Milton Friedman: “Don’t Kid Yourself.”

Before Communism became totally discredited after the collapse of the USSR, a popular left-wing notion was that Socialist societies did not suffer from the periodic boom-and-bust cycle that we see in modern economies (known to Austrian Economists as the ‘business cycle’). People who expounded this notion claimed that Socialism eliminates the the boom-and-bust cycles in society, thereby saving citizens from the misery and unhappiness of the bust. There are a few different reasons why these cycles occur, but rest assured: Socialist societies had more than their fair shares of “bust” periods, and these periods weren’t just restricted to a miserable economy either. In this very short video, Milton Friedman thoroughly dismantles the idea that Socialism is immune from the boom-and-bust cycle.

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