The Economic Crisis

Taped on January 8, 1968. Perhaps the economy had not yet truly reached the point of crisis, but it was beginning to feel the strain of President Johnson's attempts to keep the guns and butter coming at ever faster rates. This splendid economics lesson from one of the country's leading teachers begins with a little historical biography (Friedman: "Keynes, himself, was very much of a scientist. I think he was wrong on various things, but he certainly had a scientific approach. And indeed, I've always regarded it as a great tragedy that Keynes died when he did. Because one of his great capacities was flexibility"), and then goes on to the importance of monetary policy, how we might better handle taxation and welfare, and much else. Summary by Firing Line staff.