Transcripts For CSPAN2 A Capitalist Manifesto 20161127

In your book, you write that the risk capitalism is so ancient that they likely predate even language in the development of civilization. Well, yes. People have been exchanging goods and services for a long time and people have been making things they will exchange and other things. That is what market capitalism is about. Its about voluntary exchange between two individuals or a group of individuals and so i was say market capitalism, fundamental aspect of voluntary exchange for everybody is better off predates the roots of anything else can certainly press government clears close go would you say if you made . Guest i would say certainly. All you got to do is look at a couple 2yearold and see if they trade stock and i will tell you they will. They may trade something your 2yearold is driven to another world for something they shouldnt be trading because youve got been a 50 something in their trading it for 3 pokemon. People exchange. They have been in a debilitating and innate instinct to do that. Host on the purest level, where are we in the capitalist system . Guest well, we have been moving in different directions. If you look at the index of Economic Freedom moved from four and now it is 12. If you look at how many things the government comes in and tells you you cant make this trade. You cant make this exchange. We will tell you how you will produce. Weve moved in the wrong direction for a long time. Part of their people dont really honors in how the system works. They dont realize why there so welcome to adam smith wrote an inquiry into nature and he was looking at capitalism when it was first starting and why is it we are so wealthy . He doesnt even have indoor plumbing, but he knows we are wealthier than we ever were. He started to write about how the system works and i dont think we covered that area well in school and i think people just dont get why theyre so well they appeared the occupied wall street was an example of that. If you really thought about how the system works are understood how it works, then you wouldnt be out there saying my gosh we shouldnt the government tell us what kind of insurance we have. Host a student here at hills dont mention this in your right about this as well. The students said we have a lot of austrian theory here at hillsdale. You read about the austrian theory of economics which is what . The austrian theory is to look at how markets work and how markets are efficient and wrote a book on socialism in 1920 and said this thing will work out for you. The reason remembered 1925th of the revolution and progresses in the United States and socialism and great written. He was saying theres going to be a big problem as the central planner can possibly know all the information so the resources onto consumers. Thats what the austrians focus on is how does the market system work and what sort of political philosophy you need to be consistent with that. The political philosophy will be government ought to protect life, liberty and property and thats what the focus should be and let the market allocate resources among people and across nations. Theres no real freedom other than the kind of market system provides. Guest thats correct. Lets look at the bill of rights. They say weve got to have the right for assembly. If the government of the land, how are you going to get the right of assembly. That can only happen if we own it. How can you have the right to bear arms if the government owns everything . You have to be able to own that weapon or whatever, the fight to free speech. How does that work if the government owns all of the media . When you look at countries, the audience might be old enough to remember the soviet union. What happened, they controlled all the media. There is a Government Agency that controlled the media and they have the iron curtain to keep people from finding out about other things. So you cant really have any of the liberties we enjoy without a system where you own the property and you have the right to use the property. Unless it conflicts with other peoples rights to use their property, the government should stay out and protect your property right. Host why you call this a manifesto . Guest obviously with the takeoff on communist manifesto and it really made to be disguised that this is why markets are beneficial to the poor. This is why markets are the only way you can have individual freedom. This is why we are so wealthy. This is not really discussed much. Certainly in the k12 Education System and it not even discuss that much in the political arena. How does this thing really work . For example, suppose i was running for president and i said she, i want to make it so that no one can get a job in america unless they can produce 15 an hour. If you can produce 10 you can work in america and i want to make sure that that happens. They say that doesnt sound very good. I won a 15 an hour minimum wage. That sounds good. So thats what the book is really about is that a sick i tell my students this isnt rocket surgery. Its not hard. Its making the connection. If dean and observing. I love the story about sherlock holmes. He sees the top of the stairs in his apartment and decides to lock up the stairs, knock on the door and then he says common missteps are coming up from the ground floor . I dont know. Sherlock says watson how many times have you come up . Theyre 17 steps coming up from the ground floor. That is what this book is about is getting people to observe. Someone tells you need a 15 an hour minimum wage, you should observe that means lots of people will never get a job in america. I dont know if youre old enough to remember service stations. He drove then, somebody put your gas, somebody check your oil. That was some kid learning to get that first job to show up, learn how to interact with the public. Those jobs arent there anymore and that is the problem. When it . Crevasse or Public Policy to give this result that no one had expected. Host who is this book targeted to . Guest this book is targeted to the average person that wants to learn a little bit about how the system operates a fair living within. It is not designed to be an academic youth that people are going to read and published in American Economic review. This is somebody that may be had had an economics class in college and says this was boring, didnt understand any of it. Or you are a homeschooler or if you are a teacher in the crates held k12 system anyone a secondary book that is what its for. The average person thats interested in its non if you read it, you can see. Its not complicated. They sat at. It is not complicated. Its a matter of taking the time to sit down and say i can spend a few minutes today to look. Two recent political pieces and get your reaction as an economist. This is the headline on cnn. Hillary clinton promises to remedy excessive drug price is. Well, yes. Thats the question of how she can possibly do that. She know what the price is . We really ought to be looking at why drug prices are the way they are and one reason is because you have a Government Agency, food and Drug Administration that requires all sorts of things to happen before you can sell a drug and cost billions of dollars and so if youre going to make a drug you have a very high cost. You got to spend 4 billion. Youve got to recover the 4 billion somehow. If we have a system that has weve done this much study and you can sell this but youve got to let people know it hasnt been completely tested and you decide im willing to try that. Im willing to take on the risk. Then you have a lot more innovation and drugs and a lot more competition in the industry. The reason you get drug pricing the way you do is because you have yours to entry. We dont want people going out and tell people this will cause cancer or asthma or Something Like that. That would be fraud. But if you alert people and say this is the way it is, let them make the choice and decide what the risks are and then you get a lot more innovation. For her to think somehow she can no what the price of these drugs are going to be and how it will affect innovation and new drugs, how can she possibly know that . Host donald trump, quote, we will renegotiate nafta a cpp. Guest yet, the problem is he acts as if trade is between countries. Trade is not between countries. Trade is between individuals just as we were talking about the 2yearolds swapping with another 2yearold. If i want to trade with someone in china orbis l. Or germany, i should be able to do that. The government shouldnt say no you cant trade. He has a point that we tend to act like trade is between countries and we say if youre going to trade with us, you have to do x, y and z. That will restrict the amount of trade that happens. If the trade is going on, both parties are better off. No one forced me to buy the chinese noodles that i might have or no one forced me to buy the german car i have. I am better off giving up my money and the german car manufacturer said were better off giving gary wolfram the car appeared to trade between individuals they think will affect their great deal of how we do our Public Policy with regard to trade. Host gary wolfram teaches economics at till. A capitalist manifesto understanding the market economy and defending liberty is the name of the book. Ask for your time. Guest well, thank you for having me. Welcome to him that we start back. Pleasure to have you here tonight. I am carla cohen, one of the owners of politics prose then i welcome everybody. Nv