Johan Norberg – Free or Equal – Free to Choose 30 years later 4/5
Published on Jun 10, 2012 by BasicEconomics
In 1980 economist and Nobel laureate Milton Friedman inspired market reform in the West and revolutions in the East with his celebrated television series “Free To Choose.”
Thirty years later, in this one-hour documentary, the young Swedish writer, analyst and Cato Institute Fellow Johan Norberg travels in Friedman’s footsteps to see what has
actually happened in the places Friedman’s ideas helped transform. In location after location Norberg examines the contemporary relevance of Friedman’s ideas in the 2011 world of globalization and financial crisis. Central to his examination are the perennial questions concerning power and prosperity, and the trade-offs between individual liberty and income equality.
I have enjoyed reading this series of reviews by T. Kurt Jaros on Milton and Rose Friedman’s book “Free to Choose.” I hope you enjoy it as much as I did.
I have posted several transcripts and videos of the FREE TO CHOOSE film series on my blog. My favorite episodes are the “Failure of Socialism” and “Power of the Market.” (This is the 1990 version but the 1980 version is good too.) Today with the increase of the welfare state maybe people should take a long look again at the episode “From Cradle to Grave.”
Milton Friedman’s view on vouchers for the schools needs to be heeded now more than ever too. “Created Equal” is probably the episode that I wanted President Obama to see the most and I wrote several letters to him suggesting that.
T. Kurt Jaros is currently a Master’s student studying Systematic Theology at King’s College in London. He holds a B.A. in Philosophy and Political Science cum laude and an M.A. in Christian Apologetics high honors from Biola University, an evangelical Christian university outside of Los Angeles.
He enjoys learning and thinking about theology, specifically historical theology, philosophical theology and philosophy of religion, and issues pertaining to monergism and synergism. Additionally, he enjoys learning and thinking about political philosophy, economics, American political history, and campaigns.
This is part of a series on Milton Friedman’s “Free to Choose.”
In the second chapter, Friedman writes on the role of government as it relates to trade. He makes a strong case for free trade, and specifically focuses on international trade. However, the same principles ought to be applied to domestic trade.
Friedman believes that the restrictions on economic freedom have “also affected our freedom of speech, of press, and of religion.” This is evident through the examples he uses throughout the chapter and even in instances we can think of right now. Consider the hated Stamp Act that the British imposed upon the American colonies. This was a tax placed upon legal documents, contracts, newspapers and even play cards. Also consider the more recent example of how economic regulations have affected our freedom of religion (in four words): Sandra Fluke, birth control.
Bureaucrats like to think that economic regulations are helpful to the American people. But in reality, protectionism exploits consumers. Friedman even sites consumers as “major victims of such measures.” In the attempt to secure American jobs, bureaucrats hold off consumers from saving money because the nation is, as Adam Smith pointed out, unable to get the largest volume of imports as possible for as little as it can pay.
Friedman recognizes that without tariffs, workers may be harmed through a cut in wages or even laid off, if a foreign nation can produce products more cheaply. But this happens anyway in the domestic marketplace. Yet this would allow workers to look for work in industries where there might be a need for innovation. Put another way: why do we want to support inefficient businesses when we can save consumers money? Without the tariffs, we “might very well produce a stronger and more efficient” industry.
There are four arguments in favor of tariffs that Friedman rejects (two of which are explained here). First, the government should protect against foreign trade because of national security. Consider the steel industry. Friedman thinks this is foolish because we could just stockpile steel. And even still, the U.S. steel industry would not be completely destroyed because of the low transportation costs. Second, the “infant industry” argument is used to defend baby companies who would fail unless otherwise protected. But this happens anyway; “most firms experience losses in their early years.” In reality, this is just a smokescreen for more government regulation and serving the special interests. This argument is hardly ever used to support companies that have yet to come into existence. After all, such hypothetical companies have no spokesmen or lobbyists.
We need to follow the suggestions of Friedman and take certain measures to promote freedom. Instead of giving foreign aid and then imposing restrictions on trade,
“We could say to the rest of the world: we believe in freedom and intend to practice it. We cannot force you to be free. But we can offer full cooperation on equal terms to all. Our market is open to you without tariffs or other restrictions. Sell here what you can and wish to. Buy whatever you can and wish to. In that way cooperation among individuals can be worldwide and free.”
I must say that I have lots of respect for Reason Magazine and for their admiration of Milton Friedman. However, I do disagree with one phrase below. At the end of this post I will tell you what sentence it is. Uploaded by ReasonTV on Jul 28, 2011 There’s no way to appreciate fully the [...]
Video clip:Milton Friedman discusses his view of numerous political figures and policy issues in (Part 1)
Milton Friedman on Hayek’s “Road to Serfdom” 1994 Interview 1 of 2 Uploaded by PenguinProseMedia on Oct 25, 2011 Says Federal Reserve should be abolished, criticizes Keynes. One of Friedman’s best interviews, discussion spans Friedman’s career and his view of numerous political figures and public policy issues. ___________________ Two Lucky People by Milton and Rose Friedman [...]
What a great man Milton Friedman was. The Legacy of Milton Friedman November 18, 2006 Alexander Tabarrok Great economist by day and crusading public intellectual by night, Milton Friedman was my hero. Friedman’s contributions to economics are profound, the permanent income hypothesis, the resurrection of the quantity theory of money, and his magnum opus with [...]
Milton Friedman videos and transcripts Part 7 On my blog http://www.thedailyhatch.org I have an extensive list of posts that have both videos and transcripts of MiltonFriedman’s interviews and speeches. Here below is just small list of those and more can be accessed by clicking on “Milton Friedman” on the side of this page or searching [...]
Milton Friedman at Hillsdale College 2006 July 2006 Free to Choose: A Conversation with Milton Friedman Milton Friedman Economist Milton Friedman is a senior research fellow at the Hoover Institution at Stanford University and a professor emeritus of economics at the University of Chicago, where he taught from 1946-1976. Dr. Friedman received the Nobel Memorial [...]
Milton Friedman said that getting George Bush I to be his vice president was his biggest mistake because he knew that Bush was not a true conservative and sure enough George Bush did raise taxes when he later became President. Below is a speech by George W. Bush honoring Milton Friedman: Milton Friedman Honored for [...]
Below is a discussion from Milton Friedman on Bill Clinton and Ronald Reagan. February 10, 1999 | Recorded on February 10, 1999 audio, video, and blogs » uncommon knowledge PRESIDENTIAL REPORT CARD: Milton Friedman on the State of the Union with guest Milton Friedman Milton Friedman, Senior Research Fellow, Hoover Institution and Nobel Laureate in [...]
Milton Friedman and Chile – The Power of Choice Uploaded by FreeToChooseNetwork on May 13, 2011 In this excerpt from Free To Choose Network’s “The Power of Choice (2006)”, we set the record straight on Milton Friedman’s dealings with Chile — including training the Chicago Boys and his meeting with Augusto Pinochet. Was the tremendous [...]
Milton Friedman’s negative income tax explained by Friedman in 1968: President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a [...]
“Friedman Friday” :“A Nobel Laureate on the American Economy” VTR: 5/31/77 Transcript and video clip (Part 5)
Milton Friedman on the American Economy (5 of 6) Uploaded by donotswallow on Aug 9, 2009 THE OPEN MIND Host: Richard D. Heffner Guest: Milton Friedman Title: A Nobel Laureate on the American Economy VTR: 5/31/77 _____________________________________ Below is a transcipt from a portion of an interview that Milton Friedman gave on 5-31-77: Friedman: [...]