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The laissez-faire "negative" approach in the housing market compared to the "State" approach, as M.F. later realized, is like a stitch to a coronary. http://www.city-journal.org/comments/index.php?story=8808#54532 http://www.city-journal.org/comments/index.php?story=8808#54532 Mon, 21 Jan 2013 08:08:20 EST Bon temps: While I am not familiar with Koo's work, I strongly suspect Friedman would have not responded well to it. It is exceedingly difficult -- if not impossible -- to successfully model economics (other than basic notions such as Supply and Dmand), because it's largely dependent upon human psychology and emotion. That's why Friedman's ideas come more from a fundamental assessment of human nature -- and why they make so much sense. Too bad the politicians don't understand something this simple -- or maybe they do... http://www.city-journal.org/comments/index.php?story=8808#49866 http://www.city-journal.org/comments/index.php?story=8808#49866 Sat, 12 Jan 2013 19:01:25 EST While I am not well enough read to review and be a critic of this review I trust this review to have given me a good summary view of Friedman's views and the development of his ideas and their expression so I am grateful. Work which also recognises the the role for limited government and the problems of too big a role for government is needed on the problems of democracy under its many guises. Only the continuing rapid rate of invention and innovation will keep the sense of entitlement we nearly all have from overloading the system with our demands - many just products of increased longevity. Thank G for the still unexploited brains in China and India on which we in the west will be able to ride as free loaders for many decades to come. And that's OK because 99 per cent of the people who have ever lived have got more from than they have given to the smart, energetic and creative. http://www.city-journal.org/comments/index.php?story=8808#49835 http://www.city-journal.org/comments/index.php?story=8808#49835 Sat, 12 Jan 2013 14:58:44 EST Dr. Friedman spoke with reference to the Preamble: to "establish Justice" and to "promote the general Welfare" as penned by Gouverneur Morris. He approved these roles for government wholeheartedly. He was a genius at understanding how banking works. Same time, we have to wonder how Dr. Friedman would have responded to the new tools and new information resources developed by Dr. Richard Koo for analyzing systemic collapses. In normal times monetary policy is by far the more effective tool for economic course corrections. But when things fall apart -- as in 1929 or 2008 or Japan in the early 1990s following Big Bubbles -- balance sheet restrictions prevent capitalist organizations including banks from acting to maximize profits, or even acting at all beyond day-to-day survival. Too bad there's no way to show him the new economic research and ask his responses. Also to advances in labor economics. All the millions of farm hands had their jobs eliminated during the 1920s, then the country hit 1929 and the Hoover/Mellon contractions before the farm hands had been reemployed. Betcha Friedman could outline effective bank regulations (better than Geithner) -- if we had a couple days of his time. http://www.city-journal.org/comments/index.php?story=8808#49804 http://www.city-journal.org/comments/index.php?story=8808#49804 Sat, 12 Jan 2013 09:19:27 EST I suspect that Friedman's advocacy for school vouchers reflected what he thought might be politically possible, not what he thought would be educationally optimal -- that is, no government involvement in education at all. http://www.city-journal.org/comments/index.php?story=8808#49502 http://www.city-journal.org/comments/index.php?story=8808#49502 Fri, 11 Jan 2013 16:52:42 EST