i i constantly remind people that frieda kayak wanted nobel prize in the 1970s milton friedman won a nobel prize just this year the supply side guru bob mandel passed away. he want to know about and and all for ideas that just a couple decades later are sort of unfathomable in the in the economic community and this is most unfortunate but even if you say economists will not acknowledge these ideas not withstanding the ideas of hayek. they have one nobel prizes. yeah. this was very intellectually serious work that we essentially spent a few decades post for award, too. out and i believe that these guys won the debate and yet here we are now digging in on some of the errors of old hayek is is probably from us to who sort of operate from a philosophy of freedom and advocate for this concept of the free society hayek has got to be most of their hero. most of there's hero. he really was an extraordinary philosopher in economics. and so the use of knowledge in society is a 17-page white paper. that i believe from the age of 15 to 25. i read a hundred times. i was that cool. and i believe t

so milton friedman in 1970 said, "as long as everybody plays by the rules, "then greed is good. you act rationally in your own self-interest." but at the samtime, les powell was saying how about we change the rules? so he sort of unlocked this ferocious effort that went for years of rolling back regulations, rolling back taxes, taking all government control out of the business sector angenerally casting government as sort of the barrier to busess. and in the 80s that kinda ansformed into a prileging of the business mind and the business personality is sort of superior and we all just engaged in that freely. and i think that they felt they had the permission really to go kind of bananas. - it is interesting at if one studies civilizations in history you see this pattern repeating itself again a again, i mean the roman empire ended in the same kind of situation. i'm saying ended because, at some point it ends. is that where we are going or coming to rehears all this - i ask myself that question a lot. so much of the economy of the rest of thworld depends on wther or not the americ

the politicians were downstream of people like milton friedman, irving kristol, george will, and at besthe politician seems to be downstream from all these people, downstream even worse from the steve bannon's. then a post liberal nationalist -- whatever they come -- call themselves, they say whatever we should be, they say we should give up on classical liberalism and that democracy is a sham. they say that democracy promotes the wrong kind of tricks, ruthlessness, consumption is him, and they say that free government -- they say that freaky -- free government means a weakness. that them say that to the ukrainian military. [applause] let them say that to the ukrainian territorial defense forces. let them say that to the brave soldiers, the heroes. [applause] finally, let them say that to president zelensky. [applause] god bless you, god bless america, and glory to ukraine. [applause] >> at today's white house briefing, press secretary jen psaki answered questions about whether president biden would consider a no-fly zone over ukraine, banning russian oil imports, and additional economic

the politicians were downstream of people like milton friedman, irving kristol, george will, and at best the politician seems to be downstream from all these people, downstream even worse from the steve bannon's. then a post liberal nationalist -- whatever they come -- call themselves, they say whatever we should be, they say we should give up on classical liberalism and that democracy is a sham. they say that democracy promotes the wrong kind of tricks, ruthlessness, consumption is him, and they say that free government -- they say that freaky -- free government means a weakness. that them say that to the ukrainian military. [applause] let them say that to the ukrainian territorial defense forces. let them say that to the brave soldiers, the heroes. [applause] finally, let them say that to president zelensky. [applause] god bless you, god bless america, and glory to ukraine. [applause] >> now, a discussion of political extremists from both political parties. this is also from the first principles summit in washington, d.c. [applause] >> thank you and it is a pleasure to be here. i have

when i joined the politicians were downstream of people like milton friedman, irving kristol, george will, now at best the politician seems to be downstream from all these people, downstream even worse in the steve bannon's in total carlsson. these are post liberal nationalist or whatever they call themselves. they say whatever we should be, they say we should give up on classical liberalism and that democracy is a sham. they say that democracy promotes the wrong kind of traits ruthlessness, consumption is , -- consumption is and they say that free government -- they say free government leads to weakness. that them say that to the ukrainian military. [applause] let them say that to the ukrainian territorial defense forces. let them say that to the brave soldiers, the heroes. [applause] finally, let them say that to president zelensky. [applause] god bless you, god bless america, and glory to ukraine. [applause] d spends washington journal. everyday we are taking your calls live on the air with the guest of the day and we will discuss policy issues that impact you. coming up this morn

when i joined the rubbing party the politicians were downstream , of people like milton friedman, irving kristol, george will, and at best the politician -- now have best the politicians seem to be downstream from all these people, downstream even -- worse from the steve bannon's. tuggle carlsen's. -- tucker carlsen. these are post liberal nationalist -- whatever they come -- call themselves, they say whatever we should be, they say we should give up on classical liberalism and that democracy is a sham. they say that democracy promotes the wrong kind of traits, ruthlessness, consumption, and they say that free government -- leads to weakness. . let them say that to the ukrainian military. [applause] let them say that to the ukrainian territorial defense forces. let them say that to the brave soldiers, the heroes. [applause] finally, let them say that to president zelensky. [applause] god bless you, god bless america, and glory to ukraine. [applause] these spans washington journal. in the up this morning timothy fry of post-soviet foreign policy professor at columbia university on preside

marion mentioned milton friedman. one of the things a quarterly return access financial private sector does is under invest in both productive and social capacity and insight and in research. senator young made this point about market forces on their own not now adequate investing in the kind of innovation and science that we need. hence the need for public investment on one in for public policy to promote investment from the private sector. those are the texts you referenced. the to answer your question, asked the time those reports were sort of a voice -- industrial policy wasn't a phrase respectable economists were supposed to say but as you mentioned in the last few years we've seen that change. the concept what are just described has become more widely accepted wisdom, academics and think tanks across the political spectrum including mine have taken up the task, and is also an appreciation that industrial repetitiveness has always been a -- competitiveness has always been a part of her history -- our history all

maryann mentioned milton friedman. one of the things that a quarterly returns obsessed financial sector does is underinvest in both productive industrial capacity and in science and research. senator young made this point about, you know, market forces on their own not now inadequately investing in the kind of innovation and science that we need. hence the need for public investment, number one, and for public policy to promote investment from the private sector. those were the texts that you referenced. and to answer your question, at the time, those reports were sort of a voice crying in the wilderness. industrial policy wasn't a phrase respectable economists were supposed to say. but as you mentioned, in the last few years, we've seen that change. and these concepts, what i just described, has become more widely accepted wisdom. academics and think tanks across the political spectrum, including mine, have taken up the task. and there's also a new appreciation that industrial competitiveness has always been part of o

you harken back to milton friedman. i cannot believe i saw that.e had a pandemic and now we are clearly having some form of anti-transitory move. is there more to come and can you and deutsche bank model out wheat and oil? allen: there are a few different factors behind this inflation story and the most obvious one was the supply chain bottleneck story. that was a story that came forth in march of last year. behind that was the idea that there was a huge monetary overshoot that was essentially allowing prices to go up across a wide swath of the economy. in addition, you have the commodity price implications. that is effectively another supply shock, a different supply shock. the first one was manufacturing chain related. this one is commodity-related. the problem you have is that if you thought things were transitory in the first instant, that has not come to pass. we hope that inflation would be under control by the end of this year and commodities and that has dampened those expectations. inflation is much more entrenched in the system. lisa: how

it's one of the most influential sums milton friedman and it's interesting , wendy alluded to this. the flow in a sense of the debt. the challenge at the primary deficit before the pandemic was wide.the economy before the pandemic was in good shape. but you have rising income and importantly incomes are rising throughout the distribution most strongly of the bottom. incomes are rising at the bottom. incomes are rising faster at the top but wealth especially at the top but income through the bottom, this is the late 90s. the same constellation of changes happens with widening, worsening inequality in the late 90sbut rising incomes at the bottom . shape.are in good our mst was helpful but not enough given what's happening with the primary deficit. we are updating our budget outlook now as cc ralph said. alluded to the president's budget, economic part of the president is hung up behind it. the cbo budget update is similarly on decline from last year so we're waiting for that and we will update the budget so we understand the trajectory is daunting. jeff, i think staffing is the right

so milton friedman who won the nobel prize in economics said that inflation comes from too much money being printed in dc, specifically, and i quote, he said inflation is the result of too much money and more rapid increase in the quantity of money than an output. moreover in the modern error -- era, the important next step to recognize that today governments control the quantity of money so that as a result inflation in the united states is made in washington and nowhere else. so director young, in short, inflation comes from washington, dc, where the products we use aren't created but the products we use are made more expensive, uh, director young, uh, shamefully this biden budget proposes the largest tax increase in american history and, uh, i really think that bears repeating. it is the largest in american history. uh, the biden regime either has no concept of how inflation is impacting americans or simply has no concept for americans who find the cost of gasoline too expensive because after all, they can't just go buy a tesla, how about that for democrat priorities, thank you, ma

since milton friedman and it's important.et interest burden that the flow carrying cost in the sense of the debt. the challenge the primary deficit before the pandemic, they commonly overthrow of pandemic really was in pretty good shape. we had rising incomes and a poorly incomes were rising throughout the distribution especially strongly at the bottom inequality was writing but incomes were rising at the bottom. incomes are rising faster at the top but incomes are rising at the bottom. this is a like the late '90s the same constellation of change that happened with widening worsening inequality in the late '90s the rising incomes at the bottom. so really good shape but the deficit was wide. our midas jewelers helpful but not enough given what's happening and -- are minus g was helpful. we are updating the budget deficit now as cecilia rouse said, the president's budget is coming. the cbo budget update is hung up got it because we get data from the administration on the actual spending from last year. we're waiting for that a

as milton friedman help to publicize there's no such thing as a free lunch when my view of car owners pay a federal gas tax riders should have to pay nothing to contribute their fair share as of local communities. systems serve in city and the metropolitan area not the entire country. that is why congress has helped to pay for operating systems. if new york or washington d.c. cannot or will not pay for their transit systems why should federal taxpayers? and onee other issue and that's the rising rate of crime in the mass transit systems. having far fewer writers new york l.a. chicago philadelphia have all seen spikes and transit crime. there were 461 felony assault on new york's metropolitan transportation authority last year theye highest number since 1997. mta rioters are confronting hammer attack stabbings multiple people pushed onto subway tracks including in front of oncoming trains with one woman tragically killed in new york city's mayor of former says he doesn't feel safe on the subway. today we'll hear from two witnesses on the ongoing systemic challenges facing transit agenc

but as milton friedman help to publicize, there's no such thing as a free lunch. in my view, just as car owners pay a federal gas tax to support highways, transit rider should have to pay something to contribute their fair share to. as should local communities. transit systems after all serve a city or metropolitan area, not the entire country. that's why congress has traditionally helped to pay for capital needs but not operating expenses. in new york or washington d.c., if new york or washington cannot or will not pay for their transit systems, why should federal taxpayers? and there's one other issue we much discussed and that's the rising rate of crime in mass transit systems. despite having far fewer riders, new york, l.a. and chicago, philadelphia, have all seen spikes in transit crime. there were 461 felony assaults on york's metropolitan transportation authority last year. that's the highest number since 1997. empty a riders are confronting fearful conditions, we've seen the news stories. hammer attacks, stabbing, multiple people push onto subway tracks. i

but ultimately if you cannot cut anymore then inil the one since you could be out of tools and milton friedman was one of the first to talk about this years ago with respect to japan. you could always affect the longer-term interest rates by buying sovereign debt so that tends to bring down the alonger-term rate. they matter to the extent you borrow long if you are someone that likes to borrow like an investment grade a companies, then the rates will go down for 30 year lending. most people shortened is more important. i'm not going to ask about energy policy, but let me ask what percentage or what is the quantification of how it's related to energy prices? >> energy inflation, when we talk about the core inflation, we exclude inflation from energy and food - prices because those are quite volatile. if you look at the way we look at it, it's about five, in the range of five and energy inflation put on top of that is in the high sixes so close to a couple of percentages at least. >> in myt last 14 seconds, to highlight i always worry about farmers and ranchers, small towns, community banks, len

milton friedman said it best, bad money always chases out good money.hey have seized on this, it is vladimir putin, we are going to run russia russia russia again on energy prices, on inflation. i our memories long enough to recall the chart for both of those goes bottom left to upper right basically starting on inauguration day? >> good question. do they think it is going to work? fred segal has a great book that lays out how the left gas lights people into believing things like this is vladimir putin's price hike, they use congressional committees and activist groups in the media to get the message out but it worked over the decades, a couple components to gas lighting, getting people to believe something that is not true, all of it is putin's falls but at every domestic problem is putin's falls, tell a lie competently, till the lie often that he is the key to hard, you have to isolate people from the truth. you can't allow people to see the truth, like the m night shamala on movie the village where everyone thinks there are creatures and it is all a

so milton friedman who won the nobel prize in economics said that inflation comes from too much money being printed in dc, specifically, and i quote, he said inflation is the result of too much money and more rapid increase in the quantity of money than an output. moreover in the modern error -- era, the important next step to recognize that today governments control the quantity of money so that as a result inflation in the united states is made in washington and nowhere else. so director young, in short, inflation comes from washington, dc, where the products we use aren't created but the products we use are made more expensive, uh, director young, uh, shamefully this biden budget proposes the largest tax increase in american history and, uh, i really think that bears repeating. it is the largest in american history. uh, the biden regime either has no concept of how inflation is impacting americans or simply has no concept for americans who find the cost of gasoline too expensive because after all, they can't just go buy a tesla, how about that for democrat priorities, thank you, ma