Milton Friedman Part IV: Unapologetic and Unafraid

April 07, 2016

WRITER

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.

Critical theory destroys truth and justice

Editor's note: This article was originally published on TheBlaze.com.

Critical theory once stood out as the absurd progressive notion that it is. Now, its maxims are becoming an integral part of ordinary political discourse. The more you repeat a lie, the more you will believe it, and this is the very dangerous place in which we find ourselves today.

Take this critical theory maxim as an example: If we desire justice, we must sometimes champion what may appear superficially as injustice. It's a necessary evil, if you will, the necessity of “controlled injustice.”

By using truth through fabrication and controlled injustice for justice, we’ll save the republic. We’ll be acting in a noble way.

This definition of justice is defined by the “oppressed,” not the “oppressor.” It is the greatest happiness for the greatest number. To achieve this justice, however, we need to endorse acts on occasion that, while seemingly unjust, serve a higher purpose. It will ensure the stability and the unity of our republic, and this may manifest in ways that seem contradictory to our values. But these are the necessary shadows to cast light on “true justice.”

And isn’t that what we are all after, anyway?

Here’s another critical theory maxim: Sometimes we find the truth through fabrication. Our pursuit of truth sometimes requires a strategic use of falsehoods. The truth is a construct that has been shaped and tailored to promote the well-being of the collective.

We sometimes need to accept and propagate lies designed by "the system” — not the old system, but the system that we’re now using to replace the old to get more justice through injustice and more truth through fabrication.

We’re engaging in a higher form of honesty. When we fabricate, it’s for the right reason. We are reaching up to the heavens fighting for a higher sort of honesty. To fortify the truth, we occasionally must weave a tapestry of lies. Each thread, essential for the greater picture, will ultimately define our understanding and ensure our unity under this infallible wisdom.

The election is coming up. Does this maxim sound familiar? Many think it is imperative that we secure our republic through election control to maintain our republic. Sometimes, we might need to take actions that by traditional standards might be questionable.

The act of securing elections requires cheating. It's not mere deception. It is a noble act of safeguarding our way of life. We're on the verge of losing this democracy, and without deception, we will lose it.

To ensure it doesn't fall into the hands of those we know will destroy it, we may have to make a few fabrications. We're fabricating stories to be able to control or secure the republic through our elections. By using truth through fabrication and controlled injustice for justice, we'll save the republic. Therefore, we'll be acting in a noble way. Stealing an election from those who wish to harm our society is truly an act of valor and an essential measure to protect our values and ensure the continuation of our just society.

If we desire justice, we must sometimes champion what may appear superficially as injustice.

I know it's a paradox of honor through dishonor. But in this context, by embracing the dishonor, we achieve the highest form of honor, ensuring the stability and the continuation of our great republic.

Let this be heard, far and wide, as a great call to patriotic action. As we advance, let each of us, citizens of this great and honorable republic, consider these principles. Not as abstract or paradoxical but as practical guides to daily life. Embrace the necessity of controlled injustice, the utility of lies, the duty to secure our electoral process, and the honor and apparent dishonor. These are not merely strategies for survival. They are prerequisites for our prosperity.

We all have to remember that justice is what our leaders define, that truth is what our party tells us. Our republic stands strong on the values of injustice for justice, honor through dishonor, and the fabrication of truths. To deviate from this path is to jeopardize the very fabric of our society. Strength through unity; unity through strength.

We've heard this nonsense for so long. But now, this nonsense is becoming an instituted reality, and we are entering perilous times. Don't be fooled by the narratives you will hear during the march to November. Never let someone convince you that the ends justify the means, that a little bit of injustice is needed to achieve a broader, collective vision of justice, that truth sometimes requires fabricated lies and narratives. If we do, justice will cease to be justice, truth will cease to be truth, and our republic will be lost.

Top 5 MOST EVIL taxes the government extorts from you

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"In this world nothing is certain but death and taxes." -Ben Franklin

The injustice of taxation has been a core issue for Americans since the very beginning of our country, and it's a problem we have yet to resolve. This belief was recently reignited in many Americans earlier this month on tax day when the numbers were crunched and it was discovered that the government was somehow owed even more hard-earned money. As Glenn recently discussed on his show, it's getting to be impossible for most Americans to afford to live comfortably, inflation is rising, and our politicians keep getting richer.

The taxpayer's burden is heavier than ever.

The government is not above some real low blows either. While taxes are a necessary evil, some taxes stretch the definition of "necessary" and emphasize the "evil." Here are the top five most despicable taxes that are designed to line the IRS coffers at your expense:

Income Tax

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"It would be a hard government that should tax its people one-tenth part of their income." -Ben Franklin

On February 24th, 2024 we hit a very unfortunate milestone, the 101st anniversary of the 16th Amendment, which authorized federal income tax. Where does the government get the right to steal directly out of your paycheck?

Death Taxes

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"Now my advice for those who die, Declare the pennies on your eyes" -George Harrison

Not even in death can you escape the cold pursuit of the tax collector. It's not good enough that you have to pay taxes on everything you buy and every penny you make your entire life. Now the feds want a nice slice, based on the entire value of your estate, that can be as much as 40 percent. Then the state government gets to stick their slimy fingers all over whatever remains before your family is left with the crumbs. It's practically grave-robbery.

Payroll

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"The power to tax is the power to destroy." -John Marshall

What's that? The nice chunk of your paycheck the government nabs before you can even get it to the bank wasn't enough? What if the government taxed your employer just for paying you? In essence, you make less than what your agreed pay rate is and it costs your employer more! Absolutely abominable.

Social Security

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"We don't have a trillion-dollar debt because we haven't taxed enough; we have a trillion-dollar debt because we spend too much." -Ronald Reagan

Everyone knows the collapse of Social Security is imminent. It has limped along for years, only sustained by a torrent of tax dollars and the desperate actions of politicians. For decades, people have unwillingly forked over money into the system they will never see again.

FICA

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"What at first was plunder assumed the softer name of revenue." -Thomas Paine

FICA is the payroll equivalent of Social Security. Your employer has to match however much you pay. It means it costs your employer even more to pay you—again, you'll NEVER see that money. At this point, are you even working for yourself, or are you just here to generate money for the government to frivolously throw away?

5 DISTURBING ways World War III will be different from previous wars

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Has World War III begun?

Over the weekend, Iran launched an unprecedented attack against Israel involving over 300 missiles and drones. This marked the first direct attack on Israel originating from Iranian territory. Fortunately, according to an Israel Defense Forces spokesperson Rear Admiral Daniel Hagari, 99 percent of missiles and drones were successfully neutralized by Israeli defense systems. Iran claimed that the operation against Israel had concluded and that no further offensive was planned, although the possibility of another attack is still present.

This has left many people, including Glenn, wondering the same thing: did we just witness the start of World War III?

Glenn recently had a World War II Air Force Veteran as a guest on his TV special, who told stories of the horrors he and his brothers-in-arms faced in the skies over war-torn Europe. This was a timely reminder of the terrors of war and a warning that our future, if it leads to another world war, is a dark one.

But, if Glenn's coverage of the Iranian attack revealed one thing, it's that World War III will look nothing like the world wars of the twentieth century. Long gone are the days of John "Lucky" Luckadoo and his "Bloody Hundredth" bravely flying their B-17s into battle. Over the weekend, we saw hundreds of autonomous drones and missiles clashing with extreme speed and precision over several different fronts (including space) simultaneously. This ain't your grandfather's war.

From EMP strikes to cyber attacks, here are FIVE ways the face of war has changed:

EMP attacks

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The entire modern world, on every level, is completely dependent on electricity. From your home refrigerator to international trade, the world would come to a grinding halt without power. And as Glenn has pointed out, it wouldn't even be that hard to pull off. All it would take is 3 strategically placed, high-altitude nuclear detonations and the entire continental U.S. would be without power for months if not years. This would cause mass panic across the country, which would be devastating enough on its own, but the chaos could be a perfect opportunity for a U.S. land invasion.

Nuclear strikes

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Nuclear war is nothing new. Many of us grew up during the Cold War, built fallout shelters, and learned to duck and cover. But times have changed. The Berlin Wall fell and so did the preparedness of the average American to weather a nuclear attack. As technology has advanced, more of our adversaries than ever have U.S. cities within their crosshairs, and as Glenn has pointed out, these adversaries are not exactly shy about that fact. Unfortunately, the possibility of an atomic apocalypse is as real as ever.

Immigration warfare

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The strategy of strangling an opposing nation's economy to gain the upper hand is a wartime tactic as old as time. That's why the Border Crisis is so alarming. What better way to damage an opponent's economy than by overburdening it with millions of undocumented immigrants? As Glenn has covered, these immigrants are not making the trek unaided. There is a wide selection of organizations that facilitate this growing disaster. These organizations are receiving backing from around the globe, such as the WEF, the UN, and U.S. Democrats! Americans are already feeling the effects of the border crisis. Imagine how this tactic could be exploited in war.

Cyber shutdowns

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Cyber attacks will be a major tactic in future wars. We've already experienced relatively minor cyber strikes from Russia, China, and North Korea, and it is a very real possibility that one of our adversaries inflicts a larger attack with devastating consequences on the United States. In fact, the WEF has already predicted a "catastrophic" cyber attack is imminent, and Glenn suggests that it is time to start preparing ourselves. A cyber attack could be every bit as devastating as an EMP, and in a world run by computers, nothing is safe.

Biological assault

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Don't trust the "experts." That was the takeaway many of us had from the pandemic, but something less talked about is the revelation that China has manufactured viruses that are capable of spreading across the globe. We now know that the lab leak hypothesis is true and that the Wuhan lab manufactured the virus that infected the entire world. That was only ONE virus from ONE lab. Imagine what else the enemies of America might be cooking up.

The government is WAGING WAR against these 3 basic needs

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The government has launched a full-on assault against our basic needs, and people are starting to take notice.

As long-time followers of Glenn are probably aware, our right to food, water, and power is under siege. The government no longer cares about our general welfare. Instead, our money lines the pockets of our politicians, funds overseas wars, or goes towards some woke-ESG-climate-Great Reset bullcrap. And when they do care, it's not in a way that benefits the American people.

From cracking down on meat production to blocking affordable power, this is how the government is attacking your basic needs:

Food

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Glenn had Rep. Thomas Massie on his show where he sounded the alarm about the attack on our food. The government has been waging war against our food since the thirties when Congress passed the Agricultural Adjustment Act of 1938. They started by setting strict limits on how many crops a farmer could grow in a season and punishing anyone who grew more—even if it was intended for personal use, not for sale on the market. This sort of autocratic behavior has continued into the modern day and has only gotten more draconian. Today, not only are you forced to buy meat that a USDA-approved facility has processed, but the elites want meat in general off the menu. Cow farts are too dangerous to the environment, so the WEF wants you to eat climate-friendly alternatives—like bugs.

Water

ALESSANDRO RAMPAZZO / Contributor | Getty Images

As Glenn discussed during a recent Glenn TV special, the government has been encroaching on our water for years. It all started when Congress passed the Clean Water Act in 1972, which gave the government the ability to regulate large bodies of water. As the name suggests, the act was primarily intended to keep large waterways clear of pollution, but over time it has allowed the feds to assume more and more control over the country's water supply. Most recently, the Biden administration attempted to expand the reach of the Clean Water Act to include even more water and was only stopped by the Supreme Court.

Electricity