Milton Friedman - The Robin Hood Myth Video

Milton Friedman explodes the myth that government takes money from the rich for the benefit of the poor. http://www.LibertyPen.com

Source: Milton Friedman Speaks
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Else if money is ...
Else if money is the entry criteria for education you will? only have the wealthy having good education while those who are not so wealthy ending up with poor or no education. You can look up to the literacy program in India for a good example on how to implement this.

The problem with ...
The problem with the logic is that education is considered a commodity to be sold to those? who can afford it, and not as a necessity for every citizen. If you look at this is another perspective. We want to give the eligible candidates i.e. people with greater skills access to the best education so that they can contribute better to the society.

We? should post ...
We? should post this video on ALL OWS camps.

why doesnt economic ...
why doesnt economic upward mobility apply here??

Well yes, I would ...
Well yes, I would agree with that for the most part, it is usually purely at the expense of? the poor. At least the rich recoup their losses with lots of technically skilled individuals to employ.

Had Glass Steagle ...
Had Glass Steagle been in effect, the stock market wouldn't have had banks gambling depositers' money in the stock market. The Gramm Leach Bliely Act redacted the protections? instituted in Glass Steagle, causing the 2008 meltdown. Congress needs someone to buy them a history book. I think fifth grade level covers this.

@thexsynergy but ...
@thexsynergy but the fed creates artificial rates much too low, which causes? financial bubbles. take the great depression- roughly 15 years after the creation of the fed. the interest was artificially low, too much people took loans that they couldnt pay back, a bubble was created, and it popped. the pop wa the depression

Can you imagine ...
Can you imagine Frieeman's response to the Financial Services modernization act of 1999? The? Gramm Leach Bliley Act made it possible for Commercial and investment banks coexist in one company...the main and primary beneficiary of this act was Citicorp and one of the majority shareholders in Citicorp today.....Brian Leach.

Interest rates were ...
Interest rates were lowered in our Recession, and we have recovered most of the money, if not labor, lost on the day the Stock Market crashed. The Fed refused to do this in the Great Depression, and? look what happened. The incidence of the poor becoming poorer and the rich richer is a natural occurence in a recession, as the rich are not hit as hard. Are you arguing for redistribution, now?

"per-capita GDP? ...
"per-capita GDP? has been on the rise along w/ economic inequality. They go hand in hand." I just showed you the opposite, so I? need proof.

Oh and just to say, ...
Oh and just to say, I'm not like stalking the page or whatever, I just? got lucky when I looked and you had just posted :)

Lowering interest ...
Lowering interest rates to incentivize consumption only works if it causes assets of the 99% to go up in value or if it encourages business expansion. It has very low leverage when interest rates are already near zero. Incidentally, interest rates heading toward 0 is the natural consequence of moving large numbers of dollars outside the radius of consumption (ie. making poor poorer and rich richer).?

And his ideas, for ...
And his ideas, for the most? part, worked - there was a boom, and had not the Smoot-Hardey (I think its Hardey, not sure) Tariff been passed, it is unlikely the Great Depression as we know it would have happened.

per-capita GDP has ...
per-capita GDP has been on the rise along w/ economic? inequality. They go hand in hand.

A better beginning ...
A better beginning point for the great depression is not 1928, but 1921 when Warren Harding ran for office on a "return to laissez faire". His idea was if we cut taxes on the rich, bust unions, and free up the markets in general, it would create a great economic? boom. In fact, it created a great financials boom. Remove the space from: bit .ly/sb9jAh - Economic inequality Also see: bit .ly/sOOfKq - Ability to get paid for our productivity plummeted since 1970

(cont) When the ...
(cont) When the entire working class loses money consumption has to go down or prices have to come down, and they don't control prices. Further if the entire working class as an aggregate has incomes? that go down, that also doesn't mean that they stopped working as hard. It means that they became less able as a class to negotiate pay based on their work. It would be a shame to stop making nice things because we are not able to defend the negotiating leverage of our working class.

... and the fix for ...
... and the fix for oversupply differs based on whether the problem is lack of desire to consume and lack of ability to consume. For a metaphor, imagine there are 5 applicants for every job. If you are an applicant, the solution is to work hard. If you are? planning the economy, the solution is more jobs. Similarly, if someone doesn't have dollars consume, then work harder. If the entire working class doesn't have dollars to consume, they can't fix that through trading with each other.

" The New Deal was ...
" The New Deal was a failure. There was a double? dip in '37!" The double-dip was caused by raising interest rates to 7%, balancing the budget, and raising taxes all at the same time. They reverted the first two, left the third, and it recovered amazingly quickly. The 10% average growth rate included the recession!!

"Sure the ...
"Sure the government can artificially create demand. But it cannot, not through any program, manufacture supply." It's? like a chemical reaction. eg. na + cl = nacl. Take away na, and no reaction. Take a way cl, no reaction. You have to have both supply and demand for economic transactions to take place. If you want to fix the economy you have to find out what is missing first.

Which is why we ...
Which is why we have the Fed, to lower interest? rates and incentivize consumption.

Well, if that is ...
Well, if that is true, which I agree with, then begin your points about? the Great Depression in 1928.

That? is what a ...
That? is what a recession is - oversupply causes it. So in a huge recession (depression), overproduction does not surprise me.

I don't think ...
I don't think anyone was arguing that point..... but what I think you are doing is looking at the economy from a demand perspective. Sure the government can artificially create demand. But it cannot, not through any program, manufacture? supply. The New Deal was a failure. There was a double dip in '37! Not to mention Reagan, Bush Sr., and Clinton's initiatives grew the economy tremendously. Thta is what works.

(continued) ...
(continued) Meanwhile if the capital pool is starved,? you get all the problems that people associate with socialism. Whichever pool is currently leaking fastest is the one with the greatest leverage for improvement. Unfortunately, when an economy slows due to starving the consumption pool, the effect tends to feed on itself because movement from the capital pool to the consumption pool in the private arena occurs almost exclusively as a response to growth.

The real point here ...
The real point here is, you have two separate money pools that intermingle. The? consumption pool feeds into wages for further consumption, capital investment for expansion, and profits. The capital pool feeds into new industry development and provides supplemental funding for capital investment as needed. If the consumption pool is starved, then you are faced with an unpleasant choice of shrinking the economy or inflating the currency with leverage against you.

"you cant judge the ...
"you cant judge the Great Depression years starting AFTER the stock market? collapse and INCLUDE the collapse in the end of the Bush years." Point taken, but it is really not that unfair to include a crash with the economic conditions that caused it. The economy was steadily hollowed out over the period and replaced by asset bubbles. Some people were estimating that the financial and real estate sectors hit 40% of the economy by 2007, but I don't have a good source on that ATM.

"economies always ...
"economies always take up fast after a fall," Not true. For example, the economy did not spring up quickly in 1930, 1931, or 1932. The problem is that with employment well under capacity, labor is actually not elastic. ? In fact, decreases in wages caused an increase in supply, opposite to what you would expect in an elastic supply and demand driven market. This means that the economy is not going to get better until you fix the underlying problem. That required the New Deal.

He is wrong when he ...
He is wrong when he says that the middle class profits from social programs come? at the expense of the rich.

It's probably ...
It's probably BECAUSE you're in to Austrian economics. Milton is Chicago School, and gets a lot of things very wrong as a result of that and other misconceptions of his. However, I think this is one of his better videos, what problem? do you have with it?

he is just wrong a ...
he is just wrong a lot. in fact, over and over again. like I said....The wealthier get richer,? poverty programs increase poverty, and the middle class shrinks. Not middle class grows and? poverty and wealth shrink.