Hey Milton Friedman, It Ought to Be Gushing Down Economics, Not Trickle Down!!!

March 5th, 2013 by Michael Tabor

It was hard to argue against Milton Friedman when times were good, but now that the middle class is suffering (not to mention the poor but the poor always were and always will be poor & miserable), many people are starting to take another look at trickle-down economics.

Man is greedy and will always look out for his or her own interest before anyone else’s; Milton Friedman understood this very human trait only too well and developed a theory around it which won him a Nobel Prize for economics. “Greed is good…” Gordon Gekko, the fictional inside trader tycoon from the 1987 film ‘Wall Street’ said, echoing Friedman’s philosophy and it is in fact the driving force of a free market system – greed & competition. I agree with 90% of trickledown, free markets, and competition – oh yes, and even that ugly human thing – greed, which we can use for the benefit of society as a whole. Scenario: I do well, I create jobs, the people I hire do well and they create jobs, ad infinitum and then trickle down (I mean gushing down). This makes sense and it truly works, however not always.
I love the free market system and it works like magic when you are selling lampshades, cars, computers, etc. The problem exists down on Wall street; the successful traders or “Masters of the Universe” are just hoarding, buying yachts, and not creating jobs – not to mention derivatives, insider trading and cheating. Rather than Friedman’s theory, I’ve always liked John Maynard Keynes more.  I agree with the late Mr. Friedman in terms of free enterprise; however you MUST have some form of regulation, which is why I and President Obama put more stock into Keynesian economics.

Trickledown that ought to be gushing down if it were executed properly doesn’t always work in real life. When something catastrophic happens, such as the real estate burst, or the bubble, etc., the government needs to pump money into certain markets and bail out i.e. banks so we can get the well – oiled and finely tuned economic free market system going again – Keynesian economics. Yes, let the private sector do it’s magic but when there’s a recession, we NEED help from the government, a stimulus plan,which is exactly what this administration is doing as well as trying to trim the deficit.

It’s not only Wall Street that caused this mess e.g. I can get into supply and demand, markdowns, surplus, lack of consumer spending, economic cycles, high unemployment, the miserable poor, and a plethora of other economic variables but I just wanted to here in this blog – drive home the point that government spending is not a bad thing and point out that Mr. Friedman’s theory is almost perfect, but not quite.
So, WhaDaYaThink ? What do you Think? What are your thoughts on Keynesian economics or do you still hold on to the tenets of Milton Friedman?

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10 Responses to “Hey Milton Friedman, It Ought to Be Gushing Down Economics, Not Trickle Down!!!”

  1. Peter Pan Says:

    Some points valid other points not so. What caused the housing meltdown. This is where it all began. I remember my house gaining such equity, I was puzzled and fearful to upgrade. I didn’t. Many did. Why did the banks give these loans with little or nothing down? Look deep into Dodd-Frank. With good intentions they thought everyone should own a piece of the American dream. The banks agreed and loaned loaned loaned. After all it was more interest earnings and the economy was humming along. This was the cause of the recession. Both Dems and Republicans were at fault. No matter what the economy is such that it goes through seasons. Growth & death usually every 7 years. This time was different. The government didnt do its job to regulate theses banks and people lost their wealth, companies got bailouts to save the economy from totallly going down the drain. The cost of what we are facing now is purely put on the government doing their job in the first place with banks. This was not Bushs, Clintons, Bush again, Reagan or Carters fault. It was the feds dropping the ball. Government not watching our money. After all they work for us not them. Here we are the government installing fixes to fix what they blew up. More regulations, more rules, more laws, more bailouts, more stimulas, more spending and as if they can save face by doing so. If they would have done their jobs to begin with, all across the great plains would have been turned around by now. In the mean time the president says spend our way out, the house says cut our way out and nothings done to actually fix the new formed deficit or housing crisis.

  2. Le duke de fromage Says:

    Peter Pan, agree somewhat, But why do we need all the regulations,rules, and laws? Simply because banking as a collective group is either incapable or unwilling to follow sound, honest, practices. These overfed, over paid bastions of our finances continually flaunt the rules in order to pad their pockets and continue to nickel and dime the public under the guise of finanical wisdom. Yet when the bubble bursts they are the last to accept responsibility for their actions.Blame the government and let the public ,once again pay for their greed and dishonesty.The housing loans made during these last years are a disgrace and an affront to good business practices, yet no banking execs lost any sleep over the greed and profits that were generated.I am not an apologist for the government but its time bankers and wall street looked in the mirror and accept responsibility for their greed.

  3. magdalena Says:

    My glass, bottom row number 5, still empty.

  4. rick Says:

    le duke and pan have valid points but how can an organization with many decision makers collectively one man. What company leader in its right mind create a bad business policy without being prompted to do so by. It just doesnt make sense. that would be like the myself as a business owner saying im going to slam these deals to become rich now just to screw myself later. it was prompted by government saying ease up on these loans dodd-frank so minorites and the poor can own a part of the american dream. other than this mess. trickle down has worked great. look at the prosperity of the reagan, bush, clinton and yes even bush jr years before the crisis.its amazing we didnt collaspe during 911

  5. rick Says:

    again forgive me bad phone

  6. Michael Tabor Says:

    This is an absolutely mind – numbing video sent by Dan – must see ….only 5 minutes

  7. Son of Walt Says:

    Government spending isn’t a bad thing, unless you happen to live in Greece and can’t pay back the debt. Hopefully, that never happens in the USA.

  8. Rick Says:

    We are almost there

  9. めがね Says:

    プレイボーイ ポロシャツ

  10. chanel トート Says:

    シャネル リボン サングラス

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