Posted on 02/09/2021 9:44:00 PM PST by UMCRevMom@aol.com
Five myths cloud our perception of both the past and the present: (1) The “robber baron” myth which holds that in late nineteenth-century America there were powerful men who became rich at the expense of the poor. The reality is that they became wealthy by being productive, and that there is no other period in history which saw such a rapid and widespread improvement in the well-being of the average individual.
(2) The myth that the Great Depression was caused by a failure of business. It was, in fact, produced by a failure of government and specifically by the Federal Reserve System.
(3) The myth that government in the economy has expanded in response to public demand. Actually, the public has had to be sold “hard” for politicians to enact every major social program.
(4) The “free lunch” myth. No matter how the government raises money—by taxing individuals, by taxing businesses, or by printing more money—it is the individual who pays.
(5) The myth that government, like Robin Hood, transfers wealth from the rich to the poor. The reality is that the government usually transfers wealth and income from both the very rich and the very poor to those in the middle.
agree except for the last one.....the middle class in the last few decades has shrunk...the poor are sustaining but only because they get increased welfare and no taxation....
Ah, the good old days when there was vibrant and interesting debate. Miss those days.
bookmark
Definitely!!!!
** TRANSCRIPT AVAILABLE AT SITE
Totally agree. I wonder during what era Friedman wrote those words? Perhaps (5) was true in a bygone era, but the exact opposite is true today IMHO.
So when the new high taxes "surprisingly" cause tax revenue to decrease instead of increase ("wow! who woulda thought THAT would ever happen?!"), then the $$ has to come from some other source, and that's the Middle Class.
But handouts today are fine, since government was the cause: lockdowns caused by the need for “health safety” caused by Wuhan labs. /s
Just wait until government is the cause of an inflationary monetary collapse. How will the government respond when there’s no value in the money it “prints”?
Hint: see Germany, about 100 years ago.
Bkmk
#2. The Great Depression was caused by The Trade Tarriffs that brought an end to International Commerce on a world wide scale. And the idiot FDR kept the tariffs in place instead of dropping them. The Federal Reserve was a minor player in the economic stupidity.
This is an excellent documentary about Friedman: “The Power of Choice - The Life and Ideas of Milton Friedmam”.
I had the gift of learning from a Professor who had studied under Friedman. My prof was a Chilean who had escaped the Allende regime and fled to the US. He was the only Friedman acolyte in an Economics Faculty filled with Keynesians. It opened my eyes to the insanity of leftist fiscal and monetary policy.
Fantastic, thank you. Years ago I started a folder on my youtube titled “Friedman” but only have short clips saved. This is fantastic and a welcome addition.
Awesome link. Thank you thank you thank you.
You’re most welcome 😊
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