4 ms·

Friedman would definitely support the Fed's actions. Bernanke is a loyal Friedman acolyte. The "Helicopter Ben" reference comes from him quoting Friedman's ter

Friedman would definitely support the Fed's actions. Bernanke is a loyal Friedman acolyte. The "Helicopter Ben" reference comes from him quoting Friedman's term for creating money to prevent deflation: http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/200211... He credits the Fed's failure to do what it is doing now with causing the Great Depression in this speech: http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/200211... Friedman explains this himself in the following clip from his television series: http://www.youtube.com/watch?v=9V5OP-VmXgE http://www.youtube.com/watch?v=9V5OP-VmXgE

fexl 16y ago
Friedman also conceived of income tax withholding and what he called the "negative income tax," now known as EITC. It does not surprise me that he would advocate Monetary Mischief as well. The QE arguments are an example of magical thinking. Incomes are falling, so increment some numbers in the memory of a computer and that will fix it. Never mind the realities of Human Action. Real incomes rise when people become more productive, and that happens when they have more and better tools (capital) at their disposal and more incentive to produce. No one achieves that by printing Monopoly money. "Each dollar the Fed prints has less oomph." Yes, they are pushing on a string, and those dollars do not impress me. To those who feast at the government trough, may you eat dollars!
- joelmichael 16y ago
  EITC isn't really the same thing as the basic income/negative income tax. The basic income has no means test whatsoever, whereas the EITC does. Check out the wiki on it. Also, most economists support the basic income as the ideal system of welfare (as confirmed in the article this thread is about), and it is intended to replace all other forms of welfare, including Social Security and Medicare. Tax withholding was done during WW2 and before Friedman had changed his views considerably. But monetarism is his crowning achievement, it is what he is best known for, and where he was most influential. Friedman beat inflation and solved the mystery of the Great Depression.

fexl 16y ago

Friedman also conceived of income tax withholding and what he called the "negative income tax," now known as EITC. It does not surprise me that he would advocate Monetary Mischief as well. The QE arguments are an example of magical thinking. Incomes are falling, so increment some numbers in the memory of a computer and that will fix it. Never mind the realities of Human Action. Real incomes rise when people become more productive, and that happens when they have more and better tools (capital) at their disposal and more incentive to produce. No one achieves that by printing Monopoly money. "Each dollar the Fed prints has less oomph." Yes, they are pushing on a string, and those dollars do not impress me. To those who feast at the government trough, may you eat dollars!

joelmichael 16y ago
EITC isn't really the same thing as the basic income/negative income tax. The basic income has no means test whatsoever, whereas the EITC does. Check out the wiki on it. Also, most economists support the basic income as the ideal system of welfare (as confirmed in the article this thread is about), and it is intended to replace all other forms of welfare, including Social Security and Medicare. Tax withholding was done during WW2 and before Friedman had changed his views considerably. But monetarism is his crowning achievement, it is what he is best known for, and where he was most influential. Friedman beat inflation and solved the mystery of the Great Depression.