Many of my brethren will know the name, Milton Friedman. This remarkable man was an Economist of renown know in part for bringing back some common sense into that world. A world that has as many opinions as it does bad outcomes.
I cannot be detailed here and refer those with interest to a very watchable 1 ½ hours documentary titled The Power To Choose which was taken from the PBS program of the same name and the subsequent summation of it in book form by Milton and his long time wife and co-author Ann.
The basics we find commonplace that Friedman championed were often cited as dangerous, wrong and oh so contrary to the Keynes school. Things like school choice were among these and that one is still heavily fought by guess who…the Teachers Unions who find such a choice abhorrent. yes abhorrent to their fat pensions and job tenure making their positions life long even in absence of any beneficial results to their student body. There are good teachers of course, but many many are just system users put in their required time in order to collect that pension. Hey, my own brother is a retired teacher and I certainly do not begrudge his pension after the 35 years he devoted to his students. But perhaps it should be noted that the health and future of his pension payments might depend more on the principles Milton Friedman espoused than is thought.
Recalling the Reagan years, I recall Friedman being an important contributor to National Policies while serving on Reagan's Board of Economic Advisors. Alan Greenspan was there too so a crowded field of notables.
In my personal life, Freidman encouraged me to use Freedom, or Freedom of Choice to bolster my responsibility for my own success or financial condition. Indeed, it is a concept that goes hand in hand…Responsibility & Freedom to Choose. These are intertwined in histories wonders and nightmares. The wonders tend to show up when Freedom expands and the nightmares tend to expand when Choices are centralized. Sound like a familiar argument? It is.
That no man is an island rings true because Freedom and Choice can not be maintained by isolation. Not on this island Earth. But men of like minds can and do make forward progress for Civilization. They do have opposition whether from others with minds containing different thoughts or bayonets containing a type of conviction best described as pain and death. The pain and death crowd wins at times and the Freedom/Choice crew wins at other times. In between is a tenuous balance waiting for the right candidate or the right war or the right God to intervene to their advantage.
The mid terms are coming so expect fireworks. The rhetoric will get blustery and fiery and fill the airwaves with various hateful accusations and assertions. In my opinion we are in a time where the difference between left and right only seems to be wide when the results over time suggest they are unified. Neither reduce government, reduce debt or even reduce their salaries to be linked to their results. A common theme of that Teacher's Union. In my quiet repose, I admit or confess as the case may be, that voting is just a pretense of choice and not actually a choice at all. Meet the old boss, same as the new boss…
Here is the you tube link…
This will be an interesting week in which Kevin Warsh, the new Federal Reserve Chairman holds his first meeting. Raise rates, lower rates, hold rates? It will make a short term difference but the mortar in the US and world condition is setting fast and soon will be immovable without dynamite. That dynamite has a fuse and I believe it is lit and burning down to the final moments. Trust me that those moments could feel totally natural and benign until, like Willy E Cayote, the world realizes it is holding a dynamite stick ready to explode. Kaboom!
OK, take a look at the video. I think you'll agree, Milton Friedman was a great think and a good man.
Best,
Donn Marier
DM-Your Own CFO