what was so different about keynes' view of the economy?realize what a revolutionary idea keynes had, we have to recall again the classical view which said supply creates its own demand. if consumers don't want to consume all their incomes they can lend their savings to businesses who will invest it. the idea is that if consumption goes down, investment demand will go up. if investment demand goes down, consumption demand will go up. in either case total demand remains high. keynes said if you had a fall in investment spending, this might lead to a fall in consumption spending. total demand-- consumption demand plus investment demand-- might fall. it might be a multiplied fall once the process got started. let me stress this was a shocking idea. when demand falls, it may not repair itself a la says law. it may fall further. there may not be enough total demand to provide markets for the goods or the labor that produces them. the economics profession was coming to grips with the possibility of a serious depression. it was on the verge of a r

much of the theory came from john maynard keynes.nes argued that an industrial economy could get stuck at high levels of unemployment. the depression proved this. he predicted strong government intervention such as tax cuts and spending programs would restore prosperity. this seemed to be happening during world war ii. by 1945, many people accepted keynesian theories but were reluctant to see them legislated. to bridge this gap between economics and politics a council of economic advisers was suggested. the question remained where to put this new body. we put it in the executive office of the president which tied it up to presidential power and fit it into the basic idea that the president is the manager of economic affairs. while conservatives and liberals debated in congress, a weary president died. the nation mourned franklin roosevelt and wondered about its new leader the unknown, uncharismatic harry truman. for all his supposed shortcomings, the new president had common-sense ideas on unemployment. leon keyserling, original memb

and john maynard keynes of frequent the father of all modern stimulus. but in fact, he was very subtle and in this particular letter to roosevelt he said that business would be too tired. and with that oriented prosecution we had us superhero in this book. he says to roosevelt that i paraphrase that you long to sink their evil villains but businessmen are domestic animals. they are not your enemy. but we've looked up china and england at that time. these words were mostly written in a letter and printed in the times he can see the work he put into it to have jokes about drips of money. puns are an acquired taste for some of us but people respond. sometimes it is so laden joke. and the iconic image is. did you probably had to have a show about this. this was a great photographer and what i discovered in the research at this library is a had not realized she worked for the magazine that she worked for the government and had a rather specific assignment to capture poverty in photographs. she worked for a man named a striker who would do a great cartoon book

they talk about about keynes visiting canes that the keynes himself realized deficit spending was an exceptional thing. when there was a slump he said you can spend more money but he didn't envisage, he never dreamt of people running deficits year in and year out and it was in the 60s they were saying we won't deal with a deficit because we do have growth in order to deal with it. i mean it's a slightly crazy argument you hear it now from people like krugman but is not a keynesian argument. keynes himself grew up in the victorian era. he was 31 when the first world war broke out so his whole childhood and youth was conditioned by this balanced budget framework and that he thought was the norm. he said look an exceptional times you can borrow money and he wasn't envisaging that all the time. the narrative i use is if you have kids, the victorian approach would be you can't watch television ever. keynes' view was okay you can watch two hours when you need to and now we got to the point where the tv is on all the time. >> host: right. >> guest: keep growing the deficit in order to get g

but keynes made an interesting observation at the end of his work, the general theory. said the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly rnd stood. indeed, the world is ruled by little ls. practical men who believe themselves to be quite exempt from any intellectual influence are usually the slaves of some defunct economist. and when you look at the movement toward a constitutional amendment to limit government spending and taxation, when you look at the battle over school choice, when you look about the discussion of privatization of social security and government services, i haven't even discussed about his relationship with the chicago boys in chile. that was a very controversial era. but when you look at all of these things on what federal reserve policy should be, milton friedman's hand has been there. and he is somebody, in other words, his book -- capitalism and freedom in particular will be a book that will be read 100 years from now because of the philosophy and the idea

there are anti-anthrax sack keynes we can use. there are -- cac convenience we there are different strategies we can use. if you're not focused maintaining stockpile and constantly engaged you lose those opportunities. gerri: so is this in your view a national security issue? we're talking after all, about stuff that makes people healthier. stuff that would protect people in the event of a national pandemic. is that a national security issue? >> it erodes people's confidence if something were to happen the government will be able to respond. real challenge, if you had all the right things, responding effectively to a pandemic with all the panic associated with it is very difficult thing. go back to h1n1. gerri: no kidding. what should they be doing right now? >> department of homeland security accepted office of inspector general report. they say they're correcting this. they have a whole bunch of recommendations they're going to adopt and taking money an applying it and not walking away. continue to monitor, rotate and make the s

and they are -- adam smith, karl marx, john maynard keynes, number four is -- john kenneth galbraith. the 6'9" economists, you cannot miss him. and the fifth one is milton friedman. sorry, george stigler, you did not make the list. now you all can bluff your way in economics. you can walk out of this meeting, you do not even have to buy my book, and you can be a knowledgeable person in economics. isn't that great? in 1980, he did a pbs program that several million people -- some of you may have seen this -- it was called "free to choose." it was a wonderful program and it in energized both milton and rose friedman. producer, took them all around the world. he began each program with a short 10 minute speech. and then he invited people into disagree with him. wonderful debates and these panels and this was a great program. he put it together in a book. milton friedman holding a pencil and rose friedman on the back. another wonderful book that has an index. "free to choose." i should tell you, if you came to my home in new york, i have a library. i have opposite title book. i will have

keynes,ul leo came sony, japan, nintendo, xbox in washington and the united dates.ave here is tanning the dominant game systems around the world manufactured off in china. zone inin a trade free china. a brief trade in shanghai that we have not in the work. it is still tightly controlled the government and censorship rules are very much in effect area -- in effect. >> what is missing from that? >> there is a list of games. let me read from that list. i will lead you the list. only 10 games approved him and you can tell me what is missing. golf,ts sports writers, dance central. you love that one. naughty kitties, what is missing on that list? yes i got a little help from my direct is. halo is missing eric >> rant about it was missing, call of duty is missing. battlefield is missing. >> all of the big ones. >> a lot of the big ones. china says it is about keeping their children safe. what we are really talking about first reasonng our shooters, the games where players are walking ross the field looking more things lurking around warners and shooting them. that style o

suerte, y el dÍa de hoy, empieza todo esto, las primeras oficinas estÁn en el habÍa de "keyne" y en elillos y prÁcticos. >> vamos a comenzar con los jeans vaqueros que nunca faltan en nuestro clÓset, pero si no queremos combinar con un look mas otoÑal esta temporada cÓmo lo podemos hacer? >> primero tenemos una modelo que puso su jean con una playera o con una camiseta blanca, sencilla, muy prÁctico, ahÍ lo tenemos. >> que fue prÁcticamente el look del verano. >> exactamente, cÓmo lo podemos hacer mas otoÑal, pues le colocamos a luz un chaleco y hay algo que a mÍ me encanta, nunca estÁ de más, todas las mujeres debemos tener una bufanda que nos combine, porque la podemos utilizar con los vestidos y shorts, y por supuesto, a la modelo tambiÉn le cambiamos los zapatos, cuando tiene el frÍo utilizamos zapatos cerrados, es una excelente opciÓn. >> aparte de la bufanda, si vamos a un lugar bastante helado, como el cine, o una librerÍa, nos la podemos poner. uno de los favoritos, es un maxi vestido, si lo quiero usar en otoÑo, cÓmo lo transformo? >> sencillo, queremos mostrar la fota de la p