Milton Friedman Sets Liberal Straight On “Too Many Millionaires”

by lewwaters

From a 1979 Donahue Show, economist Milton Friedman sets a liberal woman straight on the same argument fronted today by the Occupy Anything But a Bar of Soap crowd envious of other peoples success.

Isn’t odd to see the same arguments and desperation people had under Jimmy Carter coming back up under Barack Obama?

Ronald Reagan led us out of the last mess. Who is there to do it today?

5 Comments to “Milton Friedman Sets Liberal Straight On “Too Many Millionaires””

  1. A lot of people, including me, consider Milton Friedman a quack. I often say, “Robert Reich, like Milton Friedman, is an economist with too much credibility to ignore – but you should!” (Robert Reich is the idiot Lefty economist.)

    Most of Friedman’s prophecies have been discredited in practice, and Reagan era economics were a total failure as far as the National Debt is concerned.

    Keynesianism has its weaknesses but it’s still the one to beat.

    p.s. If there is someone here who IS an economist, I would we willing to debate in private. I’m versed in Chicago School, and Vienna, and Hayek is one of my heroes.

  2. As always, Martin, you are entitled to your opinion. But, I have to disagree with it.

    Reagan’s policies were not effective not because he followed free market principles, but because when congress saw that extra money come in, they found ways to spend it, pretty much as suggested in Keynesian economics.

    I don’t care if it is government, a business or a home, you cannot continually spend more than you make and stay solvent for long.

    Sooner or later, interest on the outstanding debt will equal or exceed available revenue and then what? Sign the country over in pieces?

    I’m not an economist, but anybody knows you cannot keep spending more than you make.

  3. As I keep saying, Lew, for governments the rule is: you’ve got to collect as much as you spend.

    BTW, at the time, I hoped Reaganonics would work, but David Stockton (his own Budget Director) put the lie to the whole scheme.

    p.s. I still liked Ronald Reagan, especially because he ENDED the Cold War.

  4. Lew is correct. Reagan’s economic plan didn’t work because Democrats and establishment Republicans wouldn’t let it work. As Lew says, they just kept spending the money.

  5. The biggest problem I have with Keynsian economics, is that it seems to ignore that fact that the economy, like the stock market, is a discounting mechanism. That is, any stimulus rapidly gets baked into the cake in the form of higher prices and expectations, thereby nullifying any positive effects, while institutionalizing the resultant higher costs. For example, just look at what has happened to higher education and medical care costs over the past decade, in comparison to overall inflation. Not to mention what happened to housing prior to the collapse. Keynsian economics = one bubble after another.

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