. >> originally a milton friedman idea among the most conservative economists? >> yeah, the eit see came out of actually the last big debate that we had around the guaranteed income in the united states. back in the late 60s he was widely dead on the left in the rate that he guaranteed income could be the most powerful way to ensure that no one lived in poverty in america and the most efficient way economically to provide economic opportunities. milton friedman, who was an early proponent of the idea, talked about it, wrote about it extensively in that era. at the same time as dr. martin luther king junior was making the same case from a moral to, but at the same moment in history, richard nixon as i'm sure you know supported the idea of the guaranteed income and even passed the house and failed in the senate and went underground for several decades. the earned income tax credit was one of the policies that came out of that. it was the kind was the kind of steppingstone if you will but over time has been expanded and expanded again and again. so now i think we h

the beginnings of it in chicago talking about what is conservatism, that was the topic where milton friedman and russell kirk. and coming out of that was the beginning of where are we, what are the ideas, what is the philosophical foundation for a political movement? because up until then it had been an actual -- and intellectual movement. we were fortunate because along came ronald reagan in 1966. we were able to transfer that energy and excitement that we engendered with barry goldwater to ronald reagan. that was a key thing. i think also one has to say that reagan was many things. one of the reasons he was so sick testable was that he was a man of intense ambition. he really wanted to be president. there has been some recent research which has shown he was trying hard to get the nomination in 68. i didn't realize that in my own research. he was closer than a lot of people knew at that time. a man of intense ambition and also willing to be pragmatic about things and reaching out to people. if we are talking about leadership for the future we need charismatic leadership but we also need pra

. >> host: wasn't this originally a milton friedman idea among the most conservative economists? >> guest: it came out of the last big debate we had on the a guaranteed income in the united states back in the 60s and early 70s it was widely accepted that it could be the most powerful way to ensure no one lived in poverty in america and the most efficient way economically to provide economic opportunities like dalton friedman who was an early proponent of the idea talked about and wrote about it extensively in that era ended the same time the they one makig the same case from a moral perspective but at the same moment in history richard nixon supported the idea and even pass the house and it went underground for several decades the earned income tax credit was one of the policies that came out of that so it was a stepping stone that has been expanded. so now we having a moment in a new opportunity to do that the changing nature of work when it is at a historical level and he would do well to ground that conversation in a conversation about how cash can be the most powerful way to

milton friedman ridiculed limits it if that your objective everything should be built with a spoon, butagain this a balancing act but yes, historically public works have very long tradition of providing work release. >> i also heard in your question and interest in requirements that limit your alternatives perhaps in non-optimal ways, and then that respects early that goes way back as well. right now, for example, when the biggest complaints about city transportation officials as a national association of city transportation officials would be happy to tell you is that the state department's of transportation tie their hands but what they can do within city limits, even, and sort sometimes just to some extent at least impose suburban or rural standards on vince city cores in ways where they are not so well-suited. yes, going back one of these constraints start kicking in, you can see them go back a long way and take the as reflection of successful agenda advancement by interest groups with the stickiness. for example, a lot of our state highways of the mid-20th century and the first gen

milton friedman ridiculed them, saying every thing should be built with a spoon if that is your objective. there is a balancing act, but historically public works have a very long tradition of providing work relief. mr. norton: i heard in your question and interest of requirements that limits your alternatives at least in non-optimal ways. that goes back as well. right now, for example, one of the biggest complaints among city transportation officials, as the national association of city transportation officials would tell you, is that the state departments of transportation tied their hands about what they can do within city limits, and sort of sometimes to some extent at least impose suburban or rural inndards on dense city cores ways where they are not nearly so well suited. these -- whene of did these constraints start kicking in? you can see them going back a long way, and particularly of successful advance of interest groups that have a stake in this root a lot of our state highways in the 20th century and the first generation of interstate highways were typically made of reinforced

milton friedman was an early proponent of the idea talk about it and wrote about it extensively in that era. doctor martin luther king junior was making the same case from a moral perspective at the same moment in history. richard nixon, as i'm sure you know, supported the idea of a guaranteed income which failed in the senate and went underground for several decades, but the earned income tax credit was one of the policies from canada. it was kind of a steppingstone, if you will that overtime has been expanded and expanded again and again so now i think we have a new moment, a new opportunity to talk about the changing nature of work in the united states. to talk about poverty and economics and stability in this moment when income equality is at historic levels and we would do well to ground that conversation in a conversation about how cash can be the most powerful way to combat inequality. >> how do you address the irony that nick mulvaney, head of the omb suggested that on food stamps, instead of making food stamps relatively unrestricted we should give people boxed meals? is this m

re at the milton friedman and russell kirk talked about what is conservatism in chicago. coming out of that, was the beginning and what were the ideas and what can be some kind of philosophical foundation for a political movement. up until that time, we had been an intellectual and political movement. following with goldwater and our experiment with that, we are very fortunate because along ronald reagan in 1966. we were able to transfer all of the energy and excitement that we gendered with barry goldwater to ronald reagan. that was certainly a key thing. i think also, one has to say but reagan was many things, one of the reasons why he was so successful, that he was a man of intense ambition. we forget that. he really wanted to be president. there has been some recent research on this which has shown that he was trying very hard to get the nomination in 1968. i didn't realize it in my own research. he was closer that a lot of people knew at that time. the man of intense ambition and also willing to be pragmatic about things and reaching out to people. if we're talking a

infrastructure in place in the country with a lot of information, you can now research videos on milton friedman and see videos on youtube. with that in mind, do you have a greater hope that conservatives can do better? >> i loved earlier when rod was saying when you to think about all of this decentralization. part of bob saying you have this kind of populism, i think i would use the term charisma. i understand what you're saying. the good versus the bad. i think that makes a lot of sense. i do see, personally, and i have not had the experience that rod had at this christian school. my students at hillsdale. i won't say that they come in fully formed because they are 18, but it's amazing. they dazzle me every year. i'm humbled by them every year. i find them impressive, now i am in a place that is probably weird and unusual. dr., if you are listening, this is pretty good. [laughter] i do think there is a hunger. i've seen a lot of great scholars, lauren hall, abby hall, alex salter. i can think of a number of people in their late 20's, early 30's right now who are doing fantastic things in poli

you can now research milton friedman and see videos on youtube. so with that in mind do you have a greater hope that conservative s can do better. >> i loved earlier when rod was saying, we have to think about all this decentralization. everything is decentralized now. part of bob saying, well we have this kind of populism, i guess i would use the term probably charisma for reagan, more than populist, i understand what you're saying the good versus bad, but i do see, personally i have not had the experience rod had at the christian school. certainly my students at hillsdale, i won't say they come in fully formed, because they're 18, but they're pretty amazing. they dazzle me every year and i'm humbled by them every year. granted i'm in a place is probably a little bit weird and little unusual in the best sense. dr. arn, if you're listening this is all good. i do think there is a hunger. i have seen a lot of great scholars, young scholars, incredible scholars, lauren hall, abby hall, alex salter, i think a number of their people in late 20s, early

>> i think milton friedman >> why >> i just think that he has a unique way of looking at economics.nique perspective. >> he likes his hair style >> all right jeffrey, how does it feel to be not the smartest kid on the block but one of the smartest kids in the country when it comes to economics >> feels amazing to be standing here in front of this crowd of people and i'd really like to thank the council for economic education for bringing together these students who are all passionate i've gotten to meet so many other people who share my same interests. it's been such a great time. >> caroline, what can you say to imwith and girls your age about being involved in economics? >> i think despite how many boys you've seen on this stage, women can succeed just as much and we're really needed in the economics course >> is it cool do economics where you're from? >> we have a rather small economics team, but i think it is pretty cool >> can we get a gatorade dump on the winners? with. >> we have to wrap it up, but how is it important to even too these kids >> to let them know how to operate

we talked about this with ken fisher a couple of weeks ago he said i want the fed to do the milton friedmanney supply, a cowl of percentage points each year and that's it what do you think? >> the trouble with the utterly predictable stair step change in things like the fed change rate or money supply is it gives the leverage players a chance to tee off on certainty and one of the great if not household contributions to economic history was a piece by charles goodhart who examined the period before the fed's founding, the 13 years from 1900 to 19 threaten -- or i guess 14 years inclusive and found the volatility of today's fund rate stood in the way of banks making a big bet on leverage. they couldn't count on a steady cost of financing. therefore they couldn't borrow short and lend long. >> do you think they should have come out food and said surprise, we raise bade quarter point? >> you asked me about the use of predictability. >> right. >> and i would say that is a paradoxical negative for the situation. what is wanted is constructive -- is constructive uncertainty. >> but powell seems t

milton friedman had it right when he said nobody spends somebody else's money as wisely as their own. why don't they care about $150,000? because it wasn't their money to spend. this is why government isn't good at anything they do. they're terribly ineffective because they're spending other people's money. it means government should be so small that they have less room to make errors like this. we should devolve most of the power back to the states what our founding fathers intended and try to say we're not going to tolerate this kind of stuff. this is $250,000 that was spent to send 24 kids from pakistan to space camp and dollywood. so my first question would be asking, is there anybody in america that didn't get to go to dollywood or space camp last year? i think when everybody in america has gone, then we might consider sending some pakistani kids. frankly, there's nothing in the constitution that says we should be sending pakistani kids to dollywood. now, there's nothing wrong if you want to send some kids from pakistan to dollywood and you have extra money. by all means give it

you don't need to tell you, adam smith or milton friedman will tell you negative effects of tariffs. president bush could tell you, neil, go back to early 2000s, tariffs on steel, what those did to jobs and productivity this is politics, politics brought to the markets. that is why you're seeing markets react in this way. people are saying we don't know what the tariffs will be, if they are up to the president's whim or caprice. neil: it is interesting, i think the markets have a thing with the status quo, with the establishment and everything else. they are very much inclined to keep things kind of as they are. so, if you enter into the mix the possibility of tariffs or getting tough on china, whatever the merits of that argument, to walk away from nafta or whatever, start something new, whatever the merits of that argument, they get rattled. so you, young investors come to you, jonathan what do you tell them? >> i think that is exactly right, neil. we always talk about the market hates uncertainty. you heard this time and time again. you talk about something, 25% tax on induss city