so milton friedman in 1970 said, "as long as everybody plays by the rules, "then greed is good. you act raonally in ur 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 and nerally casting government as sort of the barrier to busess. and in the 80s that kinda ansformed into a priveging of the business mind and the business personality is sort of superior and we all just engaged in that eely. and i think that they felt they had the permission really to go kind of bananas. - it is interesting th if one studies civilizations in history you see this pattern repeating itself again and ain, 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 othe world depends on wheer or not the american eco

it was i believe milton friedman who stunningly said that the free market must exist to entice the able to reveal their abilities. if one has no possibility. in the theater of doing anything but staging platitudes. the talentless will induce step up, but the inspired have no reason to do so. the reward of the talented is unfettered creation. as i know today was writing about the theater but his words resonate in the realm of politics and government as well. we've been talking a lot lately here at the reagan library through our time for choosing speakers series. about the future of the republican party in the conservative movement. when we cancel. or punish every perceived departure from the party line or from political correctness when we don't give leaders space. to offer refined develop their positions then we get the same problem the talentless the robots of political orthodoxy will step up but the inspired will stay home. how sad our world would be if the leader like ronald reagan? had not had the chance to step forward just because he held some unorthodox views or because he defied

what milton friedman said was monetary, inflation is always a monetary phenomenon but beyond that hehe function of greed of corporations or consumers or anybody else. it is strictly the function of printing money and the government. if we go back to look at every bout of inflation it always comes down to a monetary issue. i don't think he lost his luster at all. in my opinion. charles: real quick, less than a minute to go. i saw your twitter fee, thanked joe, at the pump you paid 100 bucks. i was at the pump this weekend, i paid 177 bucks. what are you driving my man? are you driving a civic in texas? >> i live in texas. we produce oil. our gas here is about 4.89 a gallon. charles: oh, okay. lot less than you i was worried about you. i have the t-rex. i know everyone not at 177. i thought it was a little light. is he driving a civic? markets driving to pick up a little bit of speed, call it "the cp effect." how should you be positioned? two of the best joining me in studio. get out the pens and pads. this is the place to make money. we'll be right back. ♪ you're a one-man stitchwork

the fed is trying to use the narrative the milton friedman all over again.ake the money out of the system. you oversupplied which caused a hike in wages caused a hike in demand. take that out and drain the system. charles: all the games being played and main street is being played like a yo-yo. >> less than 50,000 bucks are getting punished. charles: mike wilson, morgan stanley the drawdown could be as much as 50% from the high. i started this segment off how much destruction has been already. if we do go 50% from the high earlier this year, that would break the record from the great financial crisis. we would be talking about like 75% of gdp. is that necessary? >> it is not necessary. i would completely disagree. you don't get that kind of recession or kind of correction when you have 3.6% employment. healthy wage year-over-year. fighting inflation nowhere near the rock bottom of the economy is still shaky. consumer demand is still strong. you don't recess when that happens. charles: michael how much more downside, a, can be or b, has to be? many are saying

how could i nott have seen that before and one of the people he was with was milton friedman in chicago i've read through and friedman said to his doctoral students i'm looking for a thesis and it can't can be longer than 500 words. isn't that great? >> i'm sorry about that. i'm not sorry about this last hour. i knew this was going to be a wonderful, wonderful experience and on behalf of everyone here thank you so much for listening. >> can i leave with one and the though? the other day i thought it's been a long time since i went to a gun shop so into the gun shop and i'm standing in line and standing inin line and standingn line, standing in line and finally get to the front of the line in the guy comes up to me and he says smile, you're in a gun shop. [laughter]

family members coming in and how much you'll or contribute to the economy pick this comes back to milton friedman essentially who famously argued they could have had the open border policy we had in 1910 let's say when a lot of the immigrants came in because s of the welfare state. once you have a while for state immigration policy is completely different and people can't just come in with the government transfer as opposed to before welfare states when people emigrated into mutual benefit. there is only mutual gain of the person coming and the people hiring him. that's w not necessarily the cae in the welfare state which isur obviously the pressure a lot of people are concerned with what health care etc. the people come in and they don't't kuchar. that is the real crux of the issue and they think the merit-based part of the immigration package could be pushed forward but it's an important component in how the president saw the immigration wepolicy overall. plus though i don't think there was any doubt that the system as it is currently is broken and badly broken. it was built for different socie

one of the people he started with before was milton friedman and t i read friedman said to hs doctoral students i'm looking forward to your pieces it can't be longer than 500 words. [laughter] m >> i'm not sorry about this last hour. i knew that this was going to be a wonderful experience. and on behalf of everyone here thank you so much for listening. >> can i leave with one anecdote because the other day i thought it's been a lot of time since i've went to a gun shop so i go to the gun shop and i'm standing in line, standing in line and finally i get to the front of the lion and the guy comes up to me and says smile, you're at a gun show. [laughter] [applause] if it happens here or here or anywhere that matters, america is watching on c-span, powered by cable. >> a massive film history as a hollywood director, and he's itchanged the world consistently and constantly with his messages and wisdom. it's a new award we are starting here. from his movie,

dollars a month were huge numbers, so guys, where does inflation come from, all molitarists, milton friedmansaid inflation, only the monetary nature has five millions printed to get, what problems are we here with, all the more, and you also restrict access to our goods and world markets complicate this access for us. and what are we doing here? some of your political considerations - that's another story. we are now talking about the economy, and the economy is a very specific thing, if a tanker with oil did not arrive somewhere on time, the price increased. this is understandable. obviously grain. same story. and now he is trying to blame us, there is a possible golden developing country. we say no guys with us we please ukraine, please take it out, we don’t interfere with it, and the question is wheat. how much can we? we are now expecting a very good harvest there until the year has jumped over. god does not need to speak. yes, because agriculture is a cool way. ah, two, there are horse racing and farming, how to get rid of money such jokes, but they did, but this is a risky thing, there

this comes back to milton friedman, essentially. who who famously argued that you know, we couldn't have the open border policy we had. in 1910. let's say when a lot of immigrants came in because of a well first state once you have a welfare state. the immigration policy is completely different because now people can come in just for the government transfers as opposed to before a welfare state when people immigrate it's a mutual benefit both the worker coming in and the company hired them benefit. there's no there's only a mutual game before the person coming and also the people hiring him that's not necessarily the case in a welfare state, which is obviously the pressure that a lot of people are concerned with free health care etc that people come in and then they don't contribute and draw on taxes. i think that that is the real crux of of the issue and and i i think the merit-based part of the immigration package was it was too bad. it wasn't that it couldn't be pushed for the because i think it's an important component in how th

you know, george gilder was a great friend of his thomas soul milton friedman. some of the classics joseph schumpeter. i mean he read them and studied them and remembered them and learned how to apply them and different situations and he could articulate the concepts. whether it's a leadership meeting or at a town hall meeting or on a tv interview. he could he could explain it better than anybody else. i think i i know and many leadership meetings. there would be a big battle about something. and -- would then just launch into this? soliloquy bringing in several famous, you know economists of the past and just shut the whole thing down there go i can't argue with that. and later when when he became a believer in christ years into his career. he he learned to live out his faith in everything. he did and that gave him tremendous. peace. particularly toward the end when he was just unfairly maligned by a lot of people that should have been his friend, but he had to go through a lot and and get quite a few slings and arrows and he did it with a with a peaceful heart

as milton friedman said, quote, inflation is always, and everywhere, a monetary phenomenon, end of quote. this doesn't mean congress is helping when it comes to responding to inflation. the most important thing that congress can do is stop spending like drunken sailors. even better would be to trim the budget to eliminate unnecessary spending. congress can also provide targeted inflation relief. however, it must be done in a way that won't add to our growing debt or further fuel the flames of inflation. one way to do this is by providing targeted inflation relief that incentivizes and rewards taxpayers who save, rather than spend. with today's high inflation, many in the middle class could see most, or even all, of their savings investment gains wiped out by the inflation that's upon us. yet, even though a middle-class saver may be losing money in real terms, they're still taxed on all gains and interest income as if inflation doesn't exist. this creates a reverse incentive, that encourages taxpayers to consume today, rather than to save today. this can push up demands for goods and serv

milton friedman who pronounced corporations have responsibilities to their owners, shareholders and then management, nothing else. corporate rates or the get from a. there's plenty of analysis come from incorporating but don't have any responsibilities just to themselves. these two things together and decisions over to private tyrannies who have no responsibility other than to enrich themselves, margaret thatcher comes along and says there's no society, just individualism. somehow there managing on the market they're supposed to survive in. the first step both reagan and thatcher took was to destroy any possible defense against this assault. their first steps first were to attack labor unions with mostly illegal measures like strikebreakers. that opened the door to corporations doing the same. the one way people have to defend themselves mainly by organizing, put all this away and you don't have to be a genius to figure out what's going to happen. 40 years later it was started by the rand corporation. super respectable american corporation. so they tried to estimate the transfer of wealt

the second was milton friedman, the economic guru who pronounced that corporations have one responsibility to their owners, shareholders, period, a management. nothingg else. corporate rights are the gift from the public. there's plenty of advantages that come frompl incorporating. it is a gift but they do not have any responsibility. just to themselves. these two things together, and decisions over to private tyrannies who have no responsibility than to enrich themselves. margaret thatcher comes along and says there is no society, just individuals. somehow managing on the market that they are supposed to survive in. survive in. the first step that both reagan and thatcher took was to destroy any possible defense against this assault. their first steps, first come over to attack labor unions with illegal measures like strikebreakers. that opened to door to corporations to do the same. the one-way way people have to defend themselves, by organizing, taken away. put all this together, you would have to be a genius to figure out what is going to happen. actually, 40 years later it was studied

milton friedman, nobel winning economist, whose theories are considered general theory these days, saidhat the fed has too much power to put in the hands of mere mortals. the biggest reason for inflation is the increases and changes in money supply. prefigured you would be a lot better off putting a computer in and having it gradually take care. the last two years, we have had an increase in money supply of 43% for discussion and references to the increasing balance sheet and printing money. the trump train work increased the problem of inflation -- trade war increased the problem of inflation. that is not so. we had 1.4 percent inflation under trump. even with the so-called trade wars. we were trying to get china to quit stealing, quick cheating, etc. host: if it is not this and it is not that, what is it? caller: the world banks, all of them printing money like crazy for over a decade. money is poured into the economies to stimulate. for example, the government took over the student loan program in order to be able to use the proceeds to help offset the costs. the cost of anything the

we are introduced for example to ronald reagan milton friedman bill clinton robert rubin, robert rice. mikal gorbachev and ernie and bernie sanders among many others. when i see less discussed in the central neoliberal sections more so than in the treatment of the new deal order or even the current populace turn away from neoliberalism is the popular base for this politics. how is it that large numbers of republican and then democratic voters supported the neoliberal order? here i would like to hear more about the impact of such things as one might be the stagnation in wages that may have encouraged ordinary americans to prioritize their interests as consumers over producers in surviving economically, so that low prices even on imported goods that were produced offshore appealed to them. or how the shift to the ira and 401k regimes of retirement benefits drew more and more americans into becoming investors to the point where today 56% of americans own stock. complicating their calculus of what was in their economic interest? put another way in this returns to a point you made in your

when he was campaigning he said that milton friedman is not going to run the economy so instead he embracedw monetary theory, this modern monetary theory that says that the federal government can finance itself by borrowing and printing money. if some inflation emerged because we had supply constraints which is what we have right now, more than man than supply, the fed could raise interest rates. we are seeing a fantastic real-world experiment in this. this is all conjecture and hypothesis, but joe biden did it, so joe biden is responsible, and to blame that on vladimir putin reminds me is when president obama was president, something like three years into his administration he was blaming george bush. there is a fair amount to that that i would also point out to my republican friend that it seems as though every democrat that comes along is the worst president ever in the eyes of republicans and that is silly. in terms of his presentation yesterday, at least joe biden showed something that donald trump did not, a great deal of empathy for the american people. i would have to say that the p

three to four months will show significant relief >> austan, university of chicago, i'm thinking milton friedman all the cyclicly cycled items, cars, that stuff went down the fed has a doubly difficult approach, because it's trying to balance off how hard do we step on the break as you see comeback in the normal sectors. but they're in the face of this, well, how much pent-up demand for services are there are people going to go on twice as long a vacation their year because they were not able to go on vacation last year or the year before? are they going to go get their hair cut twice because they've been cutting their own hair? that kind of thing has no historical precedent the services are not, those services are not normally, they're recession proof. they don't go down in down terms. so the fed is trying to balance, how hard do we step on the brake, because we don't fknow hw fast that stuff's coming back. >> austan and michael pleasure to have you on thanks, guys >> thank you >>> coming up, jim cramer's first take on the trading day ahead, and a reminder not to miss an exclusive interview wit

supply and demand is not that hard to understand how it works, but then again, a guy named milton friedman economics do democrats go and take one type of economics course and republicans a different? they are 180 degrees apart on how they think economics works >> but also consider the administration, president biden has been willing to go to opec countries, venezuela, saudi arabia, and ask for them to increase supply, but at the same time, here in the united states of america, he continues to make it more difficult, shutting down american oil and natural gas producers in particular that we have the cleanest, we have the technological innovations that have resulted in not only america just in 2020 becoming energy independent after decades of that being our goal, recognizing how important that was, but also leading and bringing down carbon emissions and yet the administration is willing to look to these other dictators and ask them to increase supply, at the same time continuing to signal to the united states that it's not going to happen here >> we still want to transition, that's what we'r

it shouldn't take milton friedman to figure it out.s station a couple years ago and blamed trump for the high prices of gas. this political brlamesmanship goes both ways this april scenarios were run on how much consumers would save on the suspension of the federal gas tax. in a variety of different snaer y yoes, they came up to $16. i doesn'n't mean a tank. i mean in total. that's it. >> if you're the president, you have to do something, right? this is real pain for consumers. we're in the summer driving season people are noticing these prices it's up there on signs everywhere you drive so the president is in a position where politically he has to take action there's not a whole lot of action for him to take this is one of the levers he can pull on to demonstrate that he feels the pain and he's doing something. what else is there for a president to do? >> thank you, we'll be talking about this later in the hour and whether or not this is going to be effective. we'll do that with jeff currie >>> let's get to dominick chu. he is taking

you had this job it's almost like you were talking to milton friedman, then we talked to the current that's like talking to paul krugman, and our viewers at home are going, they have no idea who to believe at this point it's gotten so, the talking points rs spin, everything else. what should a normal american think at this point, if they were to just look for an objective viewpoint on what's going on >> right, i think, joe, that if you look back to about a year ago, john and i wrote an article that said inflation was set to take off it was a careful analysis of supply and demand. there was a big increase in demand coming from all the government spending and contraption in supply because of threatened tank hikes and heavy regulation one of president biden's first moves when he came into the white house was he made it so new regs don't have to pass the cost-benefit test, something they had to under president trump and they could go willy-nilly, regulating everything there are more new regulations in president biden's first year than any other president in history. it heats demand. sust

really frustrating, jackie, because i don't recall -- you know, normally i'm a millon the friedman fan. i -- milton, given the fact they tried to the power cycle this economy, the president actually holds the cards here. if he kid the a 180 on concern if he did a 180 on energy policies, has way we are going to bring inflation down. it would shore up long-term economic and national security. unfortunately, that's the one thing that can save us, and that's last thing he's probably likely to do. jackie:s the last thing he's likely to do. in fact, he wants to take a trip to saudi arabia to coserious the sakis and opec -- to coerce the saudis and opec to the pump more oil. to me, it feels like the biden administration has dumped this massive problem in jerome powell's lap at this point. you know, a half a point hike on wednesday after the previous half a point hike, market might have priced that in. but if jerome powell needs to act more swiftly, which is what the inflation numbers are saying to this market, why we're selling off friday and today, the picture could be a hot ugherly -- a lot uglier. what

when he was campaigning he said that milton friedman is not going to run the economy so instead he embracedw monetary theory, this modern monetary theory that says that the federal government can finance itself by borrowing and printing money. if some inflation emerged because we had supply constraints which is what we have right now, more than man than supply, the fed could raise interest rates. we are seeing a fantastic real-world experiment in this. this is all conjecture and hypothesis, but joe biden did it, so joe biden is responsible, and to blame that on vladimir putin reminds me is when president obama was president, something like three years into his administration he was blaming george bush. there is a fair amount to that that i would also point out to my republican friend that it seems as though every democrat that comes along is the worst president ever in the eyes of republicans and that is silly. in terms of his presentation yesterday, at least joe biden showed something that donald trump did not, a great deal of empathy for the american people. i would have to say that the p