Milton Friedman on Donahue 1979 (3/5)

Friedman, shows why he is unsurpassed in modern times in defending liberty. He cheerfully decapitates the ideas of a government-controlled economy, over a wide range of examples. His layman's explanation as to how government intervention and the Federal Reserve control of the money supply helped cause the Great Depression is simply outstanding.

[@williamheckman4597]

One of my most favorite interviews with Milton Friedman!

[@lisle1010]

Even though I love everything Milton Friedman has to say, I have to admit that Donahue does a heck of a job in these interviews. He asks good questions, throws out some assertions for his guest to address and allows an answer.

[@anthonydavisinc]

"we need to go to commercial." BEST response Phil could come up with after getting his arse handed to him after the greed piece.

[@Jdf2024]

We need this guy back.

[@peterrossi3349]

One of my favorite teachers

[@legalmonkey]

@LordVigeous666999 - I agree. Donohue was a great interviewer. I am also glad he asked the questions he did, that way people all over the internet can watch and listen.

[@Gaius_Julius_Caesar]

I like how Milton smiles when he's teaching the American people, it's like a benevolent grandpa speaking words of wisdom to his grandchildren, not chastising or rebuking but instructing with simple words and examples. Such a brilliant approach! I'm ashamed to say that this is the first time I've heard this great man speak. Common sense makes common sense!

[@romanbilan8236]

Crushed. Milton absolutely crushed Donahue

[@virakthong8022]

I listen to Milton Friedman on the daily basis ♥♥♥

[@micheldvorsky]

Donahue's expression at 9:27 is priceless. Friedman brilliant, honest, and totally uncompromising...as frustrated as his opponents are, none could fail to respect that!

[@Atreus21]

The biggest lesson in this entire interview is in this section. "What is greed? After all none of us are greedy. It's only the other fellas who's greedy."

[@pragmatismnotidealis]

I have never seen anyone win in an argument against Friedman. Even when they have the public on their side. What a great mind.

[@JC-21470]

What is amazing is how many time Friedman wins the argument but Phil will not change his thinking even though he knows he is wrong. He simply cannot fathom the thought that he has been wrong his entire life.

[@xlfutur1]

You're right. You'd never find a guy like Milton on any main stream show today. Thankfully we have youtube to refer to guys like Milton who actually made sense and who's opinions were based on fact, not some Utopian idealogy.

[@xlfutur1]

This might be the most succinct and logical explanation of capitalism ever recorded. "Capital" is inherent in every society, its just a matter of who controls it. In a dictatorial regime, the "capital" is controlled by a select few, usually taken by force and held through fear, and is generally not available to the masses. In a truly free society, capitalism is available to those who desire to excel, achieve, and be self-sufficient. Where is Milton Friedman when you need him?

[@Nafetitive]

In the 33 years since this interview, it's sad to see that not much, Economically, has changed, certainly not for the better. Back then people were in an uproar over gas being $1 a gallon, now we're in an uproar over gas reaching $5 a gallon. And Friedman's arguments are just as valid now as they were then.

[@danielkokal8819]

Phil: " How can you not see the awful greed of capitalism" also Phil : " we'll go to a commercial so large corporations can sell crap and pay my lucrative contract".

[@hlvas]

I see this video over and over again and I always think the movie a beautiful mind comes to my mind

[@PeterSenderos]

See, *that* makes sense to me! Well put

[@spanieaj]

I have to admire Donahue for giving Freidman a platform to communicate his views even though Donahue my not necessarily agree and/or understand Friedman's views. It's always good to challenge your own wiews much less other's views.

[@Paomnnehal]

That look at the end by Donahue made me lol. Donahue: General Motors has the power to grow. Friedman: No Donahue: okay.jpg

[@billyboy630]

You have to give Donahue credit, he is totally opposed to Miltons ideas and capitalism at large, yet he conducts a respectful and thoughful interview, unlike many of todays hosts and or journalists. This segement really somes things up, the quote "Is it really true the Political self interest is really nobler the economic self interest"? Brilliant

[@EderikSchneider]

Standing up for Individual Freedom should never be unpopular

[@beefdog]

@carnabyfudge I agree, we need more people like this guy.

[@chuckbartosz1377]

I miss Milton. He upsets big government liberals by speaking facts through history and empirical data.

[@kickyerass]

I wish American people would listen to this guy more!

[@Johnrl21]

Whether you agree with his principles or not, you have to admit that Friedman was one smart individual.

[@cbfreakbears312]

Whenever i see idiotic things in the news or on facebook, i come to these videos to restore my faith in humanity.

[@aaronsingram]

You could replace high school economics courses with Freidman youtube videos.

[@stealthswimmer]

i love how he keeps his cool after having to refute so many assertions. These vids are so awesome! :D =)

[@jerrysoh619]

I’ve been following the argument. Both of you guys have great knowledge of the economic situation. Fletch is clearly a student of the Friedman school of economics, while Sanchez is clearly a devout reader of the New York Times and or The Economist. I consider myself a centrist type guy. Which is why I have to give the nod to Sanchez, he has a little less rhetoric and a little more substance. I also now believe Capitalism needs rules.

[@Atreus21]

The man is simply a genius.

[@billyboy630]

I give Donahue a lot of credit for even having Milton as a guest, although a progressive/liberal Donahue at least had a decent thoughtful discussion. He genuinely seemed interested in Miltons thoughts and while he obviously was unswayed by Milton he let him speak and clearly has some admiration for him Unlike the the left of todays media.

[@jjmdirector]

@carnabyfudge I agree. Good luck getting Milton Friedman taught in High school or College for that matter.

[@Apmhflick]

Donahue: struck down! Go Friedman!

[@Atreus21]

@cavalrycome The point is that he wasn't forced to do so. It was his self-interest that motivated him to pursue it. Allowing people to pursue their self-interested goals does more for society than a well-meaning authority dictating what we ought to be interested in.

[@Capital_Ideas1]

Okay, what is NGDP targeting then? For that matter, what was Friedman's favorite indicator of the relative tightness or looseness of monetary policy, and why isn't it used today? What is IOR, and why is it important?

[@shatwood]

LOVE listening to Friedman. Why aren't our school children watching THIS stuff?! No, they have to watch crap like the Story of Stuff.

[@SuperDelderfield]

Is what TV was like in the 70's? TV has gone downhill if you ask me!

[@bigzachus]

I'm disappointed that only 25,000 people have seen this video...

[@pismo10]

A 30 year old video clearly explaining today's situation. The printing press running like wild. A govt out of control.

[@jerrysoh619]

I researched Defense spending and in total; it is a heck of a lot more than 20%, mainly because the Defense has no real budget, and because Fletch isn’t counting the borrowed money to pay for the wars; as Sanchez rebutted.

[@aliencrap]

OMG, GENIUS!

[@CurtHowland]

As much as I'd like to agree with you, this is just one of the best of Donahue's shows. There were many hundreds if not thousands of lousy shows he did, too. Look up "Ron Paul Morton Downey" for a video of a "talk show" from the mid 1980s that is even worse than what's produced today.

[@heyitsshega]

@carnabyfudge Don't worry! There is some hope! I didn't watch this specific video, but I was first exposed to Milton Friedman when I was in my high school economics class. I saw Free to Choose. It actually sparked an interest in economics today and now I am a proud Libertarian. Don't worry, there are good teachers out there...of course not as many as there would be on a voucher system for education ;) By the way Donahue's face is hillarious at 1:20!

[@TheBrakedown]

that was extremely insightful. Thanks for that post

[@bassmonster2]

@TheDirteeSanchez This is the problem with the poor education you get nowadays in college.

[@RKAddict101]

@DreamINfiniteMoment Thank you, I am tired of all these comments about Donahue getting owned or what not, he is just asking the questions and trying to understand what Friedman is saying.

[@jerrysoh619]

I used to be a lassiez-faire supporter, but it just seems like the closer we get to lassiez-faire, the more problems we create. Capitalism isn’t perfect; its had many up’s and downs, but I believe it can be better and more stable with guidelines

[@jerrysoh619]

The promise of bailouts I’m not sure about; I never heard our government make that promise. But I suppose now a days bailouts are the consequences of circumstance.

[@TimPQF]

@shiekastate I don't find anything in this interview to be hostile or ego driven by Donahue. He is always very expressive with his body language and zeal for the conversation at hand. Perhaps he disagrees with the man, perhaps he shares some common viewpoints. He has done his job by providing a very intelligent man very constructive opportunities to voice his views. Let us not forget that only of these two men is an expert in economics, the other is just an interested party seeking answers.

[@Tyrant_13]

Libertarians have always been right about this country on the most important issues (War, Freedom, Rights, Property). If you want to squander your fate, that's your choice. But, don't throw me in with that lot. Libertarians founded this country and it is Libertarians who are gonna predict its doom. They are at the heart of any great political movement around the world that leads to great increases in personal freedom and massive economic growth. It isn't limited to America; Asia is going

[@lancecotter1102]

What about Wal-Mart? Not even on the radar screen yet in 1979?

[@FletchforFreedom]

Even if the CBO were the source of growth rate data (it’s the BLS for employment and the BEA for GDP - including private sector growth), the fact is that the growth figures you are quoting include (arbitrarily valued) government figures and are NOT for the private sector. And, no, it is economically impossible for the government to “push” the economy. Instead, every job “created” by stimulus has come at the cost of even more jobs elsewhere in the economy.

[@btowndawgz2]

@carnabyfudge so true. probly less than 5% of students in my high school actually understand capitalism. Our teachers breed socialism and it's sickening.

[@cavalrycome]

It's true that "Einstein didn't construct his theory under order from a bureaucrat", but there was no plausible market-driven motivation for him to come up with his theories either. When he published his famous 1905 papers, they were unrelated to his day job (incidentally, as a government bureaucrat in a patent office). From childhood, Einstein was driven by profound curiosity about the laws of nature. Scientists don't get paid when their papers are published. Market incentives are irrelevant.

[@Tyrant_13]

The productivity difference between the corporation owner and the low level employees is proportional to the wage difference in a free market. If ever that's not the case, it's due to some kind of artificial barrier imposed through gov't. Plain and simple.

[@FletchforFreedom]

I haven't read Alinsky's book, but I have read more economics in the last year than Sanchez and Jerry have in their entire lives. What amazes me is the gross economic illiteracy they demonstrate. It isn't preferring Krugman over Friedman, but confusing GDP growth with private sector growth, mixing up expenditures with revenue streams or debt finance (not to mention the host of strawman arguments) and then claiming the mantle of "common sense" rather than "lack of competence in the subject".

[@FletchforFreedom]

Yes, you covered the two wars. Even if 29% of government expenditures were for defense (including the much greater part that has nothing to do with actions in the Middle East), the notion that the solvency of transfer payment programs are in any way impacted by it is no less monumentally ridiculous. But, hey, thanks for playing!

[@Barskor1]

Milton is so damned polite! It is wonderful and he cuts the crap like a hot knife through butter.

[@PeterSenderos]

I know he said capitalism isnt perfect: "I agree there is no perfect system" I apologize though I must have missed the key part to his point the first time.I don't get why he would bring up hitler, but the presidential point is relevant. Not exactly damning because it doesnt show capitalism to be any better,or even the president to be any worse,but fair enough. Friedman does present a good argument in this video, and I must admit I was liking him until I came to the point I clearly misunderstood

[@majinspy]

You can call it a statement of fact, but it isn't one we agree on. I can and in fact do dispute your assertion that CEO's activities are worth in terms of production what they are paid. I think they are well connected individuals that serve on the board of each other's companies and vote each other raises. When you look at japanese CEO's that often perform better than their American counterparts they are paid MUCH less.

[@Giantsbran1227]

4:26 My God I laughed so hard when that guys face popped up.

[@travisbickle7931]

you're right no roads or bridges existed before taxes.....

[@stealthswimmer]

rofl, you put it in a hilarious way but true. I know they all had disagreements, and more recently Walter Block from the Mises Institute says how he aint' a fan of Friedman but is one of Thomas Sowell...who was a student of Milton Friedman and shares some of his view. Anyways, I think they all have some good stuff to offer....i may not agree with EVERY single thing from all of them, especially since they sometimes oppose each other,lol. but they all have great information and insights.

[@SonofIsrael1]

Am I the only one who thought about Gordon Gekko and his "greed speech"?

[@ghemminger1]

we need more economists like Friedman in our lives today...why should we cede control of our lives to Washington? Why do we think that a bunch of db's from Ivy League schools are better apt at making choices for me and my family than me and my family???

[@brainiacgames]

Listening to these intelligent questions, and the way people actually listen to Friedman, makes me sad - how did our society become so stupid so quickly?

[@DoctorMurky]

Murray Rothbard, Ayn Rand and Milton Friedman are the best. (even though Rothbard hated the other two and Rand hated Rothbard and Friedman didn't kill Naomi Klein when he had the chance)

[@FreeAgentXIII]

Damn. Look at Friedman go! He's parrying and blocking every shot like a fucking ninja. Phil is getting completely shut down!

[@mongobobo]

Yeah, and we never got to the moon because of government.... oh wait.

[@sgame79]

The part about inflation was fantastic. You don't hear that kind of straight talk much anymore.

[@kurtvonfricken6829]

If this were a boxing match the ref would have stopped it...............

[@bobbymack44212]

"The great achievements of civilizations have not come from government bureaus. Einstein didn't construct his theory under order from a government bureaucrat. Henry Ford didn't revolutionize the automobile industry that way. " Come back Milton, we miss your sanity.

[@Pi11z3ury]

Fiedman says that Einstein didn't make his advancements because of government bureaucracy, I agree, but he didn't do it for greed either.

[@samm1809]

it's our responsibility as citizens to boycott things that we see as of low quality. if people do so then an unfair or total market share is prevented. besides, how often do you see a company with a monopoly on a human need? that only ever happens when either the government interferes or the government has the monopoly itself.

[@beefdog]

@3lements why do you say that?

[@Tyrant_13]

increase production. The message the high price is sending to those actors who can do something about it is that there is a current shortage relative to what the consumers want it to be, and the producers are meeting this request, "serving" their fellow man so long as they're willing to pay for what they value which is fair and entirely meaningless in the grand scheme of things as consumers are producers. All positions such as employer, employee, producer, and consumer are blurred in a proper

[@RobertLee0520]

I don't find it ironic, I find it extremely insightful, that Friedman (jokingly) predicted that K-Mart would own Sears back in 1979. Sure enough, in 2005, they did. :) God, I love capitalism!

[@samm1809]

lol @ donahue's face at the end "oh, crap! i'm still losing!"

[@footballcowboys100]

It's too bad Friedman doesn't have a formal adversary.

[@Capital_Ideas1]

Is current monetary policy too tight, too loose, or about right?

[@1971SuperLead]

@Wonglow Kmart went out of business when I lived in California....and there were many! Tucson and Denver are devoid of Kmarts. I just figured Kmart was caput. Damn, just when I thought I knew everything!

[@ORACLE063]

@myhipsi no. it is very clear we are a constitutional republic. The founders hated democracy. John Adams said, "Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There was never a democracy yet that did not commit suicide."

[@jradetzky]

"where in the world do you find these angels who are going to organize society for us? I don't even trust you to do that, let alone myself" LOL

[@Atreus21]

@cavalrycome It's a simple question of whether or not you allow people the freedom to pursue their interest, whether its "financial", "selfish", or whatever. People will pursue their own goals far more doggedly and efficiently than they will someone else's.

[@FletchforFreedom]

I am NOT a student of the Freidman school. I have been an economist for 25 years, was initially trained as a Keynesian and became a member of the Austrian school because of the historical disconnect from reality that the Keynesian school demonstrates (and, to a lesser extent, the Chicago school shares. Alas, I I shall get into, Sanchez has no substance at all.

[@EricStringer]

Great speaker.

[@Capital_Ideas1]

Yeah, but I hear many conservatives today say they want no help for the poor at all, and by the way, Ron Paul wants to phase out all government assistance.

[@Wonglow]

@1971SuperLead Kmart isn't gone btw , still one around here ...there's 1 sears and 1 kmart within 50 miles of my house. Infact they are both across the street from eachother heh.

[@rsobies]

@pragmatismnotidealis he truely was, but i would ask him what does he think about austrian school of economics. :) btw, does anybody know such interview with milton firedman about ASE?

[@jerrysoh619]

30% is a major loss; but not enough to create the economic mess we found ourselves in. I also don’t think they lent the money because they had to, in the late 90’s banks had lent to all the people who were qualified, to increase profits they lent to less qualified people, then they took out derivatives on those risks and wall street became the very jungle it is today.

[@hirofan]

I know who would destroy Mr. Friedman. Dr. Michael Parenti. I would give anything to see those two go toe to toe. Mr. Parenti is my heo. A guy who knows all about American foreign policy and an activist.. a true American..

[@majinspy]

That is circular reasoning. You're simply declaring yourself right. The free market works because its the free market, which works. I believe that's called begging the question.

[@JackGriffin2]

@UponInfinity Like Friedman said elsewhere "Government is government, it doesn't matter who is running it." If you're talking about conservatives who aren't in government I don't think you can say a majority love big government. Friedman is probably one of their most beloved public intellectuals. As for conservatives in government? Well, "government is government".

[@MrVinnyable1]

Well said.

[@Capital_Ideas1]

Exactly, Paul doesn't support it. Paul apparently either stupidly thinks the free market will allow everyone to make a sufficient living or doesn't care about the poor at all.

[@chughes41]

@TheDirteeSanchez : You have just named 4 of the biggest failures of US public policy in Social Security, Public Schools, Medicare and Medicaid. These programs are exorbitantly expensive and have been clearly shown to be fiscally unsustainable (with the exception of public schools, which have seen no change in test scores to correspond to skyrocketing costs). As Friedman so often said, you have to look beyon the objective of these programs, which I agree is well intentioned, to their outcomes

[@borislavstoykov3103]

Yea, I gained the same knowledge about the inflation a couple of years ago and overall in comparison of unemployment inflation turns out to be a positive economic situation.

[@Tyrant_13]

It is when it's presented as an argument. I simply made a statement.