the history of economics at the university of chicago, starting with guys like frank night and henry simon, moving on to milton friedman, friedrich hayek who taught at the university of chicago and others. >> host: why did they come up in chicago? >> once there was a nucleus of oriented economists, it attracted other economists of similar perspective, the center of classical economics in the 20th century. >> we talk about classical economics what we talking about? >> really good question. one of the things i try to distinguish in the book is classical liberalism to contemporary libertarianism and classical liberalism is the ideas that there is a place for government in society and a place for a strong private-sector. the same way the private sector shouldn't be over encompassing nor should government be over encompassing. it is a position that sees a role for both government and the private sector. by way of comparison, contemporary libertarianism tends to the view there is very little role for government, almost no role for government but only a job for the private sector. the difference

the university of chicago starting out with some of the early economists such as frank knight and henry simon and then moving on to milton friedman, friedrich hayek who taught for a time at the university of chicago and others. >> host: why is it that they ended up at chicago? >> guest: that's a good question. i think that once there was a nucleus of classical, liberal-oriented economists at the university of chicago, it attracted other economists of a similar perspective there, and so it really became the center of classical liberal economics during the 20th century. >> host: when we talk about classical liberal economics, what are we talking about? >> guest: that's a really -- [inaudible] >> guest: sure, that's a really good question. and one of the things that i try to distinguish in the book is between classical liberalism and contemporary libertarianism. and classical liberalism is the idea that there is a place for government in society and a place for a strong private sector, but in the same way that the private sector shouldn't be overencompassing, neither should government with overe