Milton Friedman

2. Milton Friedman “A society that puts equality – in the sense of equality of outcome – ahead of freedom will end up with neither equality nor freedom.”

6. Creative Destruction

7. Creative destruction • Vinyl > tape > CD > iTunes > Spotify • Horses > bicycles > cars • Want ads > Craigslist • Newspapers > internet > twitter • Desktop > laptops > iPads/phones • College education > MOOCs?

8. MOOCs • Massive Open Online Courses

10. MOOCs • Massive Open Online Courses • Khan Academy reaches 10 million students a month; delivered 300 million lessons

11. MOOCs • Massive Open Online Courses • Khan Academy reaches 10 million students a month; delivered 300 million lessons • Supported by Bill Gates (MSFT), Google and Carlos Slim (richest dude in Mexico)

12. MOOCs • Massive Open Online Courses • Khan Academy reaches 10 million students a month; delivered 300 million lessons • Supported by Bill Gates (MSFT), Google and Carlos Slim (richest dude in Mexico) • MIT (Massachusetts Institute of Technology) OpenCourseWare: all of its educational resources on web for free (or nearly)

18. Freedom in the states • Examines

23. Government Functions

25. 1787 We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

26. What is Dr. S. saying in this chapter?

27. What is Dr. S. saying in this chapter? • Most basic function is to provide law and order

28. What is Dr. S. saying in this chapter? • Most basic function is to provide law and order • Enforce contracts, ensure property rights, set standards, provide safety, national defense

29. What is Dr. S. saying in this chapter? • Most basic function is to provide law and order • Enforce contracts, ensure property rights, set standards, provide safety, national defense • How does law and order accommodate economic activity?

30. What is Dr. S. saying in this chapter? • Most basic function is to provide law and order • Enforce contracts, ensure property rights, set standards, provide safety, national defense • How does law and order accommodate economic activity? • Reliable network of laws can translate into economic prosperity… and the opposite is also true

31. Sowellian thought: “...where government restricts its economic role to that of an enforcer of laws and contracts, some people say that such a policy amounts to ‘doing nothing’ as far as the economy is concerned. However what is called nothing has often taken centuries to achieve – namely a reliable framework of laws within which economic activity can flourish...”

32. President Obama thought “...the Supreme Court never ventured into the issues of redistribution of wealth, and of more basic issues such as political and economic justice in society…”

33. President Obama thought “It didn’t break free from the essential constraints that were placed by the founding fathers in the Constitution, at least as it’s been interpreted and Warren Court interpreted in the same way, that generally the Constitution is a charter of negative liberties. Says what the states can’t do to you. Says what the Federal government can’t do to you, but doesn’t say what the Federal government or State government must do on your behalf...”

34. When Law and Order goes wrong…..

35. When Law and Order goes wrong….. • High levels of corruption are associated with lower growth and lower per-capita income

36. What is corruption?

37. What is corruption? • “Corruption is the abuse of entrusted power for private gain. It hurts everyone whose life, livelihood or happiness depends on the integrity of people in a position of authority.” source: Transparency International

38. What is corruption? • Bribes • Nepotism • Crony capitalism • “Pay for play” political donations

39. Such as… • 80% of Obama administration’s $20 billion in ‘loans’ for “green” energy went to Obama donors • Solyndra went toes up, costing taxpayers $535 million and counting. Major investor: Obama supporter George Kaiser • Fisker went room temp with $529 million in taxpayer “loans.” Major investor: Leo DiCaprio, FOB

43. Most corrupt nations?

44. Most corrupt nations • Somalia

48. Most corrupt nations • Somalia • North Korea, Afghanistan, Sudan, Myanmar, Uzbekistan, Turkmenistan, Iraq, Venezuela, Haiti, Chad, Burundi

49. Least corrupt nations

50. Least corrupt nations • Denmark, Finland and New Zealand tied for first