laughter)</div>
4148<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
4149<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
4150<div>MARTIN: Well, taxation.</div>
4151<div>MCKENZIE: Yeah.</div>
4152<div>MARTIN: The raising revenue.</div>
4153<div>FRIEDMAN: And spending.</div>
4154<div>MARTIN: And spending.</div>
4155<div>FRIEDMAN: And deficits.</div>
4156<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
4156ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
4157<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
4158<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
4159<div>FRIEDMAN: I know. I know.</div>
4160<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
4161<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
4162<div>(Several people talking at once.)</div>
4163<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
4164<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
4165<div>FRIEDMAN: That would be sufficient.</div>
4166<div>EMMINGER: __ for controlling inflation. But however I __</div>
4167<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
4168<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
4169<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
4170<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
4171<div></div>
4172<div>_________________________________________</div>
4173<div></div>
4174<div>Pt 5</div>
4175<div>
4176<div> I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
4177<div>BROWN:</div>
4178</div>
4179<div></div>
4180<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4181<div></div>
4182<div></div>
4183<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
4184<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
4185<div>FRIEDMAN: I understand.</div>
4186<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
4187<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
4188<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
4188ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
4188s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
4189<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
4190<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
4191<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
4192<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
4193<div>MARTIN: We fear unemployment more than inflation it seems.</div>
4194<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
4195<div>(Laughing)</div>
4196<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
4197<div>MCKENZIE: Those were __ yes.</div>
4198<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
4199<div></div>
4200<div>____________________________________</div>
4201<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
4202<div></div>
4203<div>Pt 6</div>
4204<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4205<div></div>
4206<div></div>
4207<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
4208<div>FRIEDMAN: Five years.</div>
4209<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
4210<div>BROWN: Bad election speech.</div>
4211<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
4212<div>(Laughter)</div>
4213<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
4213orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
4214<div>MCKENZIE: Yes.</div>
4215<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
4216<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
4217<div>SPRINKEL: Yes.</div>
4218<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
4219<div>BROWN: That&#8217;s right.</div>
4220<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
4221<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
4222<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
4223<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
4224<div>FRIEDMAN: I know you are.</div>
4225<div>MCKENZIE: Some countries do that, of course.</div>
4226<div>FRIEDMAN: Oh, of course.</div>
4227<div>MCKENZIE: Canada does that. Indexes the __</div>
4228<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
4229<div>FRIEDMAN: Absolutely.</div>
4230<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
4231<div>MCKENZIE: Yeah.</div>
4232<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
4233<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
4234<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
4235<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
4236<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
4237<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
4238<div>SPRINKEL: Yes.</div>
4239<div>FRIEDMAN: __ I think you were making.</div>
4240<div>
4240SPRINKEL: The suffering idea.</div>
4241<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
4242<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
4243<div>FRIEDMAN: Apparently nobody can learn from history.</div>
4244<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
4245<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
4246<div>FRIEDMAN: Right.</div>
4247<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
4248<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
4249<div></div>
4250<div>____________________________________</div>
4251<div>
4252<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
4253<div>BROWN</div>
4254</div>
4255<div></div>
4256<div>Pt 7</div>
4257<div></div>
4258<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4259<div>BROWN: But, Dr. Friedman, let me __</div>
4260<div>(Applause)</div>
4261<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
4262<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
4263<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
4264<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
4265<div>BROWN: Of course, of course.</div>
4266<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
4267<div>MCKENZIE: Your view __</div>
4268<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
4269<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
4270<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
4271<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
4272<div>FRIEDMAN: Absolutely.</div>
4273<div>BROWN: To finance the growth of government.</div>
4274<div>FRIEDMAN: That&#8217;s right.</div>
4275<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
4276<div>FRIEDMAN: That&#8217;s right.</div>
4277<div>BROWN: If you __</div>
4278<div>FRIEDMAN: I am all in favor of that.</div>
4279<div>BROWN: All right.</div>
4280<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
4281<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
4282<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
4283<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
4284<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
4285<div>(Several people talking at once.)</div>
4286<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
4287<div>FRIEDMAN: That&#8217;s what __</div>
4288<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
4289<div>
4289SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
4290<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
4291<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
4292<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
4293<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
4294<div>(Applause)</div>
4295<div>From Harper Library, goodbye.</div>
4296</div>
4297<div>
4298<ul>
4299<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
4300<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
4301<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
4302</ul>
4303</div>
4304</td>
4305</tr>
4306</tbody>
4307</table>
4308</div>
4309</td>
4310</tr>
4311</tbody>
4312</table>
4313</div>
4314</td>
4315</tr>
4316</tbody>
4317</table>
4318</div>
4319</td>
4320</tr>
4321</tbody>
4322</table>
4323</div>
4324</td>
4325</tr>
4326</tbody>
4327</table>
4328</div>
4329</td>
4330</tr>
4331</tbody>
4332</table>
4333</div>
4334</td>
4335</tr>
4336</tbody>
4337</table>
4338</div>
4339</blockquote>
4340</td>
4341</tr>
4342</tbody>
4343</table>
4344</div>
4345</div>
4346</div>
4347</div>
4348<div id="yui_3_2_0_9_132691864631220">
4349<div id="yui_3_2_0_9_132691864631244">
4350<div id="quick-reply">
4351<div id="yui_3_2_0_9_132691864631249"></div>
4352<p>Related posts:</p>
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4356<div>
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4365<div>
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4369</div>
4370<p>________________</p>
4371<div>
4372<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
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4376<div>
4377<p>
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4384<div>
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4391<div>
4392<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
4393</div>
4394<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
4394 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
4395<p>____________________________</p>
4396</div>
4397<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
4398<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
4399<p>_____________________________________________</p>
4400<div>
4401<div id="post-14520">
4402<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)</a></h3>
4403<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
4404<div>
4405<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 3 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
4406</div>
4407<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
4408</div>
4409<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
4410<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
4411<div>
4412<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
4413</div>
4414<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
4414p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
4415</div>
4416<div>
4417<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
4418<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
4419<div>
4420<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
4421</div>
4422<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
4423</div>
4424<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
4425<div id="post-12246">
4426<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
4427<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
4428<div>
4429<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
4430</div>
4431<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
4431p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
4432</div>
4433<div id="post-12238">
4434<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
4435<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
4436<div>
4437<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
4438</div>
4439<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
4440</div>
4441<div id="post-11625">
4442<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
4443<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
4444<div>
4445<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
44450;]</p>
4446</div>
4447<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
4448</div>
4449<div id="post-10205">
4450<div>
4451<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
4452<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
4453<div>
4454<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
4454cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
4455</div>
4456<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
4457</div>
4458<div>
4459<div id="post-9317">
4460<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
4461<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
4462<div>
4463<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
4464</div>
4465<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
4466</div>
4467<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
4468<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
4469<div>
4470<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
4471</div>
4472<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
4472-1-of-7/#respond">Comments (0)</a></p>
4473</div>
4474<div></div>
4475<div>
4476<div id="post-16023">
4477<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
4478<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
4479<div>
4480<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
4481</div>
4482<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
4483</div>
4484<div id="post-16020">
4485<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
4486<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
4487<div>
4488<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
4489</div>
4490<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
4491</div>
4492<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
4493<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
4494<div>
4495<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
4496</div>
4497<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
4497p-admin/post.php?post=16018&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
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4499</div>
4500<div id="post-22868">
4501<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
4502<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
4503<div>
4504<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
4505</div>
4506<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
4507</div>
4508</div>
4509</div>
4510</div>
4511</div>
4512</div>
4513									</div>
4514				<div class="entry-meta">
4515					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
4516					<span class="meta-sep">|</span>
4517										<span class="comments-link"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-article-in-one-image-everything-you-need-to-know-about-californias-fiscal-troubles/#respond">Comments (0)</a></span>
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4521
4522			<div id="post-129736" class="hentry p9 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m03 d26 h00">
4523				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/03/26/washingtons-fiscal-ponzi-scheme-great-book-by-dan-mitchell/" rel="bookmark">Washington’s Fiscal Ponzi Scheme (Great Book by Dan&nbsp;Mitchell!!)</a></h3>
4524				<div class="entry-date"><a href="https://thedailyhatch.org/2024/03/26/washingtons-fiscal-ponzi-scheme-great-book-by-dan-mitchell/" class="published" title="2024-03-26T05:02:20-0500">March 26, 2024 &#8211; 5:02 am</a></div>
4525				<div class="entry-content">
4526					<p>——</p>
4527<header class="entry-header">
4528<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2024/03/20/washingtons-fiscal-ponzi-scheme/" rel="bookmark">Washington’s Fiscal Ponzi Scheme</a></h1>
4529<div class="entry-meta"></div>
4530</header>
4531<div class="entry-content">
4532<p>My book on <a href="https://danieljmitchell.wordpress.com/2021/08/08/fiscal-policy-101-for-politicians-and-other-dummies/">fiscal policy</a>, co-authored with Les Rubin, is now officially published.</p>
4533<p><a href="https://www.greatestponzischeme.com/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-11-24-Book-1.jpg" width="207" height="299" /></a>I wrote <a href="https://danieljmitchell.wordpress.com/2024/03/11/must-read-book-on-fiscal-policy/">a sneak-peak column</a> about <a href="https://www.greatestponzischeme.com/"><em>The Greatest Ponzi Scheme on Earth</em></a> last week.</p>
4534<p>There are three main takeaways from our book.</p>
4535<ul>
4536<li>The problem <a href="https://danieljmitchell.wordpress.com/2022/11/06/americas-fiscal-problem-is-excessive-government-spending/">is spending</a></li>
4537<li>The problem <a href="https://danieljmitchell.wordpress.com/2023/01/04/control-the-burden-of-government-spending/">is spending</a></li>
4538<li>The problem <a href="https://danieljmitchell.wordpress.com/2022/06/14/the-optimum-level-of-government-spending/">is spending</a></li>
4539</ul>
4540<p>Okay, I’ll admit those bullet points are an oversimplification.</p>
4541<p>But there’s a reason for that.</p>
4542<p>
4542Our book does show how we got into our current fiscal mess (because of <a href="https://danieljmitchell.wordpress.com/2017/07/08/the-grim-history-of-federal-spending-since-world-war-ii/">too much spending</a>).</p>
4543<p>And it shows why things will get worse in the future if we leave government on autopilot (because of <a href="https://danieljmitchell.wordpress.com/2023/06/29/the-2023-version-of-americas-dismal-fiscal-future/">too much spending</a>).</p>
4544<p>Moreover, we have lots of evidence for the right way to avert a fiscal disaster. Richard Rahn <a href="https://www.washingtontimes.com/news/2024/mar/18/are-you-part-of-ponzi-scheme/">wrote about our book</a> in his <em>Washington Times</em> column.</p>
4545<blockquote>
4546<p align="left">In a new book, “The Greatest Ponzi Scheme: How the U.S. Can Avoid Economic Collapse,” Leslie A. Rubin and Daniel J. Mitchell provide a well-written and informative history of how much of the world and particularly the United States managed to get into the current fiscal mess. …British Prime Minister Margaret Thatcher said it best: “The problem with socialism is that you eventually run out of other people’s money.”<a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-20-24-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-20-24-Title.jpg" width="240" height="40" /></a>Before World War I, government spending in almost every country was a small share of gross domestic product. …In the United States, things began to change in the 1930s with the development of welfare programs… Mr. Rubin and Mr. Mitchell review many of the so-called entitlement programs that are the real budget busters. The payments from these programs consistently grow faster than the economy or tax revenue and now consume the bulk of the federal budget. Anyone who can do basic math can quickly understand the problem. When a country reaches the point where it is borrowing just to pay interest on the debt, game over.</p>
4547</blockquote>
4548<p align="left">That’s the bad news in the book. And Richard captures some of that bad news with this table showing how the burden of government spending <a href="https://danieljmitchell.wordpress.com/2018/06/28/the-western-worlds-most-depressing-chart/">has significantly increased</a> over the past 100-plus years.</p>
4549<p align="left"><a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-20-24-Table.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-20-24-Table.jpg" width="504" height="277" /></a></p>
4550<p align="left">But our book also has good news, as Richard explains.</p>
4551<blockquote>
4552<p align="left">Fortunately, there are a number of success stories that serve as role models of what to do. …Switzerland is perhaps the best model for fiscal responsibility in a highly developed country, in that for the most part the Swiss keep government spending growing no more rapidly than the private sector.</p>
4553</blockquote>
4554<p>As you might expect, I like his conclusion.</p>
4555<blockquote>
4556<p align="left">Mr. Rubin and Mr. Mitchell have done a great service in providing a highly understandable book, outlining the disaster about to engulf us if we do not change quickly, but equally important, a road map for getting out. Every policymaker and concerned citizen ought to buy this book and refer to it often — an economic bible of sin and salvation.</p>
4557</blockquote>
4558<p>I want you to buy the book, but if you are a regular reader of this column, you already know the only practical way of averting a fiscal crisis in the United States. Simply follow <a href="https://danieljmitchell.wordpress.com/2014/04/07/the-golden-rule-of-spending-restraint/">the Golden Rule</a>. And, because of its <a href="https://danieljmitchell.wordpress.com/2017/07/11/in-just-six-minutes-everything-you-need-to-know-about-spending-caps/">spending cap</a>, Switzerland is <a href="https://danieljmitchell.wordpress.com/2023/03/18/more-evidence-for-switzerlands-spending-cap/">a good role model</a>.</p>
4559</div>
4560<header class="entry-header">
4561<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2023/11/14/lessons-from-reaganomics-for-the-21st-century-part-ii/" rel="bookmark">Lessons from Reaganomics for the 21st Century, Part II</a></h1>
4562<div class="entry-meta"></div>
4563</header>
4564<div class="entry-content">
4565<p>In <a href="https://danieljmitchell.wordpress.com/2023/11/13/lessons-from-reaganomics-for-the-21st-century-part-i/">Part I of this series</a>, I looked at Ronald Reagan’s <a href="https://danieljmitchell.wordpress.com/2011/02/14/to-fix-the-budget-bring-back-reagan-or-even-clinton/">reasonably successful track record on government spending</a> (which could be characterized as fantastically successful when <a href="https://danieljmitchell.wordpress.com/2020/02/11/mirror-mirror-on-the-wall-which-modern-president-is-the-biggest-spender-of-all/">compared to other Republican presidents</a>) and explained why we need Reaganomics 2.0 to deal with today’s federal leviathan that is far too big and <a href="https://danieljmitchell.wordpress.com/2023/06/29/the-2023-version-of-americas-dismal-fiscal-future/">projected to get even bigger</a>.</p>
4566<p>In Part II, let’s look at Reagan’s track record on tax policy and ask whether we need another dose of “supply-side economics.”</p>
4567<p>When he took office, one of Reagan’s main goals was to lower <a href="https://danieljmitchell.wordpress.com/2021/06/20/the-importance-of-low-marginal-tax-rates/">marginal tax rates</a> on American households. This was necessary for two reasons.</p>
4568<ul>
4569<li>First, tax rates were too high, including a staggering 70-percent top rate for the personal income tax.</li>
4570<li>Second, more and more Americans were being hit by punitive tax rates because of “bracket creep.”</li>
4571</ul>
4572<p>Since I’ve already <a href="https://danieljmitchell.wordpress.com/2018/07/11/a-primer-on-marginal-tax-rates/">written a lot</a> about the problem of high tax rates, let’s address the second point.</p>
4573<p>During the 1970s, when inflation was high, there was understandable pressure to increase wages and salaries so that workers did not fall behind.</p>
4574<p>
4574But when employees got pay raises to keep pace with inflation, that often meant they had to pay higher tax rates even though their inflation-adjusted incomes stayed constant.</p>
4575<p>This was not a trivial problem. Here’s a table from <a href="https://clubforgrowthfoundation.org/policy-reports/reaganomics-for-the-21st-century/">the study I recently wrote</a> for the Club for Growth Foundation. As you can see, middle class households wound up paying much higher marginal tax rates as the 1970s came to a close.</p>
4576<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Table-1.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Table-1.jpg" width="762" height="492" /></a></p>
4577<p>President Reagan recognized this problem and he did two things to help American families.</p>
4578<ul>
4579<li>First, he lowered tax rates across board as part of his 1981 tax cut and his 1986 tax reform, with the top tax rate dropping from 70 percent in 1980 to 28 percent in 1988.</li>
4580<li>Second, he “indexed” the personal income tax for inflation, meaning households no longer would be pushed into higher tax brackets because of <a href="https://danieljmitchell.wordpress.com/2019/04/01/the-federal-reserve-and-boom-bust-monetary-policy/">bad monetary policy</a>.</li>
4581</ul>
4582<p>These reforms helped produce <a href="https://danieljmitchell.wordpress.com/2016/05/12/was-reaganomics-a-success/">an economic boom</a>.</p>
4583<p>Here’s some of what I wrote in the study.</p>
4584<blockquote><p>In 1981, Reagan convinced Congress to enact the Economic Recovery Tax Act, which phased in lower income tax rates for all taxpayers. …Equally important, Reagan got Congress to adopt “indexing,” which meant that tax brackets were automatically adjusted for inflation. <a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-13-23-Title-1.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-13-23-Title-1.jpg" width="169" height="39" /></a>That reform ensured that government no longer profited from inflation. During his second term, Reagan then worked with Congress to approve the Tax Reform Act of 1986. That legislation further lowered tax rates for all taxpayers. …the Reagan tax cuts helped trigger an economic boom. The United States experienced a record economic expansion, with millions of jobs being created and family incomes rising to record levels after the malaise and stagnation of the Carter years. Households earned more money, and they got to keep a greater share of their earnings. Net worth also increased substantially, putting America’s middle class in a very strong position.</p></blockquote>
4585<p>By the way, even though my left-leaning friends are viscerally opposed to lower tax rates for upper-income taxpayers, it’s worth noting that the IRS wound up <a href="https://danieljmitchell.wordpress.com/2009/11/27/he-reagan-tax-cuts-budget-forecasting-and-government-revenue/">collecting more money from the rich</a> after Reagan slashed tax rates. A <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lot more money</a>.</p>
4586<p>All things considered, the Reagan tax cuts were a smashing success (<a href="https://danieljmitchell.wordpress.com/2020/12/16/krugmans-failed-attack-on-reaganomics/">notwithstanding Paul Krugman’s protestations</a>).</p>
4587<p>But is Reagan’s supply-side tax policy still relevant today?</p>
4588<p>Some people think tax policy is no longer a problem because individual income tax rates are lower than they were when Reagan took office and indexing is still protecting people from inflation (which has <a href="https://danieljmitchell.wordpress.com/2022/10/01/understanding-inflation-and-the-federal-reserve/">recently been a problem</a>).</p>
4589<p>For what it’s worth, I think personal income tax rates are still far too high.</p>
4590<p>But the main reason that we need Reaganomics 2.0 is that the United States faces a major problem with <a href="https://danieljmitchell.wordpress.com/2015/04/14/tax-policy-double-taxation-tax-reform-and-the-proper-definition-of-income/">double taxation</a>. To be more specific, the IRS imposes very harsh tax rates on income that is saved and invested.</p>
4591<p>Here’s Figure 9 from the paper. You can see on the left that America’s personal income tax rate is only slightly higher than the average of other rich nations and the corporate tax rate is only somewhat higher.</p>
4592<p>But you can see on the right where America really lags, with significantly higher tax burdens on <a href="https://danieljmitchell.wordpress.com/2010/05/03/the-capital-gains-tax-rate-should-be-zero/">capital gains</a>and <a href="https://danieljmitchell.wordpress.com/2020/06/20/a-primer-on-dividend-taxation/">dividend income</a>.</p>
4593<p><a href="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Figure-9.jpg"><img loading="lazy" class="alignnone size-large" src="https://freedomandprosperity.org/wp-content/uploads/2023/11/Nov-14-23-Figure-9.jpg" width="838" height="485" /></a></p>
4594<p>Incidentally, the chart also shows that the United States would be wildly uncompetitive if <a href="https://danieljmitchell.wordpress.com/2023/03/16/the-case-against-bidens-class-warfare-tax-policy-part-vi/">Biden’s tax proposals</a> were enacted.</p>
4595<p>So the obvious takeaway is that <a href="https://danieljmitchell.wordpress.com/2021/01/21/the-case-against-bidens-class-warfare-tax-policy-part-iv/">Biden’s class-warfare plan</a> should never be resuscitated and that lawmakers instead should lower (or <a href="https://danieljmitchell.wordpress.com/2021/08/31/quantifying-the-damage-of-bidens-plan-for-higher-taxes-on-capital-gains-part-ii/">ideally eliminate</a>) the capital gains tax and to reduce (or <a href="https://danieljmitchell.wordpress.com/2022/04/05/dividend-taxation-in-europe-and-the-united-states/">hopefully eliminate</a>) the double tax on dividends.</p>
4596<p>P.S. The capital gains tax is <a href="https://danieljmitchell.wordpress.com/2019/06/30/the-case-for-capital-gains-indexing/">not indexed for inflation</a>, so people often are hit by that tax even when they lose money on an investment. That’s obviously <a href="https://danieljmitchell.wordpress.com/2010/09/20/obamas-wants-a-23-9-capital-gains-tax-but-the-rate-actually-will-be-much-higher-because-of-inflation/">another area</a> where we need Reaganomics 2.0.</p>
4597<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-en
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4598</div>
4599<p>———-</p>
4600<p><a href="https://upload.wikimedia.org/wikipedia/commons/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg"><img loading="lazy" src="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg/800px-President_Ronald_Reagan_and_Nancy_Reagan_in_The_East_Room_Congratulating_Milton_Friedman_Receiving_The_Presidential_Medal_of_Freedom.jpg?20190905024518" alt="File:President Ronald Reagan and Nancy Reagan in The East Room Congratulating Milton Friedman Receiving The Presidential Medal of Freedom.jpg" width="800" height="525" /></a></p>
4601<p>This past article below from Dan Mitchell tells the story of Ronald Reagan’s successful strategy against inflation. I had a front row seat since I got to read the book and see the film FREE TO CHOOSE by Milton Friedman in 1980 who Reagan agreed with on this issue and I have included below the episode on inflation!</p>
4602<header class="entry-header">
4603<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2015/01/25/ronald-reagans-most-under-appreciated-triumph/" rel="bookmark">Ronald Reagan’s Most Under-Appreciated Triumph</a></h1>
4604<div class="entry-meta"></div>
4605</header>
4606<div class="entry-content">
4607<p>It’s no secret that I’m <a href="https://danieljmitchell.wordpress.com/2011/02/06/happy-100th-birthday-to-ronald-reagan/">a huge fan</a> of Ronald Reagan.</p>
4608<p>He’s definitely the greatest president of my lifetime and, with <a href="https://danieljmitchell.wordpress.com/2010/10/15/can-you-name-the-greatest-president-of-the-past-100-years/">one possible rival</a>, he was the greatest President of the 20th century.</p>
4609<p>If his only accomplishment was ending malaise and <a href="https://danieljmitchell.wordpress.com/2014/08/07/the-no-comparison-comparison-of-reagan-v-obama/">restoring American prosperity</a> thanks to <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">lower tax rates</a> and other pro-market reforms, he would be a great President.</p>
4610<p><a href="http://www.yaf.org/uploadedImages/Blogs/tear%20down.jpg"><img loading="lazy" class="alignright" src="https://i0.wp.com/www.yaf.org/uploadedImages/Blogs/tear%20down.jpg" alt="" width="202" height="151" /></a>He also restored America’s national defenses and reoriented foreign policy, both of which led to the collapse of <a href="https://danieljmitchell.wordpress.com/2009/11/10/communism-was-and-still-is-evil/">the Soviet Empire</a>, a stupendous achievement that makes Reagan worthy of Mount Rushmore.</p>
4611<p>But he also has another great achievement, one that doesn’t receive nearly the level of appreciation that it deserves. President Reagan demolished the economic cancer of inflation.</p>
4612<p>Even Paul Krugman has acknowledged that reining in double-digit inflation was a major positive achievement. Because of his anti-Reagan bias, though, he wants to deny the Gipper any credit.</p>
4613<p>Robert Samuelson, in <a href="http://www.washingtonpost.com/opinions/robert-samuelson-volcker-reagan-and-history/2015/01/11/9c32e822-982a-11e4-aabd-d0b93ff613d5_story.html">a column</a> for the <em>Washington Post</em>, corrects the historical record.</p>
4614<blockquote><p>Krugman recently wrote a<span class="Apple-converted-space"> </span>column<span class="Apple-converted-space"> </span>arguing that the decline of double-digit inflation in the 1980s was the decade’s big economic event, not the cuts in tax rates usually touted by conservatives. Actually, I agree with Krugman on this. But then he asserted that Ronald Reagan had almost nothing to do with it. That’s historically incorrect. Reagan was crucial. …Krugman’s error is so glaring.</p></blockquote>
4615<p>Samuelson first provides the historical context.</p>
4616<blockquote><p>For those too young to remember, here’s background. From 1960 to 1980, inflation — the general rise of retail prices —<span class="Apple-converted-s
4616pace"> </span>marched relentlessly upward. It went from 1.4 percent in 1960 to 5.9 percent in 1969 to 13.3 percent in 1979. The higher it rose, the more unpopular it became. …Worse, government seemed powerless to defeat it. Presidents deployed complex wage and price controls and guidelines. They didn’t work. The Federal Reserve — custodian of credit policies — veered between easy money and tight money, striving both to subdue inflation and to maintain “full employment” (taken as a 4 percent to 5 percent unemployment rate). It achieved neither. From the late 1960s to the early 1980s, there were<span class="Apple-converted-space"> </span>four recessions. Inflation became a monster, destabilizing the economy.</p></blockquote>
4617<p>The column then explains that there was a dramatic turnaround in the early 1980s, as Fed Chairman Paul Volcker adopted a tight-money policy and inflation was squeezed out of the system much faster than almost anybody thought was possible.</p>
4618<p>But Krugman wants his readers to think that Reagan played no role in this dramatic and positive development.</p>
4619<p>Samuelson says this is nonsense. Vanquishing inflation would have been impossible without Reagan’s involvement.</p>
4620<blockquote><p>What Reagan provided was political protection. The Fed’s previous failures to stifle inflation reflected its unwillingness to maintain tight-money policies long enough… Successive presidents preferred a different approach: the wage-price policies built on the pleasing (but unrealistic) premise that these could quell inflation without jeopardizing full employment. Reagan rejected this futile path. As the gruesome social costs of Volcker’s policies mounted — the monthly unemployment rate would ultimately rise to a post-World War II high of<span class="Apple-converted-space"> </span>10.8 percent<span class="Apple-converted-space"> </span>— Reagan’s approval ratings plunged. In May 1981, they were at 68 percent; by January 1983, 35 percent. Still, he supported the Fed. …It’s doubtful that any other plausible presidential candidate, Republican or Democrat, would have been so forbearing.</p></blockquote>
4621<p>What’s the bottom line?</p>
4622<blockquote><p>What Volcker and Reagan accomplished was an economic and political triumph. Economically, ending double-digit inflation set the stage for a quarter-century of near-automatic expansion… Politically, Reagan and Volcker showed that leaders can take actions that, though initially painful and unpopular, served the country’s long-term interests. …There was no explicit bargain between them. They had what I’ve called a “compact of conviction.”</p></blockquote>
4623<p>By the way, Krugman then put forth a rather lame response to Samuelson, including the rather amazing claim that “[t]he 1980s were a triumph of Keynesian economics.”</p>
4624<p>Here’s what Samuelson wrote in <a href="http://www.washingtonpost.com/opinions/robert-j-samuelson-setting-the-record-straight-on-reagan-volcker-and-inflation/2015/01/21/05a7a71a-a187-11e4-9f89-561284a573f8_story.html">a follow-up column</a>debunking Krugman.</p>
4625<blockquote><p>As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment. By the early 1980s, this vision was in tatters, and many economists were fatalistic about controlling high inflation. Maybe it could be contained. It couldn’t be eliminated, because the social costs (high unemployment, lost output) would be too great. …This was a clever rationale for tolerating high inflation, and the Volcker-Reagan monetary onslaught demolished it. High inflation was not an intrinsic condition of wealthy democracies. It was the product of bad economic policies. This was the 1980s’ true lesson, not the contrived triumph of Keynesianism.</p></blockquote>
4626<p>If anything, Samuelson is being too kind.</p>
4627<p>One of the key tenets of <a href="https://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/">Keynesian economics</a> is that there’s a tradeoff between inflation and unemployment <a href="http://www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg"><img loading="lazy" class="alignleft" src="https://i0.wp.com/www.iagreetosee.com/wp-content/uploads/2013/07/Lets-Make-America-Great-Again-Reagan3.jpg" alt="" width="107" height="149" /></a>(the so-called Phillips Curve).</p>
4628<p>Yet in the 1970s we had rising inflation and rising unemployment.</p>
4629<p>While in the 1980s, we had falling inflation and falling unemployment.</p>
4630<p>But if you’re Paul Krugman and you already have a very long list of mistakes (see <a href="https://danieljmitchell.wordpress.com/2014/07/25/krugmans-gotcha-moment-leaves-something-to-be-desired/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/02/24/the-missing-data-in-krugmans-german-austerity-narrative/">here</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/17/siding-with-the-heritage-foundation-in-the-austerity-fight-with-paul-krugman-and-the-washington-post/">here</a>, <a href="https://danieljmitchell.wordpress.com/2012/06/07/estonia-and-austerity-another-exploding-cigar-for-paul-krugman/">here</a>
4630,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/04/05/debunking-krugmans-european-austerity-narrative/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/02/17/defending-cato-from-the-predictably-inaccurate-ramblings-of-paul-krugman/">here</a>,<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2013/01/23/is-anybody-surprised-that-krugman-was-wrong-about-u-k-fiscal-policy/">here</a>, <a href="https://danieljmitchell.wordpress.com/2014/12/30/another-oops-moment-for-paul-krugman/">here</a>, and<span class="Apple-converted-space"> </span><a href="https://danieljmitchell.wordpress.com/2012/10/15/another-british-healthcare-horror-story-but-its-false-according-to-paul-krugman/">here</a><span class="Apple-converted-space"> </span>for a few examples), then why not go for the gold and try to give Keynes credit for the supply-side boom of the 1980s</p>
4631<p>P.S. Since today’s topic is Reagan, it’s a good opportunity to share <a href="https://danieljmitchell.wordpress.com/2013/04/13/the-spirit-of-reagan-is-still-with-us-the-gipper-crushes-obama-in-hypothetical-matchup/">my favorite poll</a> of the past five years.</p>
4632<p>P.P.S. Here are <a href="https://danieljmitchell.wordpress.com/2011/01/20/seven-historic-videos-to-celebrate-the-30th-anniversary-of-ronald-reagans-inauguration/">some great videos</a> of Reagan in action. And here’s <a href="https://danieljmitchell.wordpress.com/2012/07/04/an-independence-day-message-from-a-great-president/">one more</a> if you need another Reagan fix.</p>
4633</div>
4634<p><strong><br />
4635Milton Friedman&#8217;s FREE TO CHOOSE &#8220;How to cure inflation&#8221; Transcript and Video (60 Minutes)</strong></p>
4636<p><img src="https://i.ytimg.com/vi/51abNVOQjOU/hqdefault.jpg" alt="Image result for milton friedman free to choose" /></p>
4637<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market.</a>“If we could just stop the printing presses, we would stop inflation,” Milton Friedman says in <a><b>“How to Cure Inflation”</b></a> from the <i>Free To Choose</i> series. Now as then, there is only one cause of inflation, and that is when governments print too much money. Milton explains why it is that politicians like inflation, and why wage and price controls are not solutions to the problem.</p>
4638<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/b1dTWDNKH3c?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
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4642<h3><a title="Click to search for messages with same subject">Videos are good, Fw: Vol 9 How to cure inflation FREE TO CHOOSE Episode 9 Videos and transcripts</a></h3>
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4688<td><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While" rel="nofollow">http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=9While</a> many people have a fairly good grasp of what inflation is, few really understand its fundamental cause. There are many popular scapegoats: labor unions, big business, spendthrift consumers, greed, and international forces. Dr. Friedman explains that the actual cause is a government that has exclusive control of the money supply. Friedman says that the solution to inflation is well known among those who have the power to stop it: simply slow down the rate at which new money is printed. But government is one of the primary beneficiaries of inflation. By inflating the currency, tax revenues rise as families are pushed into higher income tax brackets. Thus, inflation transfers wealth and resources from the private to the public sector. In short, inflation is attractive to government because it is a way of increasing taxes without having to pass new legislation to raise tax rates. Inflation is in fact taxation without representation. Wage and price controls are not the cure for inflation because they treat only the symptom (rising prices) and not the disease (monetary expansion). History records that such controls do not work; instead, they have perverse effects on both prices and economic growth and undermine the fundamental productivity of the economy. There is only one cure for inflation: slow the printing presses. But the cure produces the painful side effects of a temporary increase in unemployment and reduced economic growth. It takes considerable political courage to undergo the cure. Friedman cites the example of Japan, which successfully underwent the cure in the mid-seventies but took five years to squeeze inflation out of the system. Inflation is a social disease that has the potential for destroying a free society if it is unchecked. Prolonged inflation undermines belief in the basic equity of the free market system because it tends to destroy the link between effort and reward. And it tears the social fabric because it divides society into winners and losers and sets group against group.(Taxation without representation: Getting knocked up to higher tax brackets because of inflation pt 1)http://www.youtube.com/watch?v=b1dTWDNKH3c</p>
4689<div>
4690<p>Volume 9 &#8211; How to Cure Inflation</p>
4691</div>
4692<div>Transcript:</div>
4693<div id="yui_3_2_0_1_1326918646312224">
4694<div>Friedman: The Sierra Nevada&#8217;s in California 10,000 feet above sea level, in the winter temperatures drop to 40 below zero, in the summer the place bakes in the thin mountain air. In this unlikely spot the town of Body sprang up. In its day Body was filled with prostitutes, drunkards and gamblers part of a colorful history of the American West.</div>
4695<div>A century ago, this was a town of 10,000 people. What brought them here? Gold. If this were real gold, people would be scrambling for it. The series of gold strikes throughout the West brought people from all over the world, all kinds of people. They came here for one purpose and one purpose only, to strike it rich, quick. But in the process, they built towns, cities, in places where nobody would otherwise have dreamed of building a city. Gold built these cities and when the gold was exhausted, the cities collapsed and became ghost towns. Many of the people who came here ended up the way they began, broke and unhappy. But a few struck it rich. For them, gold was real wealth. But was it for the world as a whole. People couldn&#8217;t eat the gold, they couldn&#8217;t wear the gold, they couldn&#8217;t live in houses made of gold. Because there was more gold, they had to pay a little more gold to buy goods and services. The prices of things in terms of gold went up.</div>
4696<div>At tremendous cost, at sacrifice of lives, people dug gold out of the bowels of the earth. What happened to that gold? Eventually, at long last, it was transported to distant places only to be buried again under the ground. This time in the vaults of banks throughout the world. There is hardly anything that hasn&#8217;t been used for money; rock salt in Ethiopia, brass rings in West Africa, Calgary shells in Uganda, even a toy cannon. Anything can be used as money. Crocodile money in Malaysia, absurd isn&#8217;t it?</div>
4697<div>That beleaguered minority of the population that still smokes may recognize this stuff as the raw material from which their cigarettes are made. But in the early days of the colonies, long before the U.S. was established, this was money. It was the common money of Virginia, Maryland and the Carolinas. It was used for all sorts of things. The legislature voted that it could be used legally to pay taxes. It was used to buy food, clothing and housing. Indeed, one of the most interesting sites was to see the husky young fellows at that time, lug 100 pounds of it down to the docks to pay the costs of the passage of the beauteous young ladies who had come over from England to be their brides.</div>
4698<div>Now you know how money is. There&#8217;s a tendency for it to grow, for more and more of it to be produced and that&#8217;s what happened with this tobacco. As more tobacco was produced, there was more money. And as always when there&#8217;s more money, prices went up. Inflation. Indeed, at the very end of the process, prices were 40 times as high in terms of tobacco as they had been at the beginning of the process. And as always when inflation occurs, people complained. And as always, the legislature tried to do something. And as always, to very little avail. They prohibited certain classes of people from growing tobacco. They tried to reduce the total amount of tobacco grown, they required people to destroy part of their tobacco. But it did no good. Finally, many people took it into their own hands and they went around destroying other people&#8217;s tobacco fields. That was too much. Then they passed a law making it a capital offense, punishable by death, to destroy somebody else&#8217;s tobacco. Grecian&#8217;
4698s Law, one of the oldest laws in economics, was well illustrated. That law says that cheap money drives out dear money and so it was with tobacco. Anybody who had a debt to pay, of course, tried to pay it in the worst quality of tobacco he had. He saved the good tobacco to sell overseas for hard money. The result was that bad money drove out good money.</div>
4699<div>Finally, almost a century after they had started using tobacco as money, they established warehouses in which tobacco was deposited in barrels, certified by an inspector according to his views as to it&#8217;s quality and quantity. And they issued warehouse certificates which people gave from one to another to pay for the bills that they accumulated.</div>
4700<div>These pieces of green printed paper are today&#8217;s counterparts of those tobacco certificates. Except that they bear no relation to any commodity. In this program I want to take you to Britain to see how inflation weakens the social fabric of society. Then to Tokyo, where the Japanese have the courage to cure inflation. To Berlin, where there is a lesson to be learned from the West Germans and how so called cures are often worse than the disease. And to Was
4700hington where our government keeps these machines working overtime. And I am going to show you how inflation can be cured.</div>
4701<div>The fact is that most people enjoy the early stages of the inflationary process. Britain, in the swinging 60&#8217;s, there was plenty of money around, business was brisk, jobs were plentiful and prices had not yet taken off. Everybody seemed happy at first. But by the early 70&#8217;s, as the good times rolled along, prices started to rise more and more rapidly. Soon, some of these people are going to lose their jobs. The party was coming to an end.</div>
4702<div>The story is much the same in the U.S. Only the process started a little later. We&#8217;ve had one inflationary party after another. Yet we still can&#8217;t seem to avoid them. How come?</div>
4703<div>Before every election our representatives would like to make us think we are getting a tax break. When they are able to do it, while at the same time actually raising our taxes because of a bit of magic they have in their kit bag. That magic is inflation. They reduced the tax rates but the taxes we have to pay go up because we are automatically shoved into higher brackets by the effective inflation. A neat trick. Taxation without representation.</div>
4704<div></div>
4705<div>_________________________________________</div>
4706<div></div>
4707<div>Pt 2 Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this subject they never seem to learn. But some lessons may be learned. That happened to British P</div>
4708<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/4g9AHLXd5RM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
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4712<div>Bob Crawford: The more I work, it seems like the more they take off me. I know if I work an extra day or two extra days, what they take in federal income tax alone is almost doubled because apparently it puts you in a higher income tax bracket and it takes more off you.</div>
4713<div>Friedman: Bob Crawford lives with his wife and three children in a suburb of Pittsburgh. They&#8217;re a fairly average American family.</div>
4714<div>Mrs. Crawford: Don&#8217;t slam the door Daphne. Okay. Alright. What are you doing? Making your favorite dish.</div>
4715<div>Friedman: We went to the Crawford&#8217;s home after he had spent a couple of days working out his federal and state income taxes for the year. For our benefit, he tried to estimate all the other taxes he had paid as well. In the end, though, he didn&#8217;t discover much that would surprise anybody.</div>
4716<div>Bob Crawford: Inflation is going up, everything is getting more expensive. No matter what you do, as soon as you walk out of the house, everything went up. Your gas bills keep going up, electric bills, your gasoline, you can name a thousand things that are going up. Everything is going sky high. Your food. My wife goes to the grocery store. We used to live on say, $60 or $50 every two weeks just for our basic food. Now it&#8217;s $80 or $90 every two weeks. Things are just going out of sight as far as expense to live on. Like I say it&#8217;s getting tough. It seems like every month it gets worse and worse. And I don&#8217;t know where it&#8217;s going to end. At the end of the day that I spend nearly $6,000 of my earnings on taxes. That leaves me with a total of $12,000 to live on. It might seem like a lot of money, but five, six years ago I was earning $12,000.</div>
4717<div>Friedman: How does taxation without representation really effect how much the Crawford family has left to spend after it&#8217;s paid its income taxes. Well in 1972 Bob Crawford earned $12,000. Some of that income was not subject to income tax. After paying income tax on the rest he had this much left to spend. Six years later he was earning $18,000 a year. By 1978 the amount free from tax was larger. But he was now in a higher tax bracket so his taxes went up by a larger percentage than his income. However, those dollars weren&#8217;t worth anything like as much. Even his wages, let alone his income after taxes, hadn&#8217;t kept up with inflation. His buying power was lower than before. That is taxation without representation in practice.</div>
4718<div>Unnamed Individual: We have with us today you brothers that are sitting here today that were with us on that committee and I&#8217;d like to tell you&#8230;.</div>
4719<div>Friedman: There are many traditional scapegoats blamed for inflation. How often have you heard inflation blamed on labor unions for pushing up wages. Workers, of course, don&#8217;t agree.</div>
4720<div>Unnamed Individual: But fellows this is not true. This is subterfuge. This is a myth. Your wage rates are not creating inflation.</div>
4721<div>Friedman: And he&#8217;s right. Higher wages are mostly a result of inflation rather than a cause of it. Indeed, the impression that unions cause inflation arises partly because union wages are slow to react to inflation and then there is pressure to catch up.</div>
4722<div>Worker: On a day to day basis, try to represent our own numbers. But that in fact is not the case. Not only can we not play catch up, we can&#8217;t even maintain a wage rate commensurate with the cost of living that&#8217;s gone up in this country.</div>
4723<div>Friedman: Another scapegoat for inflation is the cost of goods coming from abroad. Inflation, we&#8217;re told, is imported. Higher prices abroad driving up prices at home. It&#8217;s another way government can blame someone else for inflation. But this argument, too, is wrong. The prices of imports and the countries from which they come are not in terms of dollars, they are in terms of lira or yen or other foreign currencies. What happens to their prices in dollars depends on exchange rates which in turn reflect inflation in the United States.</div>
4724<div>Since 1973 some governments have had a field day blaming the Arabs for inflation. But if high oil prices were the cause of inflation, how is it that inflation has been less here in Germany, a country that must import every drop of oil and gas that it uses on the roads and in industry, then for example it is in the U.S. which produces half of its own oil. Japan has no oil of its own at all. Yet at the very time the Arabs were quadrupling oil prices, the Japanese people were bringing inflation down from 30 to less than 5% a year. The fallacy is to confuse particular prices like the price of oil, with prices in general. Back at home, President Nixon understood this.</div>
4725<div>Nixon: &#8220;Now here&#8217;s what I will not do. I will not take this nation down the road of wage and price controls however politically expedient that may seem. The pros of rationing may seem like an easy way out, but they are really an easy way in for more trouble. To the explosion that follows when you try to clamp a lid on a rising head of steam without turning down the fire under the pot, wage and price controls only postpone the day of reckoning. And in so doing, they rob every American of a very important part of his freedom.</div>
4726<div>Friedman: Now listen to this:</div>
4727<div>Nixon: &#8220;The time has come for decisive action. Action that will break the vicious circle of spiraling prices and costs. I am today ordering a freeze on all prices and wages throughout the United States for a period of 90 days. In addition, I call upon corporations to extend the wage price freeze to all dividends.&#8221;</div>
4728<div>Friedman: Many a political leader has been tempted to turn to wage and price controls despite their repeated failure in practice. On this 
4728subject they never seem to learn. But some lessons may be learned. That happened to British Prime Minister James Callahan who finally discovered that a very different economic myth was wrong. He told the Labor Party Conference about it in 1976.</div>
4729<div>James Callahan: &#8220;We used to think that you could use, spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candor that option no longer exists. It only works on each occasion since the war by injecting a bigger dose of inflation into the economy followed by a higher level of unemployment as the next step. That&#8217;s the history of the last 20 years.&#8221;</div>
4730<div>Friedman: Well, it&#8217;s one thing to say it. One reason why inflation does so much harm is because it effects different groups differently. Some benefit and of course they attribute that to their own cleverness. Some are hurt, but of course they attribute that to the evil actions of other people. And the whole problem is made far worse by the false cures which government adopts, particularly wage and price control.</div>
4731<div>The garbage collectors in London felt justifiably aggrieved because their wages had not been permitted to keep pace with the cost of living. They struck, hurting not the people who impose the controls, but their friends and neighbors who had to live with mounting piles of rat infested garbage. Hospital attendants felt justifiably aggrieved because their wages had not been permitted to keep up with the cost of living. They struck, hurting not the people who impose the controls, but cancer patients who were turned out of hospital beds. The attendants behaved as a group in a way they never would have behaved as individuals. One group is set against another group. The social fabric of society is torn apart inflicting scars that it will take decades to heal and all to no avail because wage and price controls, far from being a cure for inflation, only make inflation worse.</div>
4732<div>Within the memory of most of our political leaders, there&#8217;s one vivid example of how economic ruin can be magnified by controls. And the classic demonstration of what to do when it happens.</div>
4733<div></div>
4734<div>_______________________________________________</div>
4735<div>
4736<p>(Wage and Price Controls don&#8217;t work)</p>
4737<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
4738<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later.</div>
4739</div>
4740<div></div>
4741<div>Pt 3</div>
4742<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/9K6V_UXNtgc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4743<div></div>
4744<div></div>
4745<div>Germany, 1945, a devastated country. A nation defeated in war. The new governing body was the Allied Control Commission, representing the United States, Britain, France and the Soviet Union. They imposed strict controls on practically every aspect of life including wages and prices. Along with the effects of war, the results were tragic. The basic economic order of the country began to collapse. Money lost its value. People reverted to primitive barter where they used cameras, fountain pens, cigarettes, whiskey as money. That was less than 40 years ago.</div>
4746<div>This is Germany as we know it today. Transformed into a place a lot of people would like to live in. How did they achieve their miraculous recovery? What did they know that we don&#8217;t know?</div>
4747<div>Early one Sunday morning, it was June 20, 1948, the German Minister of Economics, Ludwig Earhardt, a professional economist, simultaneously introduced a new currency, today&#8217;s Deutsche Mark, and in one fell swoop, abolished almost all controls on prices and wages. Why did he do it on a Sunday morning? It wasn&#8217;t as you might suppose because the Stock Markets were closed on that day, it was, as he loved to confess, because the offices of the American, the British, and the French occupation authorities were closed that day. He was sure that if he had done it when they open they would have countermanded the order. It worked like a charm. Within days, the shops were full of goods. Within months, the German economy was humming along at full steam. Economists weren&#8217;t surprised at the results, after all, that&#8217;s what a price system is for. But to the rest of the world it seemed an economic miracle that a defeated and devastated country could in little more than a decade become the strongest economy on the continent of Europe.</div>
4748<div>In a sense this city, West Berlin, is something of a unique economic test tube. Set as it is deep in Communist East Germany. Two fundamentally different economic systems collide here in Europe. Ours and theirs, separated by political philosophies, definitions of freedom and a steel and concrete wall.</div>
4749<div>To digress from inflation, economic freedom does not stand alone. It is part of a wider order. I wanted to show you how much difference it makes by letting you see how the people live on the other side of that Berlin Wall. But the East German authorities wouldn&#8217;t let us. The people over there speak the same language as the people over here. They have the same culture. They have the same for bearers. They are the same people. Yet you don&#8217;t need me to tell you how differently they live. There is one simple explanation. The political system over there cannot tolerate economic freedom. The political system over here could not exist without it.</div>
4750<div>But political freedom cannot be preserved unless inflation is kept in bounds. That&#8217;s the responsibility of government which has a monopoly over places like this. The reason we have inflation in the United States or for that matter anywhere in the world is because these pieces of paper and the accompanying book entry or their counterparts in other nations are growing more rapidly than the quantity of goods and services produced. The truth is inflation is made in one place and in one place only. Here in Washington. This is the only place were there are presses like this that turn out these pieces of paper we call money. This is the place where the power resides to determine how rapidly the amount of money shall increase.</div>
4751<div>What happened to all that noise? That&#8217;s what would happen to inflation if we stop letting the amount of money grow so rapidly. This is not a new idea. It&#8217;s not a new cure. It&#8217;s not a new problem. It&#8217;s happened over and over again in history. Sometimes inflation has been cured this way on purpose. Sometimes it&#8217;s happened by accident. During the Civil War the North, late in the Civil War, overran the place in the South where the printing presses were sitting up, where the pieces of paper were being turned out. Prior to that point, the South had a very rapid inflation. If my memory serves me right, something like 4% a month. It took the Confederacy something over two weeks to find a new place where they could set up their printing presses and start them going again. During that two week period, inflation came to a halt. After the two week period, when the presses started running again, inflation started up again. It&#8217;s that clear, that straightforward. More recently, there&#8217;s another dramatic example of the only effective way to deal with rampant inflation.</div>
4752<div>In 1973, Japanese housewives going to market were faced with an unpleasant fact. The cash in their purses seemed to be losing its value. Prices were starting to sore as the awful story of inflation began to unfold once again. The Japanese government knew what to do. What&#8217;s more, they were prepared to do it. When it was all over, economists were able to re
4752cord precisely what had happened. In 1971 the quantity of money started to grow more rapidly. As always happens, inflation wasn&#8217;t affected for a time. But by late 1972 it started to respond. In early 73 the government reacted. It started to cut monetary growth. But inflation continued to soar for a time. The delayed reaction made 1973 a very tough year of recession. Inflation tumbled only when the government demonstrated its determination to keep monetary growth in check. It took five years to squeeze inflation out of the system. Japan attained relative stability. Unfortunately, there&#8217;s no way to avoid the difficult road the Japanese had to follow before they could have both low inflation and a healthy economy. First they had to live through a recession until slow monetary growth had its delayed effect on inflation.</div>
4753<div>Inflation is just like alcoholism. In both cases when you start drinking or when you start printing too much money, the good effects come first. The bad effects only come later.</div>
4754<div>That&#8217;s why in both cases there is a strong temptation to overdo it. To drink too much and to print too much money. When it comes to the cure, it&#8217;s the other way around. When you stop drinking or when you stop printing money, the bad effects come first and the good effects only come later. That&#8217;s why it&#8217;s so hard to persist with the cure. In the United States, four times in the 20 years after 1957, we undertook the cure. But each time we lacked the will to continue. As a result, we had all the bad effects and none of the good effects. Japan on the other hand, by sticking to a policy of slowing down the printing presses for five years, was by 1978 able to reap all the benefits, low inflation and a recovering economy. But there is nothing special about Japan. Every country that has had the courage to persist in a policy of slow monetary growth has been able to cure inflation and at the same time achieve a healthy economy.</div>
4755<div></div>
4756<div>___________________________________</div>
4757<div></div>
4758<div>Pt 4</div>
4759<div>The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
4760<div></div>
4761<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/j2MFs9MFJbs?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4762<div></div>
4763<div>DISCUSSION</div>
4764<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Congressman Clarence J. Brown; William M. Martin, Chairman of Federal Reserve 1951_1970; Beryl W. Sprinkel, Executive Vice President, Harris Bank, Chicago; Otmar Emminger, President, Ieutsche Bundesbank, Frankfurt West Germany</div>
4765<div>MCKENZIE: And here at the Harper Library of the University of Chicago, our distinguished guests have their own ideas, too. So, lets join them now.</div>
4766<div>BROWN: If you could control the money supply, you can certainly cut back or control the rate of inflation. I&#8217;d have to say that that prescription is a little bit easier to write than it is to fill. I think there are some other ways to do it and I would relate the money supply __ I think inflation is a measure of the relationship between money and the goods and services that money is meant to cover. And so if you can stimulate the goods, the production of goods and services, it&#8217;s helpful. It&#8217;s a little tougher to control the money supply, although I think it can be done, than just saying that you should control it, because we&#8217;ve got the growth of credit cards, which is a form of money; created, in effect, by the free enterprise system. It isn&#8217;t all just printed in Washington, but that may sound too defensive. I think he was right in saying that the inflation is Washington based.</div>
4767<div>MCKENZIE: Mr. Martin, nobody has been in the firing line longer than you, 17 years head of the Fed. Could you briefly comment on that and we&#8217;ll go around the group.</div>
4768<div>MARTIN: I want to say 19 years.</div>
4769<div>(Laughter)</div>
4770<div>MARTIN: I wouldn&#8217;t be out here if it weren&#8217;t for Milton Friedman, today. He came down and gave us advice from time to time.</div>
4771<div>FRIEDMAN: You&#8217;ve never taken it.</div>
4772<div>(Laughter)</div>
4773<div>MCKENZIE: He&#8217;
4773s going to do some interviewing later, I warn you.</div>
4774<div>MARTIN: And I&#8217;m rather glad we didn&#8217;t take it __</div>
4775<div>(Laughter)</div>
4776<div>MARTIN: __ all the time.</div>
4777<div>SPRINKEL: In your 19 years as Chairman of the Federal Reserve, Bill, the average growth in the money supply was 3.1 percent per year. The inflation rate was 2.2 percent. Since you left, the money supply has exactly doubled. The inflation rate is average over 7 percent, and, of course, in recent times the money supply has been growing in double-digit territory as has our inflation rate.</div>
4778<div>EMMINGER: May I, first of all, confirm two facts which have been so vividly brought out in the film of Professor Friedman; namely, that at the basis of the relatively good performance of Western Germany were really two events. One, the establishment of a new sound money which we try to preserve sound afterwards. And, secondly, the jump overnight into a free market economy without any controls over prices and wages. These are the two fundamental facts. We have tried to preserve monetary stability by just trying to follow this prescription of Professor Friedman; namely, monetary discipline. Keeping monetary growth relatively moderate. I must, however, warn you it&#8217;s not so easy as it looks. If you just say, governments have to have the courage to persist in that course.</div>
4779<div>FRIEDMAN: Nobody does disagree with the proposition that excessive growth in money supply is an essential element in the inflationary process and that the real problem is not what to do, but how to have the courage and the will to do it. And I want to go and start, if I may, on that subject; because I think that&#8217;s what we ought to explore. Why is it we haven&#8217;t had the courage and don&#8217;t, and under what circumstances will we? And I want to start with Bill Martin because his experience is a very interesting experience. His 19 years was divided into different periods. In the first period, that average that Beryl Sprinkel spoke about, averaged two very different periods. An early period of very slow growth and slow inflation; a later period of what at the time was regarded as creeping inflation __ now we&#8217;d be delighted to get back to it. People don&#8217;t remember that at the time that Mr. Nixon introduced price and wage controls in 1971 to control an outrageous inflation, the rate of inflation was four-and-a-half percent per year. Today we&#8217;d regard that as a major achievement; but the part of the period when you were Chairman, was a period when the inflation rate was starting to creep up and money growth rate was also creeping up. Now if I go from your period, you were eloquent in your statements to the public, to the press, to everyone, about the evils of inflation, and about the determination on the Federal Reserve not to be the architect of inflation. Your successor, Arthur Burns, was just as eloquent. Made exactly the same kinds of statements as effectively, and again over and over again said the Federal Reserve will not be the architect of inflation. His successor, Mr. G. William Miller, made the same speeches, and the same statements, and the same protestations. His successor, Paul Volcker, he is making the same statements. Now my question to you is: Why is it that there has been such a striking difference between the excellent pronouncements of all Chairmen of the Fed, therefore it&#8217;s not personal on you. You have a lot of company, unfortunately for the country. Why is it that there has been such a wide diversion between the excellent pronouncements on the one hand and what I regard as a very poor performance on the other?</div>
4780<div>MARTIN: Because monetary policy is not the only element. Fiscal policy is equally important.</div>
4781<div>FRIEDMAN: You&#8217;re shifting the buck to the Treasury.</div>
4782<div>MARTIN: Yes.</div>
4783<div>FRIEDMAN: To the Congress. We&#8217;ll get to Mr. Brown, don&#8217;t worry.</div>
4784<div>MARTIN: Yeah, that&#8217;s right.</div>
4785<div>(Laughter)</div>
4786<div>MARTIN: The relationship of fiscal policy to monetary policy is one of the important things.</div>
4787<div>MCKENZIE: Would you remind us, the general audience, when you say &#8220;fiscal policy&#8221;, what you mean in distinction to &#8220;monetary policy&#8221;?</div>
4788<div>MARTIN: Well, taxation.</div>
4789<div>MCKENZIE: Yeah.</div>
4790<div>MARTIN: The raising revenue.</div>
4791<div>FRIEDMAN: And spending.</div>
4792<div>MARTIN: And spending.</div>
4793<div>FRIEDMAN: And deficits.</div>
4794<div>MARTIN: And deficits, yes, exactly. And I think that you have to realize that when I&#8217;ve talked for a long time about the independence of the Federal Reserve. That&#8217;s independence within the government, not independence of the government. And I&#8217;
4794ve worked consistently with the Treasury to try to see that the government is financed. Now this gets back to spending. The government says they&#8217;re gonna spend a certain amount, and then it turns out they don&#8217;t spend that amount. It doubles.</div>
4795<div>FRIEDMAN: The job of the Federal Reserve is not to run government spending; it&#8217;s not to run government taxation. The job of the Federal Reserve is to control the money supply and I believe, frankly, I have always believed as you know, that these are excuses and not reasons for the performance.</div>
4796<div>MARTIN: Well that&#8217;s where you and I differ, because I think we would be irresponsible if we didn&#8217;t take into account the needs and what the government is saying and doing. I think if we just went on our own, irresponsibly, I say it on this, because I was in the Treasury before I came to this __</div>
4797<div>FRIEDMAN: I know. I know.</div>
4798<div>MARTIN: __ go to the Fed; and I know the other side of the picture. I think we&#8217;d be rightly condemned by the American people and by the electorate.</div>
4799<div>FRIEDMAN: Every central bank in this world, including the German Central Bank, including the Federal Reserve System, has the technical capacity to make the money supply do over a period of two or three or four months, not daily, but over a period, has the technical capacity to control it.</div>
4800<div>(Several people talking at once.)</div>
4801<div>FRIEDMAN: I cannot explain the kind of excessive money creation that has occurred, in terms of the technical incapacity of the Federal Reserve System or of the German Central Bank, or of the Bank of England, or any other central bank in the world.</div>
4802<div>EMMINGER: I wouldn&#8217;t say technically we are incapable of doing that, although we have never succeeded in controlling the money supply month that way. But I would say we can, technically, control it half yearly, from one half-year period to the next and that would be sufficient __</div>
4803<div>FRIEDMAN: That would be sufficient.</div>
4804<div>EMMINGER: __ for controlling inflation. But however I __</div>
4805<div>VOICE OFF SCREEN: It doesn&#8217;t move.</div>
4806<div>FRIEDMAN: I&#8217;m an economic scientist, and I&#8217;m trying to observe phenomena, and I observe that every Federal Reserve Chairman says one thing and does another. I don&#8217;t mean he does, the system does.</div>
4807<div>MCKENZIE: Yeah. How different is your setup in Germany? You&#8217;ve heard this problem of governments getting committed to spending and the Fed having, one way or the other, to accommodate itself to it. Now what&#8217;s your position on this very interesting problem?</div>
4808<div>EMMINGER: We are very independent of the government, from the government, but, on the other hand, we are an advisor of the government. Also on the budget deficits and they would not easily go before Parliament with a deficit which much of it is openly criticized and disapproved by the same bank. Why because we have a tradition in our country that we can also publicly criticize the government on his account. And second, as if happened in our case too, the government goes beyond what is tolerable for the sake of moral equilibrium. We have let it come through in the capital markets. That is to say they have enough interest rates that has drawn public criticism and that has had some effect on their attitude.</div>
4809<div></div>
4810<div>_________________________________________</div>
4811<div></div>
4812<div>Pt 5</div>
4813<div>
4814<div> I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
4815<div>BROWN:</div>
4816</div>
4817<div></div>
4818<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/98ZulcNk424?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4819<div></div>
4820<div></div>
4821<div>FRIEDMAN: I think that is a very important point that Dr. Emminger just made because there is not a one-to-one relationship between government deficits and what happens to the money supply at all. The pressure on the Federal Reserve comes indirectly. It comes because large government deficits, if they are financed in the general capital market, will drive up interest rates and then we have the right patents in Congress and their successors pressuring the Federal Reserve to enter in and finance the deficit by printing money as a way of supposedly holding down interest rates. Now before I turn to Mr. Brown and ask him that, I just want to make one point which is very important. The Federal Reserve&#8217;s activities in trying to hold down interest rates have put us in a position where we have the highest interest rates in history. It&#8217;s another example of how, of the difference between the announced intentions of a policy, and the actual results. But now I want to come to Clarence Brown and ask him, shift the buck to him, and put him on the hot seat for a bit. The government spending has been going up rapidly, Republican administration or Democratic administration. This is a nonpartisan issue, it doesn&#8217;t matter. Government deficits have been going up rapidly. Republican administration or Democratic administration. Why is it that here again you have the difference between pronouncements and performance? There is no Congressman, no Senator, who will come out and say, &#8220;I am in favor of inflation.&#8221; There is not a single one who will say, &#8220;I am in favor of big deficits.&#8221; They&#8217;ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?</div>
4822<div>BROWN: Well, first I think we have to make one point. I&#8217;m not so much with the government as I am against it.</div>
4823<div>FRIEDMAN: I understand.</div>
4824<div>BROWN: As you know, I&#8217;m a minority member of Congress.</div>
4825<div>FRIEDMAN: Again, I&#8217;m not __ I&#8217;m not directing this at you personally.</div>
4826<div>BROWN: I understand, of course; and while the administrations, as you&#8217;ve mentioned, Republican and Democratic administrations, have both been responsible for increases in spending, at least in terms of their recommendations. It is the Congress and only the C
4826ongress that appropriates the funds and determines what the taxes are. The President has no authority to do that and so one must lay it at the feet of the U.S. Congress. Now, I guess we&#8217;d have to concede that it&#8217;s a little bit more fun to give away things than it is to withhold them. And this is the reason that the Congress responds to a general public that says, &#8220;I want you to cut everybody else&#8217;s program but the one in which I am most particularly interested. Save money, but incidentally, my wife is taking care of the orphanages and so lets try to help the orphanages,&#8221; or whatever it is. Let me try to make a point, if I can, however, on what I think is a new spirit moving within the Congress and that is that inflation, as a national affliction, is beginning to have an impact on the political psychology of many Americans. Now the Germans, the Japanese and others have had this terrific postwar inflation. The Germans have been through it twice, after World War I and World War II, and it&#8217;
4826s a part of their national psyche. But we are affected in this country by the depression. Our whole tax structure is built on the depression. The idea of the tax structure in the past has been to get the money out of the mattress where it went after the banks failed in this country and jobs were lost, and out of the woodshed or the tin box in the back yard, get it out of there and put it into circulation. Get it moving, get things going. And one of the ways to do that was to encourage inflation. Because if you held on to it, the money would depreciate; and the other way was to tax it away from people and let the government spend it. Now there&#8217;s a reaction to that and people are beginning to say, &#8220;Wait just a minute. We&#8217;re not afflicted as much as we were by depression. We&#8217;re now afflicted by inflation, and we&#8217;d like for you to get it under control.&#8221; Now you can do that in another way and that without reducing the money supply radically. I think the Joint Economic Committee has recommended that we do it gradually. But the way that you can do it is to reduce taxes and the impact of government, that is the weight of government and increase private savings so that the private savings can finance some of the debt that you have.</div>
4827<div>FRIEDMAN: There is no way you can do it without reducing, in my opinion, the rate of monetary growth. And I, recognizing the facts, even though they ought not to be that way, I wonder whether you can reduce the rate of monetary growth unless Congress actually does reduce government spending as well as government taxes.</div>
4828<div>BROWN: The problem is that every time we use demand management, we get into a kind of an iron maiden kind of situation. We twist this way and one of the spikes grabs us here, so we twist that way and a spike over here gets us. And every recession has had higher basic unemployment rates than the previous recession in the last several years and every inflation has had higher inflation. We&#8217;ve got to get that tilt out of the society.</div>
4829<div>MCKENZIE: Wouldn&#8217;t it be fair to say, though, that a fundamental difference is the Germans are more deeply fearful of a return to inflation, having had the horrifying experience between the wars, especially. We tend to be more afraid of recession turning into depression.</div>
4830<div>EMMINGER: I think there is something in it and in particular in Germany the government would have to fear very much in their electoral prospects if they went into such an election period with a high inflation rate. But there is another important difference.</div>
4831<div>MARTIN: We fear unemployment more than inflation it seems.</div>
4832<div>EMMINGER: You fear unemployment, but unemployment is feared with us, too, but inflation is just as much feared. But there is another difference; namely, once you have got into that escalating inflation, every time the base, the plateau is higher, it&#8217;s extremely difficult to get out of it. You must avoid getting into that, now that&#8217;s very cheap advice from me because you are now.</div>
4833<div>(Laughing)</div>
4834<div>EMMINGER: But we had, for the last fifteen, twenty years, always studied foreign experiences, and told ourselves we never must get into this vicious circle. Once you are in, it takes a long time to get out of it. That is what I am preaching now, that we should avoid at all costs to get again into this vicious circle as we had it already in &#8217;73_&#8217;74. It took us, also, four years to get out of it, although we were only at eight percent inflation. Four years to get down to three percent. So you __</div>
4835<div>MCKENZIE: Those were __ yes.</div>
4836<div>EMMINGER: You have, I think, the question of whether you can do if in a gradualist way over many, many years, or whether you don&#8217;t need a sort of shock treatment.</div>
4837<div></div>
4838<div>____________________________________</div>
4839<div>her we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation</div>
4840<div></div>
4841<div>Pt 6</div>
4842<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Hz55iXABizw?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4843<div></div>
4844<div></div>
4845<div>SPRINKEL: The film said it took the Japanese _ what _ four years?</div>
4846<div>FRIEDMAN: Five years.</div>
4847<div>SPRINKEL: Five years. But one of my greatest concerns is that we haven&#8217;t suffered enough yet. Most of the nations that have finally got their inflations __</div>
4848<div>BROWN: Bad election speech.</div>
4849<div>SPRINKEL: __ well, I&#8217;m not running for office, Clarence.</div>
4850<div>(Laughter)</div>
4851<div>SPRINKEL: Most countries that finally got their inflation under control had 20, 30 percent or worse inflation. Germany had much worse and the public supp
4851orts them. We live in a Democracy, and we&#8217;re getting constituencies that gain from inflation. You look at people that own real estate, they&#8217;ve done very well.</div>
4852<div>MCKENZIE: Yes.</div>
4853<div>SPRINKEL: And how can we get there without going through even more pain, and I doubt that we will.</div>
4854<div>FRIEDMAN: If you ask who are the constituencies that have benefited most from inflation there are no doubt, it is the homeowners.</div>
4855<div>SPRINKEL: Yes.</div>
4856<div>FRIEDMAN: But it&#8217;s also the __ it&#8217;s also the Congressmen who have been able to vote higher spending without having to vote higher taxes. They have in fact __</div>
4857<div>BROWN: That&#8217;s right.</div>
4858<div>FRIEDMAN: __ Congress has in fact voted for inflation. But you have never had a Congressman on record to that effect. It&#8217;s the government civil servants who have their own salaries are indexed and tied to inflation. They have a retirement benefit, a retirement pension that&#8217;s tied to inflation. They qualify, a large fraction of them, for Social Security as well, which is tied to inflation. So that the beneficial __</div>
4859<div>BROWN: Labor contracts that are indexed and many pricing things that are tied to it.</div>
4860<div>FRIEDMAN: But the one thing that isn&#8217;t tied to inflation and here I want to come back and ask why Congress has been so __ so bad in this area, is our taxes. It has been impossible to get Congress to index the tax system so that you don&#8217;t have the present effect where every one percent increase in inflation pushes people up into higher brackets and forces them to pay higher taxes.</div>
4861<div>BROWN: Well, as you know, I&#8217;m an advocate of that.</div>
4862<div>FRIEDMAN: I know you are.</div>
4863<div>MCKENZIE: Some countries do that, of course.</div>
4864<div>FRIEDMAN: Oh, of course.</div>
4865<div>MCKENZIE: Canada does that. Indexes the __</div>
4866<div>BROWN: And I went up to Canada on a little weekend seminar program on indexing and came back an advocate of indexing because I found out that the people who are delighted with indexing are the taxpayers.</div>
4867<div>FRIEDMAN: Absolutely.</div>
4868<div>BROWN: Because as the inflation rate goes up their tax level either maintains at the same level or goes down. The people who are least __ well, the people who are very unhappy with it are the people who have to plan government spending because it is reducing the amount of money that the government has rather than watching it go up by ten or twelve billion. You get a little dividend to spend in this country, the bureaucrats do every year, but the politicians are unhappy with it too, as Dr. Friedman points out because, you see, politicians don&#8217;t get to vote a tax reduction, it happens automatically.</div>
4869<div>MCKENZIE: Yeah.</div>
4870<div>BROWN: And so you can&#8217;t go back and in a praiseworthy way tell your constituents that I am for you, I voted a tax reduction. And I think we ought to be able to index the tax system so that tax reduction is automatic, rather than have what we&#8217;ve had in the past, and that is an automatic increase in the taxes. And the politicians say, &#8220;Well, we&#8217;re sorry about inflation, but __&#8221;.</div>
4871<div>FRIEDMAN: You&#8217;re right and I want to __ I want to go and make a very different point. I sit here and berate you and you as government officials, and so on, but I understand very well that the real culprits are not the politicians, are not the central bankers, but it&#8217;s I and my fellow citizens. I always say to people when I talk about this, &#8220;If you want to know who&#8217;s responsible for inflation, look in the mirror.&#8221; It&#8217;s not because of the way you spend you money. Inflation doesn&#8217;t arise because you got consumers who are spendthrifts; they&#8217;ve always been spendthrifts. It doesn&#8217;t arise because you&#8217;ve got businessmen who are greedy. They&#8217;ve always been greedy. Inflation arises because we as citizens have been asking you as politicians to perform an impossible task. We&#8217;ve been asking you to spend somebody else&#8217;s money on us, but not to spend our money on anybody else.</div>
4872<div>BROWN: You don&#8217;t want us to cut back those dollars for education, right?</div>
4873<div>FRIEDMAN: Right. And, therefore, __ well, no, I do.</div>
4874<div>MCKENZIE: We&#8217;ve already had a program on that.</div>
4875<div>FRIEDMAN: We&#8217;ve already had a program on that and there&#8217;s no viewer of these programs who will be in any doubt about my position on that. But the public at large has not and this is where we come to the political will that Dr. Emminger quite properly talked about. It is __ everybody talks against inflation, but what he means is that he wants the prices of the things he sells to go up and the prices of the things he buys to go down. But, sooner or later, we come to the point where it will be politically profitable to end inflation. This is the point that __</div>
4876<div>SPRINKEL: Yes.</div>
4877<div>FRIEDMAN: __ I think you were making.</div>
4878<div>
4878SPRINKEL: The suffering idea.</div>
4879<div>FRIEDMAN: Where do you think the __ you know, what do you think the rate of inflation has to be and judged by the experience of other countries before we will be in that position and when do you think that will happen?</div>
4880<div>SPRINKEL: Well, the evidence says it&#8217;s got to be over 20 percent. Now you would think we could learn from others rather than have to repeat mistakes.</div>
4881<div>FRIEDMAN: Apparently nobody can learn from history.</div>
4882<div>SPRINKEL: But at the present time we&#8217;re going toward higher and not lower inflation.</div>
4883<div>MCKENZIE: You said earlier, if you want to see who causes inflation look in the mirror.</div>
4884<div>FRIEDMAN: Right.</div>
4885<div>MCKENZIE: Now, for everybody watching and taking part in this, there must be some moral to that. What does need __ what has to be the change of attitude of the man in the mirror you&#8217;re looking at before we can effectively implement what you call a tough policy that takes courage?</div>
4886<div>FRIEDMAN: I think that the man in the mirror has to come to recognize that inflation is the most destructive disease known to modern society. There is nothing which will destroy a society so thoroughly and so fully as letting inflation run riot. He must come to recognize that he doesn&#8217;t have any good choices. That there are no easy answers. That once you get in this situation where the economy is sick of this insidious disease, there&#8217;s gonna be no miracle drug which will enable them to be well tomorrow. That the only choices he has, do I go through a tough period for four or five years of relatively high unemployment, relatively low growth or do I try to push it off by taking some more of the hair of the dog that bit me and get around it now at the cost of still higher unemployment, as Clarence Brown said, later on. The only choice this country faces, is whether we have temporary unemployment for a short period, as a side effect of curling inflation or whether we go into a period of still higher unemployment later on and have it to do all over again. That&#8217;s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation.</div>
4887<div></div>
4888<div>____________________________________</div>
4889<div>
4890<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
4891<div>BROWN</div>
4892</div>
4893<div></div>
4894<div>Pt 7</div>
4895<div></div>
4896<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/r-Bl4vXVKMo?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
4897<div>BROWN: But, Dr. Friedman, let me __</div>
4898<div>(Applause)</div>
4899<div>BROWN: Let me differ with you to this extent. I think it is important that at the time you are trying to get inflation out of the economy that you also give the man in the street, the common man, the opportunity to have a little bit more of his own resources to spend. And if you can reduce his taxes at that time and then reduce government in that process, you give him his money to spend rather than having to yield up all that money to government. If you cut his taxes in a way to encourage it, to putting that money into savings, you can encourage the additional savings in a private sense to finance the debt that you have to carry, and you can also encourage the stimulation of growth in the society, that is the investment into the capital improvements of modernization of plant, make the U.S. more competitive with other countries. And we can try to do it without as much painful unemployment as we can get by with. Don&#8217;t you think that has some merit?</div>
4900<div>FRIEDMAN: The only way __ I am all in favor, as you know, of cutting government spending. I am all in favor of getting rid of the counterproductive government regulation that reduces productivity and disrupts investment. But __</div>
4901<div>BROWN: And we do that, we can cut taxes some, can we not?</div>
4902<div>FRIEDMAN: We should __ taxes __ but you are introducing a confusion that has confused the American people. And that is the confusion between spending and taxes. The real tax on the American people is not what you label taxes. It&#8217;s total spending. If Congress spends fifty billion dollars more than it takes in, if government spends fifty billion dollars, who do you suppose pays that fifty billion dollars?</div>
4903<div>BROWN: Of course, of course.</div>
4904<div>FRIEDMAN: The Arab Sheiks aren&#8217;t paying it. Santa Claus isn&#8217;t paying it. The Tooth Fairy isn&#8217;t paying it. You and I as taxpayers are paying it indirectly through hidden taxation.</div>
4905<div>MCKENZIE: Your view __</div>
4906<div>FRIEDMAN: And therefore the crucial thing is to cut down total government spending from the point of view of inflation. From the point of view of productivity, some of the other measures you were talking about are far more important.</div>
4907<div>BROWN: But if you concede that inflation and taxes are both part and parcel of the same thing, and if you cut spending __</div>
4908<div>FRIEDMAN: They&#8217;re not part and parcel of the same thing.</div>
4909<div>BROWN: If you cut spending you __ well, but, you take the money from them in one way or another. The average citizen.</div>
4910<div>FRIEDMAN: Absolutely.</div>
4911<div>BROWN: To finance the growth of government.</div>
4912<div>FRIEDMAN: That&#8217;s right.</div>
4913<div>BROWN: So if you cut back the size of government, you can cut both their inflation and their taxes.</div>
4914<div>FRIEDMAN: That&#8217;s right.</div>
4915<div>BROWN: If you __</div>
4916<div>FRIEDMAN: I am all in favor of that.</div>
4917<div>BROWN: All right.</div>
4918<div>FRIEDMAN: All I am saying is don&#8217;t kid yourself into thinking that there is some painless way to do it. There just is not.</div>
4919<div>BROWN: One other way is productivity. If you can __ if you can increase production, then the impact of inflation is less because you have more goods chasing __</div>
4920<div>FRIEDMAN: Absolutely, but you have to have a sense of proportion. From the point of view of the real income of the American people, nothing is more important than increasing productivity. But from the point of view of inflation, it&#8217;s a bit actor. It would be a miracle if we could raise our productivity from three to five percent a year, that would reduce inflation by two percent.</div>
4921<div>BROWN: No question, it won&#8217;t happen overnight, but it&#8217;s part of the __ it&#8217;s part of a long range squeezing out of inflation.</div>
4922<div>FRIEDMAN: There is only one way to ease the __ in my opinion there is only one way to ease the pains of curing inflation and that way is not available. That way is to make it credible to the American people that you are really going to follow the policy you say you&#8217;re going to follow. Unfortunately I don&#8217;t see any way we can do that.</div>
4923<div>(Several people talking at once.)</div>
4924<div>EMMINGER: Professor Friedman, that&#8217;s exactly the point which I wanted to illustrate by our own experience. We also had to squeeze out inflation and there was a painful time of one-and-a-half years, but after that we had a continuous lowering of the inflation rate with a slow upward movement in the economy since 1975. Year by year inflation went down and we had a moderate growth rate which has led us now to full employment.</div>
4925<div>FRIEDMAN: That&#8217;s what __</div>
4926<div>EMMINGER: So you can shorten this period by just this credibility and by a consensus you must have, also with the trade unions, with the whole population that they acknowledge that policy and also play their part in it. Then the pains will be much less.</div>
4927<div>
4927SPRINKEL: You see in our case, expectations are that inflation&#8217;s going to get worse because it always has. This means we must disappoint in a very painful way those expectations and it&#8217;s likely to take longer, at least the first time around. Now our real problem has not been that we haven&#8217;t tried. We have tried and brought inflation down. Our real problem was, we didn&#8217;t stick to it. And then you have it all to do over.</div>
4928<div>BROWN: Well I would __ I would concede that psychology plays a great, perhaps even the major part, but I do believe that if you have private savings stimulated by your tax system, rather than discouraged by your tax system, you can finance some of that public debt by private savings rather than by inflation and the result will be to ease to some degree the paint of that heavy unemployment that you seem to suggest is the only way to deal with the problem.</div>
4929<div id="yui_3_2_0_1_1326918646312223">FRIEDMAN: The talk is fine, but the problem is that it&#8217;s used to evade the key issue: How do you make it credible to the public that you are really going to stick to a policy? Four times we&#8217;ve tried it and four times we&#8217;ve stopped before we&#8217;ve run the course.</div>
4930<div id="yui_3_2_0_1_1326918646312225">(Several people talking at once.)</div>
4931<div>MCKENZIE: There we leave the matter for tonight, and next week&#8217;s concluding program in this series is not to be missed.</div>
4932<div>(Applause)</div>
4933<div>From Harper Library, goodbye.</div>
4934</div>
4935<div>
4936<ul>
4937<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=9" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
4938<li><a href="http://www.ideachannel.com/product_info.php?cPath=21_121&amp;products_id=362" target="_blank" rel="nofollow noopener">Order This Series</a></li>
4939<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980.php?page=9" target="_blank" rel="nofollow noopener">Back to Program Summary</a></li>
4940</ul>
4941</div>
4942</td>
4943</tr>
4944</tbody>
4945</table>
4946</div>
4947</td>
4948</tr>
4949</tbody>
4950</table>
4951</div>
4952</td>
4953</tr>
4954</tbody>
4955</table>
4956</div>
4957</td>
4958</tr>
4959</tbody>
4960</table>
4961</div>
4962</td>
4963</tr>
4964</tbody>
4965</table>
4966</div>
4967</td>
4968</tr>
4969</tbody>
4970</table>
4971</div>
4972</td>
4973</tr>
4974</tbody>
4975</table>
4976</div>
4977</blockquote>
4978</td>
4979</tr>
4980</tbody>
4981</table>
4982</div>
4983</div>
4984</div>
4985</div>
4986<div id="yui_3_2_0_9_132691864631220">
4987<div id="yui_3_2_0_9_132691864631244">
4988<div id="quick-reply">
4989<div id="yui_3_2_0_9_132691864631249"></div>
4990<p>Related posts:</p>
4991<div id="post-22822">
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4994<div>
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4996</div>
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4998<div></div>
4999</div>
5000<div id="post-22868">
5001<h3>
5001<a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
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5003<div>
5004<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
5005</div>
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5007</div>
5008<p>________________</p>
5009<div>
5010<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
5011<div id="post-12618">
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5014<div>
5015<p>
5015Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
5016</div>
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5018</div>
5019<div id="post-12612">
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5022<div>
5023<p>  George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
5024</div>
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5026</div>
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5029<div>
5030<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
5031</div>
5032<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
5032 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
5033<p>____________________________</p>
5034</div>
5035<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
5036<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
5037<p>_____________________________________________</p>
5038<div>
5039<div id="post-14520">
5040<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)</a></h3>
5041<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
5042<div>
5043<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 3 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
5044</div>
5045<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5046</div>
5047<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
5048<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
5049<div>
5050<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
5051</div>
5052<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5052p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
5053</div>
5054<div>
5055<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
5056<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
5057<div>
5058<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
5059</div>
5060<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
5061</div>
5062<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
5063<div id="post-12246">
5064<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
5065<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
5066<div>
5067<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
5068</div>
5069<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5069p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5070</div>
5071<div id="post-12238">
5072<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
5073<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
5074<div>
5075<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
5076</div>
5077<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5078</div>
5079<div id="post-11625">
5080<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
5081<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
5082<div>
5083<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
50830;]</p>
5084</div>
5085<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
5086</div>
5087<div id="post-10205">
5088<div>
5089<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
5090<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
5091<div>
5092<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
5092cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
5093</div>
5094<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
5095</div>
5096<div>
5097<div id="post-9317">
5098<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
5099<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
5100<div>
5101<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
5102</div>
5103<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
5104</div>
5105<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
5106<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
5107<div>
5108<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
5109</div>
5110<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
5110-1-of-7/#respond">Comments (0)</a></p>
5111</div>
5112<div></div>
5113<div>
5114<div id="post-16023">
5115<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
5116<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
5117<div>
5118<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
5119</div>
5120<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
5121</div>
5122<div id="post-16020">
5123<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
5124<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
5125<div>
5126<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
5127</div>
5128<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
5129</div>
5130<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
5131<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
5132<div>
5133<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
5134</div>
5135<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5135p-admin/post.php?post=16018&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
5136</div>
5137</div>
5138<div id="post-22868">
5139<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
5140<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
5141<div>
5142<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
5143</div>
5144<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
5145</div>
5146</div>
5147</div>
5148</div>
5149</div>
5150</div>
5151									</div>
5152				<div class="entry-meta">
5153					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
5154					<span class="meta-sep">|</span>
5155										<span class="comments-link"><a href="https://thedailyhatch.org/2024/03/26/washingtons-fiscal-ponzi-scheme-great-book-by-dan-mitchell/#respond">Comments (0)</a></span>
5156				</div>
5157			</div><!-- .post -->
5158
5159
5160			<div id="post-129730" class="hentry p10 post publish author-haltingarkansasliberalswithtruth category-milton-friedman untagged y2024 m03 d25 h23 alt">
5161				<h3 class="entry-title"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-more-good-news-thanks-to-colorados-tabor-spending-cap/" rel="bookmark">Dan Mitchell: More Good News Thanks to Colorado’s TABOR Spending&nbsp;Cap</a></h3>
5162				<div class="entry-date"><a href="https://thedailyhatch.org/2024/03/26/dan-mitchell-more-good-news-thanks-to-colorados-tabor-spending-cap/" class="published" title="2024-03-26T04:52:59-0500">March 26, 2024 &#8211; 4:52 am</a></div>
5163				<div class="entry-content">
5164					
5165<p class="wp-block-paragraph"></p>
5166
5167
5168<p>&#8211;</p>
5169<header class="entry-header">
5170<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2024/03/25/more-good-news-thanks-to-colorados-tabor-spending-cap/" rel="bookmark">More Good News Thanks to Colorado’s TABOR Spending Cap</a></h1>
5171<div class="entry-meta"> </div>
5172</header>
5173<div class="entry-content">
5174<p>Colorado has <a href="https://danieljmitchell.wordpress.com/2023/06/14/americas-best-fiscal-rule-is-colorados-spending-cap/">the best fiscal rule</a> in the United States. The Taxpayer Bill of  Rights (TABOR) limits state government spending so that it <a href="https://danieljmitchell.wordpress.com/2023/12/22/more-evidence-for-colorados-spending-cap/">cannot grow faster</a>than inflation plus population.</p>
5175<p><a href="https://danieljmitchell.wordpress.com/2023/12/22/more-evidence-for-colorados-spending-cap/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2023/12/image-16.jpg" width="326" height="162" /></a>Does Colorado’s <a href="https://danieljmitchell.wordpress.com/2017/07/11/in-just-six-minutes-everything-you
5175-need-to-know-about-spending-caps/">spending cap</a> work perfectly? Of course not.</p>
5176<p>Politicians in the Centennial State have spent decades coming up with ways evade and avoid TABOR’s restrictions.</p>
5177<p>But let’s not make the perfect the enemy of the good.</p>
5178<p>A study published last year shows that TABOR has <a href="https://danieljmitchell.wordpress.com/2023/04/25/tabors-track-record-8-2-billion-in-taxpayer-savings/">saved taxpayers $8.2 billion</a>.</p>
5179<p>And taxpayers in Colorado may soon keep even more of their money according to <a href="https://coloradosun.com/2024/03/15/colorado-economic-forecasts-march-2024/">an article</a> by Brian Eason in the <em>Colorado Sun</em>. Here are the relevant excerpts.</p>
5180<blockquote>
5181<p>…the budget will be squeezed primarily by two seemingly minor factors. One, U.S. Census estimates now say the state’s population grew by less than the state’s demographer had anticipated. That means the state revenue cap under the Taxpayer’s Bill of Rights, which tracks inflation and population growth, <a href="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-25-24-Title.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2024/03/Mar-25-24-Title.jpg" width="247" height="52" /></a>can only increase by 5.8% this budget year rather than the 6.1% legislative forecasters were expecting. Two, the state is now expected to collect $185 million more in road usage fees and retail delivery charges this year than last, under the legislative staff estimates. Taken together, the two forecast changes mean state lawmakers could have to issue larger than expected TABOR refunds to Coloradans next year, leaving the state with fewer General Fund tax dollars to spend… That would translate to a nearly $400 refund for the average single-filer in 2025 under the current refund formula, which is tiered based on income.</p>
5182</blockquote>
5183<p>I’m tempted to call this the feel-good story of 2024. Politicians get less money to waste and taxpayers get more of their money returned.</p>
5184<p>No wonder TABOR is <a href="https://danieljmitchell.wordpress.com/2022/11/04/tabor-is-americas-fiscal-gold-standard/">the gold standard</a> for <a href="https://danieljmitchell.wordpress.com/2018/06/12/colorados-taxpayer-bill-of-rights-tabor-should-be-a-role-model-for-the-nation/">good fiscal policy</a> at the state level. And Switzerland shows that spending caps also <a href="https://danieljmitchell.wordpress.com/2023/03/18/more-evidence-for-switzerlands-spending-cap/">are very effective</a> at the national level.</p>
5185<p>By contrast, there is <a href="https://danieljmitchell.wordpress.com/2023/05/20/a-spending-cap-amendment-is-far-better-than-a-balanced-budget-amendment/">very little evidence</a> that balanced-budget rules produce good results.</p>
5186<p>P.S. Perhaps the best evidence for TABOR is that the pro-spending lobbies in Colorado are always trying to trick voters into approving ballot initiatives that would allow more spending. But as we saw in <a href="https://danieljmitchell.wordpress.com/2013/11/05/the-most-important-election-of-2013/">2013</a>, <a href="https://danieljmitchell.wordpress.com/2019/11/04/the-most-important-ballot-initiative-of-2019/">2019</a>, and <a href="https://danieljmitchell.wordpress.com/2023/10/14/the-most-important-ballot-initiative-of-2023/">2023</a>, the voters of left-leaning Colorado keep voting to to maintain their <a href="https://danieljmitchell.wordpress.com/2022/01/19/ecb-and-imf-studies-show-spending-caps-are-the-ideal-fiscal-rule/">spending cap</a>.</p>
5187<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-enabled sd-sharing-enabled"> </div>
5188</div>
5189<p><span class="embed-youtube" style="text-align:center; display: block;"><iframe loading="lazy" class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/Syp_jR4BNBk?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></p>
5190<p>—-</p>
5191<header class="entry-header">
5192<h1 class="entry-title"><a href="https://danieljmitchell.wordpress.com/2022/12/08/applauding-governor-ducey-of-arizona/" rel="bookmark">Applauding Governor Ducey of Arizona</a></h1>
5193<div class="entry-meta"> </div>
5194</header>
5195<div class="entry-content">
5196<p>Because politicians have <a href="https://danieljmitchell.wordpress.com/2016/10/08/a-videos-primer-on-public-choice-economics/">built-in incentives</a> to expand the size and scope of government, it is very rare to find elected officials who actually deliver more liberty.</p>
5197<p><a href="https://danieljmitchell.wordpress.com/2020/08/27/the-economic-history-of-the-20th-century/"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-Ronnie-Maggie.jpg" width="213" height="241" /></a>Some of them will offer rhetoric, of course, but very few of them produce results.</p>
5198<p>That’s <a href="https://danieljmitchell.wordpress.com/2021/03/29/big-government-republicans-enable-big-government-democrats/">true nationally</a> (with <a href="https://danieljmitchell.wordpress.com/2020/08/26/america-still-needs-reaganism/">limited exceptions</a>), and it’s <a href="https://danieljmitchell.wordpress.com/2022/04/26/hooray-the-socialist-beat-the-socialist-in-france/">true internationally</a> (with <a href="https://danieljmitchell.wordpress.com/2016/10/01/a-sadly-short-list-of-admirable-foreign-leaders/">limited exceptions</a>).</p>
5199<p>And it’s almost certainly true at the state level.</p>
5200<p>
5200Though I found an exception, and that is the topic of today’s column.</p>
5201<p>The outgoing governor of Arizona, Doug Ducey, deserves praise from libertarians and small-government conservatives.</p>
5202<p>George Will is especially impressed with Ducey’s education reforms (and <a href="https://danieljmitchell.wordpress.com/2022/06/27/school-choice-on-the-march-again/">I agree</a>).</p>
5203<p>Here are some excerpts from his <em>Washington Post </em><a href="https://www.washingtonpost.com/opinions/2022/12/07/doug-ducey-arizona-governor-2024-presidency/">column</a>.</p>
5204<blockquote>
5205<p>With two trenchant sentences, the nation’s most successful governor of the 21st century defines the significance of his signature achievement: “Fifty years ago, politicians stood in the schoolhouse door and wouldn’t let minorities in. Today, union-backed politicians stand in the schoolhouse door and won’t let minorities out.” Hence Gov. Doug Ducey’s Empowerment Scholarship Account program,<a href="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-Will.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-Will.jpg" width="266" height="35" /></a>which was enacted this year to provide universal school choice in grades K-12. Every Arizona family is eligible to receive about $7,000 per student per year to pay for private school tuition, home schooling, tutoring, textbooks, online courses, programs for special-needs pupils and more. …ESA was ferociously opposed by the teachers’ unions, whose confidence in the quality of their schools can be gauged by their fear of competition. A union attempt to repeal ESA by referendum failed to get enough signatures to qualify for the ballot, partly because of a group (Decline to Sign) in which, Ducey said here last week, Black leaders were disproportionately active.</p>
5206</blockquote>
5207<p>The <em>Wall Street Journal</em> is <a href="https://www.wsj.com/articles/a-big-taxpayer-victory-in-arizona-doug-ducey-john-hannah-11647381705">impressed</a> with his tax reform (and <a href="https://danieljmitchell.wordpress.com/2022/06/04/the-feel-good-map-of-2022/">I agree</a>).</p>
5208<blockquote>
5209<p>Arizonans who fled California for sunnier tax climes can breathe easier after a court ruling that has saved the day from a punitive 8% top state tax rate. A state judge…struck down Arizona’s Proposition 208, which placed a 3.5% surtax on incomes above $250,000, or $500,000 for joint filers.<a href="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-WSJ.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-WSJ.jpg" width="177" height="39" /></a>…Nixing the surtax means Arizona will soon have a flat tax of 2.5% on individual incomes, the lowest flat rate among states with an income tax. Gov. Doug Ducey slashed the previous 4.5% top rate in his 2022 budget… Tax competition has helped Arizona draw residents and businesses from neighbors like California, but the surtax would have sent the Grand Canyon State down a Golden State path. The tax’s $250,000 income threshold made it a particular burden on small businesses that pay taxes under the individual code. The episode is a reminder of the value of constitutional guardrails on state taxes and spending. Arizona voters in 1980 placed limits on school spending through a ballot initiative, preventing unrestrained budget bloat.</p>
5210</blockquote>
5211<p>In <a href="https://www.nationalaffairs.com/publications/detail/the-arizona-miracle">a column</a> for <em>National Affairs</em>, James Glassman mentions school choice and the flat tax, but also a few of his other accomplishments.</p>
5212<blockquote>
5213<p>Since Arizona’s governor is limited to eight years in office, Ducey’s second term — which ends in January — will be his last. This makes it an opportune time to consider Ducey’s legacy… This past January, Ducey told the state legislature, “[l]et’s think big and find more ways to get kids into the school of their parents’ choice…” In July, he did just that. The Empowerment Scholarship Account program — the most expansive school-choice program in America — is a pure choice-based system<a href="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-Nat-Aff.jpg"><img loading="lazy" class="alignright " src="https://freedomandprosperity.org/wp-content/uploads/2022/12/Dec-8-22-Nat-Aff.jpg" width="225" height="21" /></a>that provides $6,500 per student to any family that prefers an alternative to public schools. …When he entered office, he announced that he wanted the state’s personal income tax rate, which stood at 4.5%, to be “as close to zero as possible.” He started by indexing brackets to inflation, then chipped away at the rate with dozens of specific reductions. Finally, last year, he signed into law the largest tax cut in the state’s history, which will achieve a flat tax of 2.5% within three years. On regulatory policy, …he axed or modified more than 3,000 regulations. …he signed the first universal occupational-licensing law in the nation: Arizona now automatically recognizes occupational licenses issued by any other state. He also eliminated initial licensing fees for applicants from families making less than 200% of the federal poverty level.</p>
5214</blockquote>
5215<p>Ducey’s licensing reform is <a href="https://danieljmitchell.wordpress.com/2017/11/25/occupational-licensing-another-way-politicians-hurt-the-poor-and-help-their-cronies/">especially impressive</a>. For all intents and purposes, he adopted an approach based on “<a href="https://danieljmitchell.wordpress.com/2018/02/20/jurisdictional-compet
5215ition-mutual-recognition-and-european-prosperity/">mutual recognition</a>,” and that makes it much easier for people in other states to shift economic activity to Arizona.</p>
5216<p>P.S. George Will’s column also notes that Ducey is not a fan of Republicans who want to surrender to bigger government.</p>
5217<blockquote>
5218<p>During a September speech at the Ronald Reagan Presidential Library in California, Ducey deplored the fact that “a dangerous strain of big-government activism has taken hold” in the Republican Party, and “for liberty’s sake we need to fight it with every fiber in our beings”.</p>
5219</blockquote>
5220<p>Amen. Whether it is called <a href="https://danieljmitchell.wordpress.com/2022/11/11/republican-warfare-part-iii-national-conservatism-and-massive-tax-increases/">national conservatism</a>, <a href="https://danieljmitchell.wordpress.com/2017/10/24/ranking-presidents-on-economic-policy-the-dismal-record-of-george-w-bush/">compassionate conservatism</a>, <a href="https://danieljmitchell.wordpress.com/2018/12/11/george-h-w-bush-good-man-bad-president/">kinder-and-gentler conservatism</a>, <a href="https://danieljmitchell.wordpress.com/2019/11/26/fight-on-the-right-part-ii-debating-common-good-capitalism/">common-good capitalism</a>, <a href="https://danieljmitchell.wordpress.com/2013/06/02/question-of-the-week-whats-my-take-on-reform-conservatism/">reform conservatism</a>, or anything else, bigger government is bad news for ordinary citizens.</p>
5221<div id="jp-post-flair" class="sharedaddy sd-rating-enabled sd-like-enabled sd-sharing-enabled"> </div>
5222</div>
5223<div class="row post-header">
5224<h1 class="col-11 post-title">Friedman&#8217;s smashing success</h1>
5225<h5 class="col-12">By Scott Sumner</h5>
5226</div>
5227<div class="m-featured-image"><a href="https://www.econlib.org/friedmans-smashing-success/"><img src="https://3ijp5i2qkzo4hq4yrxfteqh-wpengine.netdna-ssl.com/wp-content/uploads/2021/06/Screen-Shot-2021-06-17-at-5.45.47-PM.png" alt="Friedman's smashing success" width="100%" /></a>
5228<div class="post-categories">Categories: <a href="https://www.econlib.org/econlog-by-category/#history-of-economic-thought">History of Economic Thought</a> <a href="https://www.econlib.org/econlog-by-category/#macroeconomics">Macroeconomics</a><a href="https://www.econlib.org/econlog-by-category/#monetary-policy">Monetary Policy</a> <a href="https://www.econlib.org/econlog-by-category/#money">Money and Inflation</a></div>
5229<div class="m-metawrap">
5230<p class="m-meta-stuff">By Scott Sumner, Jun 17 2021</p>
5231<div class="share-post-widget2"> </div>
5232</div>
5233</div>
5234<div class="post-content">
5235<p>In the late 1940s, <a href="https://www.econlib.org/library/Enc/bios/Friedman.html">Milton Friedman</a> was considered an important economist who had made significant technical contributions. At the beginning of the 1950s, however, he moved away from <a href="https://www.econlib.org/library/Enc/KeynesianEconomics.html">Keynesian economics</a> and as a result was increasingly viewed as a bit of a nut. Two decades later, however, Friedman had become far and away the most important macroeconomist in the world. Much of the ongoing macro debate revolved around economists addressing Friedman’s ideas, pro or con. How did this happen?</p>
5236<p>Edward Nelson’s <a href="https://www.amazon.com/Milton-Friedman-Economic-Debate-1932-1972/dp/022668489X/ref=asc_df_022668489X/?tag=hyprod-20&amp;linkCode=df0&amp;hvadid=475873515737&amp;hvpos=&amp;hvnetw=g&amp;hvrand=4655724579130022632&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9031563&amp;hvtargid=pla-995206539783&amp;psc=1"><strong>outstanding two volume study of Friedman</strong></a> provides the most complete answer that I have seen. During the 1960s, Friedman rejected 4 key tenets of Keynesian economics. And within less than a decade, all four of his critiques were shown to be correct. As a result, Keynesian economics absorbed much of <a href="https://www.econlib.org/library/Enc/Monetarism.html">monetarism</a>, and this led to the creation of a new macroeconomic framework called<a href="https://www.econlib.org/library/Enc/NewKeynesianEconomics.html"> New Keynesianism</a>. Keep in mind that when I talk about “Keynesians”, I am not describing the views of J.M. Keynes or the views of modern Keynesians, I am describing the views of many of the most prominent Keynesian economists during the 1960s. (Samuelson, Tobin, Modigliani, Solow, Heller, etc.)</p>
5237<p>Here are the four Keynesian ideas that Friedman rejected:</p>
5238<p>1. Nominal interest rates are the correct indicator of the stance of monetary policy.  The Fisher effect is not an important factor in the US.</p>
5239<p>2. Fiscal austerity (higher taxes) is the best way to reduce excessive aggregate demand.</p>
5240<p>3. There is a stable (negative) relationship between inflation and unemployment (the “Phillips Curve”).</p>
5241<p>4. Modern economies face an increasing problem of cost/push inflation, and hence wage/price controls are often the best way to control inflation.</p>
5242<p>Let’s take these one at a time.</p>
5243<p>In the mid-1960s, Friedman argued that nominal interest rates were rising because of increasing inflation expectations. Nelson points out that Keynesians like <a href="https://www.econlib.org/library/Enc/bios/Tobin.html">James Tobin</a> rejected this claim (vol. 2, p. 113.) By the 1970s, inflation and nominal interest rates had increased much further, and there was almost universal agreement that Friedman was right and Tobin was wrong. Nominal interest rates are not a good indicator of the stance of monetary policy.</p>
5244<p>Thus the Keynesians were saying that if you want tight money to reduce inflation, you need high interest rates. Friedman basically said no, high interest rates are not the solution; you need to reduce growth in the money supply. By the late 1960s, the US had both high interest rates and a fast growing money supply, and inflation kept rising. It turned out that Friedman was right.</p>
5245<p>But Keynesians did not draw the correct inferences from this episode. Rather they decided that monetary policy must not be very effective, and instead advocated higher taxes as a way to reduce inflation (the MMT approach.) In 1968, LBJ raised income taxes so high that the US budget went into surplus, but inflation continued to increase.</p>
5246<p>Friedman had two reasons for doubting the efficacy of higher taxes. First, his permanent income theory suggested that temporary tax changes would be offset by changes in private saving, leaving aggregate demand almost unaffected. More importantly, he saw that a tax increase could only slow inflation by reducing velocity, which would have only a one-time effect. Even if velocity fell one or tw
5246o percent, the contractionary effects (on M*V) would soon be overwhelmed by increasingly rapid growth in the money supply.</p>
5247<p>Thus Keynesians assumed that tax increases could slow inflation, while Friedman said no, you need to reduce the growth rate of the money supply.</p>
5248<p>When the tax increases failed to slow inflation, Keynesians began to focus on the Phillips curve, which suggested that there was an inverse relationship between inflation and unemployment. A policy of higher inflation would lead to lower unemployment, and vice versa. Friedman said this was wrong, as workers would eventually catch on to changes in the rate of inflation and demand compensating changes in nominal wage rates. In the long run, unemployment would return to the natural rate, regardless of the trend rate of inflation.  By 1970, we had high inflation and high unemployment, which showed that Friedman was right.  (Note that this was three years before the first oil shock.)</p>
5249<p>Thus the Keynesians thought that high unemployment was the solution to inflation.  Friedman said no, you need to reduce the growth rate of the money supply.</p>
5250<p>When the high unemployment of 1970 did not work, Keynesian economists blamed inflation on “cost-push factors”, such as monopoly power or strong labor unions.  They supported wage/price controls, which President Nixon implemented in August 1971.  After a brief decline in inflation, the problem got much worse during the mid and late-1970s.  Friedman saw that while wage/price controls might lead to a one-time drop in the price level of a few percentage points, as long as the money supply was growing rapidly, any gains from wage/price controls would be soon overwhelmed by a rising money supply.</p>
5251<p>Thus Keynesians said that the solution for high inflation is wage-<a href="https://www.econlib.org/library/Enc/PriceControls.html">price controls</a>, whereas Friedman said no, these controls will not work; you need to reduce the growth rate of the money supply.  See a pattern here?</p>
5252<p>In the early 1980s, the Fed finally began reducing the growth rate of the money supply, and <a href="https://www.econlib.org/library/Enc/Inflation.html">inflation</a> fell sharply.</p>
5253<p>Why isn’t the amazing success of Friedman’s ideas better understood?  It’s partly because his preferred policy target—stable growth in a monetary aggregate such as M2—was not adopted due to concerns about unstable velocity.   Even Friedman eventually accepted inflation targeting as a reasonable alternative.  And the other four ideas discussed above all got incorporated in 1990s-era New Keynesianism.  NKs accepted the importance of the Fisher effect, switching their focus from nominal to real interest rates.  They accepted that monetary policy is the appropriate tool to control inflation, not fiscal policy.  They accepted Friedman’s Natural Rate Hypothesis, the idea that higher inflation will not permanently reduce unemployment.  And they accepted that a contractionary monetary policy, not wage/price controls, is the solution to inflation.</p>
5254<p>In one important respect, Friedman’s achievement is even more amazing than what I have outline here.  In all four cases, Friedman’s claims were made <em>at a time when they looked wrong</em>.  The Fisher effect had not been a very important factor in the setting of US interest rates when inflation expectation were near zero, including the period when the price of gold was pegged at $20.67/oz (1879-1933).  And during 1934-68, when gold was $35/oz, inflation expectation were generally pretty low (even as actual inflation bounced around unpredictably.)  During the early to mid-1960s, inflation expectations were probably not much more than 1%.  The Fisher effect became a major factor <em>after</em>Friedman began warning about the issue.  Similarly, in the mid-1960s it was widely believed that tax changes had a big impact on aggregate demand, as the Kennedy tax cuts of 1964 were followed by a strong economy (albeit perhaps for supply-side reasons.)  Keynesians were genuinely surprised when the big tax increase of 1968 failed to slow inflation.  When Friedman gave famous AEA Presidential address outlining the Natural Rate Hypothesis in late 1967, a stable Phillips curve seemed quite plausible, indeed the 1960s fit the model better than almost any other decade.  It was in the 1970s that the relationship completely broke down.  And the Nixon wage/price controls seemed to work at first; it was only a few years later that they began to fall apart.  Thus in all four cases Friedman rejected the orthodox view at a time when the orthodox approach seemed to be working fine, and in all four cases his views were eventually vindicated.</p>
5255<p>Milton Friedman’s achievements in the late 1960s and early 1970s were truly amazing, and deserve to be better known.</p>
5256<p>In a subsequent post, I’ll try to explain how Friedman was able to see the flaws in mainstream Keynesianism before most other economists.  Why was his model better?  We’ll see that all four of his successful critiques have something in common.</p>
5257</div>
5258<p><strong><br />Milton Friedman&#8217;s FREE TO CHOOSE &#8220;Who protects the consumer?&#8221; Transcript and Video (60 Minutes)</strong></p>
5259<p>In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman&#8217;s film series FREE TO CHOOSE:<a title="Permalink to “Friedman Frid
5259ay,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark"> “The Failure of Socialism” </a>and <a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">“What is wrong with our schools?”  </a>and <a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">“Created Equal”  </a>and <a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark"> From Cradle to Grave, </a>and <a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">– Power of the Market. </a>From the original <i>Free To Choose</i> series Milton asks: <a><b>“Who Protects the Consumer?”</b></a>. Many government agencies have been created for this purpose, yet they do so by restricting freedom and stifling beneficial innovation, and eventually become agents for the groups they have been created to regulate.</p>
5260<span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/KgVvUz6mUkY?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span>
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5287<div>Allowing the free market to work is the best thing for consumers. Milton Friedman noted, &#8220;Over a quarter of a century ago, I bought, second hand, a desk calculator for which I paid $300. One of these little calculators today which I can buy for $10 or so, will do everything that did and more besides. What produced this tremendous improvement in technology? It was self-interest or if your prefer, greed. The greed of producers who wanted it to produce something that they can made a dollar on. The greed of consumers who wanted to buy things as cheaply as they could. Did government play a role in this? Very little. Only by keeping the road clear for human greed and self-interest to promote the welfare of the consumer.&#8221;</div>
5288<div> </div>
5289<div> </div>
5290<div><em>Volume 7 </em>&#8211; Who Protects the Consumer?</div>
5291<div>Abstract:</div>
5292<div id="yui_3_2_0_1_132691864631284">
5293<p>Do consumers need protection? Increasingly the public answer to this question has been &#8220;yes.&#8221; Increasingly, too, the Federal government has been identified as the source of this protection. Milton Friedman disputes the views that (1) consumers are in dire need of governmental protection against the wiles of the business community and that (2) governmental actions tend to make consumers better off. He argues that consumers&#8217; problems more frequently than not can be attributed to failures of government rather than to failures of free markets. The best protection for the consumer, in Dr. Friedman&#8217;s view, is the free market. Despite popular mythology, business interests do not have the power to make people purchase something they do not want. Consider, for example, the failure of the highly touted Edsel, a product that was heavily promoted by the best advertising brains at the Ford Motor Company and its advertising agencies.When people have alternatives, they will not accept products they do not want. In a competitive market system, business people&#8217;s recognition that consumers have alternatives provides a powerful stimulus to keep product quality high. Fear of losing business to competitors provides a strong protective shield for the consumer. Armed with the protection offered by the free market, the consumer, says Dr. Friedman, really needs very little protection by the government. Indeed, many government attempts to protect consumers have made them worse off than they were beforehttp://www.youtube.com/watch?v=KgVvUz6mUkY</p>
5294<div><em>Volume 7 </em>&#8211; Who Protects the Consumer?</div>
5295<div>Transcript:</div>
5296<div id="yui_3_2_0_1_132691864631283">
5297<div>Friedman: The 1960&#8217;
5297s Corvair, condemned by Ralph Nader as unsafe at any speed. Since Nader&#8217;s attack it is being increasingly accepted that we need government protection in the marketplace. Today there are agencies all over Washington where bureaucrats decide what&#8217;s good for us. Agencies to control the prices we pay, the quality of goods we can buy, the choice of products available. It&#8217;s already costing us more than $5 billion a year. Since the attack on the Corvair the government has been spending more and more money in the name of protecting the consumer. This is hardly what the 3rd president of the United States, Thomas Jefferson, whose monument this is, had in mind when he defined a wise and frugal government as, one, which restrains men from injuring each other and leaves them otherwise free to regulate their own pursuits of industry and improvement. Ever since the Corvair affair the U.S. government has been increasingly been muscling in between buyer and seller in the marketplaces of America. By Thomas Jefferson&#8217;s standards, what we have today is not a wise and frugal government but a spendthrift and snooping government.</div>
5298<div>The federal regulations that govern our lives are available in many place. One set is here, in the Library of Congress in Washington, D.C. In 1936, the Federal Government established the Federal Register to record all of the regulations, hearings and other materials connected with the agencies in Washington. This is volume 1, number 1. In 1936 it took three volumes like this to record all these matters. In 1937 it took four and then it grew and grew and grew. At first rather slowly and gradually, but even so, year by year it took a bigger and bigger pile to hold all the regulations and hearings for that year. Then around 1970 came a veritable explosion so that one pile is no longer enough to hold the regulations for that year. It takes two and then three piles. Until on one day in 1977, September 28, the Federal Register had no fewer than 1,754 pages and these aren&#8217;t exactly what you&#8217;d call small pages either.</div>
5299<div>Many of those regulations come from this building.</div>
5300<div>Worker: Consumer Protection Safety hotline _ can you hold please?</div>
5301<div>Friedman: The Consumer Product Safety Commission is one of the newest agencies set up on our behalf. One of its jobs is to give advice to consumers.</div>
5302<div>Workers: The clue that gave it away&#8230;.. What has been done about the flammability of children&#8217;s garments?</div>
5303<div>Friedman: But its main function is to produce rules and regulations. Hundreds and hundreds of them. Designed to assure safety of products on the market. It&#8217;s hard to escape the invisible hand of the Consumer Product Safety Commission except for food and drugs, ammunition and automobiles that are covered by other agencies. It has power to regulate just about anything you can imagine. Already it costs $41 million a year to test and regulate all these products on our behalf and that&#8217;s just the beginning. The Commission employees highly trained technicians to carry out tests like this, checking the brakes on a bike. But the fact is that 80% of bike accidents are caused by human error. These tests may one day lead to safer brakes, but even that isn&#8217;t sure. The one thing that is sure is that the regulations that come out of here will make bikes more expensive and will reduce the variety available. Yes, they really are testing how matches strike. And the tests are very precise. The pressure must be exactly one pound, the match exactly at right angles.</div>
5304<div>No matter how many tests are done, children&#8217;s swings are never going to be totally safe. You cannot outlaw accidents. If you try, you end up with ludicrous results. It hardly seems possible but they really do use highly skilled people to devise regulations that will prevent toy guns from making to big of a bang.</div>
5305<div>The Commission, in effect, is deciding what they think is good for us. They are taking away our freedom to choose.</div>
5306<div>Consumers don&#8217;t have to be hemmed in by rules and regulations. They&#8217;re protected by the market itself. They want the best possible products at the lowest price. And the self-interest of the producer leaves him to provide those products in order to keep customers satisfied. After all, if they bring goods of low quality here, your not going to keep coming back to buy. If they bring goods that don&#8217;t serve your needs, you&#8217;re not going to buy them. And therefore, they search out all over the world, the products that might meet your needs and might appeal to you. And they stand in back of them because if they don&#8217;t they&#8217;re going to go out of business. You see the difference between the market and the political action, the governmental agencies. Here nobody forces you, your free, you do what you want to. There&#8217;s no policemen to take money out of your pocket or to make sure that you do what you&#8217;re told to. Over a quarter of a century ago, I bought, second hand, a desk calculator for which I paid $300. One of these little calculators today which I can buy for $10 or so, will do everything that did and more besides. What produced this tremendous improvement in technology? It was self-interest or if your prefer, greed. The greed of producers who wanted it to produce something that they can made a dollar on. The greed of consumers who wanted to buy things as cheaply as they could. Did government play a role in this? Very little. Only by keeping the road clear for human greed and self-interest to promote the welfare of the consumer.</div>
5307<div> </div>
5308<div>__________________________________</div>
5309<div> </div>
5310<div>Milton Friedman noted how the government usually messes up things when they start regulating: &#8220;When governments do intervene in business, innovation is stifled. Railroads have been regulated for nearly a century and they are one of our most backward industries.&#8221;</div>
5311<div> </div>
5312<div>Part 2</div>
5313<div> </div>
5314<div> </div>
5315<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/mFTWj0s3eRc?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5316<div> </div>
5317<div> </div>
5318<div>When governments do intervene in business, innovation is stifled. Railroads have been regulated for nearly a century and they are one of our most backward industries. The railroad story shows what so often results from the good intentions of consumer protection groups. In the 1860&#8217;s railroad rates were lower in the United States than anywhere else in the world. Yet many customers thought they were too high. They complained bitterly about the profits of the railroads.</div>
5319<div>Now the railway men of the time had their problems too. Problems that arose out of the fierce competitiveness among them. Many railroads all trying to get their share of the market, all trying to make a name for themselves. If you want to see what their problems were as they saw them, come and have a look at this.</div>
5320<div>From inside this private railroad car it may not look as if the people who ran the railroads had any real problems. Some, like the owner of this private car, had done very well. This was the equivalent of the private jet of today&#8217;s business tycoons. But for each one who succeeded, many didn&#8217;t survive the cutthroat competition.</div>
5321<div>What we have here is a railroad map of the United States for the year 1882. It shows every railroad then in existence. The country was literally crisscrossed with railroads going to every remote hamlet and covering the nation from coast to co
5321ast. Between points far distant like for example New York and Chicago, there might be a half a dozen lines that would be running between those two points. Each of the half dozen trying to get business would cut rates and rates would get very low. The people who benefited most from this competition were the customers shipping goods on a long trip.</div>
5322<div>On the other hand, between some segments of that trip, say for example, Harrisburg and Pittsburgh, there might be only a single line that was running and that line would take full advantage of its monopoly position. It would charge all that the traffic would bear. The result was that the sum of the fares charged for the short haul was typically larger than the total sum charged for the long haul between the two distant points. Of course, none of the consumers complained about the low price for the long haul, but the consumer certainly did complain about the higher prices for the short hauls. And that was one of the major sources of agitation leading ultimately to the establishment of the Interstate Commerce Commission.</div>
5323<div>The cartoonists of the day delighted in pointing out that railroads had tremendous political instinct. As indeed they did. They used the consumer&#8217;s complaints to get the government to establish a commission that would protect the railroad&#8217;s interest. It took about a decade to get the commission into full operation. By that time, needless to say, the consumer advocates had moved on to their next crusade. But the railway men were still there. They had soon learned how to use the commission to their own advantage. They solved the long haul/short haul problem, by raising the long haul rates. The customers ended up paying more, some protection. The first commissioner was Thomas Cooley, a lawyer who had represented the railroads for many years. The railroads continued to dominate the Commission.</div>
5324<div>In the 1920&#8217;s and 30&#8217;s when trucks emerged as serious competitors for long distance hauling, the railroads induced the Commission to extend control over trucking. Truckers, in their turn, learned how to use the Commission to protect themselves from competition. This firm carries freight to and from the Dayton, Ohio International Airport. Its the only one serving some routes and its customers depend on it. But Dayton Airfreight has real problems. Its ICC license only permits it to carry freight from Dayton to Detroit. To serve other routes it&#8217;s had to buy rights from other ICC license holders including one who doesn&#8217;t own a single truck. It&#8217;s paid as much as $100,000 a year for the privilege.</div>
5325<div>Secretary: Our company is in the process of trying to get rights to go there now. Yes, we&#8217;ll do that and thank you for calling sir.</div>
5326<div>The owners of the firm have been trying for years to get their license extended to cover more routes.</div>
5327<div>Air freight company: Now I don&#8217;t have any argument with the people who already have ICC permits except for the fact that this is a big country and since the inception of the ICC in 1936, there has been very few entrants into the business. They do not allow new entrants to come in and compete with those who are already in.</div>
5328<div>Unnamed individual: Of course, Dayton Airfreight suffers but so do the customers who pay higher freight charges. Quite frankly, I don&#8217;t know why the ICC is sitting on its hands doing nothing. This is the third time to my knowledge that we&#8217;ve support the application of Dayton Airfreight to help us save money, help free enterprise, help the country save energy, help, help, help. It all comes down to consumers ultimately going to pay for all of this and they are the blame. The ICC has to be the blame.</div>
5329<div>Friedman: Dayton Airfreight now has many of its trucks lying idle. Trucks that could be providing a valuable service. Far from protecting consumers, the ICC has ended up making them worse off.</div>
5330<div>As far as I&#8217;m concerned, there is no free enterprise in interstate commerce. It no longer exists in this country. You have to pay the price and you have to pay the price very dearly and I don&#8217;t mean we have to pay the price, it means that the consumer is paying that price.</div>
5331<div>The price consumers pay when it comes to medicine could be their lives. In the 19th Century pharmacies contained an impressive array of pills and potions. Most were ineffective and some were deadly. There was an outcry about drugs that maimed or killed. The Food and Drug Administration in response to consumer pressure succeeded in banning a whole range of medicines. The tonics and lotions with their excessive claims disappeared from the market. In 1962 the Kefauver Amendment gave the FDA power to regulate all drugs for effectiveness as well as for safety. Today, every drug marketed in the United States must pass the FDA. It&#8217;s clear that this has protected us from some drugs with horrific side effects like thalidomide. And we all know of people who have benef
5331ited from modern drugs. What we don&#8217;t hear much about however, are the beneficial drugs that the FDA has prohibited.</div>
5332<div>Well, if you examine the therapeutic benefits of significant drugs that haven&#8217;t arrived in the U.S. but are available somewhere in the rest of the world, such as in Britain, you can come across numerous examples where the patient has suffered. For example, there are one or two drugs called beta blockers which now can prevent death after heart attack, we call it secondary prevention of coronary death after myocardial infarction, which if available here, could be saving about 10,000 lives a year in the United States. In the ten years after the 1962 amendments no drug was approved for hypertension. That&#8217;s for the control the blood pressure in the United States, where as several were approve in Britain. In the entire cardiovascular area, only one drug was approved in the five year period from 67 to 72. And this can be correlated with known organizational problems at FDA.</div>
5333<div>These carts are taking to an FDA official the documents required to get just one drug approved.</div>
5334<div>Worker: Well, hi there, must be the new one they called me about.</div>
5335<div>Friedman: It took six years work by the drug company to get this drug passed.</div>
5336<div>Worker: This one right here, all 119 volumes.</div>
5337<div> </div>
5338<div>_____________________________________</div>
5339<div>Milton Friedman noted, &#8220;The men and women who have fostered this movement&#8230; believe that we as consumers are not able to protect ourselves&#8230; But as so often happens the results have been very different from the intentions. Not only have our pockets been picked of billions of dollars, but also we are left less well protected than we were before.&#8221;</div>
5340<div> </div>
5341<div>Part 3</div>
5342<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/ElNQw9EAFfg?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5343<div> </div>
5344<div> </div>
5345<div>Friedman: The implications for the patients are that therapeutic decisions that used to be the preserve of the doctor and the patient are increasingly becoming made at a national level by committees of experts. And these committees and the agencies for whom they are acting, FDA, are highly skewed to avoid risks. So there is a tendency for us to have drugs that are safer but not to have those that are effective. Now, I&#8217;ve heard some remarkable statement from these advisory committees in considering drugs. One has seen the statement, there are not enough patients with the disease of this severity to warrant marketing this drug for general use. Now that&#8217;s fine if what you are trying to do is to minimize drug toxicity for the whole population. But if you happen to be one of these &#8220;not enough patients&#8221; and you have a disease that&#8217;s of high severity or a disease that&#8217;s very rare than that&#8217;s just tough luck on you.</div>
5346<div>For ten years Mrs. Esther Usdane suffered from severe asthma. The medication she received had serious side effects. Her condition was getting worse. But the drug her doctor preferred is prohibited by the FDA. So, twice a year Mrs. Usdane had to set out on a journey.</div>
5347<div>Mrs. Usdane: I had been very sick. I had been in and out of the hospital several times and they couldn&#8217;t seem to find a way to control the asthma and I had to change my lifestyle once I was out even for a short time, mainly because the cortisone derivatives were softening the bones and causing a puffiness of the face and other changes in my body. The doctors were pretty anxious to get me off the cortisone derivative.</div>
5348<div>Friedman: The drug her doctor wanted her to have had been available for use for five years in Canada. Once across the boarder of Niagara Falls, Mrs. Usdane could make use of the prescription that she obtained from a Canadian doctor. All she had to do was go to any pharmacy. There she could buy the drug that was totally prohibited in her own country. The drug worked immediately.</div>
5349<div>Mrs. Usdane: This one made such a difference in my life both because of the shortness of breath being resolved and also because now we don&#8217;t have to worry so much about the softening of the bones. Fortunately, once I got that medicine, very quickly, everything sort of reverted back to a much more the normal lifestyle and I&#8217;m very grateful that I was able to find relief.</div>
5350<div>Friedman: It was easy for Mrs. Usdane to get around the FDA regulations because she happens to live near the Canadian boarder. Not everyone is so lucky. It&#8217;s no accident that despite the best of intentions, the Food and Drug Administration operates so as to discourage the development and prevent the marketing of new and potentially useful drugs. Put yourself in the position of a bureaucrat who works over there. Suppose you approve a drug that turns out to be dangerous, a thalidomide. Your name is going to be on the front page of every newspaper. You will be in deep disgrace. On the other hand, what if you make the mistake of failing to approve a drug that c
5350ould have saved thousands of lives. Who will know? The people whose lives might have been saved will not be around. Their relatives are unlikely to know that there was something that could have saved their lives. A few doctors, a few research workers, they will be disgruntled, they will know. You or I, if we were in the position of that bureaucrat, we&#8217;d behave exactly the same way. Our own interests would demand that we take any chance, whatsoever, almost, of refusing to approve a good drug in order to be sure that we never approve a bad one.</div>
5351<div>Drug companies can no longer afford to develop new drugs in the United States for patients with rare diseases. Increasing, they must rely on drugs with high volume sales. Four drug firms have already gone out of business and the number of new drugs introduced is going down.</div>
5352<div>Where will it all lead? We simply haven&#8217;t learned from experience. Remember Prohibition? In a burst of moral righteousness at the end of the first world war, when many young men were oversees, the non-drinkers imposed on all of us prohibition of alcohol. They did it for our own good. And there is no doubt that alcohol is a dangerous substance. Unquestionably, more lives are lost each year through alcohol and also the smoking of cigarettes than through all the dangerous substances the FDA controls. But where did it lead?</div>
5353<div>This place is today a legitimate business. It&#8217;s the oldest bar in Chicago. But during Prohibition days it was a speakeasy. Al Capone, Buggs Moran, and many of the other gangsters of the day sat around this very bar planning the exploits that made them so notorious; murder, extortion, highjacking, bootlegging. Who were the customers who came here? They were people who regarded themselves as respectable individuals, who would never had approved of the activities that Al Capone and Moran were engaged in. They wanted a drink but in order to have a drink they had to break the law. Prohibition didn&#8217;t stop drinking, but it did convert a lot of otherwise law obedient citizens into law breakers. Fortunately, we&#8217;re a very long way from that today with the Prohibition on cyclamate and DDT. But make no mistake about it, there is already something of a gray market in drugs that are prohibited by the FDA. Many a conscientious physicians fees himself in a dilemma caught between what he regards as the welfare of his patient and strict obedience to the law. If we continue down this path, there is no doubt where it will end. After all, if it is appropriate for the government to protect us from using dangerous guns and bicycles for logic calls for prohibiting still more dangerous activities such as hand gliding, motorcycling, skiing. If the government is to protect us from ingesting dangerous substances, the logic calls for prohibiting alcohol and tobacco. Even the people who administered the regulatory agencies are appalled at this prospect and withdrawal from it. As for the rest of us, we want no part of it. Let the government give us information but let us decide for ourselves what chances we want to take with our own lives.</div>
5354<div>As you can see all sorts of silly things happen when government starts to regulate our lives. Setting up agencies to tell us what we can buy, what we can&#8217;t buy, what we can do.</div>
5355<div>Remember, we started out this program with a Corvair and on the bill that was castigated by Ralph Nader as unsafe at any speed. The reaction to his crusade led to the establishment of a whole series of agencies designed to protect us from ourselves. Well, some ten years later, one of the agencies that was set up in response to that, now finally got around to testing the Corvair that started the whole thing off. What do you suppose they found? They spent a year and a half comparing the performance of the Corvair with the performance of other comparable vehicles and they concluded and I quote &#8220;The 1960_63 Corvair compared favorably with the other contemporary vehicles used in the test.&#8221;</div>
5356<div> </div>
5357<div> </div>
5358<div>__________________________</div>
5359<div>Milton Friedman correctly noted, &#8220;It&#8217;s time all of us stopped being fooled by those well-meaning bureaucrats who claim to protect us because they say we can&#8217;t protect ourselves.&#8221;</div>
5360<div> </div>
5361<div> </div>
5362<div>Pt 4</div>
5363<div> </div>
5364<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/l2XERcH6O9U?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5365<div> </div>
5366<div>Nowadays, there are Corvair fan clubs throughout the country. Corvair&#8217;s have become collector items. Consumers have given their verdict on Ralph Nader and the government regulations. As Abraham Lincoln said, you can&#8217;t fool all of the people all of the time. It&#8217;s time all of us stopped being fooled by those well-meaning bureaucrats who claim to protect us because they say we can&#8217;t protect ourselves. The men and women who have fostered this movement have been sincere. They believe that we as consumers are not able to protect ourselves. That we need the help of a wise and effervescent government. But as so often happens the results have been very different from the intentions. Not only have our pockets been picked of billions of dollars, but also we are left less well protected than we were before.</div>
5367<div>DISCUSSION</div>
5368<div>Participants: Robert McKenzie, Moderator; Milton Friedman; Kathleen O&#8217;Reilly, Consumer Federation of America; Richard Landau, Professor of Medicine, University of Chicago; Joan Claybrook, National Highway Traffic Safety Administration;
5368 Robert Crandall, Brookings Institute</div>
5369<div>MCKENZIE: Now back at the University of Chicago the consumerists, themselves, get their chance to argue their case.</div>
5370<div>O&#8217;REILLY: I agree with Mr. Friedman with respect to those agencies which have had the major purpose of economically propping up a certain industry which is why consumer advocates like myself advocate the elimination of the ICC, the CAB, the Maritime Commission. But when you&#8217;re talking about consumer protection in the marketplace and when you&#8217;re talking about government watchdog in competition, consumers need and as every poll is showing, they&#8217;re demanding more and more protection. And to give just two examples of how information is simply not enough to protect the consumer, five years ago I could not have bought a child&#8217;s crib in this country that would have had the slats sufficiently close together that I did not have to worry about the child strangling. Not until the government and the Consumer Product Safety Commission stepped in did consumers then have the choice to buy that type of a crib, strangulation&#8217;s down 50 percent. And in 1975, if I had wanted to lease a Xerox machine, I could not have done it. And not until the Federal Trade Commission antitrust stepped in and forced competition into that marketplace did I have that choice and in one year the price went from 14,000 dollars to 5,000 dollars. Those are dollars back in our pocketbooks to say nothing of minimized emotional trauma.</div>
5371<div>MCKENZIE: Well, before we ask Milton Friedman to come back on that, lets establish the viewpoint of our other participants and experts. Dr. Richard Landau, what&#8217;s your reaction?</div>
5372<div>LANDAU: Well I think the cost is certainly outrageously large and the benefits are trivial if any. I think that perhaps Milton overstates it slightly to make his point, but basically I would have to agree with it in the area that I know best, which is the regulation of new drug development.</div>
5373<div>MCKENZIE: And Joan Claybrook.</div>
5374<div>CLAYBROOK: Well in the auto safety field we&#8217;ve saved about 55,000 lives and millions of injuries because of auto safety regulations since the mid_1960s. I might also comment that the cost of auto crashes each year, the American public is 48 billion dollars a year, fairly substantial when you compare it to other things, much less, again, the human trauma.</div>
5375<div>MCKENZIE: Bob Crandall.</div>
5376<div>CRANDALL: Well I think it&#8217;s impossible to disagree with Milton Friedman on the effects of economic rate regulation of the sort that the railroads and the trucking industry have been through. The intent of that legislation was, of course, to protect the railroad and to protect the trucks, and the same thing is true for maritime regulation. What sustains regulation is sort of a populist theory that somehow through government we will redistribute wealth from people who own business firms to consumers. In fact it doesn&#8217;t work that way. It doesn&#8217;t work that way in economic regulation and there&#8217;s very little evidence that it works that way in any kind of regulation. As to whether we get any value from health and safety regulation, I think much of it is too new to know.</div>
5377<div>MCKENZIE: Well now that&#8217;s the area I want to start with because remember that was the first part of his argument. The whole idea of consumer product safety action by the state. Now, is that so far working? Very close to your interest I know. What&#8217;s your reaction, Kathleen O&#8217;Reilly?</div>
5378<div>O&#8217;REILLY: Well in product safety in the state of that, the lawnmower industry had said for twenty years they could not design a safe lawnmower. Only when the Consumer Product Safety Commission forced them with the new standard suddenly their creative genius was overnight. They came up with net whips that were made out of plastic and they came up with very innovative forces. Which is why __ where that government presence actually triggered innovation that otherwise would have been left uncovered.</div>
5379<div>FRIEDMAN: It&#8217;s very easy to see the good results. The bad result it&#8217;s very much harder to see. You haven&#8217;t mentioned the products that aren&#8217;t there because the extra cost imposed by Consumer Product Safety Commission have prevented them from existing. You haven&#8217;t mentioned the case of the triss (phonetic) problem on the flammable garments. Here you had a clear case where the __ regulation of the CPSC essentially had the effect of requiring all manufacturers of children&#8217;s sleepwear to impregnate them with triss.</div>
5380<div>O&#8217;REILLY: Oh, but that&#8217;s not true at all.</div>
5381<div>FRIEDMAN: Three years __ five years later the regulation required that garments to be nonflammable and as it happened, triss was the most readily available chemical which could do it.</div>
5382<div>MCKENZIE: Kathleen O&#8217;Reilly.</div>
5383<div>O&#8217;REILLY: It&#8217;s absolutely not true.</div>
5384<div>FRIEDMAN: But let me finish the story first. Because the second half of the story is the important part of it. It turned out that triss was a carcinogen. And five years later or three years later, I&#8217;m not sure the exact time, the same agency had to prohibit the use of those sleepwear garments forcing them to be disposed of at great cost to everybody concerned.</div>
5385<div>O&#8217;REILLY: All right, lets look at the real interesting history here. In 1968, when Congress passed the Flammable Fabric Act, they did not tell the CPSC what chemicals would comply with that and what would not. And so initially when industry said, &#8220;we&#8217;re going to use triss,&#8221; the Consumer Product Safety Commission, from their initial tests, were disturbed by it and had announced informally to industry that they were not going to allow triss to be used. Industry balked and said, &#8220;we&#8217;re gonna to take you to court because the Act only says it has to be flame retardant.&#8221; You, the government, cannot tell us how to comply. And it was the industry that forced the hand of CPSC away. And they don&#8217;t even deny that now.</div>
5386<div>FRIEDMAN: I&#8217;m not trying to defend the industry. Go slowly. I am not pro-industry. I am pro-consumer. I&#8217;m like you. I&#8217;m not pro-industry. and, of course, industry will do a lot of bad things. The whole question at issue is what mechanism is more effective in protecting the interests of the consumers, the disbursed, widespread forces of the market. Take the case of the flammable fabrics, suppose you had not had the requirements.</div>
5387<div>MCKENZIE: But you believe it was right to test them, don&#8217;t you? For a government agency to test it?</div>
5388<div>FRIEDMAN: No, not at all.</div>
5389<div>
5389MCKENZIE: No, no.</div>
5390<div>FRIEDMAN: There are private consumer testing agencies. There&#8217;s the Consumers Research. There&#8217;s Consumers Union. You speak about a widespread demand for more protection, those agencies have never __ those organizations __</div>
5391<div>CLAYBROOK: Oh, of course, they have all these publications on cars __</div>
5392<div>FRIEDMAN: Of course.</div>
5393<div>CLAYBROOK:__ but what they do is they test the brakes and steering. They never crash test them and the most important thing to know about a car when you buy it is if the car crashes are you going to be killed unnecessarily?</div>
5394<div>FRIEDMAN: The reason they __</div>
5395<div>CLAYBROOK: You can&#8217;t even get that information.</div>
5396<div>FRIEDMAN: But the reason they don&#8217;t test __</div>
5397<div>CLAYBROOK: It&#8217;s too expensive, that&#8217;s the reason why.</div>
5398<div>FRIEDMAN: Of course. Anyway it is too expensive for them because the number of consumers who are willing to buy their service and take it is very, very small.</div>
5399<div>CLAYBROOK: That is not why. The reason why is because it&#8217;s enormously expensive.</div>
5400<div>FRIEDMAN: Of course, but if they had a large enough number of customers, if there were enough customers, enough consumers who wanted the __</div>
5401<div>CLAYBROOK: Yes, but that&#8217;s a chicken and egg situation which is ridiculous.</div>
5402<div>FRIEDMAN: It&#8217;s not a chicken and egg situation. The whole situation __</div>
5403<div>CLAYBROOK: If you believe that technological information is important for consumer to have, which is that basis ad the thesis of your argument, surely that you would say that one of the things that society does as it groups together to provide basic services to the public; police, traffic services, all sorts of basic kinds of things, the mail service and the fire service and all the rest of it. Why is that they shouldn&#8217;t even do testing of technological subjects which the public has no way of knowing?</div>
5404<div>MCKENZIE: Before you reply, I want one or two others in on this, Bob Crandall.</div>
5405<div>CRANDALL: It seems to me that Professor Friedman could give a little bit on this ground. Certainly in the dissemination of information there&#8217;s a free rider problem. And one of the problems is that while you and I might value the results from a Consumer Union rather highly, we don&#8217;t have to pay for it. We can look over the shoulder of someone else, borrow the magazine from the library and so forth. I wouldn&#8217;t go so far as to say that the government should not at all be in the business of generating information though I am concerned about exactly the same forces, this evil industry that Miss O&#8217;Reilly talks about, having its influence on how this information is prepared. I don&#8217;t see how we guard ourselves against that.</div>
5406<div>FRIEDMAN: We don&#8217;t</div>
5407<div>CRANDALL: But it seems to me that there is a case to be made that the market does not supply enough information.</div>
5408<div>FRIEDMAN: It may not. But the market supplies a great deal and there is also a free rider problem in the negative sense on government provision of information because people who have no use for that information are required to pay for it.</div>
5409<div> </div>
5410<div>_____________________________________</div>
5411<div>Milton Friedman rightly noted, &#8220;The most anti-consumer measures on our statute books are restrictions on foreign trade.&#8221;</div>
5412<div> </div>
5413<div>Pt 5</div>
5414<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/bgXwNBIqhQM?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5415<div> </div>
5416<div> </div>
5417<div>MCKENZIE: Milton, I don&#8217;t quite understand your position on this. Are you saying, though, that there&#8217;
5417s no place for government to test consumer product safety at all?</div>
5418<div>FRIEDMAN: I am saying, lets separate issues. I am saying there is no place for government to prohibit consumers from buying products, the effect of which will be to harm themselves. There is, of course, a place __</div>
5419<div>MCKENZIE: But how do they know that effect?</div>
5420<div>FRIEDMAN: Well, for a moment I&#8217;m trying to separate the issues. There is a place for government to protect third parties. If we go to your automobile case __</div>
5421<div>CLAYBROOK: Well, how about children? Children don&#8217;t __ aren&#8217;t choosers.</div>
5422<div>FRIEDMAN: No, no.</div>
5423<div>CLAYBROOK: They don&#8217;t make choices because they ride in the cars.</div>
5424<div>FRIEDMAN: The parents make their choices. But let&#8217;s go __</div>
5425<div>O&#8217;REILLY: But if the industry has it there&#8217;s no choice.</div>
5426<div>FRIEDMAN: We can only take one issue at a time. We&#8217;re a little difficult to take them all at once. Let&#8217;s take one at a time. I say there is no place for government to require me to do something to protect myself.</div>
5427<div>(Applause)</div>
5428<div>FRIEDMAN: Now if government has information __</div>
5429<div>MCKENZIE: Has of obtains?</div>
5430<div>FRIEDMAN: __ for a moment, suppose it has information, then it should make that public and available. The next question is: are there circumstances under which it&#8217;s appropriate for government to collect information? There may be some such circumstances. They have to be considered one at a time. Sometimes there is and sometimes there isn&#8217;t. But you see, I want to get back. Take your area Miss Claybrook, you are now involved on the airbag problem.</div>
5431<div>CLAYBROOK: That&#8217;s right.</div>
5432<div>FRIEDMAN: If I understand the situation, I don&#8217;t know anything about the technical aspects of it, but the airbag, in a car, is there to protect me as a driver. It doesn&#8217;t prevent me from having an accident, hurting somebody else because it&#8217;s only activated by an accident. All right then, why shouldn&#8217;t I make that decision? Who are you to tell me that I have to spend whatever it is, two hundred, three hundred, four hundred dollars on that airbag.</div>
5433<div>CLAYBROOK: Well we don&#8217;t tell you that. What we say is that when a car crashes into a brick wall at 30 miles an hour, the front seat occupants have to have automatic protection built into that car.</div>
5434<div>FRIEDMAN: Have to, why have to?</div>
5435<div>CLAYBROOK: And it&#8217;s a very __ it&#8217;s a very minimal __</div>
5436<div>FRIEDMAN: Why have to? I don&#8217;t care whether it&#8217;s an airbag or a seatbelt.</div>
5437<div>CLAYBROOK: The reason why __ well, there are two reasons why. One is that the sanctity of life is a fairly precious entity in this country.</div>
5438<div>FRIEDMAN: It&#8217;s more precious to me than it is to you. My life is more precious to me than to you.</div>
5439<div>MCKENZIE: Well, you know.</div>
5440<div>CLAYBROOK: Do you wear you seatbelt?</div>
5441<div>FRIEDMAN: Sometimes I do and sometimes I don&#8217;t.</div>
5442<div>CLAYBROOK: I see. Well then it couldn&#8217;t be too precious to you because if it were you&#8217;d wear it all the time.</div>
5443<div>FRIEDMAN: I beg you pardon.</div>
5444<div>CLAYBROOK: Yes.</div>
5445<div>FRIEDMAN: Other things are precious too.</div>
5446<div>CLAYBROOK: Yes. Okay, but wearing your seatbelt is a relatively simple thing to go into.</div>
5447<div>FRIEDMAN: But now my question is __ but I want an answer, a direct answer.</div>
5448<div>CLAYBROOK: But there is a very __ there&#8217;s a very basic reason why.</div>
5449<div>FRIEDMAN: Yes.</div>
5450<div>CLAYBROOK: And it&#8217;s because a person does not know when they buy a car what that car is gonna do when it performs in various and sundry different ways. That&#8217;s number one. Number two, there&#8217;s a basic minimum standard, it&#8217;s performance standard. It&#8217;s not a requirement that you have certain pieces of products in your cars, but it&#8217;s a basic performance standard built into your car that when you buy it no one&#8217;s going to have less than that. So that you don&#8217;t have people needlessly injured on the highway, the cost to society, the cost to the individuals, the trauma to their families and so on. You&#8217;re suggesting theoretically that it&#8217;s much better to let people go out and kill themselves even though they really don&#8217;t know that that&#8217;s what&#8217;
5450s gonna happen to them when they have that crash.</div>
5451<div>FRIEDMAN: Excuse me. You&#8217;re evading the fundamental issue. If you have the information, give it to them. The question is not a question of giving them the information. The question is what is your right to force somebody to spend money to protect his own life, not anybody else, but only himself and the next question I&#8217;m gonna ask you: do you doubt for a moment that prohibiting alcohol would save far more lives on the highways than an airbag, seatbelts and everything else, and on what grounds are you opposed to prohibition on grounds of principle or only because you don&#8217;t think you can get it by the legislature?</div>
5452<div>CLAYBROOK: I&#8217;m opposed to prohibition because I don&#8217;t think it&#8217;s gonna work. That&#8217;s the reason I&#8217;m opposed to it.</div>
5453<div>FRIEDMAN: But suppose it would work? I want to get to the __ I want to get to the principle.</div>
5454<div>CLAYBROOK: Can I answer you __ sure.</div>
5455<div>FRIEDMAN: I want to __ suppose you could believe it would work. Suppose you could believe__</div>
5456<div>MCKENZIE: Prohibition?</div>
5457<div>FRIEDMAN: Prohibition could work. Would you be in favor of it?</div>
5458<div>CLAYBROOK: No. What I am in favor of is building products __ I am in favor of building products so that at least they service the public.</div>
5459<div>FRIEDMAN: I was fascinated by some of the initial comments. Everybody agrees that the old agencies are bad, but the new agencies that we haven&#8217;t had a chance ___</div>
5460<div>MCKENZIE: No. You&#8217;re trying to sweep them into your net. They didn&#8217;t agree to that. But anyway __ hole on to your point.</div>
5461<div>O&#8217;REILLY: When you talk about __ the basic principle is: give me the information. Let me choose for myself. If that&#8217;s the ultimate goal, why is it that in any hearings that you&#8217;ve every gone to and I beg anyone to find me an exception, whether it&#8217;s airbags or DES, saccharine, whatever, you never; you never have the victims of the injury who lost their arm because of a lawnmower, standing up and saying &#8220;thank God that you gave me the right to become incapacitated.&#8221; Never do you hear a victim thanking the government for backing off. Never do you hear the victim of an anti-competitive action thanking the Justice Department for not bring a suit.</div>
5462<div>MCKENZIE: Dr. Landau, I promised you could make an observation on that without going into great detail.</div>
5463<div>LANDAU: Now, when DES was used to preserve pregnancies in women 25 and 30 years ago, there was absolutely zero evidence that it would cause cancer in anybody, certainly not in the children of the women who were pregnant and for you to say that it is __</div>
5464<div>O&#8217;REILLY: Then you&#8217;re ignoring the 1941 studies that show just that.</div>
5465<div>LANDAU: There is no 1941 study. This happens to be my area of expertise, I&#8217;m an endocrinologist. There was nothing.</div>
5466<div>O&#8217;REILLY: Well, there are a lot __</div>
5467<div>MCKENZIE: Now let&#8217;s not go any further down that road.</div>
5468<div>CRANDALL: Let me ask you __ yeah, let me ask Miss O&#8217;Reilly a question. I don&#8217;t see __ if the problem in drugs is that there is a lack of competition, there are a number of drug companies in the United States __</div>
5469<div>O&#8217;REILLY: That&#8217;s one of them.</div>
5470<div>CRANDALL: __ and around the world; and a lack of innovation, how regulation, which is designed to keep products off the market, that is further restrict the supply of drugs is going to enhance either competition or innovation; as a matter of fact, everything that I have learned in economics would tell me that that is likely to reduce innovation and reduce competition. And one of the great benefits of drug regulation is that if I&#8217;m a pharmaceutical company with an old tried and true drug on the market, I really want the FDA to keep new drugs off the market. It will enhance the market value of that drug. I think that&#8217;s the lesson that you learn from government regulation, whether it&#8217;s National Highway Traffic Safety Administration regulation of fuel economy standards, be it drugs, be it pollution controls, their effect is anti-competitive, it&#8217;s not pro-competitve at all.</div>
5471<div>FRIEDMAN: It I go on with Bob&#8217;s point for just a moment. He and I, I&#8217;m sure, and all economists would agree that the most effective way to stimulate competition would be to have complete free trade and eliminate tariffs. The most anti-consumer measures on our statute books are restrictions on foreign trade.</div>
5472<div>MCKENZIE: Milton __</div>
5473<div>FRIEDMAN: Has the Consumer Federation of America testified against tariffs?</div>
5474<div>O&#8217;REILLY: We haven&#8217;t even been asked to.</div>
5475<div>(Laughter)</div>
5476<div> </div>
5477<div>___________________________________________</div>
5478<div>Milton Friedman noted, &#8220;I would agree with his general position that there is a role for government in pollution. I would agree secondly that the present techniques of controlling pollution are terrible and they are terrible and they are what they are for precisely the reasons he specifies because they are an effective way in which you could use the excuse of pollution to serve some very different objectives.&#8221;</div>
5479<div> </div>
5480<div>Pt 6</div>
5481<div> </div>
5482<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/d-EDFf4pJl4?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5483<div> </div>
5484<div>
5484MCKENZIE: Now the Food and Drug Administration, and here, Doctor, I know you&#8217;re keenly interested in this __ what was your reaction to Milton&#8217;s analysis of where it&#8217;s fallen down?</div>
5485<div>LANDAU: Well, I think it&#8217;s even worse than Milton&#8217;s analysis or Dr. Wordell&#8217;s (phonics) analysis of it. If one could look at the past 25 or 30 years of new drug innovation, one could see that most of the drugs that you all would regard as miracle drugs were developed before the Kefauver Amendments.</div>
5486<div>MCKENZIE: That&#8217;s the 1962 amendments __</div>
5487<div>LANDAU: The 1962 amendments.</div>
5488<div>MCKENZIE: Which ruled what now again, just a rundown.</div>
5489<div>LANDAU: Well, the 1962 amendments as Milton said, added efficacy to the regulation of safety. Actually it&#8217;s what the regulators did with this law that went haywire. I don&#8217;t see how one can object to the law in itself. What the regulators did was go mad with respect to safety. When the only thing that was added to the law was the point of efficacy.<
5489/div>
5490<div>MCKENZIE: Yeah.</div>
5491<div>LANDAU: After all the two are intertwined inextricably fir a very hazardous disease like cancer you will tolerate a very dangerous drug and for a headache it&#8217;s got to be very, very safe. Now this we&#8217;ve know all the time, but the regulators have gone to the point of utilizing some hysteria over thalidomide and new legislation which I think was originally designed by Kefauver to get himself to be president by lowering the cost of drugs, to make regulations which are absolutely obstructive. Now instead of 75 percent of the new drugs used in this country being developed in this country, less than 25 percent of them are. They&#8217;re being developed elsewhere.</div>
5492<div>MCKENZIE: Yeah, now could we just clarify this point, though. Are you saying there should not be government intervention in the food and drug field of that kind, or is it simply the policy adopted by the FDA or imposed on it by the Kefauver Amendment is where it went wrong?</div>
5493<div>LANDAU: I believe that certain guidelines are necessary and it&#8217;s possible to construct guidelines based upon the Kefauver Amendment taking the responsibility for decision making away from the bureaucrats in the Food and Drug Administration. You say, how? I would say by giving it to panels of impartial experts to make this decision.</div>
5494<div>MCKENZIE: Now, Milton, do you take that? Do you buy that?</div>
5495<div>FRIEDMAN: Nope. I&#8217;m not gonna buy that.</div>
5496<div>O&#8217;REILLY: Can I comment?</div>
5497<div>MCKENZIE: Why not?</div>
5498<div>FRIEDMAN: Because I have never seen __ have you ever seen a cat that barked?</div>
5499<div>MCKENZIE: Not especially, no.</div>
5500<div>FRIEDMAN: Well, governmental agencies and governmental laws follow their own laws just as the physical laws say that cats don&#8217;t bark. These laws of social science say that when you start and set up a regulatory agency with power, those powers are going to be used.</div>
5501<div>MCKENZIE: I want to move on, though, to the third area that Milton chose, the Interstate Commerce Commission as an illustration. Now this is closer to you line, Robert. What is your reaction, first to his analysis and what do you think needs doing about it?</div>
5502<div>CRANDALL: Well, you&#8217;re not going to get much dispute from, I don&#8217;t think anybody&#8217;s sitting around here as to what the benefits of __ or costs of rate regulation in transportation are. The only group that you will find now supporting continued regulation would be the American Trucking Association and they can&#8217;t even make a very persuasive case or one that is consistent from one day to the next. There simply is no good reason for continuing this type of regulation. If might continue longer then, say, airline regulation did because the number of people whose wealth has been enhanced by this regulation, that is people who drive trucks, people who won licenses to operate, to haul only hardbound books between Peoria and Springfield, Illinois or something of that sort. Those people are very numerous. And it&#8217;s going to very hard to o something about it.</div>
5503<div>MCKENZIE: Does this prove anything about the nature of government intervention and regulation or is it simply an example of where the thing was done extremely badly and not in the interest of the public.</div>
5504<div>CRANDALL: It proves _ _ I think it proves a great deal about government regulation and it is no different. I don&#8217;t think in the area of health and safety regulations. Let me give you one piece of information about one area of very important health and safety regulation which I think eve Milton Friedman would be in favor of in some form and that is the regulation of pollution control or at least the establishment of property rights, so as to somehow reduce pollutant levels from what they would be if we allowed unlimited pollution. In the case of environmental policy, the strongest proponents in the Congress for environmental policy come from the northeastern part of the United States and the weakest proponents, those with the worst voting records in the Congress come from the Southwest and Alaska. You might ask yourself why is that. And one possible answer I guess is that well the air&#8217;s dirty in New York City, but I don&#8217;t think you find many people really worried about the quality of the air in New York City. What they&#8217;re worried about is their future employment and the value of their assets in New York City. What would happen in the absence of environmental policy in this country is that more business would move to the southwest and the western part of the United States. As a result, eastern Congressmen are very much in favor of a policy which prohibits through pollution control regulations, prohibits a gravitation.</div>
5505<div>MCKENZIE: Do you favor that too?</div>
5506<div>CRANDALL: I don&#8217;t prohibit the form it takes, but they use this as an excuse, just as they will use various excuses, let&#8217;s say, before the __ Miss Claybrook&#8217;s agency, for a very tight standards in order to promote the value of their product.</div>
5507<div>MCKENZIE: Well before we go back to ICC and I want to do that; Milton, what&#8217;s your reaction to his pollution point because I know he&#8217;s very keenly interested in it.</div>
5508<div>FRIEDMAN: Well he and I would __ I would agree with his general position that there is a role for government in pollution. I would agree secondly that the present techniques of controlling pollution are terrible and they are terrible and they are what they are for precisely the reasons he specifies because they are an effective way in which you could use the excuse of pollution to serve some very different objectives. That&#8217;s part of the way in which governments meow, if I may go back to my cat. We&#8217;ve discussed this at greater lengths in a book that we&#8217;ve written to go along with this program on Free to Choose. The program itself was too short for us to be able to get much in about pollution, indeed, we really had to skip it because it&#8217;s such a complicated and difficult subject. But there is a real role for government because that is a case in which you&#8217;re protecting third parties. And every one of the valid cases, in my opinion, for government entering in has to do with third parties. There&#8217;s a case for requiring brakes because that&#8217;s to protect the person you might hit. That&#8217;s wholly different. There&#8217;s no case for requiring an airbag in my opinion, but there is a case for requiring good brakes.</div>
5509<div>MCKENZIE: Do you accept that distinction, by the way?</div>
5510<div>O&#8217;REILLY: No because when you&#8217;re injured because of a failure to us a passive restraint, I am in a sense going to have to help pick up part of your medical bills, part of your insurance rates __</div>
5511<div>FRIEDMAN: Absolutely.</div>
5512<div>O&#8217;REILLY: __ because they&#8217;re spread across.</div>
5513<div>FRIEDMAN: Absolutely.</div>
5514<div>O&#8217;REILLY: And so only on Gilligan&#8217;s Island, when you have six or nine people not interacting such that all of society is affected, does your distinction have any validity?</div>
5515<div>FRIEDMAN: Go slowly.</div>
5516<div>CRANDALL: The same thing is true in alcohol. When you&#8217;re sick from alcoholism, who pays for it?</div>
5517<div>O&#8217;REILLY: On the alcohol, the studies have only shown excessive amounts of alcohol to be injurious.</div>
5518<div>CRANDALL: I&#8217;m not speaking of accidents. What about cirrhosis of the liver, my dear, it&#8217;s a very common disease.</div>
5519<div>O&#8217;REILLY: All of the reasons why we need a stronger __</div>
5520<div>LANDAU: Because it&#8217;s a long and expensive disease.</div>
5521<div>MCKENZIE: Could we pause on __ Milton&#8217;s made a very interesting distinction here, that you can damage yourself, you&#8217;ve been saying. Or it&#8217;s up to you if you want to run the risk of damaging yourself, but if __ but can you make the distinction.</div>
5522<div>FRIEDMAN: But let me go back to her question because she says, &#8220;
5522no, we mustn&#8217;t do that because the fellow who hurts himself is going to go to a government subsidized hospital.&#8221;</div>
5523<div>O&#8217;REILLY: Not just government, no, no.</div>
5524<div>CRANDALL: Oh, but it&#8217;s more than that. It&#8217;s all the parties and liability as well, answer that issue with it. Because my __</div>
5525<div>FRIEDMAN: Go slowly. Let me separate the two issues because I really want to get to this because you&#8217;re answer is a very favorite one and there is an element of validity to it. Of course. Well, it&#8217;s only because we&#8217;ve made two mistakes.</div>
5526<div>O&#8217;REILLY: But you don&#8217;t have to be in a government hospital for it to be valid because when you&#8217;re in traction __</div>
5527<div>FRIEDMAN: Excuse me. Hold on for a moment. Hold on for a moment. The problem with your answer is that you&#8217;re saying one wrong justifies another. I believe that we ought to have much less government intervention into those areas as well. And I don&#8217;t __ am not willing to follow a policy which implies saying, you __ that every person goes around with a sign on his back saying, &#8220;Property of the U.S. Government do not mutilate, spindle or bend.&#8221;</div>
5528<div> </div>
5529<div>_______________________________</div>
5530<div> </div>
5531<div>The best point Milton Friedman made below about the Consumer Protection Agency is this:</div>
5532<div>&#8220;When government intervenes into these affairs that harms third parties. It picks my pocket. It reduces my freedom.&#8221;</div>
5533<div> </div>
5534<div>Pt 7</div>
5535<div><span class="embed-youtube" style="text-align:center; display: block;"><iframe class="youtube-player" width="530" height="299" src="https://www.youtube.com/embed/ARMzth7aHxQ?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent" allowfullscreen="true" style="border:0;" sandbox="allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox"></iframe></span></div>
5536<div> </div>
5537<div> </div>
5538<div>O&#8217;REILLY: Do you favor the government intervention in those areas where, for example, the bar associations and the eyeglass industry were not allowing their members to advertise and then the Federal Trade Commission stepped in and now consumers have the ability to make those kinds of comparisons?</div>
5539<div>FRIEDMAN: You&#8217;re getting into another area, but the answer, a brief answer because we oughtn&#8217;t to discuss this here. I am against those governmental measures which have enabled the organizations to have the power to prevent advertising.</div>
5540<div>O&#8217;REILLY: But they were no government __</div>
5541<div>MCKENZIE: Now, now look, Bob Crandall said __ Bob Crandall said that in an area like the Interstate Commerce Commission there is nothing really to be said in defense at all. Does anybody dissent from that or have we knocked them down flat?</div>
5542<div>FRIEDMAN: That happens to be the one area on which, so far as I know, you cannot find any dissent anywhere, even __ one of the most effective presentations of what was wrong with ICC was done by one of Ralph Nader&#8217;s groups, maybe you were associated with that group. That&#8217;s the thing that really baffles me. Fundamentally, here are people, like Ralph Nader and his groups who look at ICC and what is their solution to the problem? More of the same, a different kind of regulation __</div>
5543<div>CLAYBROOK: No.</div>
5544<div>FRIEDMAN: __ the only problem is that the wrong people were in there regulating.</div>
5545<div>CLAYBROOK: No, no, no. That&#8217;s not true. No, that&#8217;s a complete misrepresentation.</div>
5546<div>MCKENZIE: You work with Nader now, that&#8217;s __</div>
5547<div>CLAYBROOK: Yes.</div>
5548<div>FRIEDMAN: That&#8217;s Dr. Landau&#8217;s solution for the medical problem. Let&#8217;s have the right people doing the regulating.</div>
5549<div>CLAYBROOK: No, no, no. That&#8217;s a complete misnomer about the difference between ICC and Health and Safety regulation. There are a number of differences. One is, one involves the economic and the benefits of profits to industry and the other involves the sanctity of life in __ among people.</div>
5550<div>FRIEDMAN: Excuse me.</div>
5551<div>
5551MCKENZIE: Now let her finish this point, Milton.</div>
5552<div>FRIEDMAN: Okay.</div>
5553<div>MCKENZIE: Yes.</div>
5554<div>CLAYBROOK: The second one and it deals with your third party relationship is that __ what you&#8217;re talking about there is brakes because they&#8217;re gonna affect somebody else, but there are also other third-party effects. For example, if you don&#8217;t have a helmet used by someone and you hit them with your motorcycle, you&#8217;re gonna have huge damage payments to make because they didn&#8217;t properly take proper precautions on the public highways. And the question is: Should the public highways be used so that they&#8217;re gonna harm somebody else, potentially?</div>
5555<div>FRIEDMAN: There is nothing that two people do in a world. No man is an island to himself, everything has third-party issues; but you&#8217;ve got to have a sense of proportion and the important thing is that government intervention has third-party issues. When government intervenes into these affairs that harms third parties. It picks my pocket. It reduces my freedom. It restricts many activities around the world.</div>
5556<div>CLAYBROOK: That&#8217;s what you question is: what are the benefits? And if the benefits in the auto field, for example, are 55,000 deaths saved, it means __</div>
5557<div>FRIEDMAN: That&#8217;s a very dubious statistic because once again every study has looked at the benefits and not looked at the costs.</div>
5558<div>CLAYBROOK: Oh no, that&#8217;s not true at all. Absolutely not that they haven&#8217;t looked at the costs.</div>
5559<div>FRIEDMAN: I mean the costs in life. You haven&#8217;t looked at the fact, for example __</div>
5560<div>MCKENZIE: Let me clarify this, Milton. I don&#8217;t quite follow you.</div>
5561<div>FRIEDMAN: Sure.</div>
5562<div>MCKENZIE: Would you explain what you mean exactly?</div>
5563<div>FRIEDMAN: Of course.</div>
5564<div>MCKENZIE: Yeah.</div>
5565<div>FRIEDMAN: Look, take the automobile, by making automobiles more expensive it makes it more profitable to keep older automobiles on the road. The increased age of the automobile is an anti-safety factor by making automobiles safer so people are __ can drive them, people drive them faster or more recklessly then they otherwise would. There are more pedestrian deaths.</div>
5566<div>CLAYBROOK: That&#8217;s a totally unproven and indeed fully rebutted theory. And, in fact, all the savings in lives could __</div>
5567<div>MCKENZIE: By whom? You or __</div>
5568<div>CLAYBROOK: Well, no, there are numerous studies, including from__</div>
5569<div>MCKENZIE: Yeah, I see.</div>
5570<div>CLAYBROOK: __ Yale and Cooper from Yale and so on, but the key issue has been shown by the regulation that&#8217;s been in in the last ten years, you&#8217;ve had a huge saving in lives, a decrease in the __ the vehicle deaths that have occurred, the rate of vehicle deaths occurred and so on.</div>
5571<div>FRIEDMAN: Let me go back again for a moment.</div>
5572<div>CLAYBROOK: Yes.</div>
5573<div>FRIEDMAN: You see, the major effect on the saving of life has been from 55_mile_an_hour speed limits.</div>
5574<div>CLAYBROOK: Oh no, that&#8217;s not true.</div>
5575<div>FRIEDMAN: Which is not after all in there __</div>
5576<div>CLAYBROOK: Well that is also a regulation.</div>
5577<div>FRIEDMAN: __ as a safety regulation. That primarily is a fuel regulation.</div>
5578<div>CLAYBROOK: Yeah, that&#8217;s right. It&#8217;s a regulation.</div>
5579<div>MCKENZIE: Yeah.</div>
5580<div>CLAYBROOK: But your statement&#8217;s not accurate.</div>
5581<div>FRIEDMAN: All right.</div>
5582<div>CLAYBROOK: That the savings in life have not been primarily __ they&#8217;ve been, they&#8217;re important from 55. But there have been 55,000 deaths saved by vehicle crash safety regulations.</div>
5583<div>FRIEDMAN: Excuse me.</div>
5584<div>CLAYBROOK: Uh_huh.</div>
5585<div>FRIEDMAN: There have been 55,000 deaths that you have estimated to have been saved by it. Other estimates __</div>
5586<div>CLAYBROOK: Not me, the General Accounting Office.</div>
5587<div>FRIEDMAN: Excuse me. Other estimates as well, the estimate by Professor Sam Peltzman (phonetic) of this university, a very, very serious study estimated that there were no lives saved in you took into account all of the indirect effects. Now maybe his study isn&#8217;t exactly right.</div>
5588<div>CLAYBROOK: I don&#8217;t think it is.</div>
5589<div>FRIEDMAN: I&#8217;m not going to try to __ but maybe the other study isn&#8217;t exactly right either.</div>
5590<div>CLAYBROOK: Yes, okay, right.</div>
5591<div>(Laughter)</div>
5592<div>O&#8217;REILLY: But if you&#8217;re somewhere in between. If you look at __ consumers have done well if it&#8217;s even in between.</div>
5593<div>FRIEDMAN: No, no. I beg your pardon. If people voluntarily want to risk their lives. Are you saying again you really would not be in favor of prohibiting hand gliding.</div>
5594<div>CLAYBROOK: We asked the auto __ we asked the auto industry if __</div>
5595<div>FRIEDMAN: That&#8217;s far more dangerous. Did you prohibit the 500_mile speedway?</div>
5596<div id="yui_3_2_0_1_1326918646312122">CLAYBROOK: I think the __ let me answer this. We asked the auto industry if they would remove all the safety standards that have been in effect since 1968 and what would be the savings to the public if they did that. And the answer, sir, that they came back with was, &#8220;We couldn&#8217;t remove those, they expect them now.&#8221; The laminated windshields that don&#8217;t crack their head open and the collapsible steering assemblies and the padded dashboards. That __ why the public __ that is now the societal norm. Regulation has changed the thinking of the public and the understanding of what&#8217;s possible and so the, you know , what you&#8217;re suggesting is that government regulation is willy-nilly and it produces things the public doesn&#8217;t want, but you don&#8217;t have any__</div>
5597<div>FRIEDMAN: Excuse me for a moment. You can&#8217;t take credit for everything that&#8217;s happened in this area. Four-wheel brakes were introduced before there were safety regulations. Many of these developments would have __</div>
5598<div id="yui_3_2_0_1_1326918646312120">MCKENZIE: Well, we leave the matter now for this week and we hope you&#8217;ll join us again for the next episode in a week&#8217;s time.</div>
5599</div>
5600<ul>
5601<li><a href="http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_abstract.php?page=7" target="_blank" rel="nofollow noopener">Read Abstract</a></li>
5602</ul>
5603</div>
5604</td>
5605</tr>
5606</tbody>
5607</table>
5608</div>
5609</td>
5610</tr>
5611</tbody>
5612</table>
5613</div>
5614</td>
5615</tr>
5616</tbody>
5617</table>
5618</div>
5619</td>
5620</tr>
5621</tbody>
5622</table>
5623</div>
5624</div>
5625</div>
5626</div>
5627<div id="yui_3_2_0_6_132691864631231">
5628<div id="yui_3_2_0_6_132691864631249">
5629<div id="yui_3_2_0_6_132691864631252">
5630<div id="yui_3_2_0_6_132691864631254"> </div>
5631<p>Related posts:</p>
5632<div id="post-22822">
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5634<div><a title="2012-06-21T07:39:39-0500" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/">June 21, 2012 – 7:39 am</a></div>
5635<div>
5636<p>Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is 
5636why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]</p>
5637</div>
5638<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="https://thedailyhatch.org/tag/arnold-schwarzenegger/" rel="tag">arnold schwarzenegger.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22822&amp;action=edit">Edit</a> | <a title="Comment on “The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/06/21/the-power-of-the-market-episode-of-free-to-choose-in-1990-by-milton-friedman-part-1/#respond">Comments (0)</a></div>
5639<div> </div>
5640</div>
5641<div id="post-22868">
5642<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
5643<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
5644<div>
5645<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
5646</div>
5647<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/#comments">Comments (1)</a></div>
5648</div>
5649<p>________________</p>
5650<div>
5651<p><img src="https://i0.wp.com/www.marxists.org/glossary/people/f/pics/friedman-milton.jpg" alt="" /></p>
5652<div id="post-12618">
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5654<div><a title="2011-12-30T00:12:27-0500" href="https://thedailyhatch.org/2011/12/30/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-3-of-7/">December 30, 2011 – 12:12 am</a></div>
5655<div>
5656<p>
5656Worse still, America’s depression was to become worldwide because of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, [&#8230;]</p>
5657</div>
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5659</div>
5660<div id="post-12612">
5661<h3><a title="Permalink to “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/" rel="bookmark">“Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)</a></h3>
5662<div><a title="2011-12-23T00:07:14-0500" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/">December 23, 2011 – 12:07 am</a></div>
5663<div>
5664<p>  George Eccles: Well, then we called all our employees together. And we told them to be at the bank at their place at 8:00 a.m. and just act as if nothing was happening, just have a smile on their face, if they could, and me too. And we have four savings windows and we [&#8230;]</p>
5665</div>
5666<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12612&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (Part 16) (“Free to Choose” episode 3 – Anatomy of a Crisis. part 2 of 7)" href="https://thedailyhatch.org/2011/12/23/friedman-friday-part-16-free-to-choose-episode-3-anatomy-of-a-crisis-part-2-of-7/#respond">Comments (0)</a></div>
5667</div>
5668<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)</a></h3>
5669<div><a title="2011-12-16T00:04:29-0500" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/">December 16, 2011 – 12:04 am</a></div>
5670<div>
5671<p>Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1 FREE TO CHOOSE: Anatomy of Crisis Friedman Delancy Street in New York’s lower east side, hardly one of the city’s best known sites, yet what happened in this street nearly 50 years ago continues to effect all of us today. [&#8230;]</p>
5672</div>
5673<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12610&amp;action=edit">Edit</a>
5673 | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 1of 7)" href="https://thedailyhatch.org/2011/12/16/friedman-friday-free-to-choose-episode-3-anatomy-of-a-crisis-part-1of-7/#respond">Comments (0)</a></p>
5674<p>____________________________</p>
5675</div>
5676<div>_____________<img src="https://i0.wp.com/conservativehome.blogs.com/torydiary/images/friedman.gif" alt="" /></div>
5677<p><br title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 6 of transcript and video)" />________________________________________________</p>
5678<p>_____________________________________________</p>
5679<div>
5680<div id="post-14520">
5681<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)</a></h3>
5682<div><a title="2011-11-18T07:08:49-0500" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/">November 18, 2011 – 7:08 am</a></div>
5683<div>
5684<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video) Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 3 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: If it [&#8230;]</p>
5685</div>
5686<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/economic-market/" rel="tag">economic market.</a>, <a href="https://thedailyhatch.org/tag/educational-market/" rel="tag">educational market</a>, <a href="https://thedailyhatch.org/tag/private-universities/" rel="tag">private universities</a>, <a href="https://thedailyhatch.org/tag/state-colleges/" rel="tag">state colleges</a>, <a href="https://thedailyhatch.org/tag/value-of-education/" rel="tag">value of education</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=14520&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 3 of transcript and video)" href="https://thedailyhatch.org/2011/11/18/friedman-friday-free-to-choose-by-milton-friedman-episode-what-is-wrong-with-our-schools-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5687</div>
5688<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)</a></h3>
5689<div><a title="2011-11-11T00:50:18-0500" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/">November 11, 2011 – 12:50 am</a></div>
5690<div>
5691<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 2 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Groups of concerned parents and teachers decided to do something about it. They used private funds to take over empty stores and they [&#8230;]</p>
5692</div>
5693<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5693p-admin/post.php?post=12571&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 2 of transcript and video)" href="https://thedailyhatch.org/2011/11/11/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-2-of-transcript-and-video-2/#comments">Comments (1)</a></p>
5694</div>
5695<div>
5696<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)</a></h3>
5697<div><a title="2011-11-04T00:01:09-0500" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/">November 4, 2011 – 12:01 am</a></div>
5698<div>
5699<p>Here is the video clip and transcript of the film series FREE TO CHOOSE episode “What is wrong with our schools?” Part 1 of 6.   Volume 6 &#8211; What’s Wrong with our Schools Transcript: Friedman: These youngsters are beginning another day at one of America’s public schools, Hyde Park High School in Boston. What happens when [&#8230;]</p>
5700</div>
5701<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Also posted in <a title="View all posts in Vouchers" href="https://thedailyhatch.org/category/vouchers/" rel="category tag">Vouchers</a> | Tagged <a href="https://thedailyhatch.org/tag/hidden-weapons/" rel="tag">hidden weapons</a>, <a href="https://thedailyhatch.org/tag/hyde-park-high-school/" rel="tag">hyde park high school</a>, <a href="https://thedailyhatch.org/tag/hyde-park/" rel="tag">hyde park.</a>, <a href="https://thedailyhatch.org/tag/state-of-vermont/" rel="tag">state of vermont</a>, <a href="https://thedailyhatch.org/tag/vivid-illustration/" rel="tag">vivid illustration</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12566&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “What is wrong with our schools?” (Part 1 of transcript and video)" href="https://thedailyhatch.org/2011/11/04/friedman-friday%e2%80%9d-free-to-choose-by-milton-friedman-episode-%e2%80%9cwhat-is-wrong-with-our-schools-part-1-of-transcript-and-video/#respond">Comments (0)</a></p>
5702</div>
5703<p><img src="https://i0.wp.com/www.foxnews.com/images/239950/1_61_friedman_milton.jpg" alt="" /></p>
5704<div id="post-12246">
5705<h3><a title="Permalink to Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/" rel="bookmark">Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)</a></h3>
5706<div><a title="2011-09-30T07:46:57-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/">September 30, 2011 – 7:46 am</a></div>
5707<div>
5708<p>Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other [&#8230;]</p>
5709</div>
5710<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/containment-devices/" rel="tag">containment devices</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/oil-spill/" rel="tag">oil spill</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/youtube/" rel="tag">youtube</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5710p-admin/post.php?post=12246&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday” Free to Choose by Milton Friedman: Episode “Created Equal” (Part 3 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/friedman-friday-free-to-choose-by-milton-friedman-episode-created-equal-part-3-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5711</div>
5712<div id="post-12238">
5713<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)</a></h3>
5714<div><a title="2011-09-30T07:41:41-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/">September 30, 2011 – 7:41 am</a></div>
5715<div>
5716<p>Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video) Liberals like President Obama want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are [&#8230;]</p>
5717</div>
5718<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/menuhin-school/" rel="tag">menuhin school</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/new-millionaires/" rel="tag">new millionaires</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/world-war-ii/" rel="tag">world war ii</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=12238&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 2 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/30/free-to-choose-by-milton-friedman-episode-created-equal-part-2-of-transcript-and-video-2/#respond">Comments (0)</a></div>
5719</div>
5720<div id="post-11625">
5721<h3><a title="Permalink to Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/" rel="bookmark">Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)</a></h3>
5722<div><a title="2011-09-20T11:58:46-0600" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/">September 20, 2011 – 11:58 am</a></div>
5723<div>
5724<p> Milton Friedman and Ronald Reagan Liberals like President Obama (and John Brummett) want to shoot for an equality of outcome. That system does not work. In fact, our free society allows for the closest gap between the wealthy and the poor. Unlike other countries where free enterprise and other freedoms are not present.  This is a seven part series. [&#823
57240;]</p>
5725</div>
5726<div>By <a title="View all posts by Everette Hatcher III" href="http://haltingarkansasliberalswithtruth.com/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in John Brummett" href="http://haltingarkansasliberalswithtruth.com/category/john-brummett/" rel="category tag">John Brummett</a>, <a title="View all posts in Milton Friedman" href="http://haltingarkansasliberalswithtruth.com/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in Ronald Reagan" href="http://haltingarkansasliberalswithtruth.com/category/ronald-reagan/" rel="category tag">Ronald Reagan</a> | Tagged <a href="http://haltingarkansasliberalswithtruth.com/tag/dr-friedman/" rel="tag">dr friedman</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-opportunity/" rel="tag">equality of opportunity</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/equality-of-outcome/" rel="tag">equality of outcome</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/freedom-advocates/" rel="tag">freedom advocates</a>, <a href="http://haltingarkansasliberalswithtruth.com/tag/personal-freedom/" rel="tag">personal freedom.</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=11625&amp;action=edit">Edit</a> | <a title="Comment on Free to Choose by Milton Friedman: Episode “Created Equal” (Part 1 of transcript and video)" href="http://haltingarkansasliberalswithtruth.com/2011/09/20/free-to-choose-by-milton-friedman-episode-created-equal-part-1-of-transcript-and-video/#respond">Comments (0)</a></div>
5727</div>
5728<div id="post-10205">
5729<div>
5730<h3><a title="Permalink to Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/" rel="bookmark">Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)</a></h3>
5731<div><a title="2011-09-23T00:11:06-0500" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/">September 23, 2011 – 12:11 am</a></div>
5732<div>
5733<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. PART 3 OF 7 Worse still, America’s depression was to become worldwide be
5733cause of what lies behind these doors. This is the vault of the Federal Reserve Bank of New York. Inside [&#8230;]</p>
5734</div>
5735<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=10196&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday: (“Free to Choose” episode 4 – From Cradle to Grave, Part 3 of 7)" href="https://thedailyhatch.org/2011/09/23/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-24-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-3-of-7/#respond">Comments (0)</a></p>
5736</div>
5737<div>
5738<div id="post-9317">
5739<h3><a title="Permalink to Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/" rel="bookmark">Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)</a></h3>
5740<div><a title="2011-09-16T00:10:06-0500" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/">September 16, 2011 – 12:10 am</a></div>
5741<div>
5742<p> I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen. For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t [&#8230;]</p>
5743</div>
5744<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9317&amp;action=edit">Edit</a> | <a title="Comment on Milton Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 2 of 7)" href="https://thedailyhatch.org/2011/09/16/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-23-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-2-of-7/#respond">Comments (0)</a></div>
5745</div>
5746<h3><a title="Permalink to Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/" rel="bookmark">Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)</a></h3>
5747<div><a title="2011-09-09T00:09:02-0500" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part-1-of-7/">September 9, 2011 – 12:09 am</a></div>
5748<div>
5749<p>Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7) Volume 4 &#8211; From Cradle to Grave Abstract: Since the Depression years of the 1930s, there has been almost continuous expansion of governmental efforts to provide for people’s welfare. First, there was a tremendous expansion of public works. The Social Security Act [&#8230;]</p>
5750</div>
5751<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=9315&amp;action=edit">Edit</a> | <a title="Comment on Friedman Friday:(“Free to Choose” episode 4 – From Cradle to Grave, Part 1 of 7)" href="https://thedailyhatch.org/2011/09/09/99th-anniversary-of-milton-friedman%e2%80%99s-birth-part-22-%e2%80%9cfree-to-choose%e2%80%9d-episode-4-%e2%80%93-from-cradle-to-grave-part
5751-1-of-7/#respond">Comments (0)</a></p>
5752</div>
5753<div> </div>
5754<div>
5755<div id="post-16023">
5756<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)</a></h3>
5757<div><a title="2012-02-17T00:12:40-0500" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/">February 17, 2012 – 12:12 am</a></div>
5758<div>
5759<p>  _________________________   Pt3  Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]</p>
5760</div>
5761<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16023&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 3 of 7)" href="https://thedailyhatch.org/2012/02/17/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-3-of-7/#respond">Comments (0)</a></div>
5762</div>
5763<div id="post-16020">
5764<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)</a></h3>
5765<div><a title="2012-02-10T00:09:24-0500" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/">February 10, 2012 – 12:09 am</a></div>
5766<div>
5767<p>  Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]</p>
5768</div>
5769<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=16020&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 2 of 7)" href="https://thedailyhatch.org/2012/02/10/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-2-of-7/#respond">Comments (0)</a></div>
5770</div>
5771<h3><a title="Permalink to “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/" rel="bookmark">“Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)</a></h3>
5772<div><a title="2012-02-03T00:07:12-0500" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/">February 3, 2012 – 12:07 am</a></div>
5773<div>
5774<p>“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]</p>
5775</div>
5776<p>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Current Events" href="https://thedailyhatch.org/category/current-events/" rel="category tag">Current Events</a>, <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/w
5776p-admin/post.php?post=16018&amp;action=edit">Edit</a> | <a title="Comment on “Friedman Friday” (“Free to Choose” episode 1 – Power of the Market. part 1of 7)" href="https://thedailyhatch.org/2012/02/03/friedman-friday-free-to-choose-episode-1-power-of-the-market-part-1of-7/#respond">Comments (0)</a></p>
5777</div>
5778</div>
5779<div id="post-22868">
5780<h3><a title="Permalink to “Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/" rel="bookmark">“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)</a></h3>
5781<div><a title="2012-12-07T05:55:30-0500" href="https://thedailyhatch.org/2012/12/07/friedman-friday-episode-the-failure-of-socialism-of-free-to-choose-in-1990-by-milton-friedman-part-1/">December 7, 2012 – 5:55 am</a></div>
5782<div>
5783<p>Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]</p>
5784</div>
5785<div>By <a title="View all posts by Everette Hatcher III" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/">Everette Hatcher III</a> | Posted in <a title="View all posts in Milton Friedman" href="https://thedailyhatch.org/category/milton-friedman/" rel="category tag">Milton Friedman</a>, <a title="View all posts in President Obama" href="https://thedailyhatch.org/category/president-obama/" rel="category tag">President Obama</a> | <a title="Edit Post" href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-admin/post.php?post=22868&amp;action=edit">Edit</a> | Comments (1)</div>
5786</div>
5787</div>
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5791</div>									</div>
5792				<div class="entry-meta">
5793					<span class="author vcard">By <a class="url fn n" href="https://thedailyhatch.org/author/haltingarkansasliberalswithtruth/" title="View all posts by Everette Hatcher III">Everette Hatcher III</a></span>
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5825					<a href="https://thedailyhatch.org/2024/12/06/friedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2/">FRIEDMAN FRIDAY Dan Mitchell: Milton Friedman was advocating what is sometimes referred to as “shareholder capitalism,” which is the notion that a company should strive to earn honest profits for its&nbsp;owners!</a>
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5828					<a href="https://thedailyhatch.org/2024/12/05/francis-schaeffer-analyzes-art-and-culture-part-292-my-march-13-2016-letter-to-hugh-hefner-with-quote-from-ben-parkinson-there-are-only-two-things-worth-putting-your-time-and-life-into-and-that-is/">FRANCIS SCHAEFFER ANALYZES ART AND CULTURE Part 557 My March 13, 2016 Letter to Hugh Hefner with quote from Ben Parkinson:   There are only two things worth putting your time and life into and that is the WORD OF GOD and the SOULS OF PEOPLE. (Featured artist is Debo&nbsp;Eilers)</a>
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5834					<a href="https://thedailyhatch.org/2024/11/21/francis-schaeffer-analyzes-art-and-culture-part-316-letter-to-hugh-hefner-what-does-it-all-mean-if-it-has-any-meaning-at-all-but-how-can-it-all-exist-if-it-doesnt-have-som/">FRANCIS SCHAEFFER ANALYZES ART AND CULTURE Part 555 LETTER TO HUGH HEFNER “What does it all mean — if it has any meaning at all? But how can it all exist if it doesn’t have some kind of meaning?” Featured Artist is Assume Vivid Astro&nbsp;Focus</a>
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5837					<a href="https://thedailyhatch.org/2024/11/14/francis-schaeffer-analyzes-art-and-culture-part-554-my-correspondence-with-edward-o-wilson-from-1994-to-2021-my-4-21-17-letter-to-dr-wilson-i-quoted-francis-schaeffer-ecclesiastes-is-t/">FRANCIS SCHAEFFER ANALYZES ART AND CULTURE PART 554 My Correspondence with Edward O.Wilson from 1994 to 2021 My 4/21/17 letter to  Dr.Wilson I quoted Francis Schaeffer: “Ecclesiastes is the only pessimistic book in the Bible and that is because of the place where Solomon limits himself.He limits himself to the question of human life, life UNDER THE SUN between birth and death and the answers this would give” FEATURED ARTIST IS&nbsp;DALÍ</a>
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5847					<tr><td title="SLIMJIM" class="recentcommentsavatartop" style="height:48px; width:48px;"><a href="http://veritasdomain.wordpress.com/" rel="nofollow"><img referrerpolicy="no-referrer" alt='SLIMJIM&#039;s avatar' src='https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=48&#038;d=identicon&#038;r=G' srcset='https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=48&#038;d=identicon&#038;r=G 1x, https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=72&#038;d=identicon&#038;r=G 1.5x, https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=96&#038;d=identicon&#038;r=G 2x, https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=144&#038;d=identicon&#038;r=G 3x, https://0.gravatar.com/avatar/02998a97c56f78de745f387f229308001ce24d62c4e3552400a4d63b941d9f8c?s=192&#038;d=identicon&#038;r=G 4x' class='avatar avatar-48' height='48' width='48' loading='lazy' decoding='async' /></a></td><td class="recentcommentstexttop" style=""><a href="http://veritasdomain.wordpress.com/" rel="nofollow">SLIMJIM</a> on <a href="https://thedailyhatch.org/2024/04/11/francis-schaeffer-analyzes-art-and-culture-part-15-carl-sagans-book-and-movie-contact-what-you-missed-in-jodie-fosters-movie-contact-by-addie-g-featured-artist-is-miro/#comment-596479">FRANCIS SCHAEFFER ANALYZES ART&hellip;</a></td></tr><tr><td title="mosckerr" class="recentcommentsavatarend" style="height:48px; width:48px;"><a href="http://conflictresolutionshome.wordpress.com" rel="nofollow"><img referrerpolicy="no-referrer" alt='moshe kerr&#039;s avatar' src='https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=48&#038;d=identicon&#038;r=G' srcset='https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=48&#038;d=identicon&#038;r=G 1x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=72&#038;d=identicon&#038;r=G 1.5x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=96&#038;d=identicon&#038;r=G 2x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=144&#038;d=identicon&#038;r=G 3x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=192&#038;d=identicon&#038;r=G 4x' class='avatar avatar-48' height='48' width='48' loading='lazy' decoding='async' /></a></td><td class="recentcommentstextend" style=""><a href="http://conflictresolutionshome.wordpress.com" rel="nofollow">mosckerr</a> on <a href="https://thedailyhatch.org/2023/12/20/rfk-jr-if-trump-is-kept-out-of-office-through-judicial-fiat-rather-than-being-defeated-in-a-fair-election-his-supporters-will-never-accept-the-result-this-country-will-become-ungovernable/#comment-5962
584768">RFK Jr: &#8220;If Trump is kep&hellip;</a></td></tr><tr><td title="mosckerr" class="recentcommentsavatarend" style="height:48px; width:48px;"><a href="http://conflictresolutionshome.wordpress.com" rel="nofollow"><img referrerpolicy="no-referrer" alt='moshe kerr&#039;s avatar' src='https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=48&#038;d=identicon&#038;r=G' srcset='https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=48&#038;d=identicon&#038;r=G 1x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=72&#038;d=identicon&#038;r=G 1.5x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=96&#038;d=identicon&#038;r=G 2x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=144&#038;d=identicon&#038;r=G 3x, https://0.gravatar.com/avatar/f8acd1f22e6e635b93824183157fc5624c9b6f11e5f79a9e5158392efae0b893?s=192&#038;d=identicon&#038;r=G 4x' class='avatar avatar-48' height='48' width='48' loading='lazy' decoding='async' /></a></td><td class="recentcommentstextend" style=""><a href="http://conflictresolutionshome.wordpress.com" rel="nofollow">mosckerr</a> on <a href="https://thedailyhatch.org/2023/12/20/now-whether-the-14th-amendment-applies-let-the-court-make-that-decision-but-he-trump-certainly-supported-an-insurrection-no-question-about-it-none-zero-president-joe-biden-responded-and/#comment-596267">&#8220;Now whether the 14th Am&hellip;</a></td></tr><tr><td title="Everette Hatcher III" class="recentcommentsavatarend" style="height:48px; width:48px;"><a href="https://haltingarkansasliberalswithtruth.wordpress.com" rel="nofollow"><img referrerpolicy="no-referrer" alt='Everette Hatcher III&#039;s avatar' src='https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=48&#038;d=identicon&#038;r=G' srcset='https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=48&#038;d=identicon&#038;r=G 1x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=72&#038;d=identicon&#038;r=G 1.5x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=96&#038;d=identicon&#038;r=G 2x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=144&#038;d=identicon&#038;r=G 3x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=192&#038;d=identicon&#038;r=G 4x' class='avatar avatar-48' height='48' width='48' loading='lazy' decoding='async' /></a></td><td class="recentcommentstextend" style=""><a href="https://haltingarkansasliberalswithtruth.wordpress.com" rel="nofollow">Everette Hatcher III</a> on <a href="https://thedailyhatch.org/2023/12/20/now-whether-the-14th-amendment-applies-let-the-court-make-that-decision-but-he-trump-certainly-supported-an-insurrection-no-question-about-it-none-zero-president-joe-biden-responded-and/#comment-596266">&#8220;Now whether the 14th Am&hellip;</a></td></tr><tr><td title="Everette Hatcher III" class="recentcommentsavatarend" style="height:48px; width:48px;"><a href="https://haltingarkansasliberalswithtruth.wordpress.com" rel="nofollow"><img referrerpolicy="no-referrer" alt='Everette Hatcher III&#039;s avatar' src='https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=48&#038;d=identicon&#038;r=G' srcset='https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=48&#038;d=identicon&#038;r=G 1x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=72&#038;d=identicon&#038;r=G 1.5x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=96&#038;d=identicon&#038;r=G 2x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=144&#038;d=identicon&#038;r=G 3x, https://2.gravatar.com/avatar/541d4ea284f8ba9b8e2296effc3b1a130d598ca094447d15cb3d423f65ffcc23?s=192&#038;d=identicon&#038;r=G 4x' class='avatar avatar-48' height='48' width='48' loading='lazy' decoding='async' /></a></td><td class="recentcommentstextend" style=""><a href="https://haltingarkansasliberalswithtruth.wordpress.com" rel="nofollow">Everette Hatcher III</a> on <a href="https://thedailyhatch.org/2023/12/20/rfk-jr-if-trump-is-kept-out-of-office-through-judicial-fiat-rather-than-being-defeated-in-a-fair-election-his-supporters-will-never-accept-the-result-this-country-will-become-ungovernable/#comment-5962
584765">RFK Jr: &#8220;If Trump is kep&hellip;</a></td></tr>				</table>
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5865	<li><a href='https://thedailyhatch.org/2024/02/'>February 2024</a></li>
5866	<li><a href='https://thedailyhatch.org/2024/01/'>January 2024</a></li>
5867	<li><a href='https://thedailyhatch.org/2023/12/'>December 2023</a></li>
5868	<li><a href='https://thedailyhatch.org/2023/11/'>November 2023</a></li>
5869	<li><a href='https://thedailyhatch.org/2023/10/'>October 2023</a></li>
5870	<li><a href='https://thedailyhatch.org/2023/09/'>September 2023</a></li>
5871	<li><a href='https://thedailyhatch.org/2023/08/'>August 2023</a></li>
5872	<li><a href='https://thedailyhatch.org/2023/07/'>July 2023</a></li>
5873	<li><a href='https://thedailyhatch.org/2023/06/'>June 2023</a></li>
5874	<li><a href='https://thedailyhatch.org/2023/05/'>May 2023</a></li>
5875	<li><a href='https://thedailyhatch.org/2023/04/'>April 2023</a></li>
5876	<li><a href='https://thedailyhatch.org/2023/03/'>March 2023</a></li>
5877	<li><a href='https://thedailyhatch.org/2023/02/'>February 2023</a></li>
5878	<li><a href='https://thedailyhatch.org/2023/01/'>January 2023</a></li>
5879	<li><a href='https://thedailyhatch.org/2022/12/'>December 2022</a></li>
5880	<li><a href='https://thedailyhatch.org/2022/11/'>November 2022</a></li>
5881	<li><a href='https://thedailyhatch.org/2022/10/'>October 2022</a></li>
5882	<li><a href='https://thedailyhatch.org/2022/09/'>September 2022</a></li>
5883	<li><a href='https://thedailyhatch.org/2022/08/'>August 2022</a></li>
5884	<li><a href='https://thedailyhatch.org/2022/07/'>July 2022</a></li>
5885	<li><a href='https://thedailyhatch.org/2022/06/'>June 2022</a></li>
5886	<li><a href='https://thedailyhatch.org/2022/05/'>May 2022</a></li>
5887	<li><a href='https://thedailyhatch.org/2022/04/'>April 2022</a></li>
5888	<li><a href='https://thedailyhatch.org/2022/03/'>March 2022</a></li>
5889	<li><a href='https://thedailyhatch.org/2022/02/'>February 2022</a></li>
5890	<li><a href='https://thedailyhatch.org/2022/01/'>January 2022</a></li>
5891	<li><a href='https://thedailyhatch.org/2021/12/'>December 2021</a></li>
5892	<li><a href='https://thedailyhatch.org/2021/11/'>November 2021</a></li>
5893	<li><a href='https://thedailyhatch.org/2021/10/'>October 2021</a></li>
5894	<li><a href='https://thedailyhatch.org/2021/09/'>September 2021</a></li>
5895	<li><a href='https://thedailyhatch.org/2021/08/'>August 2021</a></li>
5896	<li><a href='https://thedailyhatch.org/2021/07/'>July 2021</a></li>
5897	<li><a href='https://thedailyhatch.org/2021/06/'>June 2021</a></li>
5898	<li><a href='https://thedailyhatch.org/2021/05/'>May 2021</a></li>
5899	<li><a href='https://thedailyhatch.org/2021/04/'>April 2021</a></li>
5900	<li><a href='https://thedailyhatch.org/2021/03/'>March 2021</a></li>
5901	<li><a href='https://thedailyhatch.org/2021/02/'>February 2021</a></li>
5902	<li><a href='https://thedailyhatch.org/2021/01/'>January 2021</a></li>
5903	<li><a href='https://thedailyhatch.org/2020/12/'>December 2020</a></li>
5904	<li><a href='https://thedailyhatch.org/2020/11/'>November 2020</a></li>
5905	<li><a href='https://thedailyhatch.org/2020/10/'>October 2020</a></li>
5906	<li><a href='https://thedailyhatch.org/2020/09/'>September 2020</a></li>
5907	<li><a href='https://thedailyhatch.org/2020/08/'>August 2020</a></li>
5908	<li><a href='https://thedailyhatch.org/2020/07/'>July 2020</a></li>
5909	<li><a href='https://thedailyhatch.org/2020/06/'>June 2020</a></li>
5910	<li><a href='https://thedailyhatch.org/2020/05/'>May 2020</a></li>
5911	<li><a href='https://thedailyhatch.org/2020/04/'>April 2020</a></li>
5912	<li><a href='https://thedailyhatch.org/2020/03/'>March 2020</a></li>
5913	<li><a href='https://thedailyhatch.org/2020/02/'>February 2020</a></li>
5914	<li><a href='https://thedailyhatch.org/2020/01/'>January 2020</a></li>
5915	<li><a href='https://thedailyhatch.org/2019/12/'>December 2019</a></li>
5916	<li><a href='https://thedailyhatch.org/2019/11/'>November 2019</a></li>
5917	<li><a href='https://thedailyhatch.org/2019/10/'>October 2019</a></li>
5918	<li><a href='https://thedailyhatch.org/2019/09/'>September 2019</a></li>
5919	<li><a href='https://thedailyhatch.org/2019/08/'>August 2019</a></li>
5920	<li><a href='https://thedailyhatch.org/2019/07/'>
5920July 2019</a></li>
5921	<li><a href='https://thedailyhatch.org/2019/06/'>June 2019</a></li>
5922	<li><a href='https://thedailyhatch.org/2019/05/'>May 2019</a></li>
5923	<li><a href='https://thedailyhatch.org/2019/04/'>April 2019</a></li>
5924	<li><a href='https://thedailyhatch.org/2019/03/'>March 2019</a></li>
5925	<li><a href='https://thedailyhatch.org/2019/02/'>February 2019</a></li>
5926	<li><a href='https://thedailyhatch.org/2019/01/'>January 2019</a></li>
5927	<li><a href='https://thedailyhatch.org/2018/12/'>December 2018</a></li>
5928	<li><a href='https://thedailyhatch.org/2018/11/'>November 2018</a></li>
5929	<li><a href='https://thedailyhatch.org/2018/10/'>October 2018</a></li>
5930	<li><a href='https://thedailyhatch.org/2018/09/'>September 2018</a></li>
5931	<li><a href='https://thedailyhatch.org/2018/08/'>August 2018</a></li>
5932	<li><a href='https://thedailyhatch.org/2018/07/'>July 2018</a></li>
5933	<li><a href='https://thedailyhatch.org/2018/06/'>June 2018</a></li>
5934	<li><a href='https://thedailyhatch.org/2018/05/'>May 2018</a></li>
5935	<li><a href='https://thedailyhatch.org/2018/04/'>April 2018</a></li>
5936	<li><a href='https://thedailyhatch.org/2018/03/'>March 2018</a></li>
5937	<li><a href='https://thedailyhatch.org/2018/02/'>February 2018</a></li>
5938	<li><a href='https://thedailyhatch.org/2018/01/'>January 2018</a></li>
5939	<li><a href='https://thedailyhatch.org/2017/12/'>December 2017</a></li>
5940	<li><a href='https://thedailyhatch.org/2017/11/'>November 2017</a></li>
5941	<li><a href='https://thedailyhatch.org/2017/10/'>October 2017</a></li>
5942	<li><a href='https://thedailyhatch.org/2017/09/'>September 2017</a></li>
5943	<li><a href='https://thedailyhatch.org/2017/08/'>August 2017</a></li>
5944	<li><a href='https://thedailyhatch.org/2017/07/'>July 2017</a></li>
5945	<li><a href='https://thedailyhatch.org/2017/06/'>June 2017</a></li>
5946	<li><a href='https://thedailyhatch.org/2017/05/'>May 2017</a></li>
5947	<li><a href='https://thedailyhatch.org/2017/04/'>April 2017</a></li>
5948	<li><a href='https://thedailyhatch.org/2017/03/'>March 2017</a></li>
5949	<li><a href='https://thedailyhatch.org/2017/02/'>February 2017</a></li>
5950	<li><a href='https://thedailyhatch.org/2017/01/'>January 2017</a></li>
5951	<li><a href='https://thedailyhatch.org/2016/12/'>December 2016</a></li>
5952	<li><a href='https://thedailyhatch.org/2016/11/'>November 2016</a></li>
5953	<li><a href='https://thedailyhatch.org/2016/10/'>October 2016</a></li>
5954	<li><a href='https://thedailyhatch.org/2016/09/'>September 2016</a></li>
5955	<li><a href='https://thedailyhatch.org/2016/08/'>August 2016</a></li>
5956	<li><a href='https://thedailyhatch.org/2016/07/'>July 2016</a></li>
5957	<li><a href='https://thedailyhatch.org/2016/06/'>June 2016</a></li>
5958	<li><a href='https://thedailyhatch.org/2016/05/'>May 2016</a></li>
5959	<li><a href='https://thedailyhatch.org/2016/04/'>April 2016</a></li>
5960	<li><a href='https://thedailyhatch.org/2016/03/'>March 2016</a></li>
5961	<li><a href='https://thedailyhatch.org/2016/02/'>February 2016</a></li>
5962	<li><a href='https://thedailyhatch.org/2016/01/'>January 2016</a></li>
5963	<li><a href='https://thedailyhatch.org/2015/12/'>December 2015</a></li>
5964	<li><a href='https://thedailyhatch.org/2015/11/'>November 2015</a></li>
5965	<li><a href='https://thedailyhatch.org/2015/10/'>October 2015</a></li>
5966	<li><a href='https://thedailyhatch.org/2015/09/'>September 2015</a></li>
5967	<li><a href='https://thedailyhatch.org/2015/08/'>August 2015</a></li>
5968	<li><a href='https://thedailyhatch.org/2015/07/'>July 2015</a></li>
5969	<li><a href='https://thedailyhatch.org/2015/06/'>June 2015</a></li>
5970	<li><a href='https://thedailyhatch.org/2015/05/'>May 2015</a></li>
5971	<li><a href='https://thedailyhatch.org/2015/04/'>April 2015</a></li>
5972	<li><a href='https://thedailyhatch.org/2015/03/'>March 2015</a></li>
5973	<li><a href='https://thedailyhatch.org/2015/02/'>February 2015</a></li>
5974	<li><a href='https://thedailyhatch.org/2015/01/'>January 2015</a></li>
5975	<li><a href='https://thedailyhatch.org/2014/12/'>December 2014</a></li>
5976	<li><a href='https://thedailyhatch.org/2014/11/'>November 2014</a></li>
5977	<li><a href='https://thedailyhatch.org/2014/10/'>October 2014</a></li>
5978	<li><a href='https://thedailyhatch.org/2014/09/'>September 2014</a></li>
5979	<li><a href='https://thedailyhatch.org/2014/08/'>August 2014</a></li>
5980	<li><a href='https://thedailyhatch.org/2014/07/'>July 2014</a></li>
5981	<li><a href='https://thedailyhatch.org/2014/06/'>June 2014</a></li>
5982	<li><a href='https://thedailyhatch.org/2014/05/'>May 2014</a></li>
5983	<li><a href='https://thedailyhatch.org/2014/04/'>April 2014</a></li>
5984	<li><a href='https://thedailyhatch.org/2014/03/'>March 2014</a></li>
5985	<li><a href='https://thedailyhatch.org/2014/02/'>February 2014</a></li>
5986	<li><a href='https://thedailyhatch.org/2014/01/'>January 2014</a></li>
5987	<li><a href='https://thedailyhatch.org/2013/12/'>December 2013</a></li>
5988	<li><a href='https://thedailyhatch.org/2013/11/'>November 2013</a></li>
5989	<li><a href='https://thedailyhatch.org/2013/10/'>October 2013</a></li>
5990	<li><a href='https://thedailyhatch.org/2013/09/'>September 2013</a></li>
5991	<li><a href='https://thedailyhatch.org/2013/08/'>August 2013</a></li>
5992	<li><a href='https://thedailyhatch.org/2013/07/'>July 2013</a></li>
5993	<li><a href='https://thedailyhatch.org/2013/06/'>June 2013</a></li>
5994	<li><a href='https://thedailyhatch.org/2013/05/'>May 2013</a></li>
5995	<li><a href='https://thedailyhatch.org/2013/04/'>April 2013</a></li>
5996	<li><a href='https://thedailyhatch.org/2013/03/'>March 2013</a></li>
5997	<li><a href='https://thedailyhatch.org/2013/02/'>February 2013</a></li>
5998	<li><a href='https://thedailyhatch.org/2013/01/'>January 2013</a></li>
5999	<li><a href='https://thedailyhatch.org/2012/12/'>December 2012</a></li>
6000	<li><a href='https://thedailyhatch.org/2012/11/'>November 2012</a></li>
6001	<li><a href='https://thedailyhatch.org/2012/10/'>October 2012</a></li>
6002	<li><a href='https://thedailyhatch.org/2012/09/'>September 2012</a></li>
6003	<li><a href='https://thedailyhatch.org/2012/08/'>August 2012</a></li>
6004	<li><a href='https://thedailyhatch.org/2012/07/'>July 2012</a></li>
6005	<li><a href='https://thedailyhatch.org/2012/06/'>June 2012</a></li>
6006	<li><a href='https://thedailyhatch.org/2012/05/'>May 2012</a></li>
6007	<li><a href='https://thedailyhatch.org/2012/04/'>April 2012</a></li>
6008	<li><a href='https://thedailyhatch.org/2012/03/'>March 2012</a></li>
6009	<li><a href='https://thedailyhatch.org/2012/02/'>February 2012</a></li>
6010	<li><a href='https://thedailyhatch.org/2012/01/'>January 2012</a></li>
6011	<li><a href='https://thedailyhatch.org/2011/12/'>December 2011</a></li>
6012	<li><a href='https://thedailyhatch.org/2011/11/'>November 2011</a></li>
6013	<li><a href='https://thedailyhatch.org/2011/10/'>October 2011</a></li>
6014	<li><a href='https://thedailyhatch.org/2011/09/'>September 2011</a></li>
6015	<li><a href='https://thedailyhatch.org/2011/08/'>August 2011</a></li>
6016	<li><a href='https://thedailyhatch.org/2011/07/'>July 2011</a></li>
6017	<li><a href='https://thedailyhatch.org/2011/06/'>June 2011</a></li>
6018	<li><a href='https://thedailyhatch.org/2011/05/'>May 2011</a></li>
6019	<li><a href='https://thedailyhatch.org/2011/04/'>April 2011</a></li>
6020	<li><a href='https://thedailyhatch.org/2011/03/'>March 2011</a></li>
6021	<li><a href='https://thedailyhatch.org/2011/02/'>February 2011</a></li>
6022	<li><a href='https://thedailyhatch.org/2011/01/'>January 2011</a></li>
6023	<li><a href='https://thedailyhatch.org/2010/12/'>December 2010</a></li>
6024			</ul>
6025
6026			
6027			</li>
6028
6029			<li id="categories-2" class="widget widget_categories">
6030				<h3 class="widgettitle">Categories</h3>
6031
6032			<ul>
6033					<li class="cat-item cat-item-386508"><a href="https://thedailyhatch.org/category/adrian-rogers/">Adrian Rogers</a>
6034</li>
6035	<li class="cat-item cat-item-53886494"><a href="https://thedailyhatch.org/category/atheists-confronted/">Atheists Confronted</a>
6036</li>
6037	<li class="cat-item cat-item-457618"><a href="https://thedailyhatch.org/category/biblical-archaeology/">Biblical Archaeology</a>
6038</li>
6039	<li class="cat-item cat-item-75149"><a href="https://thedailyhatch.org/category/bill-clinton/">Bill Clinton</a>
6040</li>
6041	<li class="cat-item cat-item-52107"><a href="https://thedailyhatch.org/category/capital-punishment/">Capital Punishment</a>
6042</li>
6043	<li class="cat-item cat-item-810475"><a href="https://thedailyhatch.org/category/cato-institute/">
6043Cato Institute</a>
6044</li>
6045	<li class="cat-item cat-item-1304"><a href="https://thedailyhatch.org/category/current-events/">Current Events</a>
6046</li>
6047	<li class="cat-item cat-item-904824"><a href="https://thedailyhatch.org/category/david-barton/">David Barton</a>
6048</li>
6049	<li class="cat-item cat-item-57510859"><a href="https://thedailyhatch.org/category/economist-dan-mitchell/">Economist Dan Mitchell</a>
6050</li>
6051	<li class="cat-item cat-item-38376148"><a href="https://thedailyhatch.org/category/famous-arkansans/">Famous Arkansans</a>
6052</li>
6053	<li class="cat-item cat-item-349572"><a href="https://thedailyhatch.org/category/founding-fathers/">Founding Fathers</a>
6054</li>
6055	<li class="cat-item cat-item-235485"><a href="https://thedailyhatch.org/category/francis-schaeffer/">Francis Schaeffer</a>
6056</li>
6057	<li class="cat-item cat-item-4761"><a href="https://thedailyhatch.org/category/gun-control/">Gun Control</a>
6058</li>
6059	<li class="cat-item cat-item-1460"><a href="https://thedailyhatch.org/category/healthcare/">Healthcare</a>
6060</li>
6061	<li class="cat-item cat-item-64094"><a href="https://thedailyhatch.org/category/hillary-clinton/">Hillary Clinton</a>
6062</li>
6063	<li class="cat-item cat-item-10514941"><a href="https://thedailyhatch.org/category/jason-tolbert/">Jason Tolbert</a>
6064</li>
6065	<li class="cat-item cat-item-143694"><a href="https://thedailyhatch.org/category/mike-huckabee/">Mike Huckabee</a>
6066</li>
6067	<li class="cat-item cat-item-291568 current-cat"><a aria-current="page" href="https://thedailyhatch.org/category/milton-friedman/">Milton Friedman</a>
6068</li>
6069	<li class="cat-item cat-item-390628817"><a href="https://thedailyhatch.org/category/president-donald-j-trump/">President Donald J. Trump</a>
6070</li>
6071	<li class="cat-item cat-item-55210547"><a href="https://thedailyhatch.org/category/president-donald-trump/">President Donald Trump</a>
6072</li>
6073	<li class="cat-item cat-item-774143"><a href="https://thedailyhatch.org/category/president-obama/">President Obama</a>
6074</li>
6075	<li class="cat-item cat-item-144292"><a href="https://thedailyhatch.org/category/prolife/">Prolife</a>
6076</li>
6077	<li class="cat-item cat-item-324874"><a href="https://thedailyhatch.org/category/ronald-reagan/">Ronald Reagan</a>
6078</li>
6079	<li class="cat-item cat-item-34986"><a href="https://thedailyhatch.org/category/social-security/">Social Security</a>
6080</li>
6081	<li class="cat-item cat-item-21772480"><a href="https://thedailyhatch.org/category/spending-out-of-control/">spending out of control</a>
6082</li>
6083	<li class="cat-item cat-item-4517"><a href="https://thedailyhatch.org/category/taxes/">Taxes</a>
6084</li>
6085	<li class="cat-item cat-item-1"><a href="https://thedailyhatch.org/category/uncategorized/">Uncategorized</a>
6086</li>
6087	<li class="cat-item cat-item-48812349"><a href="https://thedailyhatch.org/category/unconfirmed-quotes-of-founders/">Unconfirmed Quotes of Founders</a>
6088</li>
6089	<li class="cat-item cat-item-158616"><a href="https://thedailyhatch.org/category/vouchers/">Vouchers</a>
6090</li>
6091	<li class="cat-item cat-item-1528560"><a href="https://thedailyhatch.org/category/war-heroes/">War Heroes</a>
6092</li>
6093	<li class="cat-item cat-item-35521092"><a href="https://thedailyhatch.org/category/woody-allen-2/">Woody Allen</a>
6094</li>
6095			</ul>
6096
6097			
6098			</li>
6099
6100			<li id="meta-2" class="widget widget_meta">
6101				<h3 class="widgettitle">Meta</h3>
6102
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6104			<li><a class="click-register" href="https://wordpress.com/start?ref=wplogin">Create account</a></li>			<li><a href="https://haltingarkansasliberalswithtruth.wordpress.com/wp-login.php">Log in</a></li>
6105			<li><a href="https://thedailyhatch.org/feed/">Entries feed</a></li>
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6107
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6110
6111		
6112			</li>
6113		</ul>
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6115
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6153				Gravatar.init(
6154					'body',
6155					'#wp-admin-bar-my-account',
6156					{
6157						i18n: {
6158							'Edit your profile →': 'Edit your profile →',
6159							'View profile →': 'View profile →',
6160							'Contact': 'Contact',
6161							'Send money': 'Send money',
6162							'Sorry, we are unable to load this Gravatar profile.': 'Sorry, we are unable to load this Gravatar profile.',
6163							'Gravatar not found.': 'Gravatar not found.',
6164							'Too Many Requests.': 'Too Many Requests.',
6165							'Internal Server Error.': 'Internal Server Error.',
6166							'Is this you?': 'Is this you?',
6167							'Claim your free profile.': 'Claim your free profile.',
6168							'Email': 'Email',
6169							'Home Phone': 'Home Phone',
6170							'Work Phone': 'Work Phone',
6171							'Cell Phone': 'Cell Phone',
6172							'Contact Form': 'Contact Form',
6173							'Calendar': 'Calendar',
6174						},
6175					}
6176				);
6177			}
6178
6179			if ( document.readyState !== 'loading' ) {
6180				init();
6181			} else {
6182				document.addEventListener( 'DOMContentLoaded', init );
6183			}
6184		} )();
6185	</script>
6185
6186
6187		<div style="display:none">
6188	<div class="grofile-hash-map-5184db56b1bd0f91ee58bc70046ab138">
6189	</div>
6190	<div class="grofile-hash-map-c959b38ab640aaa697765777e8934a77">
6191	</div>
6192	<div class="grofile-hash-map-4b3e30401b41400be6d838bfa28fb4b3">
6193	</div>
6194	</div>
6195		<!-- CCPA [start] -->
6196		
6196<script type="text/javascript">
6197			( function () {
6198
6199				var setupPrivacy = function() {
6200
6201					// Minimal Mozilla Cookie library
6202					// https://developer.mozilla.org/en-US/docs/Web/API/Document/cookie/Simple_document.cookie_framework
6203					var cookieLib = window.cookieLib = {getItem:function(e){return e&&decodeURIComponent(document.cookie.replace(new RegExp("(?:(?:^|.*;)\\s*"+encodeURIComponent(e).replace(/[\-\.\+\*]/g,"\\$&")+"\\s*\\=\\s*([^;]*).*$)|^.*$"),"$1"))||null},setItem:function(e,o,n,t,r,i){if(!e||/^(?:expires|max\-age|path|domain|secure)$/i.test(e))return!1;var c="";if(n)switch(n.constructor){case Number:c=n===1/0?"; expires=Fri, 31 Dec 9999 23:59:59 GMT":"; max-age="+n;break;case String:c="; expires="+n;break;case Date:c="; expires="+n.toUTCString()}return"rootDomain"!==r&&".rootDomain"!==r||(r=(".rootDomain"===r?".":"")+document.location.hostname.split(".").slice(-2).join(".")),document.cookie=encodeURIComponent(e)+"="+encodeURIComponent(o)+c+(r?"; domain="+r:"")+(t?"; path="+t:"")+(i?"; secure":""),!0}};
6204
6205					// Implement IAB USP API.
6206					window.__uspapi = function( command, version, callback ) {
6207
6208						// Validate callback.
6209						if ( typeof callback !== 'function' ) {
6210							return;
6211						}
6212
6213						// Validate the given command.
6214						if ( command !== 'getUSPData' || version !== 1 ) {
6215							callback( null, false );
6216							return;
6217						}
6218
6219						// Check for GPC. If set, override any stored cookie.
6220						if ( navigator.globalPrivacyControl ) {
6221							callback( { version: 1, uspString: '1YYN' }, true );
6222							return;
6223						}
6224
6225						// Check for cookie.
6226						var consent = cookieLib.getItem( 'usprivacy' );
6227
6228						// Invalid cookie.
6229						if ( null === consent ) {
6230							callback( null, false );
6231							return;
6232						}
6233
6234						// Everything checks out. Fire the provided callback with the consent data.
6235						callback( { version: 1, uspString: consent }, true );
6236					};
6237
6238					// Initialization.
6239					document.addEventListener( 'DOMContentLoaded', function() {
6240
6241						// Internal functions.
6242						var setDefaultOptInCookie = function() {
6243							var value = '1YNN';
6244							var domain = '.wordpress.com' === location.hostname.slice( -14 ) ? '.rootDomain' : location.hostname;
6245							cookieLib.setItem( 'usprivacy', value, 365 * 24 * 60 * 60, '/', domain );
6246						};
6247
6248						var setDefaultOptOutCookie = function() {
6249							var value = '1YYN';
6250							var domain = '.wordpress.com' === location.hostname.slice( -14 ) ? '.rootDomain' : location.hostname;
6251							cookieLib.setItem( 'usprivacy', value, 24 * 60 * 60, '/', domain );
6252						};
6253
6254						var setDefaultNotApplicableCookie = function() {
6255							var value = '1---';
6256							var domain = '.wordpress.com' === location.hostname.slice( -14 ) ? '.rootDomain' : location.hostname;
6257							cookieLib.setItem( 'usprivacy', value, 24 * 60 * 60, '/', domain );
6258						};
6259
6260						var setCcpaAppliesCookie = function( applies ) {
6261							var domain = '.wordpress.com' === location.hostname.slice( -14 ) ? '.rootDomain' : location.hostname;
6262							cookieLib.setItem( 'ccpa_applies', applies, 24 * 60 * 60, '/', domain );
6263						}
6264
6265						var maybeCallDoNotSellCallback = function() {
6266							if ( 'function' === typeof window.doNotSellCallback ) {
6267								return window.doNotSellCallback();
6268							}
6269
6270							return false;
6271						}
6272
6273						// Look for usprivacy cookie first.
6274						var usprivacyCookie = cookieLib.getItem( 'usprivacy' );
6275
6276						// Found a usprivacy cookie.
6277						if ( null !== usprivacyCookie ) {
6278
6279							// If the cookie indicates that CCPA does not apply, then bail.
6280							if ( '1---' === usprivacyCookie ) {
6281								return;
6282							}
6283
6284							// CCPA applies, so call our callback to add Do Not Sell link to the page.
6285							maybeCallDoNotSellCallback();
6286
6287							// We're all done, no more processing needed.
6288							return;
6289						}
6290
6291						// We don't have a usprivacy cookie, so check to see if we have a CCPA applies cookie.
6292						var ccpaCookie = cookieLib.getItem( 'ccpa_applies' );
6293
6294						// No CCPA applies cookie found, so we'll need to geolocate if this visitor is from California.
6295						// This needs to happen client side because we do not have region geo data in our $SERVER headers,
6296						// only country data -- therefore we can't vary cache on the region.
6297						if ( null === ccpaCookie ) {
6298
6299							var request = new XMLHttpRequest();
6300							request.open( 'GET', 'https://public-api.wordpress.com/geo/', true );
6301
6302							request.onreadystatechange = function () {
6303								if ( 4 === this.readyState ) {
6304									if ( 200 === this.status ) {
6305
6306										// Got a geo response. Parse out the region data.
6307										var data = JSON.parse( this.response );
6308										var region      = data.region ? data.region.toLowerCase() : '';
6309										var ccpa_applies = ['california', 'colorado', 'connecticut', 'delaware', 'indiana', 'iowa', 'montana', 'new jersey', 'oregon', 'tennessee', 'texas', 'utah', 'virginia'].indexOf( region ) > -1;
6310										// Set CCPA applies cookie. This keeps us from having to make a geo request too frequently.
6311										setCcpaAppliesCookie( ccpa_applies );
6312
6313										// Check if CCPA applies to set the proper usprivacy cookie.
6314										if ( ccpa_applies ) {
6315											if ( maybeCallDoNotSellCallback() ) {
6316												// Do Not Sell link added, so set default opt-in.
6317												setDefaultOptInCookie();
6318											} else {
6319												// Failed showing Do Not Sell link as required, so default to opt-OUT just to be safe.
6320												setDefaultOptOutCookie();
6321											}
6322										} else {
6323											// CCPA does not apply.
6324											setDefaultNotApplicableCookie();
6325										}
6326									} else {
6327										// Could not geo, so let's assume for now that CCPA applies to be safe.
6328										setCcpaAppliesCookie( true );
6329										if ( maybeCallDoNotSellCallback() ) {
6330											// Do Not Sell link added, so set default opt-in.
6331											setDefaultOptInCookie();
6332										} else {
6333											// Failed showing Do Not Sell link as required, so default to opt-OUT just to be safe.
6334											setDefaultOptOutCookie();
6335										}
6336									}
6337								}
6338							};
6339
6340							// Send the geo request.
6341							request.send();
6342						} else {
6343							// We found a CCPA applies cookie.
6344							if ( ccpaCookie === 'true' ) {
6345								if ( maybeCallDoNotSellCallback() ) {
6346									// Do Not Sell link added, so set default opt-in.
6347									setDefaultOptInCookie();
6348								} else {
6349									// Failed showing Do Not Sell link as required, so default to opt-OUT just to be safe.
6350									setDefaultOptOutCookie();
6351								}
6352							} else {
6353								// CCPA does not apply.
6354								setDefaultNotApplicableCookie();
6355							}
6356						}
6357					} );
6358				};
6359
6360				// Kickoff initialization.
6361				if ( window.defQueue && defQueue.isLOHP && defQueue.isLOHP === 2020 ) {
6362					defQueue.items.push( setupPrivacy );
6363				} else {
6364					setupPrivacy();
6365				}
6366
6367			} )();
6368		</script>
6368
6369
6370		<!-- CCPA [end] -->
6371		<div class="widget widget_eu_cookie_law_widget">
6372<div
6373	class="hide-on-button ads-active"
6374	data-hide-timeout="30"
6375	data-consent-expiration="180"
6376	id="eu-cookie-law"
6377	style="display: none"
6378>
6379	<form method="post">
6380		<input type="submit" value="Close and accept" class="accept" />
6381
6382		Privacy &amp; Cookies: This site uses cookies. By continuing to use this website, you agree to their use. <br />
6383To find out more, including how to control cookies, see here:
6384				<a href="https://automattic.com/cookies/" rel="nofollow">
6385			Cookie Policy		</a>
6386 </form>
6387</div>
6388</div>			<div id="actionbar" dir="ltr" style="display: none;"
6389				class="actnbr-pub-notesil" role="region" aria-label="Site actions">
6390			<span class="actnbr-live" aria-live="polite"></span>
6391			<ul>
6392										<li class="actnbr-btn actnbr-hidden">
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6395			</a>
6396			<a class="actnbr-action actnbr-actn-following  no-display" href="" role="button">
6397				<svg class="actnbr-icon actnbr-icon-check" width="20" height="20" viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg" aria-hidden="true" focusable="false" style="fill: none" stroke="currentColor" stroke-width="1.5"><path d="M7 12L10 15L17 8" vector-effect="non-scaling-stroke"/></svg>				<span>Subscribed</span>
6398			</a>
6399									<div class="actnbr-popover actnbr-panel actnbr-notice" id="follow-bubble" role="dialog" aria-label="Subscribe to The Daily Hatch">
6400								<div class="actnbr-follow-bubble">
6401								<div class="actnbr-panel__group"><a class="actnbr-menu__item actnbr-sitename" href="https://thedailyhatch.org"><img loading='lazy' alt='' src='https://s-ssl.wordpress.com/i/logo/wpcom-gray-white.png?m=1479929237i' srcset='https://s-ssl.wordpress.com/i/logo/wpcom-gray-white.png 1x' class='avatar avatar-50' height='50' width='50' /><span class="actnbr-menu__label">The Daily Hatch</span></a></div>																	<div class="actnbr-panel__group">
6402										<div class="actnbr-message no-display" aria-live="polite"></div>
6403										<form method="post" action="https://subscribe.wordpress.com" accept-charset="utf-8" class="no-display">
6404																							<div class="actnbr-follow-count">Join 602 other subscribers</div>
6405																							<input type="email" name="email" placeholder="Want updates? Enter your email" class="actnbr-email-field" aria-label="Email address" />
6406											<input type="hidden" name="action" value="subscribe" />
6407											<input type="hidden" name="blog_id" value="18388725" />
6408											<input type="hidden" name="source" value="https://thedailyhatch.org/category/milton-friedman/" />
6409											<input type="hidden" name="sub-type" value="actionbar-follow" />
6410											<input type="hidden" id="_wpnonce" name="_wpnonce" value="f020db24a2" />											<button type="submit" class="actnbr-button">Sign me up</button>
6411										</form>
6412										<p class="actnbr-login-nudge">
6413											Have a WordPress.com account? <a href="https://wordpress.com/log-in?redirect_to=https%3A%2F%2Fr-login.wordpress.com%2Fremote-login.php%3Faction%3Dlink%26back%3Dhttps%253A%252F%252Fthedailyhatch.org%252F2024%252F12%252F06%252Ffriedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2%252F">Log in now.</a>										</p>
6414									</div>
6415																	</div>
6416							</div>
6417						</li>
6418									<li class="actnbr-ellipsis actnbr-hidden">
6419					<button type="button" class="actnbr-more-toggle" aria-haspopup="true" aria-expanded="false" aria-label="More options">
6420						<svg class="actnbr-icon actnbr-icon-more-horizontal" width="24" height="24" viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg" aria-hidden="true" focusable="false" fill="currentColor"><path d="M11 13h2v-2h-2v2zm-6 0h2v-2H5v2zm12-2v2h2v-2h-2z"/></svg>					</button>
6421					<div class="actnbr-popover actnbr-menu" role="menu" aria-label="Site options">
6422						<div class="actnbr-menu__group" role="group"><a role="menuitem" class="actnbr-menu__item actnbr-sitename" href="https://thedailyhatch.org"><img loading='lazy' alt='' src='https://s-ssl.wordpress.com/i/logo/wpcom-gray-white.png?m=1479929237i' srcset='https://s-ssl.wordpress.com/i/logo/wpcom-gray-white.png 1x' class='avatar avatar-50' height='50' width='50' /><span class="actnbr-menu__label">The Daily Hatch</span></a></div><div class="actnbr-menu__group" role="group"><a role="menuitem" class="actnbr-menu__item actnbr-reader" href="https://wordpress.com/reader/feeds/1990595"><span class="actnbr-menu__label">View site in Reader</span></a></div><div class="actnbr-menu__group" role="group"><a role="menuitem" class="actnbr-menu__item actnbr-subs" href="https://subscribe.wordpress.com/"><span class="actnbr-menu__label">Manage subscriptions</span></a><a role="menuitem" class="actnbr-menu__item actnbr-signup" href="https://wordpress.com/start/"><span class="actnbr-menu__label">Sign up</span></a><a role="menuitem" class="actnbr-menu__item actnbr-login" href="https://wordpress.com/log-in?redirect_to=https%3A%2F%2Fr-login.wordpress.com%2Fremote-login.php%3Faction%3Dlink%26back%3Dhttps%253A%252F%252Fthedailyhatch.org%252F2024%252F12%252F06%252Ffriedman-friday-dan-mitchell-milton-friedman-was-advocating-what-is-sometimes-referred-to-as-shareholder
6422-capitalism-which-is-the-notion-that-a-company-should-strive-to-earn-ho-2%252F"><span class="actnbr-menu__label">Log in</span></a></div><div class="actnbr-menu__group" role="group"><a role="menuitem" class="actnbr-menu__item flb-report" href="https://wordpress.com/abuse/?report_url=https://thedailyhatch.org" target="_blank" rel="noopener noreferrer"><span class="actnbr-menu__label">Report this content</span><span class="actnbr-menu__icon"><svg class="actnbr-icon actnbr-icon-external" width="18" height="18" viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg" aria-hidden="true" focusable="false" fill="currentColor"><path d="M19.5 4.5h-7V6h4.44l-5.97 5.97 1.06 1.06L18 7.06v4.44h1.5v-7Zm-13 1a2 2 0 0 0-2 2v10a2 2 0 0 0 2 2h10a2 2 0 0 0 2-2v-3H17v3a.5.5 0 0 1-.5.5h-10a.5.5 0 0 1-.5-.5v-10a.5.5 0 0 1 .5-.5h3V5.5h-3Z"/></svg></span></a></div><div class="actnbr-menu__group" role="group"><a role="menuitem" class="actnbr-menu__item actnbr-fold" href=""><span class="actnbr-menu__label">Collapse this bar</span></a></div>					</div>
6423				</li>
6424			</ul>
6425		</div>
6426		
6426<script>
6427window.addEventListener( "DOMContentLoaded", function () {
6428				var link = document.createElement( "link" );
6429				link.href = "\/wp-content\/mu-plugins\/jetpack-plugin\/moon\/jetpack_vendor\/automattic\/jetpack-newsletter\/src\/..\/build\/action-bar.css?ver=33ad88c8b02f7d5bc6d2";
6430				link.rel = "stylesheet";
6431				document.head.appendChild( link );
6432
6433				var script = document.createElement( "script" );
6434				script.src = "\/wp-content\/mu-plugins\/jetpack-plugin\/moon\/jetpack_vendor\/automattic\/jetpack-newsletter\/src\/..\/build\/action-bar.js?ver=33ad88c8b02f7d5bc6d2";
6435				document.body.appendChild( script );
6436			} );
6437</script>
6437
6438
6439	
6439<script type="text/javascript">
6440		(function () {
6441			var wpcom_reblog = {
6442				source: 'toolbar',
6443
6444				toggle_reblog_box_flair: function (obj_id, post_id) {
6445
6446					// Go to site selector. This will redirect to their blog if they only have one.
6447					const postEndpoint = `https://wordpress.com/post`;
6448
6449					// Ideally we would use the permalink here, but fortunately this will be replaced with the 
6450					// post permalink in the editor.
6451					const originalURL = `${ document.location.href }?page_id=${ post_id }`; 
6452					
6453					const url =
6454						postEndpoint +
6455						'?url=' +
6456						encodeURIComponent( originalURL ) +
6457						'&is_post_share=true' +
6458						'&v=5';
6459
6460					const redirect = function () {
6461						if (
6462							! window.open( url, '_blank' )
6463						) {
6464							location.href = url;
6465						}
6466					};
6467
6468					if ( /Firefox/.test( navigator.userAgent ) ) {
6469						setTimeout( redirect, 0 );
6470					} else {
6471						redirect();
6472					}
6473				},
6474			};
6475
6476			window.wpcom_reblog = wpcom_reblog;
6477		})();
6478	</script>
vendor: 1 bytes, line 6478
6478
6479<script crossorigin='anonymous' type='text/javascript'  src='/_static/??/wp-content/blog-plugins/wordads-classes/js/watl-v2.js,/wp-content/mu-plugins/widgets/eu-cookie-law/templates/eu-cookie-law.js?m=1760446017j'></script>
vendor: 1 bytes, line 6479
6479
6480<script id="wp-emoji-settings" type="application/json">
6481{"baseUrl":"https://s0.wp.com/wp-content/mu-plugins/wpcom-smileys/twemoji/2/72x72/","ext":".png","svgUrl":"https://s0.wp.com/wp-content/mu-plugins/wpcom-smileys/twemoji/2/svg/","svgExt":".svg","source":{"concatemoji":"/wp-includes/js/wp-emoji-release.min.js?m=1783090810i&ver=7.2-alpha-63387"}}
6482</script>
vendor: 1 bytes, line 6482
6482
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