>> the hof list wrangling, of suppressing president that jim -- had jimmy carter was. >> host: you write about and president obama. under the obama

ministrations u.s. experienced a more bird -- morbid subversion of the public sector aggressive the intervening in the financial sector ruth guarantees that attract talent and a debauching. >> the worst is the cast of the obama administration. the epa has gained control of our breathing his the pollutant and is co2 is what keeps us alive with the breath of life and to attempt to suppress co2 a bit of gneisses and the nature of this

administration why we needed other supply-side revival like we had under ronald reagan. >> host: will lydia change anything from the original? i would have changed quite a lot. details have changed. but to change one thing would change everything. you get into editorial work i retained the old book and added 40,000 new words at the beginning and end and revision of my monetary policy in the middle. a new book but contains the old book. >> host: a revision of

your monetary policy high failed to make clear originally been "wealth and poverty" i believe been stable currencies. not floating currencies. the standard value it is like floating the hour so people don't have to work so much. who one month it is worth 50 minutes then 70 and soon you have the one hour default swaps and insurance policies. over the last decade we had an atrophy of the

enterprise. but let the excess of finance why so much wealth has migrated to finance this because the currency is so unstable. so much money can be made that same on our currency. a lot of people as ask the chinese were manipulating the currency. but they want to keep it stable and maintain the dollar with this day and third of the dollar. we are debauching the threat to it is not come from beijing. it comes from washington and

wall street and i make a new argument in the new edition of "wealth and poverty." >> in the prologue right u.s. has witnessed a classic confrontation between the forces of on to real capitalism and institutions claiming hire expertise in one is enforced profits the other is rent and privilege at the treasury and federal reserve and the white house. >> exactly. that's what we have had. writing about the big short he was writing about those betting against the dollar.

all the scams. all of the prestigious forces that backed the blind side. people investing in the crazy mortgage securities when the value was totally unknown. the feeble shorting the use wherefrom private equity funds or the who were not seeking favors. but the goldman sachs of the world were all in demint and big government itself mandated the purchase of the credit default swaps and

others that brought down the economy. it is not pro capitalist to support goldman sachs in their embrace with the department of treasury. >> host: is supply-side economics it dead? >> it is true economics. i am excited to have mitt romney run for president. bain capital is one of the foundation's the of supply-side economics. say it applied it to business to show the most effective way of four businesses to gain market share. because costs dropped by 200

tora 30% with a total units sold part of the economy is the scope and scale. this is the foundation of supply-side economics. you reduce costs across the economy and the united states can expand the global share for orwell's. that is why supply-side economics works. not by balancing the budget or overcoming debt were a

gimmick. it'll 52 human creativity. that is a surprise. if you could plan you would nine need it. >> host: can mitt romney use the phrase politically supply-side economics? >> i think he could. he is reviving the reagan inspiration. that book was quoted more he quoted the book and regularly throughout the administration. reagan didn't balance the budget there was a

$1 trillion increase. he was winning the cold war. but under currier read have a balanced budget but the private economy was all in the red. what really matters is that that it is bad and ultimately to much debt to this unfortunate. but it is not so much the liabilities but the assets. under the supply-side movement that the liabilities became less

significant. the economy thrived. >> ally of fellow travelers have let go of that theory. >> allot have become embroiled in the silly analysis of what have been the after clinton raise his tax rates. if it drastically or the capital-gains tax but 50 nations around the world have reduced their tax rates since wealth and poverty was published. most of eastern europe has a flat tax. there hasn't been a big

crisis of spending their i's of plume of the 12% flat tax. and the fact this supply-side economics is booming around the borrow the just around the united states and then it is shrinking from the economics of enterprise. >> host: what is your analysis from old europe? >> and is falling under the dilutions of the welfare state. they accepted dependence on centralized government and have destroyed the value of their assets.

ultimately the investment and creation and work effort, when you to pete -- appreciate the asset you have the liability. but when you allow the stock market to bloom then liabilities that seem impossible today become manageable in the future. >> host: george gilder when you see the fight to in congress over the debt ceiling or the tax rates what would you like to see congress do? >> it is a theater of the

absurd. we need to flat senate tax rates and deregulate. i tell this story to a number of countries that face a crisis far exceeding our own. is the land is my favorite. the third richest in the world in 1930's. by the 1980's was the third world countries. it could not even feed itself. it is essentially was a socialist country. fifth latin to government spending and eliminate did

add cracker troll subsidies it started not only feeding itself but became a great source of food around the world and competed with dairy products and wisconsin so aggressively they accuse them of unfair trading practices. it is the great vanity of bureaucrats somehow their jobs are important but we have eliminated 150,000 bureaucrats and the keynesian economist declared it would cause a new great depression, the worst

dislocation that anybody faced and instead we enter the 1950 use that was a period of boom. this was after a reduction of government spending equivalent to e eliminating the entire government today. whenever you reach a crisis to drastically retrench tax rates, the economy takes off. and particularly they are stunned because they cannot to understand the creativity that comes it is the heart

of economics. >> host: george gilder to discuss the balanced budget amendment in "wealth and poverty"? >> it is stupid. it is a gimmick and can be counter mandated from special regulation. it is almost meaningless began as politicians the sense they are addressing the problem. they're not doing anything. we need not to accounting gimmicks but to unleash the frontiers of the world economy and of the schwimmer mayor merck says it energy. the u.s. can overcome the

energy crisis in a few years by of the shipping natural gas and oil technologies that have formed the horizontal tracking and other developments to make it possible with a much smaller footprint reach more fuel man in the past. the grain energy sources was part of the global a environment that was from arable soil solar cells and windmills and biofuels they

waste what is important while a ignoring the infinite drove of energy below the surface and it could be reached with a small footprint of usable land. >> host: george gilder what is altruism? how does that fit? >> is the needs toward others. i believe capitalism is altruistic to say it is based on making investments in without any assurance others will respond. might only work if they

respond imaginatively to the needs of others why i think it is altruistic but socialism is based on agreed. maybe the greed for power that leads addis an invisible hand to a welfare state because goldman sachs goes to washington for its guaranteed investments which is the definition of socialism they tried to guarantee the worth rather than of the right this better capitalist rates you have no right to a guarantee

to your investments they are so of destructive lorraine on to producers away to lourdes lobbying governments for special privileges at the trough. >> host: how often do you get to washington and? >> now and again. maybe five 1/6 times. i think it is too rich. today washington contains all the richest county said america. does that make sense those that are to serve us of our growing obese with the power

and privilege? that is a symbol of decadence. >> host: how did you get your start? >> i began when i was young man riding about sexual suicide in which i came to understand been and marriage and i showed civilization depends on family life the ties of family that ultimately connect bet in particular to the future it passes through the wamu -- womb of a woman.

i believe the breakdown of family in the early 1970's would lead to a welfare state for women and children and the police state for the boys and today we do have the welfare state with a 70 programs taking care of women and children and the police state for the boys. fully one-third of young black men in jail on probation and, it is a tragedy we have inflicted on the black family is. but when i started to study

poverty became evident you could not understand it unless you understood wealth. after that i wrote wealth and poverty ronald reagan and read it and he wrote to me and we were off. it was sorry etfs we wanted to know roaring millennials today. >> how do define wealth? >> a restorer of human creativity the fruit of human creativity and its fruit of surprise.

the next book is called knowledge empower how it is ultimately based on surprise if you could predict it you could plan it to a and wooded need entrepreneurial surprise. fact it is unexpected means it is not dependent on freedom. why all of the obama programs like solyndra that the verb in those decisions always failed because they're based on the past in the name of progress. the future will come as a surprise. >> host: the nature provocation poverty you write their refusal to tell

the truth about blacks is more important with black poverty more important that racism and discrimination is still explain the low it come of blacks. this is insidious. not only slander white americans but demoralizes the black obstructs the truth will and gives the alternate falsehood held that blacks cannot now make it without vast federal assistance those that account for the worst aspects sam promised to perpetuate. >> that was under the carter administration. 40% born it was below 40%

now above 70% black kids born and out of wedlock. as charles murray shows it is a white problem just like a black problem that is why the problem of poverty is so much worse because the programs of the government focus their attention. then they become dependence and lose the ability to launch with the surprise of enterprise. three see that in europe and in the united states is a pivotal

loathsome -- movement and the u.s. can return to the entrepreneurial hall path. >> i think ultimately economics have in a moral foundation. capitalism is not based on doggy dogg. winners to 92 losers they conduct experiments that benefits everyone that is why it is the zero sum game it ultimately reposes on "the golden rule" of judeo-christian morality. the good fortune and others

is also your own. the image of a of capitalism is the vicious of predatory is opposite. when you cut off the future block off creation then you do have the zero sum game everybody fights in the lobby of washington said is the ugly facet of the welfare state. >> host: george gilder i working with the romney campaign? >> i work for george romney who is in its bad. i wrote a book for him called the mission and