Free to Choose - vol 03, 1980

[iamironman87]

Milton Friedman is normally correct and explains the blessings of a free market so eloquently.

However, on this point, the Depression and the Federal Reserve, he is too short-sighted.

The Federal Reserve caused the Great Depression, not right before it started, but by causing the boom, based on easy credit, known as the "Roaring Twenties."  If the Federal Reserve had never began Open Market Operations, causing inflation and mal-investments, the Great Depression would have never happened.

[mikem1234]

Sometimes it sounds like Friedman really believes economic booms can occur without busts, or that 'equilibrium' is the norm. Considering that 'engineering' an economy out of a bust and into a boom may be counter-productive, of course the FED would fail. But there was also pressure on the FED because of nationalism and the desire that all citizens consider themselves to be 'middle class.'

[deepfriedsammich]

If you want to see where Uncle Milt went wrong, read Murray Rothbard. Friedman is a monetarist. He was certainly wrong about the cause of the Great Depression. The Austrian Economists with their Austrian Business Cycle Theory do a much better job of explaining the cause of the Great Depression. Rothbard and the Austrian Economists make Milton Friedman look like a Socialist, and in a way, he is, in his desire to nationalize money.

[nurbSoldier]

I think this is why Friedman was allowed to get as far as he did as a free marketeer. He gave credibility to the Federal Reserve as an institution. The Federal Reserve does not actually mind criticism, so long as the criticism implies that they should take more power or do more action. Very clever.

[deltapunk21]

First of all the money supply did not go down and inflation was the problem deflation was the answer, we didn't do that we spent inflationary money out the ass taxed out the ass and regulated and "public worked" out the ass.

[Bassmaster86]

Friednam caused more people to starve in the third world than any other american economist.....rot you bastard.

[drewmandan]

Friedman indirectly caused the Green Revolution, feeding hundreds of millions...

[garnita0]

if freidman was honest he would have told the real story behind the fedral reserve and what was causing the economic instability of the era..

that is, the F.R is owned and controlled by rich capitalists.

friedman is only giving us the "story" version of how the ecomonic system works...tell us who owns the system..

95% of the population are fighting over the crumbs...most of it is owned by a very small minority

[kyufa]

I agree... it's almost negligent that Friedman ignores the unconstitutionality of the FED. But then again, so does pretty much all our elected representatives.

How to fix it? VOTE RON PAUL in 08!!

[Tuneman100]

You guys are COMPLETELY WRONG. COMPLETLEY. He SPOKE OFTEN about the duties of the FED vs. reality. HE OFTEN spoke on how it solely should be responsible for controlling inflation. He did not shy away of asking the fed about their motives.

[rhllor731]

nobody had commented on it because it's crap... just some right-wing mythology used to justify continued exploitation and oppression.

[fephisto]

Explanation?

[08738148]

That's cute. Did you think of that by yourself, or did you have to ask Paul Krugman for that eloquent response?

[TexanProgressive]

I know this is out of nowhere but...doesn't Krugman agree with Friedman on many economic matters? I am in the middle of The Return of Depression Economics and it seems that Krugman credits Friedman with providing the intellectual framework to understand and prevent/alleviate recessions via monetary policy. I know Krugman is a liberal.

[08738148]

No, you're definitely right. Don't mind my snarkiness with that comment; I was just sarcastically responding to someone I thought was just repeating mindless and meaningless bromides. Krugman the economist is as good as there is alive; Krguman the pundit leaves much to be desired.

[jeffmagic32]

yeah buddy, you are right on the mark. Lets let Che or Stalin handle our economy next time around. I'm sure they won't "exploit" anybody.

[jesusj0nes]

Please, learn the objectivity of economics, rather than running alongside your ego with your thumb up your ass.

[fephisto]

I can't believe no one has commented on this.

The following quote came from somewhere else that I feel fits this fairly well, "Before asking government to solve the problem, ask if it makes the problem."

[ideachannel]

I think it was Ronald Reagan who said "Government is not a solution to our problem, government IS the problem."

[fephisto]

That works too.