. >> so a milton friedman -- even though you may disagree with him politically. >> yes. a milton friedman is someone i debated, in fact, in 1990 when he reissued his television program "free to choose." i was on the first panel. i considered him to be a friend and someone whom you had to respect because he was advancing his ideas in the -- you know, in that format of debate that i very much admire. >> those are the types of ideas from the milton friedmans of the world which the hayeks which in your view the conservatives have abandoned. >> the conservatives abandoned his ideas freely. his ideas were unworkable and i don't fault them for doing that but they never advanced a coherent view of monetary policy. >> and why liberals should too abandon the free markets. what does that mean? >> the rhetoric of free markets is something that liberals have learned to give lip service to as a kind of price of admission to serious policy discussion in the united states. and that little barb would apply, for example, particularly to this administration, to the obama administration. ba

milton friedman gave an interview to reuters after he heard from me. and said this is very detrimental to having good analysis what the fed is doing, having them all on the payroll. and then people would be interested in the myth of political virginity. that's one of the chapters in my book. the fed always says we are independent from politics. well, they are not. i always have the lobbyists and going around the congress. in 1976 when henry royce try to get an auto bill, they cut all the bankers they regulate, told them to go to washington, and they were very effective and to block the bill for two years. now the auditors are limited. they can't audit the parts of the fed that have to do with monetary policy or international relations, where we found a lot of problems spent and we're going to have to leave it there, professor auerbach, i'm afraid. you been listening to robert auerbach talk about his book, "deception and abuse at the fed." he gave us a taste of what is in the book. and two, professor. >> thank you very much. >> you're watching 48 hours

in that format of debate very much admired. >> so those are the type of ideas from the milton friedman of the world which in your view the conservatives have abandoned. >> absolutely. the abandoned friedman very early. his ideas were not workable. i don't fault them for doing that they never advanced a coherent view of monetary policy >> and white liberals should, too abandon the free-market. what does that mean? >> the rhetoric of free market is something that liberals have learned to give lip service to and have the kind of price of admission to serious policy discussions in the united states, and that little would apply to the administration, to the obama administration. in the campaign of 2008 if you look good candidate barack obama's website on economic policy there was a paragraph that was kind of to the glory of the free market. and my view is this is something which inhibits liberals and progressives from having a clear idea of what needs to be done now is simply ties their hands behind their backs and allows them to be beaten up by conservatives for not being true believers wh

milton friedman and i werewpót friends and said you're doing the devil's work.wúwúwú wpóú wpwp wp wpwpwpwpwpwpwúópwpópópwpwpópwpwpwp wpwpópwú ópwpwpwúwp o%o! >> actually, some liberals favor a social tariff.o! when these products come fromo!o! basically, anti-competitive countries because they compresso!o! their labor.o!o! >> right. >> can you have it across the board. >> the social tariff, the problem with that is and even the problem with the congress,x saying, you know the chinese -- you know forget what the chinese are doing. their doing what's in their interest. we can't control what you're doing, but we can control the products coming into this cup. >> on that point to show you how you've changed you basically said in this book we should have no conflict with china or russia. we're actually disrespecting russia because they've dopeo% everything since the collapse of the soviet union --o! >> i want to tell you diswhrsh do and yet we have 12 aircraft carriers which the beltway guyso! are saying is needed to projecto% american power you know what the next cou

those who read high at the very few read milton friedman. i teach those in my courses and i asked my students but they have not read that. >> host: but i read they have read marks along the line. >> guest: as they should have as a formidable figure. he is part of the can in in the way of the six figures the machiavelli but my mission and to bring in these other figures into the canon, there is ideological reasons and it is just lack of interest and lack of curiosity. going deeper than that with a refusal to believe in a free market has very serious foundations and i have a blog what i will be doing in the next couple months is to start the eye on today's online reading group of constitutional liberty. people on the right just read the road to serfdom so we will do this online precisely because i feel that it is a great book and they ought to read it. >> host: we will get to one more before we take a quick break. project 10 or 20 years down the line. does the tea party survivor becomes something else? >> every time i make a prediction it turn

including milton friedman. a lot of discriminatory enforcement.of prohibition of drugs where i wouldn't be in favor of prohibition of alcohol. >> host: in other words, you would a to be more to class to anything in here right? >> guest: probably more to the collapse of the family and the collapse of religion and thingsoqo!ñ! like that. >> host: they all go together. the thing that you have to worry about this book is they want to change as bigoted and racist, right? >> guest: tell me about it ralph. >> host: there are two sections in there that are similarly tragic and semi-humorous but i want to bring this. in your zeal to cover all the ethnic groups you align on an upstate soccer team. you said, you're trying to show the ethnic priority is over the american priorty. so they want to go to england to be in a soccer match and they want to go on and. why passport and britain said no and hillary said yesterday that he decided not to go. as you know, first native americans that certain modest levels of sovereignty based on trees. they are not like any

. >> the sea institute in oakland founded in 2008 by milton friedman's grandson has already receivedan $2 million in funding to keep the idea afloat. most of that money came from paypal founder peter teal. consider burning man meets silicon valley. the idea is to build cities on cruise ships or platforms that might look like this. the new societies won't just look different, they'll operate differently too because they'll be located more than 12 miles out to sea in a zone where most u.s. laws don't apply. >> sea standing creates a diversity of societies. societies where everyone gets something much closer to the governments that they want. >> as pro efforts across the nation cry out for change, sea steady may be just what they're looking for. >> there has been much interest just in the last few months than ever before. >> we talked to supporters of the occupy oakland movement. they say it's the way to escape things. >> there's going to be a top down structure. somebody has to make the decision. and it might have to be some sort of i a corporate structure. >> right now plans are in th

wealthier that wealth went to everyone we all got wealthier but then came fat cheer and reagan and milton friedman and i and rand in this bizarre notion that playing games by rules that work for everybody is just a quaint idea and instead the world should be reformed to make it easy for the predators as a result over the last thirty years most of all the new wealth created in america was just the top one percent when reagan first began to really corrupt capitalism as i noted in my book on equal protection most americans didn't even notice that greed is good sounded reasonable to many people and for the first time in history school kids started saying they wanted to grow up to be rich instead of wanting to grow up to be somebody who changed the world like washington lincoln or martin luther king jr. but then after reagan kicked off today's massive concentration of wealth the top one percent just started taking more and more they took it all after all reagan made it legal in the last generation the richest one percent have seen their incomes almost quadrupled while the average americans have seen th

doctors you talk about in just a second but when i was reading your article i was reminded of milton friedman the famed neo liberal economists who pretty much let the saint of the free marketeers all around and talks about how it requires a crisis either manufactured or are made up to make the real reforms make the real great changes you want to make and i feel like with state budgets in crisis right now these actors you speak of are exploiting this crisis to push this agenda forward you see that that's a way to yet one of these conferences with but three hundred state lawmakers school superintendents and then dozens of education tech lobbyist they had one seminar called never let a good financial crisis go to waste and i think you bring up a perfect comparison because a lot of the conservative black groups that are now coordinating with education ten lobbyist. they've created little many web sites in places like wisconsin florida ohio and others to basically engineer a budget crisis that's completely blamed on teachers' unions and they say and you can look through their public statements and

especially in one thousand nine hundred when reagan became president and they would be ideas that milton friedman the chicago school of economics and say just what jeffrey marcia said basically that the only responsibility of business is the next the most profits regardless of the social and environmental costs and that's created a fail system let's face a system we have to be in the world is a failure i heard you said before that as a failed system it's not necessarily capitalism if that's what you call a predatory or preferred form of capitalism i'm curious at least the occupy wall street has led to social consequences that that's. absolutely occupy wall street and what's going on around the world i just recently came from istanbul i was in china a lot of america iceland europe i travel around a lot including lecturing at a lot of m.b.a. programs in the united states and you know i think what's happening is around the world people are beginning to wake up now we're understanding that are coming to me nationally and locally has been stolen by a robber barons and you know we hold these guys that

i'm afraid that what we call result here is the washington consensus, with milton friedman and others, that was going in the direction that we can no longer accept to support. [applause] >> okay, one last short question right here. >> thank you. so, thank you. being an african i am more concerned about issue in africa. politically or economically, in general, in 2007 africa still find it hard to work through developmental. according to, what are major issues that impede african countries, sub-saharan countries? thank you. spent the most important in my mind, thing for africa is that the aid given to africa, which is normal and needed, because africa is the poorest part of the various areas of this world. but that aid can be more dangerous than it can be useful. if those who receive it are not masters of the way in which it is being distributed, we have seen periods where ted was channeled through the heads of state in african country. and these heads of state themselves had been secretly brought to power by outside powers who were happy to have their persons with whom they can have go

host: it's based on drugs, and the war on drugs attacked by both the right and left including milton friedman: he's in there. >> host: black teenager or a white teenager, same record, caught with drugs, five times more likely the black teenager goes to jail, so -- but aside from the way the statistics reflect these kinds of distortions, do you think the high percentage of crime by blacks and hispanics, street crime, not corporate crime, reflect something inherent in their character or do you think it reflects a class deprivation? >> guest: i think this. i grew up in washington, d.c. with 400,000 black folks, 400,000 white folks, and crime in those days in either community like the crime you've got today. >> host: right. >> guest: one of the main problems is the total collapse and decomposition of the african-american family. you got kids born now, 71% of african-american kids born to single moms, some high school dropout gals. they have no father at home, and going back to one of the earlier points, the welfare state has taken the place of the father in the home, and all those welfare benefit

at the time i remember being introduced to milton friedman and he said to me what you've done is you know, he was very very pleases. what you've done is really great. he said don't be impatient. [laughter] this is a big thing and it's going to take a long time. >> charlie: nelson mandala. you became friends with him when you went to south africa. he came to one of the conferences and interviewed m while he was there. tell us about him. what is it about him that makes him in th judgment of most people o of the most special people in theorld >> well in my judgment he's one of the most special people in the world for a whole lot of things. but philosophically, if you know that the first seven seats at hi inauguration were reserved for his jairlz. it is very christ-like with his -- i mean he is the epitome of what a christian isupposed to be. total forgiveness, total whatever. as a result of knowing him, as you know, the very long story but as you know i adopted two little boys from south africa who were street children scopy forth and part of his program. mandala is 90 years old today a

friedrich von hayek and if a on reese's and milton friedman. these are ideas that are in many ways were in -- not anticipated and they could not take anything for granted but had to go back to the fundamentals to reinvent the idea that in many ways had come to be seen as a discredited which is a formidable achievement will left used to be able to do things like that is. >> popular conceit as part of discourse today is part of liberalism that somehow if it is elitist. people point* two big government policies to exert the government influence over the individual. where a handful of liberals are suggesting they know what is best for america families. but you seem to flip out on its head early in the books say the conservatives in some looks to assert its power that that position stems from a genuine conviction that the world would be brutish and lack the excellence where the better man commands the worst but in my circle that sounds like liberalism. soon a conservatism from the very beginning of through today has been a movement of reaction. and

very few people read milton friedman. i teach these guys in my courses and i ask my students -- know they haven't. they have read marx as well as they ought to have read marx. a they kind of formidable thinker. marks as part of the canon and the way that there are six figures of the canon, machiavelli, marx and -- but it has been my mission to try to bring in some of these other figures into the canon. and i don't think they have been kept out but i suspect people on the right think there are ideological reasons for that. i don't think -- i think it is kind of a lack of interest or lack of curiosity and it's actually something deeper than that which is a refusal to believe that something like the free market actually has very serious philosophical foundations. >> host: and intellectual as well. >> guest: exactly and this is what -- i have a blog and i'm going to be doing i hope and a couple of months to start an on line reading group of hayek's constitutional liberty. people on the right often read "the road to serfdom" w

my conservative classmates at the university of texas in the age of reagan could all quote milton friedmanmean, you know -- >> and he also says, though, and i think this is more distressing. therest an anti-intellectualism because of obama's so-called pointy-headed harvard type of cabinet. but even the smart ones have to pretend to be dumb, which is unfortunate. >> dumbing it down. >> dumbing it down. romney pretending he doesn't know anything about global warming. what is this? this is very demeaning to everyone concerned. >> do you remember a couple of weeks ago we had bill bennett on? >> yes. >> bill bennett, you could be left, left of center, and listening to him, you cannot help but thinking he's making some sense here. he's a conservative. >> yeah. >> but he's a conservative in a party that would very few would listen to a bill bennett today. >> i would like to ask rick perry or herman cain if they know who milton friedman is. they'll probably say he owns a deli on 2nd avenue. >> they know more about selma hayek -- >> some changes at "newsweek," especially some pertaining to women. >