Question asked by a woman (a layman / non-business woman) in the audience in a TV show (? Phil Donahue): "Why is it that we have a lot of Millionaires in the United States, but there is still so many impoverished people? The rich have oodles and oodles of money. The poor find it difficult to find jobs. The rich people can only eat so much. Why do they want so much money and hoard so much money?"
Milton Friedman's response to the woman:
- "What do the rich do with their money? Do they hide it under their pillows? No.
- The rich invest in businesses. These businesses (factories and machines) create jobs for the poor. If rich people did not create these businesses, the poor would not have jobs.
- The improvements in productivity comes from money invested from the savings of the rich.
- There is no Nirvana on Earth. There is no paradise on Earth.
- What would be the wage rate today and the productivity today if the total amount of capital today was the same as what it was a 100 years ago?
- It is the responsibility of the government to take care of the poor people and not the responsibility of the rich people.
- It is the responsibility of the government to educate the poor. It is the result of wrong government policies that people are poor.
- The minimum wage set by government is wrong - it decreases the productivity".