Where have you gone Milton Friedman?

[Mormon Red Death]

As I was waiting for the wife and soon to be child today I read this article in Bloomberg Markets.

Has this country given up on the Free Market? Is the Chicago thought of economics done? I truly do fear for this country

[Tim]

As I was waiting for the wife and soon to be child today I read this article in Bloomberg Markets.

Has this country given up on the Free Market? Is the Chicago thought of economics done? I truly do fear for this country

He died.

[Guest]

Koo koo ka choo.

A classic exchange...

[YOUTUBE]iPqdRqacpFk[/YOUTUBE]

[wuapinmon]

As I was waiting for the wife and soon to be child today I read this article in Bloomberg Markets.

Has this country given up on the Free Market? Is the Chicago thought of economics done? I truly do fear for this country

Friedman was spot on when he spoke of greed. The flaw in any economic system is the ingenerate selfishness of mankind. People look out for themselves. This is the flaw in capitalism, this is the flaw in communism. What Friedman saw as a positive, is that capitalism at least tries to reward this instinctive greed that we all have. Capitalism is the only system that has the potential to reward anyone who is greedy enough to risk their own capital in the hope of an increase. Communism and socialism seek to let an elected few (I use 'elected' loosely) control the distribution of capital. The greed among the few leads to corruption and a loss of freedom to maintain power over the many. Capitalism is a good system given humanity's weaknesses, but I'm not willing to give capitalism a blank check with my capital exchange. The oligarchy in control of many facets of this country limits our ability to potentially prosper.

I disagree with Mr. Friedman's ideas. He claimed that "greed" or free-enterprise always worked while simultaneously arguing that free-enterprise was the only path to prosperity. His affiliation with Pinochet in Chile, and his insistence that "greed" was the only way to success sour me on the man. Indeed, I would say that free-enterprise greed is the root cause of the current world economic turmoil; Milton Friedman be damned! Never ever forget that Friedman was bedfellows with a brutal dictatorship that executed thousands of its citizens summarily.

[Guest]

I disagree with Mr. Friedman's ideas. He claimed that "greed" or free-enterprise always worked while simultaneously arguing that free-enterprise was the only path to prosperity. His affiliation with Pinochet in Chile, and his insistence that "greed" was the only way to success sour me on the man. Indeed, I would say that free-enterprise greed is the root cause of the current world economic turmoil; Milton Friedman be damned! Never ever forget that Friedman was bedfellows with a brutal dictatorship that executed thousands of its citizens summarily.

I'm not sure you're giving full weight to his contributions. Friedman wasn't just some blogger or contributor on Mcneil/Lehrer. He helped define how economic policy and money supply were studied and implemented for sixty years.

People who today claim the death of monetarism aren't paying close attention. Cheap and plentiful cash will have a great effect on any recovery, probably much more than the fiscal spending.

Friedman and Solow still cast a large shadow, even today.

[byu71]

Capitalism does not prevent excesses or keeps in check the excesses due to the frailties of men and women over the short term. In the long term those excesses are checked by market forces. In communism and socialism to a lesser extent, only the elite or violently powerful can exercise their desire for greed. In capitalism a lot more people get a shot at the opportunities greed provides.

[Mormon Red Death]

Indeed, I would say that free-enterprise greed is the root cause of the current world economic turmoil; Milton Friedman be damned! Never ever forget that Friedman was bedfellows with a brutal dictatorship that executed thousands of its citizens summarily.

Free Enterprise is NOT the root cause of the current turmoil. Its government intervention which skewed the markets. If true capitalism were able to flourish without government mandates (uh umm Community Reinvestment Act). We would not be in this situation.

btw... Uncle Milty did not have anything to do with executing thousands of citizens in Argentina.

[Tim]

Free Enterprise is NOT the root cause of the current turmoil. Its government intervention which skewed the markets. If true capitalism were able to flourish without government mandates (uh umm Community Reinvestment Act). We would not be in this situation.

btw... Uncle Milty did not have anything to do with executing thousands of citizens in Argentina.

If true capitalism were able to flourish, the rich would be obscenely rich and the rest of us would be in dire poverty. True capitalism only rewards those who have the capital.

[byu71]

Free Enterprise is NOT the root cause of the current turmoil. Its government intervention which skewed the markets. If true capitalism were able to flourish without government mandates (uh umm Community Reinvestment Act). We would not be in this situation.

btw... Uncle Milty did not have anything to do with executing thousands of citizens in Argentina.

I don't know what the root problem was, but certainly greed and corruption in the free enterprise system can cause it to run amuk. I have been an investment advisor for 25 years. I really developed after my first couple of years a code that my first responsibility to my clients is to "protect them against the folks in the financial system back east." Sure, they say they have the clients interest at heart, but the human condition takes over and the higher they climb the more it is about them making money and having power. I read a book early in my career called "liars poker". It should be a must read for every person who wants to be an investment advisor.

This isn't new. Ever heard of the robber barrons? The nice thing is though the greed and excesses eventually catch up and get corrected through market forces. Again my fear with what the government is doing might prolong that correction from taking place. A lot of either corrupt or very stupid people who ran companies are still hanging on. A free system would have them canned and perhaps being sued right now.

I love the capitalist system and believe it is the best one out there because it is the only one that allows all rungs of the latter to take a shot at the big time.

[byu71]

If true capitalism were able to flourish, the rich would be obscenely rich and the rest of us would be in dire poverty. True capitalism only rewards those who have the capital.

Not true. Someone with a great idea can raise capital from others. The guy with the great idea makes out as well.

It is the socilistic and communistic system that allows obscenely rich to stay obscenely rich compared to their fellow citizens. Why do you think America has the most innovation and entreprenuers?

[Tim]

Not true. Someone with a great idea can raise capital from others. The guy with the great idea makes out as well.

It is the socilistic and communistic system that allows obscenely rich to stay obscenely rich compared to their fellow citizens. Why do you think America has the most innovation and entreprenuers?

Most people don't have great ideas, though. Most people are average workers.

[Katy Lied]

I disagree with Mr. Friedman's ideas. He claimed that "greed" or free-enterprise always worked while simultaneously arguing that free-enterprise was the only path to prosperity. His affiliation with Pinochet in Chile, and his insistence that "greed" was the only way to success sour me on the man. Indeed, I would say that free-enterprise greed is the root cause of the current world economic turmoil; Milton Friedman be damned!

Friedman was talking about self-interest, a much richer, more broad based description than "greed," a word that carries a lot of cultural baggage so I dont use it much.

Friedman would say that a mother who sacrifice's her life to save her child is acting out of self interest. Not greed.

Friedman would say that a man who gives alms to the poor to earn his Reward in heaven is acting out of self interest. Not greed.

The power inherent in the notion of self interest is model predictability. If you reject this concept, you have to reject all of the advances in game theory in the last 50 years.

[Mormon Red Death]

Most people don't have great ideas, though. Most people are average workers.

Most people therefore don't deserve to be rich

[Tim]

Most people therefore don't deserve to be rich

I never said they did. I do believe, though, that most people deserve to not live in poverty.

[Mormon Red Death]

I never said they did. I do believe, though, that most people deserve to not live in poverty.

And they wouldn't in a truly capitalistic sytem. We already found that in communism they do.