Few people have had as profound an impact on modern economics as economist Milton Friedman. His Nobel Prize-winning ideas on free enterprise resonated throughout the world and continue to do so. Johan Norberg, Senior Fellow at the Cato Institute, tells Friedman’s fascinating story.
With the recent passing of Walter Williams, I watched a video of him [Thomas Sowell’s tribute] that reminded me of a video of Milton Friedman on the Donahue Show. So I wanted to combine them for affect.
(UPDATED WITH JOHN STOSSEL – AT BOTTOM)
(UPDATED WITH CAROL ROTH – AT BOTTOM-BOTTOM)
Actually, it is not “crony capitalism,” it is “CRONY CORPORATISM.”
This election season there’s a lot of talk about corruption, about politicians being “bought and sold”, and about “crony capitalism”. What do those terms mean? Why should we care? Is there a way to reduce corruption and restore our trust in government? Author Jay Cost, staff writer at The Weekly Standard, answers these questions and proposes a solution that every society could benefit from.
A good example of a monopoly like the one Dr. Friedman refers to is MA BELL
…..The crusade to create a monopolistic telephone industry by government fiat finally succeeded when the federal government used World War I as an excuse to nationalize the industry in 1918. AT&T still operated its phone system, but it was controlled by a government commission headed by the postmaster general. Like so many other instances of government regulation, AT&T quickly “captured” the regulators and used the regulatory apparatus to eliminate its competitors. “By 1925 not only had virtually every state established strict rate regulation guidelines, but local telephone competition was either discouraged or explicitly prohibited within many of those jurisdictions.”….
(Via MOONBATTERY) Crony capitalism is as much a betrayal of true capitalism as postmodern art is a betrayal of true art. It results in those who have made $zillions in the free market calling for more suffocating government regulation. Like socialism, it is a way for those who have succeeded to pull up the ladder after them so that others cannot follow and compete with them.
John Stossel has had enough of it. The solution: to reduce the power of the government to reward its friends and break the kneecaps of its enemies.
STOSSEL’S INDEPTH LOOK
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Here is the latest COVID update.
Sad and shameful!
CAROL ROTH
Since the start of the Covid crisis, the American economy has been turned on its head. Times are good for the big guys — Big Business and Big Government. But what about for the small business owner, the personification of the American dream? Carol Roth discusses Crony Corporatism/Capitalism and is the author of, “The War on Small Business: How the Government Used the Pandemic to Crush the Backbone of America“
I feel like I shouldn’t have to upload this ECON 101 type stuff, however, many may not realize this fact… ESPECIALLY if they went to college. I clip Dennis Prager noting this truth and then add a classic from Milton Friedman (longer video is HERE). See as well Congressman Bill Posey make the same point on the House floor.
Did you know that since 1970, the percentage of humanity living in extreme poverty has fallen 80 percent? How did that happen? Arthur Brooks, president of the American Enterprise Institute, explains.
This post is connected with another that is similar in it’s point.
Here, Thomas Sowell writes about the pernicious lie that comes from the Left by speaking about a great book by Arthur C. Brooks from AEI. What prompted me to post this is the indoctrination of our youth in this Facebook post that is horribly wrong in many respects:
“But seriously, to claim that we live in a post racial era is the epitome of absurdity. Although i’m all about forging unity we can’t do so while ignoring the reality of racial injustice, white supremacy, and national oppression in this country. Malcolm X perhaps said it best when he said you can’t have capitalism without racism. The capitalist system thrives off of racism and the division it creates amongst the masses of people. To fight tooth and nail against this order exploitation requires a relentless struggle against racism,white privilege, and all forms of bigotry.”
BONO on the free markets:
Here is Thomas Sowell’s review of Arthur Brooks book… there is the pencil example by Nobel winning economist Milton Freidman as well as an Artur C. Brooks presentation at the end. Econ class 150 is in session:
More frightening than any particular beliefs or policies is an utter lack of any sense of a need to test those beliefs and policies against hard evidence. Mistakes can be corrected by those who pay attention to facts but dogmatism will not be corrected by those who are wedded to a vision.
One of the most pervasive political visions of our time is the vision of liberals as compassionate and conservatives as less caring.
[….]
A new book, titled Who Really Cares by Arthur C. Brooks examines the actual behavior of liberals and conservatives when it comes to donating their own time, money, or blood for the benefit of others. It is remarkable that beliefs on this subject should have become conventional, if not set in concrete, for decades before anyone bothered to check these beliefs against facts.
What are those facts?
People who identify themselves as conservatives donate money to charity more often than people who identify themselves as liberals. They donate more money and a higher percentage of their incomes.
It is not that conservatives have more money. Liberal families average 6 percent higher incomes than conservative families.
You may recall a flap during the 2000 election campaign when the fact came out that Al Gore donated a smaller percentage of his income to charity than the national average. That was perfectly consistent with his liberalism.
So is the fact that most of the states that voted for John Kerry during the 2004 election donated a lower percentage of their incomes to charity than the states that voted for George W. Bush.
Conservatives not only donate more money to charity than liberals do, conservatives volunteer more time as well. More conservatives than liberals also donate blood.
According to Professor Brooks: “If liberals and moderates gave blood at the same rate as conservatives, the blood supply of the United States would jump about 45 percent.”
Professor Brooks admits that the facts he uncovered were the opposite of what he expected to find — so much so that he went back and checked these facts again, to make sure there was no mistake.
What is the reason why some people are liberals and others are conservatives, if it is not that liberals are more compassionate?
Fundamental differences in ideology go back to fundamental assumptions about human nature. Based on one set of assumptions, it makes perfect sense to be a liberal. Based on a different set of assumptions, it makes perfect sense to be a conservative.
The two visions are not completely symmetrical, however. For at least two centuries, the vision of the left has included a belief that those with that vision are morally superior, more caring and more compassionate.
[….]
The two visions are different in another way. The vision of the left exalts the young especially as idealists while the more conservative vision warns against the narrowness and shallowness of the inexperienced. This study found young liberals to make the least charitable contributions of all, whether in money, time or blood. Idealism in words is not idealism in deeds.
Here is Brooks short presentation
Some Later Additions:
A caller challenged Michael Medved on the “system” backing the rich… to which Michael responded with some counter-points. The conversation turned to taxes, and I learned a bit about the flat-tax and the “graduated” aspect of even it.
Great call and great learning curve of a response.
Here is a related issue via the great Milton Friedman:
Mind you, this Larry Elder audio opens with Ronald Reagan discussing Milton Friedman.
In this fill in for Dennis Prager on Monday, Larry Elder’s first two segments of the show are really a “GOP vs Ideals” 101 course. Economics, Donald Trump, GOP nominees since 1988, Milton Friedman, Ronald Reagan, Obama, and more are covered in “Sage” fashion.
As usual I learn from Larry and I share this with you in the hopes you will as well.
For more clear thinking like this from Larry Elder… I invite you to visit: http://www.larryelder.com/ ~AND~ http://www.elderstatement.com/
Front Page Magazine has some great insights by ex-soviet and chess master, Garry Kasparov:
Chess Grandmaster Garry Kasparov lived in the USSR and he is not feeling the bern.
I’m enjoying the irony of American Sanders supporters lecturing me, a former Soviet citizen, on the glories of Socialism and what it really means! Socialism sounds great in speech soundbites and on Facebook, but please keep it there. In practice, it corrodes not only the economy but the human spirit itself, and the ambition and achievement that made modern capitalism possible and brought billions of people out of poverty. Talking about Socialism is a huge luxury, a luxury that was paid for by the successes of capitalism. Income inequality is a huge problem, absolutely. But the idea that the solution is more government, more regulation, more debt, and less risk is dangerously absurd.
[….]
That reminds me of that Pavlov said about Communism as an experiment. Sure, let’s experiment with Socialism some more until everyone is poor or dead.
American Thinker continues the theme via Kasparov:
Perhaps in response to those who claim that Sanders is really more about Scandinavian-style socialism than the actual ownership of all means of production by the state, Kasparov wrote:
Yes, please take Scandinavia as an example! Implementing some socialistic elements AFTER becoming a wealthy capitalist economy only works as long as you don’t choke off what made you wealthy to begin with in the process. Again, it’s a luxury item that shouldn’t be confused with what is really doing the work, as many do. And do not forget that nearly all of the countless 20th-century innovations and industries that made the rest of the developed world so efficient and comfortable came from America, and it wasn’t a coincidence. As long as Europe had America taking risks, investing ambitiously, and yes, being “inequal,” it had the luxury of benefiting from the results without making the same sacrifices. Who will be America’s America?
Exactly so. And I would add that Sweden has moved away from high taxes and government domination because socialism has led to stagnation and declining standing in the world.
Video description:
First time really hearing Dan. His blog is here.
I loved his style/verve. I uploaded the second half of the program, after he got done talking about Friedmans four ways to spend money (below right).
Great stuff. Make sure to follow him on Twitter.
For more clear thinking like this from Mark “the Great One” Levin… I invite you to visit:
The animated portion of Bernie Sanders came from Sam Seder, “Bernie Sanders Through the Eyes of Your Crazy Uncle” (https://youtu.be/ZWyzGtv5jSQ) ~ Sam Seders site is here: http://majority.fm/
Starring comedian Andrew Heaton, EconPop takes a surprisingly deep look at the economic themes running through classic films, new releases, TV shows and more from the best of pop culture and entertainment. Heaton brings a unique mix of dry wit and whimsy to bear on the dismal science of economics and the result is always entertaining, educational and irreverent. It’s Econ 101 meets At The Movies, with a dash of Monty Python.
I, Pencil
I, Pencil – FINAL CUT from Nicholas Tucker on Vimeo.
The “Original ‘I-Pencil'”
It was amazing to hear the dissenting point of view chastise CNN for having a Border Patrol agent on — or that he was still a Border agent at all for speaking the truth!
Here is Milton Friedman
And here Charles Krauthammer on the border fence: