Capitalism and Freedom, Conservative, Free Markets, Milton Friedman, Republican, Uncategorized

Milton Friedman on Greed

Talk show host, Phil Donahue sees “capitalism greed” as bad. Milton Friedman disagrees. Friedman gives a great lecture about greed in all political ideologies. Is there no greed in the Soviet Union? China? Is there no greed in the socialist system? Are there greedy communists?

“The record of human history is crystal clear. There is no alternative way, so far discovered, of improving the lot of ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.”

Donahue retorts, “where is the virtue?”

Freedman rightly lectures, “You know I think you are taking a lot of things for granted. Just tell me where in the world you find these angels who are going to organize society for us.” 

Throughout the history of mankind, capitalism is the standout, top of the heap, A number 1, greatest provider of personal freedom that any other political system. All other systems repress. Capitalism leads to far greater freedoms for far more people.

Greed exists in every political system. Greed is greater in socialist and communist systems because of corruption inherent in the system. Governments are by nature greedy. Greedy to grow in size with no incentive to cut costs. Cutting costs means a smaller budget. Spending is the life blood of all social programs. So no government program, once started, will ever cease to exist.

Greed by reducing government puts more money in peoples hands so they are free to choose how to spend it.

Capitalism and Freedom, Conservative, Free Markets, Milton Friedman, Republican, Ronald Reagan

This blog is dedicated to Milton Friedman’s Economic Study

Nobel Prize in Economics
Nobel Prize in Economics

Like the ‘invisible hand‘ that Adam Smith describes, Milton Friedman theorized there exists a “natural rate of unemployment.” 

The unemployment rate should be allowed to automatically adjust with market needs. He disagreed with the Phillips curve theory that lower inflation rates increased joblessness. He also rejected the Keynesian idea that governments could control unemployment and inflation through spending.  Instead a Keynesian administrative policy could in-fact bring about ‘stagflation’ or high inflation with little or no growth in the economy.

Nobel Prize winner Milton with Ronald Reagan felt that the central government was the problem, not the solution. Government can not micromanage the economy.

It is important to understand what Milton Friedman is telling us. There are far numerous advantages of the free marketplace and far too many disadvantages of government intervention and regulation. 

This blog is dedicated to Milton Friedman’s Economic Study as it relates to the economy of today and tomorrow.

Recommended reading: Capitalism and Freedom by Milton Friedman.