>>host: this was originally a milton friedman idea? >> the e-itc came out of the last big debate that we had around guaranteed income. from the late sixties and early seventies. it was widely accepted on the left and the right with a guaranteed income to ensure that no one lived in poverty in america and the most efficient way to provide economic opportunity so milton friedman an early proponent talks about extensively in that era and at the same time doctor king junior from a moral perspective at that moment in history to support the idea the guaranteed income and eventually failed in the senate and eventually failed in the senate earned on - - unearned income tax credit is a policy that came out of that. and with that steppingstone has been expanded again and again. so now we have a new moment, new opportunity the changing nature of work in the united states and economic mobility and income inequality is that historic levels and you would do well to ground that conversation how cash can be the most powerful way to provide that econom

and efficient use of funds is not what milton friedman had in mind but the big companies are extending the pace. it is rational to do that, if your competitors are doing that you have to play the game. that is why companies need to come together and say this is destroying the whole system, we have to step back. >> we have to root for their kids. >> kids are really important, you know how it is. >> i'm not being skeptical about kids who might get ranked. here is somebody asking a question, what i was thinking when you mentioned his name. the system. i will do it in the right tone. if elon musk is an example of reimagining capitalism for good? >> guest: elon musk is complicated. he does not run a high-performance work system in his factory. despite a lot of people trying to persuade him he should. that's why he has had so much trouble with his production. elon musk is a good example how having a vision of where the technology might go and how it might make a difference in the world and investing in that vision can draw broader changes there are such people. one of the things about mister

always milton friedman showed the production of money was tied to liver and the computer price index -- consumer price index -- tied to labor. and the consumer price index is tied to that at the hip. at what point does inflation become a harm to us? >> we don't have to worry about that right now. interest rates are extremely low. it is important to mention that we have a ton of fiscal resources right now. inflation happens when there's a ton of demand that overheats the economy. that is the opposite problem that we have at this point and given that we have on the order of dirty million people out of work, we are not going to face a until thesehis things will be able to work out. spendnow every dollar we is an important resource to go towards avoiding a much longer period of elevated unemployment that will do far more persistent lasting damage to the economy. when we are in good times, we don't want to do a whole much of deficit spending necessarily. at a time like this, it's different policy prescription given how the economy is. >> c-span's washington journal live every day with new

over the next two hours you will hear from milton friedman, studs terkel, christopher agents, toni morrison and shelby foote but first, john hope franklin, author of the best-selling slavery to freedom, appeared on "in depth" in 2006. >> i was in high school and that was a man who was employed by the tulsa tribune and he in turn employed me, didn't employ any young black newsboys. i was employed by mister ripitso, it always and always clear what that was. in the afternoon, he was throwing newspapers and i helped him, wrapped them and prepared for the delivery and then went around with him to deliver the newspapers and i didn't collect, he collected the money and he had all the contact with the newspaper. i had no contacts with the newspaper though they knew that i was in front, they employed no black people. >> host: your father was a lawyer? >> guest: my father was a lawyer, yes. i contacted people through him, but it was not a serious thing. >> host: where were you born? >> guest: in oklahoma south of tulsa, the name of the village was rentersville, oklahoma. my father and mother moved th

biggest consequences is that this will debateively end the between the business roundtable and milton friedmanr stakeholders versus shareholders. ,ny time you have the economy the stakeholder perspective will win out. you see that in restrictions outside of the federal reserve, some of the federal reserve facilities, in the restrictions the government is proposing on recipients of funding, and more broadly anytime the government becomes this involved in the economy -- and again, out of necessity given how deep and severe the economic downturn is -- but when that happens, the shift from what i will call the econ 101 perspective of only share your serve holders versus a broader stakeholder perspective will be accelerated. sonali: one part of that stakeholder theory is employees and some of the companies receiving aid, the big airlines where the aid goes until a certain point, we are still seeing a lot of layoffs and the unemployment rate surging. employees seedo relief? peter: there is no perfect fix. these are band-aids and attempts to mitigate the pain. the real fix comes when we solve the und

milton friedman defined "high-powered money" as the monetary base, the portion of the money supply the direct control over. when the central bank goes out and purchases and asset, they are different than other banks and financial and duchenne -- financial institutions in that they print money to pay for it which adds reserves to the system. what the federal bank does not reserve -- control is the broader money aggregates tied to the banking system. recent efforts, the balance sheet, the monastery --monetary base hi money high money is up and broad money measures are over 20% plus over the same period. that is more significant that what we saw from the fed's first phase response in 2008 where broad money measures barely budged. fed is some evidence the may be getting more traction this time. tom: does the theory work? a lot of theory we studied in school, does any of that theory and in the complete fiction fantasy we are dealing with now in monetary reality? michael: i think the theory works in the sense that the equation of exchange is a truism but you are dealing with moving variables

be the most powerful way to ensure nobody lives in poverty and to provide economic opportunity milton friedman was an early proponent of the idea talks about it and wrote about it extensively. at the same time doctor martin luther king jr. from a moral perspective at that moment in history as i'm sure you know supported the idea and then failed in the senate and then went underground for several decades. but the on on - - on earned income tax credit but it was a steppingstone if you will to that overtime has been expanded so now we have a new moment an opportunity to talk about work in the united states and poverty and economic mobility when income inequality is at historic levels and we would do well to ground that conversation about how cash can be the most powerful way to provide economic opportunity. >> how do you address the irony that mick mulvaney office of omb suggested on food stamps instead of making them relatively unrestricted but shift them back to meals? >> is this the wrong direction? >> i agree i do think that would be a move in the wrong direction. ironically that kind of outl

it is a big business putting money into politics milton friedman said you have to maximize shareholder value but that is to get them to rewrite the rules. if you can pump sufficient one - - sufficient money into politics they stopped the chances of carbon regulation then why bother to compete? i have a problem with disney in the book that a panel of nobel prize is economist but no special value whatsoever into the street transfer of many into disease so that use of funds i'm pretty sure that is not what he had in mind but those big companies set the pace and in the individual companies to get competitive you have to do that play the game that's why the big companies need to come together to say this game is destroying the whole system we have to step back. >> we have to convince them. >> yes that you know how it is. >> i'm you being skeptical about kids but here is somebody who asked the question exactly what i was thinking that i'm sorry is elon musk an example of reimagining capitalism for good? >> [laughter] >> he is complicated. he does not run a high-performance web system in his

hong kong was the city that milton friedman held up as the example for the united states as what a freeiety functions like prey to so president trump will have some big decisions, not just tomorrow, but they have not implemented the security law yet. he has to send a message to xi jinping, if you want a crackdown in hong kong and you arrest democracy leaders in you ban the is elections, going to reveal the hong kong policy act and take away their preferential trade status and welcome hong kong people into the united states, because you are going to have brain drain and capital flight if you do this and we will welcome those people, because those are the people that we need to rebuild the economy. if you don't want them, we will take them. >> martha: absolutely. and obviously functions as a conduit to try to participate in that rich thriving market economy in hong kong through china. what we heard from secretary pompeo yesterday is that this change is that if they don't have their own authority, then those trades, those favorable trade deals are over. all right, i have to leave it there.

bring up a good point, what is the role of a corporation right now and a bigger question, is it milton friedman and the business is the business of business but for example child care you're providing it for everyone, paying people to hire child care right now at your company. many economists are saying the economy cannot get back until everyone has that. because how -- summer camp just got canceled. how can people go back to work without that? do you agree with the economists? >> i think that's why we provided it, so i think that the benefit we provided was not only provide child care which we always provided to people in the lower pay stratas of the company but we said you can hire instead of going to child care center you can hire a friend, you can hire a cousin, you can hire a teacher who is not working, whoever, to take care of your kids and we provide $100 a day and we had 400,000 days requested from our teammates to do that, and we believe that's critical so they can be productive and effective at home to everybody is serve our clien customers. as you think about the programs the questio

poverty in america and the most efficient way economically to provide economic opportunities like milton friedman who was an early proponent of this idea and talked about it and wrote about it extensively in the area. at the same time, there was doctor martin luther king jr. who was making the same case. from the mortal perspective, but at the same moment in history. richard nixon as i'm sure you have supported the idea and it even passed the house but eventually failed in the senate and went underground for several decades but they earned income tax credit is one of the policies that came out of that, so it was a kind of stepping stone if you will get overtime has been expanded and expanded again and again because it has that effect. so now we have a new moment. a new opportunity to talk about the nature of work in the united states to talk about poverty and economic mobility in this moment when income inequality is at a historic level. and we would do well to ground as conversation in a conversation about how cash can be the most powerful way to combat and provide economic opportunity. >> host:

over the next two hours you will hear from milton friedman, studs terkel, christopher agents, toni morrison and shelby foote but first, john hope franklin, author of the best-selling slavery to freedom, appeared on "in depth" in 2006. >>

if you do the math properly like milton friedman, you need a small government to have a really vibrant economic growth. that is not what hayek's argument is about. it is not about output or economic terms at all. it is about the political consequences of federal central government spending. actually the math in the 1930's and 1940's is in the bigger book in keynes. that is the road to serfdom. not as big a book but even that is a little bit too much for 1940's americans. it gets turned into a readers digest version which is this much which is how a lot of people actually read it. but never fear, even your colleagues in the 1940's just wanted the overheads. they did not even want to read a short book like this. they wanted the cartoon version which was published in look magazine. i can show you what the argument of the book was in basically a dozen easy steps. this is how a road to serfdom makes its case. first during the war you want to do planning. everyone likes planning and they want to keep planning after the war. the planners say everything is going to be great once our plan is in

>>host: our guest here from san francisco on book tv doctor milton friedman and his wife rose who was also here on the cover and is your most successful book. >> yes. >> what do remember about working together on this book? >> it was from what was already said we have the television program notes. so we started with one chapter and then ended with the other person so we really don't know who wrote which words. that's true about all the books we have written. >> and that was the shortest time because we had a deadline they wanted to have it out in time to be available when the television program was shown. so we started on it and marc march 1979. and then to be published by labor day they got it published by january is when the tv program started. >>host: what does she do that you don't or vice versa? >> everything. >> nothing. >> we both use a computer now. >>host: we talked about aging your both 88 years old. you surprised at how well you did? you move around. >> everybody says we are bouncing around. i don't feel that we are bouncing around frankly. [laughter] many things i can't do

frederick hayek and milton friedman and william f buckley, founder of national review, important figures in the history of conservatism. i wanted to look at another strata of thinkers. in my book, i look at a bunch of people who i term the apostles of free enterprise, following with the media called them. i am including people who most of us have not heard of. editor of the, nation's business. he played a crucial role in reinventing free and her prize in its modern sense -- inventing free enterprise and its modern sense. the president of the national association of manufacturers, a group that really cared a lot about free enterprise, and leonard read, head of one of the first conservative think tanks, and also the author of an essay i, pencil, the autobiography of a pencil, which plays a crucial role in my book. i also look at people who are better known, but probably not considered intellectuals, like herbert hoover, the democratic but conservative congressman --, the minister norman vincent >> i also look at people who are better known, but not considered, intellectuals like herbert ho

and milton friedman. much of the interest in guaranteed income was driven by the realities of the historical moment. the war on poverty which was just four years old in 1968 had focused on the quote, long run creation of opportunities in employment, housing and education rather than on income transfer programs. but that approach failed to eliminate poverty which had been the expectation of many americans and the rhetoric johnson had used in commencing the war on poverty. perhaps more importantly the war on poverty had also failed to resolve a stubbornly high poverty rate among minorities, especially african-americans who in 1969 had a poverty rate of 32% compared to the white poverty rate which was under 10%. a number of factors had converged to keep african-american poverty rates high, the nexus of automation and migration was one of the central culprits. automation in rural parts of the country had uprooted millions of african-americans for decades who migrated to northern cities in search of jobs. in t

. >> we are going to the phones shortly and our guests here on booktv are doctor milton friedman and rose friedman. also here on the cover of free to choose which i guess is your most successful. >> yes. >> what do you remember about working together on this book? >> it was very easy. as milton has a very said. we had the television program notes. and the book was written from that. so we each started with one chapter and added for the next person to the chapter. so we went back and forth that way. so in the end, we really don't know who wrote which words. which is true about all the books we've written. >> that was probably finished in the shortest time because we had a deadline for it. we wanted out to be available for the television program, when it was shown. and so we started in march 1979 and we got it to the publisher by labor day. and they got us published by january which is when the tv program started. >> when you're working on these projects, what does she do that you don't what does key do that you don't? >> we both type. we both use the computer now. >> we talked about a

milton people citing friedman.se, the problem with that sort of view is that it overlooks something which in jargon terms is called the philosophy of money. how much that money that is being created by central banks and the government is actually blowing through the economy, and we think that will remain subdued as people increase their precautionary savings, as some companies pay some of that government stimulus back, and that will hold down inflation, even if we do get a reasonably strong recovery. at thei think you were lunch i was at during the weekend. m2 might be exploding but it is all about the velocity of money. thank you very much. you have just confirmed two of the biggest trades. my guest host stays with us. do not hang up the phone. and he china protests -- anti-china protests return to hong kong. denouncing china's security law. the biggest outcry since the coronavirus swept through the city in january. the legislative councilmember spoke earlier, who is vice-chairman of the democratic the betterment

ahead of the curve on disease something that we can reverse hopefully relatively are quickly milton friedmanas string if you pull down a furthering it snaps back faster that is what president trump is hoping for you our economic team trying to design policy to make sure that is what is happening. >> march has also been revised lower so we are seeing a lot worse situation than we thought in march. it is being revised down so tell us when you see things easing up kevin as we see some of these states opening up, the worries are also increasing, about another -- spike, in cases. >> yeah well again i am not expert on disease but i can say that if you look at one way you can think about what is going on, and when a the potential economic effect of opening up is just like what percentage workers are furloughed or temporary a noisy thing,because people might mark down the wrong check the wrong box, but it looks like you know, a very large percentage of the people who are filing for claims are being scored as unemployed are furloughed temporary layoffs if businesses can start up again soon hopeful th

always milton friedman showed the production of money was tied to liver and the computer price indexconsumer price index -- tied to labor. and the consumer price index is tied to that at the hip. at what point does inflation become a harm to us? >> we don't have to worry about that right now. interest rates are extremely low. it is important to mention that we have a ton of fiscal resources right now. inflation happens when there's a ton of demand that overheats the economy. that is the opposite problem that we have at this point and given that we have on the order of dirty million people out of work, we are not going to face a until thesehis things will be able to work out. spendnow every dollar we is an important resource to go towards avoiding a much longer period of elevated unemployment that will do far more persistent lasting damage to the economy. when we are in good times, we don't want to do a whole much of deficit spending necessarily. at a time like this, it's different policy prescription given how the economy is. we need to spend to get us out of this. host: thank you fo