Thomas Sowell and Milton Friedman’s answer to the welfare problem in 1980 will still work today

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Milton Friedman On Charlie Rose (Part One)

The late Milton Friedman discusses economics and otherwise with Charlie Rose.

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Milton Friedman: Life and ideas – Part 01

Milton Friedman: Life and ideas

A brief biography of Milton Friedman

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Stossel – “Free to Choose” (Milton Friedman) 1/6

6-10-10. pt.1 of 6. Stossel discusses Milton Friedman’s 1980 book, “Free to Choose”, which was smuggled in and read widely in Eastern Europe during the Cold War by many countries under Soviet rule. Read and admired the world over by the likes of Margaret Thatcher and Ronald Reagan, this book served as the inspiration for many of the Soviet sattellite countries’ economies once they achieved freedom after the fall of the Soviet Union.

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I first saw Thomas Sowell on the show FREE TO CHOOSE on the debate team that Milton Friedman chose. I suggest checking out these episodes of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and “What is wrong with our schools?”  and “Created Equal”  and  From Cradle to Grave, and – Power of the Market. Below he is the subject of a fine article that shows how our government is wasting so much money on the welfare trap. We should stop trapping people in welfare and let the free market offer them a chance to do better. Obviously what we are doing now is not working. The best way to destroy the welfare trap is to put in Milton Friedman’s negative income tax.  Of course, all welfare programs should be eliminated at the same time.

Thomas Sowell Explains How the Welfare State Hurts the Poor

July 3, 2013 by Dan Mitchell

Political cartoonists like Michael Ramirez and Chuck Asay are effective because they convey so much with images.

But we need more than clever cartoons if we’re going to educate the general population about how government harms the economy and undermines freedom.

He just turned 83, and let’s hope he has another 20 years of columns to write

And that’s why Thomas Sowell is so invaluable. He’s one of the nation’s top economic thinkers, but he also writes for mass audiences and his columns are masterful combinations of logic and persuasion.

His latest column about poverty is a good example. In this first excerpt, he succinctly explains that official poverty is not the same as destitution.

“Poverty” once had some concrete meaning — not enough food to eat or not enough clothing or shelter to protect you from the elements, for example. Today it means whatever the government bureaucrats, who set up the statistical criteria, choose to make it mean. And they have every incentive to define poverty in a way that includes enough people to justify welfare state spending. Most Americans with incomes below the official poverty level have air-conditioning, television, own a motor vehicle and, far from being hungry, are more likely than other Americans to be overweight. But an arbitrary definition of words and numbers gives them access to the taxpayers’ money.

He then makes a very important point about economic incentives.

Even when they have the potential to become productive members of society, the loss of welfare state benefits if they try to do so is an implicit “tax” on what they would earn that often exceeds the explicit tax on a millionaire. If increasing your income by $10,000 would cause you to lose $15,000 in government benefits, would you do it? In short, the political left’s welfare state makes poverty more comfortable, while penalizing attempts to rise out of poverty.

Since columnists are limited to about 800 words, Sowell doesn’t have leeway to give details, but his explanation of how the government traps people in poverty is the rhetorical version of this amazing chart.

He concludes with some powerful observation about who really benefits from the welfare state.

…the left’s agenda is a disservice to [the poor], as well as to society.  …The agenda of the left — promoting envy and a sense of grievance, while making loud demands for “rights” to what other people have produced — is a pattern that has been widespread in countries around the world. This agenda has seldom lifted the poor out of poverty. But it has lifted the left to positions of power and self-aggrandizement, while they promote policies with socially counterproductive results.

But his main message (similar to this video and illustrated by this chart) is that the welfare state hurts the poor even more than it hurts taxpayers.

P.S. As a big fan of Professor Sowell, I’ve cited his columns more than 20 times. My favorite examples of his writing can be viewed hereherehereherehere,hereherehere,hereherehereherehereherehereherehereherehere, and here. And you can see him in action here.

Related posts:Milton Friedman’s “Free to Choose” film transcripts and videos here on http://www.thedailyhatch.org

I have many posts on my blog that include both the transcript and videos of Milton Friedman’s film series “Free to Choose” and here are the episodes that I have posted.

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Here are the posts and you can find the links in order below this.

The Power of the Market from 1990

The Failure of Socialism from 1990

The Anatomy of a Crisis from 1980

What is wrong with our schools?  from 1980

Created Equal from 1980

From Cradle to Grave from 1980

The Power of the Market 1980

Debate on Inflation from 1980

Milton Friedman is the short one!!!

Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1

“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 5)

Milton Friedman The Power of the Market 5-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]

“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 4)

Milton Friedman The Power of the Market 4-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]

“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 3)

Milton Friedman The Power of the Market 3-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]

“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 2)

Milton Friedman The Power of the Market 2-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]

“The Power of the Market” episode of Free to Choose in 1990 by Milton Friedman (Part 1)

Milton Friedman The Power of the Market 1-5 How can we have personal freedom without economic freedom? That is why I don’t understand why socialists who value individual freedoms want to take away our economic freedoms.  I wanted to share this info below with you from Milton Friedman who has influenced me greatly over the […]

Milton Friedman’s Free to Choose (1980), episode 3 – Anatomy of a Crisis. part 1

“Friedman Friday” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 5)

Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. Abstract: Ronald Reagan introduces this program, and traces a line from Adam Smith’s “The Wealth of […]

“Friedman Friday” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 4)

Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. Abstract: Ronald Reagan introduces this program, and traces a line from Adam Smith’s “The Wealth of […]

“Friedman Friday” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 3)

Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. Abstract: Ronald Reagan introduces this program, and traces a line from Adam Smith’s “The Wealth of […]

“Friedman Friday” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 2)

Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. Abstract: Ronald Reagan introduces this program, and traces a line from Adam Smith’s “The Wealth of […]

“Friedman Friday,” EPISODE “The Failure of Socialism” of Free to Choose in 1990 by Milton Friedman (Part 1)

Milton Friedman: Free To Choose – The Failure Of Socialism With Ronald Reagan (Full) Published on Mar 19, 2012 by NoNationalityNeeded Milton Friedman’s writings affected me greatly when I first discovered them and I wanted to share with you. We must not head down the path of socialism like Greece has done. Abstract: Ronald Reagan […]

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“Friedman Friday” (“Free to Choose” episode 3 – Anatomy of a Crisis. part 7of 7)

TEMIN: We don’t think the big capital arose before the government did? VON HOFFMAN: Listen, what are we doing here? I mean __ defending big government is like defending death and taxes. When was the last time you met anybody that was in favor of big government? FRIEDMAN: Today, today I met Bob Lekachman, I […]

By Everette Hatcher III | Also posted in Current Events | Edit | Comments (0)
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