Milton Friedman’s Solid Steel Argument for Free Trade

Too bad Friedman contradicts himself in this argument. He explains how cheap steel through government subsidizing boosts demand for other goods. What he ignores while explaining this, as Keynes ignored it, is the misalignment in American capital the Japanese government is causing. Through artificially low production costs (but equal overall costs: the Japanese taxpayer pays the bill anyways) the US economy will move away capital from the steel industry, which is actually needed there.

This misalignment of capital is a nice demonstration of what Hayek called the (Austrian) business cycle theory. So in fact Friedman is contradicting his own free trade argument, and promoting Keynesian economic policies.

It doesn't really matter, the left has successfully demonized capitalism forever in this country. The best we can hope for is a Euro-style socialism if not outright NKorea communist dictatorship.

Let me comment on this video in the style of one of my Chicago acquaintances: "Milton Friedman, scoring at will."

I love that conclusion. "Why should we object to them giving us foreign aid?"

Having great ideas is one thing many share in common, being able to communicate them effectively is a gift that is given to but a few.

He loves that Adam Smith tie!

I was smiling like a giddy schoolboy when I was listening to his answer. It feels good when you hear such an articulate explanation for the beliefs you subscribe to. I dream of the day when I could, just once, answer a question so simply and articulately like that.

I love Milton Friedman.

And Rose ;)

ditto.

The two together were quite something. They wrote a joint autobiography called "Two Lucky People". Indeed.

Wonderful, thanks.

So much for the banana farm I was planning in Minnesota. It's time to pass Friedman's Balanced Budget Amendment.

Brilliant! And I want an Adam Smith tie!

Well, I want the tie as well.

Here's where you can buy it.

https://www.leadershipinstitute.org/shop/prodpa...