Milton Friedman - Capitalism and the Future of Freedom

Milton Friedman points out the economic superiority of the capitalist system, but displays worry about America’s future. “So the only societies which have been able to create broadly based relative prosperity had been those societies which relied primarily on capitalist markets. That's true whether you take Hong Kong vs mainland China, East Germany vs West Germany, Czechoslovakia before WWII and currently, you cannot find a single exception to that proposition.”

Source LibertyPen YouTube channel.

Transcript:

Milton Friedman:

The only countries in the world in which low income people have managed to get a half decent level of living are those which rely on capitalist markets. Just compare their quality of life, the level of living
of the ordinary people in Russia and the ordinary people in, you know I won't say the United States but in, France, Italy Germany, and England or in Hong Kong. Compare Hong Kong with mainland China. The question in that every society is driven by personal interest. Mainland China is driven by personal interest. The question is how is personal interest disciplined. If the only way you can satisfy your
personal interest is by getting something that other people want to pay for.

Interviewer:

Without forcing it down the other people's throats at the point of a gun, I suppose. At the extreme.

Milton Friedman:

At the extreme. But that won't get their cooperation. You may be able to kill them. You may be able to take their wealth, but it won't create any more wealth. So the only societies which have been able to create broadly based relative prosperity had been those societies which relied primarily on capitalist markets. That's true whether you take Hong Kong vs mainland China, East Germany vs West Germany, Czechoslovakia before WWII and currently, you cannot find a single exception to that proposition.

Adam Smith put it best, over 200 years ago, when he said the people who intended only to pursue their self-interest are led by an invisible hand to promote the public interest even though that was no part of their intention. Mister Ford did not develop the Ford cars for the public interest; he did it for his private interest.

Interviewer:

But Adam Smith also saw a role for government he also saw it for example in the administration of justice didn't he?

Milton Friedman:

So do I. I am not a zero government person. I think there is a real role for government. And one of the reasons I object to so many of the things that government is gotten into is that it prevents government from performing its proper role.

Interviewer:

You have a two year old granddaughter?

Milton Friedman:

Yes.

Interviewer:

And her name is?

Milton Friedman:

Her name is Becka.

Interviewer:

Becka. When you look at Becka, what do you see for her and for her future?

Milton Friedman:

That depends entirely on what you and your fellow citizens do to our country. If you and your fellow citizens continue on moving more and more in the direction of socialism, not only inspired through your drug prohibition but, through the socialization schools, the socialization of medicine, the regulation of industry, I see for my granddaughter the equivalent of Soviet communism three years ago.