. >>...un grupo de economistas bajo milton friedman -yo prefiero decir bajo milton que bajo pinochet-n latinoamÉrica, ¡en el mundo! tiene la mejor economÍa de latinoamÉrica. y creo que obama debe ir a chile con modestia, a aprender cÓmo trabaja bien el mercado libre. >>dentro de ese grupo de ese grupo de los chicago's boys estaba el hermano del actual presidente, josÉ piÑera. muchÍsimas gracias, mike gonzÁlez, vicepresidente de comunicaciones de la fundaciÓn heritage por estar con nosotros. si usted quiere ver esta entrevista nuevamente, sÓlo tiene que ir a: ¡al regresar! hablaremos sobre la educaciÓn de nuestros hijos y el sueÑo americano. [♪] [tema musical] díaz-balart: continuando con "enfoque" desde washington dc. siempre se habla de la educaciÓn de nuestros hijos, los problemas que hay, cÓmo podemos mejorar las escuelas, dÓnde encontrar el financiamiento... pues les quiero brindar ahora una persona que decidiÓ hacer algo por mejorar la educaciÓn y el futuro de nuestros hijos. la gran sandra lili nos brinda "el sueÑo americano" de hoy. sandra: a la edad en que muchos profesionales

but you also mentioned mill milton friedman? >> right. he is of course a libertarian free marketer and so forth. he comes into the book mostly as someone for them to look up to in the 1970's, but also for somebody like clint bullock, his work on the voucher movement. he and clint kind of got involved in that. milton friedman, i don't make him a huge mentor figure in the book. >> you quote him about an interview you had with him? >> i had an interview at his incredibly beautiful san francisco apartment. s, but we talked mostly about this generation of conservatives, and how it was different from the previous generation. and he talked a lot about wha was going on in the 1970's. potholes. long lines at bureaucracies. sort of this dissatisfacon with government that was so prevalent in the 1970's. so yes, it became very easy to develop a more conservative view or anti-government view. >> who followed the whittaker chamber's group, witness? >> that was grover norque. witness, i think people needo understand how important "witness" is to the con

>> first, i think that many of the nominal indicators that someone like milton friedman would look at did suggest the need for more monetary stimulus. for example, nominal gdp has grown very slowly. growth in the money supply is a fact, not talking about the reserves held by banks which are basically idle but if you look at m-1 and m-2, those have grown pretty slowly. the taylor rule suggests that we should be at some senseay below zero in our interest rate and therefore, we need some method other than just normal interest rate changes to -- >> do you know if mr. taylor believes that? >> well, there are different versions of the taylor rule. there's no particular reason to pick the one he picked in 1993. in fact, he preferred a different one in 1999 which if he used that one, gives you a much different answer. >> my understanding is his view of his own rule it that it would call for a higher fed funds rate than we have now. >> again, there are many ways of looking at that rule and i think that ones that lookt history, ones that are juified by modeling analysis, many of them suggest th

this was a point that milton friedman made in his history of the -- monetary history of the united states and he argued that was the primary cause of the great depression. so we were, in the federal reserve in this particular episode was actively more proactive and aggressive in terms of easing monetary policy to ensure that we didn't have deflation risk and excessively tight monetary policy. the other -- the other aspect, the other lesson i take is that financial instability can be extremely caustic to the economy. and we had in the fall of 2008 a financial crisis which was in many ways as big or bigger than anything they saw in the 1930s. but we know that the 1930s the collapse of a big austrian bank and a number of other problems including the failure of about a third of the banks of the united states was a major blow to credit extension, to confidence and to prices and was a big source of the depression. and so for that reason we -- we were very aressive working with the treasuryand others to try to stabilize the financial system as quickly as possible. even so, as you know, the impac

the reagan administration and several administrations since then following that same kind of milton friedman chicago school economics we need to reregulate the banks to stop the bubbles we need to return to a tax of over fifty percent on great income so that there's not an incentive to gamble like it's a it's a casino and it's cheap money and we need to return to manufacturing in the united states which means putting up barriers called tariffs that kept this country the place where we made things literally from seven hundred ninety one when alexander hamilton. proposed and promoted them during the george washington administration until the time ronald reagan started dismantling them and then nine hundred eighty s. protectionism they say it's a bad word i say it's the thing that can save this country. it's time for our daily poll your chance to tell us what you think here's today's question maine ohio and new jersey are giving tax cuts to rich for the rich and at the same time raising taxes on the middle class well let's fly your options are a yes cuts to children's hospitals and pay milliona

chain of innovation of finance it starts with people who are at the university of chicago like milton friedman figuring out how to think mathematically between risk. some of that gets passed and some people are carried increasingly sophisticated ability to think of the risk return trade-off. this intellectual apparatus has been used by the young michael milken to sell high-yield debt to enable investors with more quantitative to recognize here's security offers the rest. that enabled henry to structure a leverage buyout. and it makes possible the securitization and of course, the mailgram is a great example and bloomberg himself as part of the chain himself and and is so important because one of which is the day deter will is one part of the change -- jane but he is also a great example house cities create cross industry fertilization. how the combination of different industries in a place like new york has the largest and most successful entrepreneurial innovation. bloomberg comes out of finance but he is an entrepreneur competing with the guise of silicon valley and the terminal. but yet he

>> first, i think that many of the nominal indicators that someone like milton friedman would look at did suggest the need for more monetary stimulus. for example, nminal gdp has grown very slowly. growth in the money supply is a fact, not talking about the reserves held by banks which are basically idle but if you look at m-1 and m-2, those have grown pretty slowly. the taylor rule suggests that we should be at some sense way below zero in our interest rate and therefore, we need some method other than just nrmal interest rate changes to -- >> do you know if mr. taylor believes that? >> well, there are different versions of thetaylor rule. there's no particular reason to pick the one he picked in 1993. in fact, he preferred a different one in 1999 which if he used that one, gives you a much different answer. >> my understaing is his view of his own rule it that it would call for a higher fed funds rate than we have now. >> again, there are many ways of looking at that rule and i think that ones that look at history, ones that are justified by modeling analysis, ma of them suggest tha

and why now should i believe he's the second coming of milton friedman. because he didn't vote like hayek and friedman. he voted like canes. so i mean, i like paul. i know a lot of people in here like paul, but who is he? what do we truly believe in government? so i hear what charles is saying and i believe it too. i think this is a centre-right country. i think that's where we want to go. what is it about government itself that causes people to do things they don't really believe in? there's something wrong. do you teach about that? there's something wrong about it. all right so. that gets me to this second thing. that all of this spending has gotten us backwards not forward. government spending is not stimulus, it is antistimulus. all right. you all know that. if we could create wealth by increased government spending there should been a poor person anywhere in the world. if the multiplier really is one and a half to one. i spend a dollar of government money i get a sdwlar a half of government activity there shouldn't be a poor person anywhere. we shoul

this was a point that milton friedman made in his history of the -- monetary history of the united states and he argued that was the primary cause of the great depression. so we were, in the federal reserve in this particular episode was actively more proactive and aggressive in terms of easing monetary policy to ensure that we didn't have deflation risk a excessively tight monetary policy. the other -- the other aspect, the other lesson take is that financial instability can be extremely caustic to the economy. and we had in the fall of 2008 a financial crisis which was in many ways as big or bigger than anything they saw in the 1930s. but we know that the 1930s the collapse oa big austrian bank and a number of other problems including the failure of about a third of the banks of the united states was a major blow to credit extenon, to confidence and to prices and was a big source of the depression. and so for that reason we --we were very aggressive working with the treasury and others to try to stabilize the financial system as quickly as possible. even so, as you know, the impact on t