Here is a fairly meaty Q&A with Milton Friedman, from New Perspectives Quarterly. The man, unsurprisingly, has some interesting things to say, and he isn’t shy about saying them. (Hat tip, once again, to Adam Scott.)
Milton Friedman Unplugged
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Friedman said… “Oh no. “Free markets” is a very general term. There are all sorts of problems that will emerge. Free markets work best when the transaction between two individuals affects only those individuals. But that isn’t the fact. The fact is that, most often, a transaction between you and me affects a third party. That is the source of all problems for government. That is the source of all pollution problems, of the inequality problem. There are some good economists like Gary Becker and Bob Lucas who are working on these issues. This reality ensures that the end of history will never come.”
Exactly! I wish the interview started with this question. It’s really the crux of the issue and I would love to see him elaborate on it.
Friedman said… “Oh no. “Free markets” is a very general term. There are all sorts of problems that will emerge. Free markets work best when the transaction between two individuals affects only those individuals. But that isn’t the fact. The fact is that, most often, a transaction between you and me affects a third party. That is the source of all problems for government. That is the source of all pollution problems, of the inequality problem. There are some good economists like Gary Becker and Bob Lucas who are working on these issues. This reality ensures that the end of history will never come.”
Exactly! I wish the interview started with this question. It’s really the crux of the issue and I would love to see him elaborate on it.
I agree with what Friedman said about Germany and how it should have a free market. He mentioned that Germany is losing many of it’s productive entrepreneurs (who leave the country do their businesses elsewhere) because of the tight policies and unflexible economy. I think that if they loosened up a bit maybe they wouldn’t be losing so many bright minded people.
And regarding the impact that the internet has on free markets, Friedman mentioned that it’s one of the best tools for globalization because it enables people to trade without being controlled by the gov’t. They can choose to buy things from other countries if the taxes are lower. I definitely think that he makes a good point there as well.
I agree with what Friedman said about Germany and how it should have a free market. He mentioned that Germany is losing many of it’s productive entrepreneurs (who leave the country do their businesses elsewhere) because of the tight policies and unflexible economy. I think that if they loosened up a bit maybe they wouldn’t be losing so many bright minded people.
And regarding the impact that the internet has on free markets, Friedman mentioned that it’s one of the best tools for globalization because it enables people to trade without being controlled by the gov’t. They can choose to buy things from other countries if the taxes are lower. I definitely think that he makes a good point there as well.
It is an interesting interview, one point bothers me though. Friedman says, “. . . a quarter of American kids don’t finish high school!” In 2003, the percent of the U.S. population over 25 who have not graduated from high school is 15%, too many but far less than one-quarter. (www.census.gov/prod/2004pubs/p20-550.pdf) For 16 to 25 year olds, only 11% were drop-outs, those not in high school who had not graduated. (http://nces.ed.gov/programs/coe/2005/pdf/19_2005.pdf)
It is an interesting interview, one point bothers me though. Friedman says, “. . . a quarter of American kids don’t finish high school!” In 2003, the percent of the U.S. population over 25 who have not graduated from high school is 15%, too many but far less than one-quarter. (www.census.gov/prod/2004pubs/p20-550.pdf) For 16 to 25 year olds, only 11% were drop-outs, those not in high school who had not graduated. (http://nces.ed.gov/programs/coe/2005/pdf/19_2005.pdf)
thank you
thank you