"Peace, commerce and honest friendship with all nations; entangling alliances with none." - Thomas Jefferson I believe that what you are referring to is the latter part of Jeffersons quote.
Hit the nail on the head... "how do you keep government from setting up monopolies".... people don't see that every single act and regulation the government implements to "help" it's citizens, for whatever reason, requires more resources and more responsibility taken away from the citizens and given to the government. Asking and expecting the government to fix problems we ourselves are more than capable of fixing has always been the downfall of personal rights and liberties throughout history. It's lazy and irresponsible, and powers that be will always take advantage of those who do not want to take care of themselves. Milton Friedman is the man.
what? How would reducing trade restrictions cause wars? If anything, free trade stops wars by binding countries together on the basis of the goods and services they can market to one another. If your country is benefited greatly by the goods/services in another country you would be committing economic suicide by going to war with them.
Under the classical gold standard or within a commodity system, Friedman would be absolutely correct. Unfortunately we have a monetary system based on the petrodollar as the world reserve currency. This system promotes exporting dollars (inflation) and importing goods. Under the current monetary system, if the US had a net export surplus, we would be drowning in inflation.
Because, Chinese labor is subsidized by the state, making Chinese wages much cheaper. US companies cannot compete with companies that can afford to ship jobs overseas. This has made workers unable to negotiate their worth. Your prices on goods such as iphones are lower,but college graduates are frequently discovering that they must have at least a BS to be marketable. Chinese made products might be cheap, but they directly lead to depressed wages, and underemployment.
So this is what newer generations doesn't know about Laissez-Faire which is about free enterprise and not about business domination, and nowadays we can only hear the term used by business people which then often behaves like a coporatocracy.
How does free trade with China not make American lives better???? We can get cheaper iPhones and other stuff assembled or manufactured there without having to do the work or having to pollute our cities! This works great for us here. The problem is that the businesses get taxed here and that drives them away. The government here taxes everything and it destroys our standard of living and productivity.
You're right, free trade with China would hurt, but not for the reasons you cite. China artificially devalues it's dollar, that's a MAJOR reason why companies can pay lower wages to their Chinese employees. In a free market, non-intervening government, the Chinese Yuan would substantially increase in value because, but not limited to it's outstanding economic growth.
Thats the problem though. Large numbers of college graduates cannot find employment, this is a result of too many people going to college. Which is a reflection of moving to a service based economy. The average American family has seen wages and economic prosperity stagnate. Entry level positions rarely offer the opportunitty for advancement that they once did. I know what the doctrine of Free Trade states, but the simple fact is our low skilled labor is losing out to subsidized competition.
The idea is efficiency for the market and the consumer, not the ideals of worker unions who want to be paid more for low-skilled labour. Americans live in a first world economy, now update your skills to prove it.
But that is exactly the point that the labor advocate was making. That foreign countries would subsidize certain industries (or in China's case the entire market). And we subsidize certain industries and companies ourselves domestically. I would be very interested to know if Friedman would admit the failure of Free Trade, or whether he would blame it on others not adhering to Free Market principles. thanks for the response
Because companies that want to stay and invest in the workforce and remain in the US, and pay taxes are economically unable to compete with corporations that use cheap labor from abroad. Why is foreign labor so cheap? Well one because they are less developed and two because they are subsidized by foreign countries. Now the theory goes that those who become unemployed will be able to find more productive work elsewhere. But what we have seen is depressed wages, and less job selection. thanks4r
And I would argue that without a manufacturing sector the average American family is worse off. I am perfectly able to admit that for high skilled labor Free Trade is a win. The problem is that for low wage labor the market is unable to provide any alternatives. And economic growth is slowed because this demographic cannot compete with subsidized low wage foriegn workers.
So it is an issue of colleges not equipping students with proper skills or an artificially high number of people going through higher education? I don't know much about the American education system.
Most of the functions outsourced to developing Asian nations are to take advantage of cheap low-skilled labour. Apple outsources its manufacturing but still retains its high-skilled employees in America. A worker is only relevant to the economy if he can deliver relevant skills. Many developed nations are no longer manufacturing-based economies. This is not Friedman's doing, its simple objective reality.
As far as I can tell, there have been only two examples of private monopolies forming without government intervention in the history of the world, the De Beers corporation and the New York Stock Exchange. Every other monopoly that has ever existed was brought about by government action. So it's not impossible for free market monopolies to form, but when you weigh up government vs private the evidence is pretty clear.
I hope you're not locked in the false left-right paradigm. There is zero substantive difference between the Bush Admin and Obama, just cronies with different names wearing different suits. (And yes, I agree that Solyndra was one of the more egregious cases of cronyism.)
I really wish Mr. Friedman could have had an opportunitty to see how some of his ideas do not work. Free Trade with China doesn't make the lives of Americans better.... How can American companies who choose the U.S. first compete with slave wages. Unrestricted Free Trade does not work like Friedman thought it would.
Only the ones that enjoy having a network that us up and working more than 50% of the time. Windows is for home and schools use sweetie. Business is too important to run Windows.
Anyone who thinks that they can hurt me with the koch brothers amount of money and nothing else should explain to me how they would do that without using force(government). Go ahead. What are you gonna do? build a better mouse trap and don't let me have it? LOL
Removal of restrictions on trade will not yield competitive markets without at the same time dealing with laws that secure and protect a rentier elite in all societies. Milton Friedman sided with Henry George in arguing that the taxation of the rent land was the best source of public revenue. However, Friedman never indicating he understood the connection between treating land rent as public revenue and the benefits of free trade practices. Henry George's book 'Protection or Free Trade' makes all of the arguments for free trade, but then explains at the end of this book that free trade by itself would not end poverty or end the boom-to-bust nature of economic cycles. The problem of land monopoly must also be dealt with.
It depends who you ask and depends on their ideology. The problem is we send to many to school. And it devalues the degree's of those who are there to learn. Because there are no entry level positions everyone must attend Universities to compete for even poor paying jobs. Which makes the job process more competitive. Also, in the US personal networking and relationships are essential to finding employment. Without alternatives low income workers are locking into dead end jobs with no advances.
Back in the days when economists apparently didn't know about externalities and market failure (or just ignored them because they didn't fit into their ideology). At least in this regard we have come a long way now. And yeah, of course, workers in England of the 19th century were not exploited if you ignore 16h work days, 7 days work weeks, child labour and a incredible high death toll in factories. Did I mention the death penalty on stealing machine parts or breaking machines? This guy had maybe good intentions, but unfortunately he got it completely wrong.
![[TH] RNT vs SPG - VCT Ascension Pacific - Day 1](http://i.ytimg.com/vi/RUTkf8Detj8/mqdefault.jpg)
"Peace, commerce and honest friendship with all nations; entangling alliances with none." - Thomas Jefferson
I believe that what you are referring to is the latter part of Jeffersons quote.
Hit the nail on the head... "how do you keep government from setting up monopolies".... people don't see that every single act and regulation the government implements to "help" it's citizens, for whatever reason, requires more resources and more responsibility taken away from the citizens and given to the government. Asking and expecting the government to fix problems we ourselves are more than capable of fixing has always been the downfall of personal rights and liberties throughout history. It's lazy and irresponsible, and powers that be will always take advantage of those who do not want to take care of themselves.
Milton Friedman is the man.
Milton's head-shake at 9:55 kills me lol
Did I just see Donald Rumsfeld arguing for Laissez-Faire?! Wow, how the times change people...
Lol he never sided with it. He showed as if he did.
I know Im kinda randomly asking but does anyone know a good site to stream new series online ?
@Ricky Demetrius try Flixzone. Just google for it =)
@Isaias Joe Definitely, been using Flixzone for years myself :D
@Isaias Joe Thanks, I signed up and it seems like a nice service :D I appreciate it!!
At ~10:45 Rumsfeld makes an excellent point: if it's more complex, why would we think we could manage it?
what? How would reducing trade restrictions cause wars? If anything, free trade stops wars by binding countries together on the basis of the goods and services they can market to one another. If your country is benefited greatly by the goods/services in another country you would be committing economic suicide by going to war with them.
And we have Obamacare to prove it!
Oh wait.........
Under the classical gold standard or within a commodity system, Friedman would be absolutely correct. Unfortunately we have a monetary system based on the petrodollar as the world reserve currency. This system promotes exporting dollars (inflation) and importing goods. Under the current monetary system, if the US had a net export surplus, we would be drowning in inflation.
Imagine a dispute like that in todays television. Liberal agruments would consist of "racist", "racist", and also "racist".
Because, Chinese labor is subsidized by the state, making Chinese wages much cheaper. US companies cannot compete with companies that can afford to ship jobs overseas. This has made workers unable to negotiate their worth. Your prices on goods such as iphones are lower,but college graduates are frequently discovering that they must have at least a BS to be marketable. Chinese made products might be cheap, but they directly lead to depressed wages, and underemployment.
5:47 What a stupid question. Friedman almost bitchslapped him lmao
It's not stupid. Dumping is a real thing and a real issue, and I say that as someone who agrees with Friedman in almost everything
So this is what newer generations doesn't know about Laissez-Faire which is about free enterprise and not about business domination, and nowadays we can only hear the term used by business people which then often behaves like a coporatocracy.
How does free trade with China not make American lives better???? We can get cheaper iPhones and other stuff assembled or manufactured there without having to do the work or having to pollute our cities! This works great for us here. The problem is that the businesses get taxed here and that drives them away. The government here taxes everything and it destroys our standard of living and productivity.
You're right, free trade with China would hurt, but not for the reasons you cite. China artificially devalues it's dollar, that's a MAJOR reason why companies can pay lower wages to their Chinese employees. In a free market, non-intervening government, the Chinese Yuan would substantially increase in value because, but not limited to it's outstanding economic growth.
Thats the problem though. Large numbers of college graduates cannot find employment, this is a result of too many people going to college. Which is a reflection of moving to a service based economy. The average American family has seen wages and economic prosperity stagnate. Entry level positions rarely offer the opportunitty for advancement that they once did.
I know what the doctrine of Free Trade states, but the simple fact is our low skilled labor is losing out to subsidized competition.
The idea is efficiency for the market and the consumer, not the ideals of worker unions who want to be paid more for low-skilled labour.
Americans live in a first world economy, now update your skills to prove it.
But that is exactly the point that the labor advocate was making. That foreign countries would subsidize certain industries (or in China's case the entire market).
And we subsidize certain industries and companies ourselves domestically. I would be very interested to know if Friedman would admit the failure of Free Trade, or whether he would blame it on others not adhering to Free Market principles.
thanks for the response
Because companies that want to stay and invest in the workforce and remain in the US, and pay taxes are economically unable to compete with corporations that use cheap labor from abroad.
Why is foreign labor so cheap? Well one because they are less developed and two because they are subsidized by foreign countries.
Now the theory goes that those who become unemployed will be able to find more productive work elsewhere. But what we have seen is depressed wages, and less job selection.
thanks4r
And I would argue that without a manufacturing sector the average American family is worse off.
I am perfectly able to admit that for high skilled labor Free Trade is a win. The problem is that for low wage labor the market is unable to provide any alternatives. And economic growth is slowed because this demographic cannot compete with subsidized low wage foriegn workers.
welll well well looks like not going back to that old free system was what made corps actully rule
So it is an issue of colleges not equipping students with proper skills or an artificially high number of people going through higher education?
I don't know much about the American education system.
No alternatives? America could start by reducing the power of unions and abolishing the minimum wage.
What a genius. GENIUS!
Most of the functions outsourced to developing Asian nations are to take advantage of cheap low-skilled labour. Apple outsources its manufacturing but still retains its high-skilled employees in America.
A worker is only relevant to the economy if he can deliver relevant skills. Many developed nations are no longer manufacturing-based economies. This is not Friedman's doing, its simple objective reality.
SET THE MARKETS FREE.
As far as I can tell, there have been only two examples of private monopolies forming without government intervention in the history of the world, the De Beers corporation and the New York Stock Exchange. Every other monopoly that has ever existed was brought about by government action. So it's not impossible for free market monopolies to form, but when you weigh up government vs private the evidence is pretty clear.
May I suggest heading to your nearest library to borrow a textbook on basic economics.
I never thought I'd agree, to any extent, with Donald Rumsfield. What happened to him?!
I hope you're not locked in the false left-right paradigm. There is zero substantive difference between the Bush Admin and Obama, just cronies with different names wearing different suits. (And yes, I agree that Solyndra was one of the more egregious cases of cronyism.)
He wouldn't know what to do with it once he got it.
I really wish Mr. Friedman could have had an opportunitty to see how some of his ideas do not work.
Free Trade with China doesn't make the lives of Americans better.... How can American companies who choose the U.S. first compete with slave wages. Unrestricted Free Trade does not work like Friedman thought it would.
the issue lies in central bank and manipulated currency
Only the ones that enjoy having a network that us up and working more than 50% of the time.
Windows is for home and schools use sweetie. Business is too important to run Windows.
Then Donald Rumsfeld went and killed a bunch of people lmaoooo.
What, did he work for Solyndra?
Don't do that! He's likely going to end up in a public library and borrowing a book about keynesian economics
I really like Donald Rumsfeld
Laissez-faire capitalism
Government has always been the creator of monopoly
That's as good, if not better, than any guess I could make haha.
Anyone who thinks that they can hurt me with the koch brothers amount of money and nothing else should explain to me how they would do that without using force(government). Go ahead. What are you gonna do? build a better mouse trap and don't let me have it? LOL
The State itself is a monopoly. Think about it.
Rollerball? A B-movie pseudo-avant-garde fantasy? That's the best he could do?
Removal of restrictions on trade will not yield competitive markets without at the same time dealing with laws that secure and protect a rentier elite in all societies. Milton Friedman sided with Henry George in arguing that the taxation of the rent land was the best source of public revenue. However, Friedman never indicating he understood the connection between treating land rent as public revenue and the benefits of free trade practices. Henry George's book 'Protection or Free Trade' makes all of the arguments for free trade, but then explains at the end of this book that free trade by itself would not end poverty or end the boom-to-bust nature of economic cycles. The problem of land monopoly must also be dealt with.
It depends who you ask and depends on their ideology.
The problem is we send to many to school. And it devalues the degree's of those who are there to learn. Because there are no entry level positions everyone must attend Universities to compete for even poor paying jobs. Which makes the job process more competitive. Also, in the US personal networking and relationships are essential to finding employment. Without alternatives low income workers are locking into dead end jobs with no advances.
Watch Stephan Molineux' videos about WW1/2
Back in the days when economists apparently didn't know about externalities and market failure (or just ignored them because they didn't fit into their ideology). At least in this regard we have come a long way now. And yeah, of course, workers in England of the 19th century were not exploited if you ignore 16h work days, 7 days work weeks, child labour and a incredible high death toll in factories. Did I mention the death penalty on stealing machine parts or breaking machines?
This guy had maybe good intentions, but unfortunately he got it completely wrong.
He sold his soul LOL
Unfortunately, these vids don't do the cause any favors having Rumsfeld in there. He has "crony" written all over him.
Rumsfeld, ew ! EEEEEWWWW !