Milton Friedman Part IV: Unapologetic and Unafraid

There is one man who embodies the spirit of capitalism, but most have never heard of him. That needs to change. It's time for Americans to remember and get to know Milton Friedman, the father of modern economics.

Milton Friedman was a brilliant champion of the free market, capitalism and the American way of life. He was not a politician, just a man who looked at things in a radically different way --- and articulated them simply and persuasively.

Part IV: Unapologetic and Unafraid

Through recordings left behind, we're able to have a conversation, if you will, with the greatest defender of capitalism in the past century: Milton Friedman. He was unapologetic for the free market because he knew and understood its amazing benefits — the ability to lift billions of people out of poverty. That confidence enabled him to be unafraid when defending wealth.

VOICE: Why is it that we have so many millionaires and everything in the United States and we still have so many impoverished people who try to get up into the world? Why is it that we have this lack of money, where people who can't support themselves decently and get a decent job, where all these big men are up on top making oodles and oodles of money --- they don't need it. They can only eat that much. Eat, you know, sleep in the bed . . .

MILTON: And what do you suppose they do? If they don't eat it and don't use it, what do you suppose they do with it?

VOICE: They hoard it. They hoard it and invest it.

MILTON: What do you mean hoard it? You mean they put it under their pillows?

VOICE: No. They keep investing it.

MILTON: Investing it in what? What are they invested in?

VOICE: Well, they invest it in a lot of different things that the little people need.

MILTON: Well, do they invest it in factories?

VOICE: Yes.

MILTON: Does some of that money end up in machines?

VOICE: Yes.

MILTON: Do those factories and machines provide ordinary working people with jobs or not? Where do you suppose the improvements and productivity come from except from the investment by people of their savings? But if you look at it over time, if you get a sense of proportion, the well-being of an ordinary people has been the main thing that has been improved by economic progress and economic growth and development. And residual, most residual hard cases of poverty today are the result, again, of a failure of government.

When Friedman appeared at a conference of bankers, he set them straight on the real cause of the Great Depression --- and took on the Federal Reserve.

MILTON: There is hardly any view that is more widespread than the view that somehow or another the Great Depression was produced by a failure of private business. That view is held, not only by those who are in favor of greater role of government, it is held by almost everybody. I venture to suggest you that if you go to any bankers, the people who are here today at this banking conference, and if you talk to them, I'd venture to say, nine out of ten of them, if they didn't, hadn't heard what I'm going to say, that nine out of ten of them would say, "Well, of course, the Great Depression was a failure of private business. It was due to an overextension. Over speculation of the 1920s. Or it was due to an excessive concentration of wealth in the hands of the wealthy at the expense of the poor in the 1920s. Or it was due to speculative investment abroad or whatever. But it was a failure of private business. And government had to step in in order to rescue private business from its own failure." Nothing could be farther from the truth. ...The Great Depression was not produced by a failure of business. On the contrary, it was produced by a failure of government and a failure of government in an area in which responsibility had been assigned to governments since the founding of this country. The Constitution of the United States, it gives Congress the power to coin money and set the value thereof. And it was in the management of this fundamental function of government that governments failed and produced the Great Depression.

When confronted by a college student who strongly believed in the redistribution of wealth, Friedman torpedoed his points calmly and rationally.

MILTON: There's no justice in the distribution of income and wealth. I never would argue there is. Those who are wealthy don't deserve to be wealthy anymore than those who are poor deserve to be poor. It's pure accident. And we --- but if you start to look at things that way, you're going to go down the wrong line. Because you're going to get back into this kind of a situation of destroying the good things, destroying what is possible, in the search of an impossible ideal. The only way in which you can redistribute effectively the wealth is by destroying the incentives to have wealth. And the question is: What is the way, what is a system which will offer those people who are so unlucky as to be born without good positions, what is a system which will offer them the greatest opportunity?

VOICE: Well, one possible way of redistributing the wealth without affecting the incentives to earn as much income as possible is simply to have a 100 percent inheritance tax. That won't affect the incentives. It's only after the person is dead.

MILTON: I beg your pardon. I'm afraid, I don't know the family you come from. I don't know. But as you grow up, you will discover that this is really a family society and not an individual society. We tend to talk about an individualist society. But it really isn't. It's a family society. And the greatest incentives of all, the incentives that have really driven people on have largely been the incentives of family creation, of family --- of pursuing of --- of establishing their families on a decent system. What is the effect of a 100 percent inheritance tax? The percent of a 100 percent inheritance tax is to encourage people to dissipate their wealth in high living.

VOICE: What's the harm in that?

MILTON: The harm of that is, where do you get the factories? Where do you get the machines? Where do you get the capital investment? Where do you get the incentive to improve technology, if what you're doing is to establish a society in which the incentive is for people if they have by accident accumulated some wealth, to waste it in frivolous entertainment? You know, the thing is that the thing that is amazing that people don't really recognize is the extent to which the market system has, in fact, encouraged people and enabled people to work hard and sacrifice in what I must confess, I often regard as an irrational way, for the benefit of their children. One of the most curious things to me in observation is that almost all people value the utility which their children will get from consumption, higher than they value their own. Here are parents who have every reason to expect that their children have a higher income than they have. And they scrimp and save in order to be able to leave something for their children. I think you are sort of like a bull in a China shop, if you talk about the --- the 100 percent inheritance tax having no incentive effect. It would destroy a continuing society. It would destroy a society in which there are links from one generation to the next.

Those who believe in income inequality and wealth redistribution have ample and vocal advocates today. Unfortunately, for capitalism and free market principles, it seems that since Friedman's death in 2006, there hasn't been anyone quite like him to defend its benefits and virtue.

Listen to the Full Series on Milton Friedman

Part I: Economics 101

Part II: Evils of Collectivism

Part III: Friedman vs. Liberal Detractors

Part IV: Unapologetic and Unafraid

Eric Weinstein, managing director of investment firm Thiel Capital and host of "The Portal" podcast, is not a conservative, but he says conservative and center-right-affiliated media are the only ones who will still allow oppositional voices.

On "The Glenn Beck Podcast" this week, Eric told Glenn that the center-left media, which "controls the official version of events for the country," once welcomed him, but that all changed about eight years ago when they started avoiding any kind of criticism by branding those who disagree with them as "alt-right, far-right, neo-Nazi, etc.," even if they are coming from the left side of the aisle. But their efforts to discredit critical opinions don't stop there. According to Eric, there is a strategy being employed to destroy our national culture and make sure Americans with opposing views do not come together.

"We're trifling with the disillusionment of our national culture. And our national culture is what animates the country. If we lose the culture, the documents will not save us," Eric said. "I have a very strongly strategic perspective, which is that you save things up for an emergency. Well, we're there now."

In the clip below, Eric explains why, after many requests over the last few years, he finally agreed to this podcast.

Don't miss the full interview with Eric Weinstein here.

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Glenn Beck: Why MLK's pledge of NONVIOLENCE is the key to saving America

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Listen to the Rev. Dr. Martin Luther King Jr.'s pledge of nonviolence and really let it sink in: "Remember always that the nonviolent movement seeks justice and reconciliation — not victory."

On the radio program, Glenn Beck shared King's "ten commandments" of nonviolence and the meaning behind the powerful words you may never have noticed before.

"People will say nonviolent resistance is a method of cowards. It is not. It takes more courage to stand there when people are threatening you," Glenn said. "You're not necessarily the one who is going to win. You may lose. But you are standing up with courage for the ideas that you espouse. And the minute you engage in the kind of activity that the other side is engaging in, you discredit the movement. You discredit everything we believe in."

Take MLK's words to heart, America. We must stand with courage, nonviolently, with love for all, and strive for peace and rule of law, not "winning."

Watch the video below for more:

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Conservatives are between a rock and a hard place with Section 230 and Big Tech censorship. We don't want more government regulation, but have we moved beyond the ability of Section 230 reforms to rein in Big Tech's rising power?

Rachel Bovard, Conservative Partnership Institute's senior director of policy, joined the Glenn Beck radio program to give her thoughts and propose a possibly bipartisan alternative: enforcing our existing antitrust laws.

Watch the video below:

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Dan Bongino, host of The Dan Bongino Show, is an investor in Parler — the social media platform that actually believes in free speech. Parler was attacked by Big Tech — namely Amazon, Apple, and Google — earlier this week, but Bongino says the company isn't giving up without a fight. In fact, he says, he's willing to go bankrupt over this one.

Dan joined Glenn Beck on the radio program to detail what he calls a "smear" campaign behind the scenes, and how he believes we can move forward from Big Tech's control.

"You have no idea how bad this was behind the scenes," Dan told Glenn. "I know you're probably thinking ... well, how much worse can the attack on Parler have gotten than three trillion-dollar companies — Amazon, Apple, and Google — all seemingly coordinated to remove your business from the face of the Earth? Well, behind the scenes, it's even worse. I mean, there are smear campaigns, pressure campaigns ... lawyers, bankers, everyone, to get this company ... wiped from the face of the earth. It's incredible."

Dan emphasized that he would not give up without a fight, because what's he's really fighting for is the right to free speech for all Americans, regardless of their political opinions, without fear of being banned, blacklisted, or losing jobs and businesses.

"I will go bankrupt. I will go absolutely destitute before I let this go," he said. "I have had some very scary moments in my life and they put horse blinders on me. I know what matters now. It's not money. It's not houses. It's none of that crap. It's this: the ability to exist in a free country, where you can express your ideas freely."

Watch the video below to hear more from Dan:

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