all around the world, japan, europe, everywhere and some milton friedman's theory has just turned out not to be correct so paul krugman's theory is incorrect either. .. book tv, television for serious readers.

>> this is the plot in milton friedman's theory, which he recognizes twersky and of his life in 2003, he actually acknowledged that his monetarists theory that everyone has adopted now was in fact not successful. in an interview with financial times towards the end of his life. the reason it's not successful is that his equation was m the equals tt and m the is the money supply times the velocity, which is the turnover of the money supply and how much people spend equals prices times transactions, so roughly gdp. monetarism assumes that in that equation money rules. money is the factor that controls economic activity. that assumes that money can't rule less velocity is stable and part of friedman's nobel prize came through a theory of velocity, which said that it was stable and perfected the psychology of human beings, which is outside the economy. people say that when they are young and save when they are old and there is a cycle that means that velocity at any point is a constant, roughly a constant dependent on these psychological propensities. you have met-- he got the nobel prize

thank you didn't mention milton friedman. [inaudible] which has been adopted by people like paul krugman who's "the new york times" about laureate columnist and the conservative magazine prevailed in the world economy. that transacts $5.4 billion. with all of these stock markets in the world put together it is a 25. it has decrypt us from every sale. so the currency. then the activity they are supposed to measure. so the currency training. to decide which one broke eagerly and which is a foundation for the policy around the world. and this book. it's a revolution 200 years and think long all-time no avail stagnation. but the gold standard is measurable. in 1913 with the establishment of the federal reserve board and since 1913 and the establishment , if you had a million dollars. that would be worth about $20 million today. and of the $40 million roughly. it was a value that is far exceeding the measuring sticks of any currency. currency has become and the meaningless if there were the roots of value outside the domain it mea

john: milton friedman? how many of you woke up because of a college course? very few. many of you got it from ron paul? [ cheers and applause ] . john: quite a lot. and finally how many of you got it because when you were in high school, one of your teachers played one of my stossel in the classroom tv shows, and you had a discussion about it. [ cheers and applause ] . john: all right! we have these videos, and people do learn some of these ideas in high school. earlier i asked some of you about this individually. what got you interested in liberty? >> i had a professor who taught paul krugman and milton friedman and i liked friedman better. >> watching ron paul got me interested. >> i came across ron paul. >> ron paul. >> youtube videos on friedman. john: where did you find them? >> i typed it in the search box, and milton friedman came up and i've been hooked. >> i heard about libertarian from you, on fox news. >> my economics and government teacher in high school played your public choice video. these are not the kind of ideas showing up in textbooks that are writte

the market is in the spirit of milton friedman. the market is going to take care of the problem.: next, how market magic can make health care cheaper and simpler. ♪ ♪ hmm. [cell phone beeps] hey! [police whistle blows] [horns honking] woman: hey! [bicycle bell rings] turn here. there. excuse me. uh. uh. [indistinct announcement on p.a. system] so, same time next week? well, of course. announcer: put away a few bucks. feel like a million bucks. for free tips to help you save, go to ♪ feed the pig >> after all the votes have been tallied health insurance reform becomes law in the united states of america. >> the president promised it would bring health insurance to more people and help save lives to lower cost. it did bring health insurance to more people but some people did not get to keep their doctors and the costar up sharply in some states. whenever we think about obamacare it got america is to start thinking about how we pay for health care and that got patients and doctors to try new things and they allow the market to work its magic. the surgery center posted prices and sai

the market is in the spirit of milton friedman. the market is going to take care of the problem.: next, how market magic can make health care cheaper and simpler. ♪ ♪ >> after all the votes have been tallied health insurance reform becomes law in the united states of america. >> the president promised it would bring health insurance to more people and help save lives to lower cost. it did bring health insurance to more people but some people did not get to keep their doctors and the costar up sharply in some states. whenever we think about obamacare it got america is to start thinking about how we pay for health care and that got patients and doctors to try new things and they allow the market to work its magic. the surgery center posted prices and said we don't take insurance. that allow them to lower prices so much to attract people 1,000 miles away. this couple came from new hampshire. they had tried to get a quote for surgery on his arm and it was very expensive when they asked a doctor or hospital they could not get a price. >> there was a quote of $50,000 but to get here wa

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. >>> our quotation of the evening, this one from economist milton friedman.surprised that quote isn't etched in granite on the grounds of both the white house and the vatican. maybe one day. hopefully soon. we're coming right back. stay with us. >>> dr. ben carson taking a lot of heat for his refusal to support a muslim president. shocking results in a poll on sharia law. is dr. carson merely upholding the constitution or deflath his campaign? we take it up with jedidiah bila and rich lowry here next. >>> and how can this kayaker possibly fight off an attacking ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? theno one surface...out there. no one speed... no one way of driving on each and every road. but there is one car that can conquer

that you are aware of this that on his 90th birthday he said he gave an address to back that milton friedmansaid that we have my talk as an official representative i'd like to say regarding the great depression you're right, we did it, we are very sorry but thanks to you we will not do it again. do you think that is something that they are particularly proud of in that statement? >> i think that he was accurate because the fed hasn't caused another great depression or recession. >> it's a lot shallower than it would have been. but the collapse everyone in this country was guilty. [applause] [laughter] one of the witnesses eluted it to the time of crisis -- [inaudible] [laughter] >> sorry, go ahead. >> the financial crisis it should lend freely in the penalty rate of interest are you familiar with that? >> the number one job at the central bank is to be the lender of last resort and there's a lot of other things that we do to focus on the inflation control and not get involved in on climate and output. >> that was the last question. >> one more. >> my spanish is no good. >> given that they wi

john: you have people who sometime smuggle in the works of milton friedman and subversive books intories? >> true, back before the fall of the iron curtain, there was heroic activity that went on in getting materials into the then-soviet union. we can operate more freely in most parts of the world. john: china? >> china is an interesting case. right now one of our partners is headed to jail for doing the kind of work you and i think is patriotic work, for working in civil society to put forward a very optimistic view of where the chinese future should be, but what we have in china is a goliath to use your apt metaphor that doesn't want competing visions of what the future of china is. john: let's talk about hong kong next to china, was independent, run by the british, until they made a deal to turn it over to the chinese, and the chinese said it will be special, we'll let it have capitalism, and eventually let them vote for leaders. >> the citizens of hong kong are supposed to be able to vote for their own chief executives in 2017. china is saying, well, you can vote, only among our

. >>> our quotation of the evening, this one from economist milton friedman.sonally i'm surprised that quote isn't etched in granite on the grounds of both the white house and the vatican. maybe one day. hopefully soon. we're coming right back. stay with us. >>> dr. ben carson taking a lot of heat for his refusal to support a muslim president. shocking results in a poll on sharia law. is dr. carson merely upholding the constitution or deflath his campaign? we take it up with jedidiah bila and rich lowry here next. >>> and how can this kayaker possibly fight off an attacking hammerhead shark. that video and the result here next, we're coming right back. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. . lou: the top news at this hour, the president talking by phone to germany's leader angela merkel, they talked about the european immigration and refugee crisis. both sides calling o

milton friedman had a fantastic analysis. we had unlimited immigration pre 1914, 1912.dn't have the entitlement state. now that becomes unsustainable. choose. you can have your entitlement state or unrestricted immigration. but you can't have both. >> there is a net benefit from those here without documentation. th they are not a drain on us and in fact a benefit. they are taxpayers. they pay local state taxes, sales taxes. they give more than they take back. >> that's not true. >> that is true. >> how do you respond that the household numbers are so high when it does turn. >> most are coming and working and paying taxes. then not a drain them contribute more. many of them pay in. >> whoa! >> i'm not dur. they pay into it but don't get benefits. they live under the radar. they can't go to emergency rooms. they're afraid on call the cops. >> now, allen, you know they go to emergency rooms. that is a fact. they doing to emergency rooms. as a matter of fact,obamacare, the big, they go into the community health care centers and nobody is checking i.d.s there. so yes, the am

i take the point if you like milton friedman, he says there are only two kinds, somebody asked him about chicago school of economics verses austrian school of economics and he said there are only two kind of economist, a good economist and a bad economist. >> al milliken a.m. media. our united states supreme court how deeply they have shown contempt for liberty in recent years? >> well they don't hold constitutional many things the government is doing. that is it is not in the constitution for congress to do most of what it does. that is two-thirds to -3/4 of all federal spending there is no constitutional authority for it. the word education does not appear in the constitution but the government is involved in it. if you look at what the founders say they said that congress can only do those enumerated things, the things that are enumerated in article i section 8 of the united states constitution, but the supreme court has been derelict and jefferson and madison they warned us, they said do not allow the courts to be the final arbiter of what is constitutional or not. he said if we allo

milton friedman said economic freedom is an end in itself, freedom has nothing to say about what an individual does with his freedom. more on the issue of freedom in a bit. hayak compared the free-market to game in which, quote, there is no sense calling the result just or unjust. in this view of the market is a mutual that can be used well or used bad with the efficiency as the only relevant criteria. i think this is wrong. tools always imply theology, and results can be efficient and and just at the same time. pope francis explicitly warned about using efficiency and technology is the only criteria for evaluating economic and other social activity in isn't cyclical on the environment. i would argue however there's a very obvious that the get the heart of market ideology by posing a few questions. what values does the market celebrate? who are its hero's? comparing these with the catholic view? the market celebrates the self-made man. not the man who evidences solidarity. it celebrates thrift and frugality, not gratuitous nest or generosity or simplicity which has a different flavor from frug

there is, however, some evidence that there may be, as the late milton friedman wrote in an e-mail tome shortly before he died, that there are also some negative experiences perhaps associated with college in some cases. so it's very difficult to measure the -- it's an economics term. the experiment. another one that was often used is smoking. college graduates smoke less. that causes less secondhand smoke problems. and health issues. and they claim there are health advantages. although people that smoke die earlier and that lowers the medicare cost. you can -- i'm sorry. true. >> that's a somewhat grim view. >> i'm not sure i want to explore that one any further. i think i'll shift to the trio programs. >> segue. >> yes. i'm a little sensitive on that one because my father died of emphysema. so on this issue of trio, so some of the stakeholders have suggested that there's not enough data to show that all of the programs are working as effectively as we'd want to given the investment. some have said therefore we should just end them. should have said perhaps we should remake them, may

milton friedman said economic freedom is an end in itself. freedom has nothing to say about what an individual does with his freedom. more on the issue of freedom in a bit. hiatt compared free market to a game which there is no sense in calling the result just or unjust, close quote. in this view the market is a mere tool that can be used well or badly with efficiency as the only relevant criteria. i think this is wrong. tools always imply results can be efficient and unjust at the same time. pope francis warned about using efficiency and technology as the only criteria for evaluating economic and other social activity in his encyclical on the environment. i would argue there is a very obvious ethics at the heart of market ideology by posing a few questions. what values does the market celebrate? who are its heroes and comparing these with the catholic view? the market celebrates the self-made man. not the man who evidences solidarity. it celebrates thrift and frugality, not gratuitousness or generosity or simplicity which has a different fla

brendan: milton friedman said the second you get too high, you have to adjust the hot in the shower back idea that employers cannot change real wages -- or rather they cannot change nominal wages, they have to change real wages -- do we need a little bit inflation to allow them that room? alan: i think inflation allows them to grease the wheels of the labor market. take social security benefits. if you have prices decline, which we may have because of the drop in oil prices, social security benefits are held constant. they are not reduced. then you wait at the constant level until inflation gets back to where it was. then you raise benefits. that can be very confusing for the retired. mario draghi talking about the yesterday in his press conference about inflation. stay with us. "bloomberg surveillance." ♪ the the miskick of ricks -- mix of risk off. we begin this job stay with a stronger japanese yen as we get some nervousness in international markets. let's get to our job stay top headlines with vonnie quinn. vonnie: u.s. prosecutors are spelling b against the british trader they blame

we go back to early milton friedman.eeth at chicago and has gone on two important duties in global economics as many look for a new new in our models and theories, governor frenkel says we will forget about it. michael spence, even robert mundell, when he to go back to our original text books. everyone is looking for a new new in economics or is it out there? started,en the crisis everyone understood that some new economic policies needed to be introduced. qe2, and before too long, there was the question of -- are we in a detour for a new pair time? the longer the -- a new paradigm? the longer the detour took place, the longer it stuck. i strongly believe as long as you are on the shoulder of the old one, what does it mean? many of the basic truisms of the old textbooks are still extremely critical, very important. do not throw them away. they will be very useful before too long. tom: going back to hitpps in 1939, the banking system on the real economy. having modern theories thrown the real economy out with the bathwate

see an economic growth falls below 7% in the third quarter but all the stimulus, remember what milton friedmant us, you're throwing everything but the kitchen sink in terms of moonity poll system more is yet to come. >> what investors are struggling with is the linkages between whatever degree of slowdown we are seeing in china, the u.s. economy and emerging economies relying on china for growth. >> fisher made it clear to the extent china is the second largest economy in the world, almost accounts for 15% of global economic output, it has large tenticles, we cannot ignore china. you've i got to take into account its indirect impact. something like 0.7% of our gdp is chinese exports is not a lot. in other countries, it's a much bigger number. you mentioned a big decline in the component of manufacturing index. as china looks to increase demand and move more to a consumer-directed economy, what can it do to stimulate more consumer spending as opposed to beginning to align exports? >> it's clear right now they are caught between a rock and hard place. they want to shift the weight away from manu

milton friedman, who was much more of a fan of the central bank had said really the depression becameion because the fed didn't act, didn't do what it was supposed to do. actually those things that that, you were talking about before trying to prevent thousands of banks from failing which they did in the 1930s. trying to prevent inflation and unemployment rate going to 20% like they did in the 1930s. neil: they got it wrong like everyone else. >> for sure. neil: in 1937 you could argue premature hike went overboard and brought us into severe recession. >> for sure. neil: that we can't kill off federal reserve and left to blatant politicians left to handle it. i have know. are you surprised all the reaction in the markets post the meeting of the federal reserve? not only tumble in stocks but all the buying we've seen in the treasury market if aping a slowdown? >> certainly by the fed not moving it raise the questions how much confidence the fed has in the economy going forward. and so, i the key is, how the fed over the next few weeks will be talking about the u.s. economy. where they

market, so i would be, if i were donald, i'd go back, start reading frederick hayac and read milton friedman, and read adam smith and come to a conclusion before you start engaging. neil: that as you know, steve, trump has been among those saying companies who outsource or hire folks overseas, you got to penalize them. he's not firing or boeing is not firing american workers, just hiring a lot in china. so does he even made a distinction? and is that in sync with the republican party that by and large likes that kind of thing? >> when you have trade, people both sides prosper. if i buy something you from, you're offering something they want. neil: when it comes to china, it's all their advantage. >> well, we benefit enormously. look at apple, the products they sell us which made apple one of the largest companies in the world, one of the biggest, good paying companies in the world, they do a lot of assembly in china. so it's like each state in this country having their own barriers. so in terms of boeing wanting to do a business in china, that's good, that makes them a stronger company, make

milton friedman said economic freedom is an end in itself, freedom has nothing to say about what an individual does with his freedom, more on the issue of freedom in a bit. the free market was compared to a game in which, quote, there's no sense in calling the result just or unjust, closed quote. in this view, the market is a mere tool that can be used well or used badly with efficiency as the only relevant criteria. i think this is wrong. i think tools always imply and results can be efficient and unjust at the same time. pope francis explicitly warned about using efficiency and technology as the only criteria for evaluating economic and other social activity on the environment. i would argue, however, there's an obvious ethics at the heart of market ideology by posing a few questions. what values does the market celebrate? who are its heroes in comparing these with the catholic view? the market celebrates the self-made man, not the man who evidences solidarity. it celebrates thrift and frugality not gratuitiousness or generosity or simplicity which has a different flavor from frugality. the

but, the policymakers of the federal reserve don't have the luxury of waiting for the next milton friedman or ben bernanke you to write about the history of the 21st century. they have to make decisions now and fortunately the us economy has strengthened. of unemployment has fallen, 5.3% and we are crated more than 200,000 jobs and so there has been a sense among some people that, okay, time for the feds to begin that ever so slightly tight mass picket and raise interest rates and i think it's safe to say couple months ago or maybe a month ago there was a kind of consensus that the time had come and somehow the world blew up, the stock market gyrated, the chinese devalued that currency, their stock market crashed, mario dodgy said this morning in a press conference that the rest of the world was worse than expected and financial conditions have tightened, so that is something the fed has to take into account and today we will discuss what should the fed do, what will the fed do not owing to week, but in the months and years to come given they are in uncharted waters and i have a very disti

morning, he is writing that maybe janet yellen doesn't know because the fed has abandoned the old milton friedmanere monetary phenomenon definition of inflation. he says friedman's assumption of accelerating inflation and it irrationally rational expectations that lead to single-minded targeting of instability are embedded in economic models like some biblical creation myth. but the fed, along with almost all other central banks appears to have lost faith in that story. in other words, we are not seeing inflation and are pumping money into the global economy and it's not working. has suchmodel confusion of theoretical foundations to what any central bank is doing. mike one model has been a catastrophic failure. :all we have done with quantitative easing is turn the world into a lever trade. threaten toeven take the money away, the people picking up pennies and the and run andter there is a nearly perfect correlation between expectations of the future fed funds rate and commodity rises. the fed itself is the source of deflation. what?d itself needs to do to say our models are broken, monetary poli

>> but the policymakers at the federal reserve don't have the luxury of waiting for the next milton friedmanor ben bernanke to write about the history of the 21st century. they have to make decisions now. it has fallen 3.5%. so there has been a sense among some people that, okay, it's time for the fed to begin to ever so slightly tighten the spigot and raise interest rates. and i think that it is safe to say a couple months ago or maybe a month ago a consensus that the time had come. and then somehow the world blew up. the stock market gyrated. the chinese devalued the currency. their stock market crashed. mario draghi said this morning that the rest of the world looks worse than he expected. and financial conditions have tightened. so that is something the fed has to take into account. so today we are going to discuss what should the fed do, what will the fed do not only next week but in the months and years to come, given they are in uncharted waters. i have a very distinguished panel of experts. this is not a cross-section of america, nor is it meant to be. they are four economists all of

>> but the policymakers at the federal reserve don't have the luxury of waiting for the next milton friedman or ben bernanke to write about the history of the 21st century. they have to make decisions now. it has fallen 3.5%. so there has been a sense among some people that, okay, it's time for the fed to begin to ever so slightly tighten the spigot and raise interest rates. and i think that it is safe to say a couple months ago or maybe a month ago a consensus that the time had come. and then somehow the world blew up. the stock market gyrated. the chinese devalued the currency. their stock market crashed. mario draghi said this morning that the rest of the world looks worse than he expected. and financial conditions have tightened. so that is something the fed has to take into account. so today we are going to discuss what should the fed do, what will the fed do not only next week but in the months and years to come, given they are in uncharted waters. i have a very distinguished panel of experts. this is not a cross-section of america, nor is it meant to be. they are four economists all o