WATCH FREEDOM and PROSPERITY/THE FAILURE of SOCIALISM:
In this segment, Mr. Friedman discusses the re-birth of freedom in Eastern Europe after years of totalitarian control. He says that socialist states started out with the best of intentions, yet every single one failed — the made the people poor and turned them into slaves. Milton says “Everybody knows what needs to be done. The property that is now in the hands of the state, needs to be gotten into the hands of private people who can use it in accordance with their own interests and values.”
Eastern Europe observed the history of free markets in the United States and wanted to copy our success. At the time of this documentary, these countries were trying to move toward a free market. However, as private businesses begin to emerge, they are faced with ongoing state regulations. As Mr. Friedman notes, there’s nothing harder than giving up power.
In the midst of small entrepreneur successes in Eastern Europe, Mr. Friedman notes large businesses start to lobby the governments of Europe for joint venture partnerships. This kind of deal making lends an upperhand to large businesses with political connections–especially if the government creates regulations that require a lot of capital or are too difficult for small businesses to follow.
The danger is that in the process, local government bureaucrats and big foreign business will end up freezing out local entrepreneurs.
In the U.S., ironically, we seem unable to turn away from the temptations of socialism despite its long history of bankrupting economies.
Introduced by Ronald Reagan. Discussion with Gary Becker, University of Chicago and Sam Bowles, University of Massachusetts at Amherst.
This is Volume 3 of 10 - Watch the Entire ‘Free to Choose’ Series. This is a 10-part series, volumes 1-5 were updated in 1990. Please watch all these important videos by following the links below.
“I don’t think it’s an exaggeration to call Milton Friedman’s Free to Choose a survival kit for you, for our nation, and for freedom. ” -Ronald Reagan
Free To Choose – 1990 Series
- Volume 1 – The Power of the Market
- Volume 2 – The Tyranny of Control
- Volume 3 – Freedom & Prosperity / The Failure of Socialism
- Volume 4 – What’s Wrong with Our Schools?
- Volume 5 – Created Equal
Free To Choose – 1980 Series
- Volume 1 – The Power of the Market
- Volume 2 – The Tyranny of Control
- Volume 3 – Anatomy of Crisis
- Volume 4 – From Cradle to Grave
- Volume 5 – Created Equal
- Volume 6 – What’s Wrong with our Schools
- Volume 7 – Who Protects the Consumer?
- Volume 8 – Who Protects the Worker
- Volume 9 – How to Cure Inflation
- Volume 10 – How to Stay Free
{ 2 comments… read them below or add one }
Nice:
In the midst of small entrepreneur successes in Eastern Europe, Mr. Friedman notes large businesses start to lobby the governments of Europe for joint venture partnerships. This kind of deal making lends an upperhand to large businesses with political connections–especially if the government creates regulations that require a lot of capital or are too difficult for small businesses to follow.
It all make sense:
Now I know why Goldman Sachs is pushing for financial ‘reform.’ They have the political connections and the regulations makes it harder for the little banks to compete. This financial ‘reform’ Obama wants is a huge gift to Goldman if you consider this: http://www.washingtonexaminer.com/opinion/columns/Goldman-rallies-for-Obama-in-Wall-Street-_reform_-90957879.html
Nice name
Yes, it is true. The very mega-weath do want socialism because it gives government more control over the economy. The mega-wealthy can forge connections with the government to ensure their business always sees good times. They do not want to compete against thousands of people. In the day of the Internet, a new idea can foster and give big companies a run for the money. They do not want that. Increasing regulation for the small guys is a way for the bigger companies with greater capital to maintain a competitive advantage.
The reason why the banks became so big was because of government regulation in the first place — the government was a piggy bank for the sub prime loans and the bigger companies took and took from the government because the taxpayers backed these loans.