Introduction to Microeconomics – 10 of 14 – Government Cartels – Murray N Rothbard

INTRODUCTION TO MICROECONOMICS
Presented by Murray N. Rothbard in 1986 at New York Polytechnic University. Recorded by Hans-Hermann Hoppe.

10. Intro to Micro: Government Cartels

The only cartels that have lasted have been government cartels. There is no essential difference between a cartel and an ordinary corporation or partnership. Not even the De Beers cartel is all powerful. The South African government nationalizes all land upon which diamonds are discovered. The government only licenses De Beers to work the mines; they shoot others. New York cabs are cartels. Farm price supports are cartelized agriculture.

Part 10 of 14. Presented in 1986 at New York Polytechnic University.

This lecture as a Podcast: http://enemyofthestate.podomatic.com/

Sourced from: https://mises.org/library/introduction-microeconomics

Source: Introduction to Microeconomics – 10 of 14 – Government Cartels – Murray N Rothbard – YouTube

http://www.readrothbard.com/introduction-to-microeconomics-10-of-14-government-cartels-murray-n-rothbard

TRANSCRIPT

00:00
we’ve already talked about different
00:01
forms of cartels and as the time as a
00:04
term of going on farm price supports all
00:06
the rest of that will never go go again
00:09
to various very types of cartels the
00:11
government forces so internal pressure
00:14
and external pressure broken up every
00:15
cartel that exception the only cartels
00:19
which have lasted have been government
00:20
cartels like OPEC which is a cartel
00:23
different government even even OPEC has
00:24
finally busted after was it 13 years
00:28
1213 years even they couldn’t hack the
00:31
fact that new new countries were coming
00:33
in with new production Britain and
00:35
Mexico and so forth you’re not part of
00:36
OPEC which kind of the best the whole
00:38
thing so the economic law works even
00:41
with governments and certainly with
00:42
private firms it works much faster now
00:46
one of the successful cartels as the
00:50
diamond cartel the even that has not
00:53
been that successful recently diamond
00:55
what happened in diamonds is or
00:57
wholesale diamonds are routed through
00:59
South Africa the beers companies South
01:03
Africa which then sold hotel Donna Soto
01:05
sell diamonds for the diamond markets
01:07
and absolute name except for the babe
01:08
huh butter them not Amsterdam lon yeah
01:12
and they did it and they sell I think
01:15
after them to it was a big big diamond
01:16
center and they self they regulate the
01:20
flow was a keeper supply drastically
01:22
limited through the beers car town now
01:27
what’s happened to several things happen
01:29
of our car car first place a few years
01:30
ago the whole whole diamond market
01:32
busted the demand curve collapsed and
01:35
the not twice of diamonds went way down
01:36
so even the cartel a world diamond
01:39
cartel is not all-powerful cuz it has to
01:41
face consumer fluctuating consumer
01:43
desires in several other jewelry you
01:46
know it’s also the jewels a sense of
01:48
competing with diamonds another thing is
01:51
this is the reason why the beers is able
01:53
to do this because the South Africa has
01:56
most of the diamonds that are found in
01:58
South Africa I was going to say grown
02:00
anyway they discovered in South Africa
02:02
the way south african government of
02:04
forces of this somebody South African
02:06
government not buy the beers the beers
02:08
is a beneficiary when they do is this
02:12
South Africa all diamonds all diamond
02:14
land is nationalized in other words if
02:16
you’re a farmer you’re Joe Jones are yup
02:19
Schroeder whoever doesn’t South Africa
02:21
okay and you find diamonds in your land
02:23
those diamonds are that part of
02:25
government-owned immediately become part
02:26
of a government the whole diamond miner
02:27
or whoever is nationalized okay so so
02:32
first South African government
02:33
nationalized all the diamonds then they
02:35
lease the Diamonds the favored less
02:37
seeds released the mines the hoe to the
02:40
beers basically in other words the beers
02:43
I have to get the monopoly let’s c plus
02:44
a few other large diamond firms are in
02:47
another cartel which essentially a
02:48
allied to the beers nobody else can get
02:51
AG lysis leaked to the mine diamonds so
02:55
if you’re a farmer your yapper garena
02:57
sigh well how will the government not
02:58
but I’m going to sully diamonds your
03:00
shot me literally shot because they they
03:03
patrol the coast of South Africa’s we’re
03:05
told will the coastal Coast Guard very
03:07
rigorous patrols of cash so called
03:09
diamond smuggler these mama smuggling
03:10
people trying to get their own diamonds
03:11
out basically and the solemn to break
03:15
the car color coast is patrolling their
03:16
shot there was a good British film a few
03:19
years ago a some big star and at about
03:21
the diamond South African diamond
03:23
business and then the talks about this
03:25
is of course doesn’t go another cartel
03:27
part very much folks about being shot by
03:29
the Coast Guard enroll and so diamond
03:32
smuggling quote-unquote is really feel
03:34
or trying to trying to gauge your free
03:35
tray is what really amounts to try to
03:38
bust the card tell so in other word the
03:40
successful cartel first of all if not to
03:42
super successful the consumers and lower
03:45
the price and have done it second of all
03:47
it’s only successful because the
03:48
government’s an African government
03:49
enforces it who this kind of arrangement
03:51
whether the beers is leasing the lab
03:54
diamond mines from they don’t own the
03:55
mind at least it from the South African
03:57
government which automatically owns it
04:00
so about 10 20 years ago Russia
04:03
discovered soviet russia discover of
04:05
nine months so that was a big panic and
04:08
the international diamond cartel what do
04:10
they do my brush you might bust the
04:11
market what’s the price you say Russia
04:13
however be monopolist themselves at
04:15
k-state monopolist are very happy to get
04:17
cut in a good part of the quota that was
04:18
a happy to get cut so Russia sells the
04:21
their dinosaur the South African
04:23
government card tough
04:25
in the allegedly or opposed the South
04:27
African government politically when it
04:28
comes to the business at all the happy
04:30
combination monopolist in ord they got a
04:33
chunk of the ugly of a quota so to speak
04:35
so that’s the mystery of the whenever
04:38
you see a successful court how look the
04:40
government enforcement and sure enough
04:41
there’s where it was another thing
04:46
that’s coming to the news yesterday was
04:49
the fact that heroics one of my heroes
04:50
in the movies Clint Eastwood became
04:52
mayor of Carmel California elected by
04:56
two and a half to one seventy percent
04:58
kicking out the previous mayor now the
05:01
issue which he fought for tlie the race
05:04
on was very several with anti-government
05:06
cartel of them in other words but then
05:09
if you ever been the car mouth a
05:10
beautiful little town without Pacific
05:12
it’s been a pipe tight tight
05:15
stranglehold of a bunch of upper-class
05:16
liberals who essentially you’re residing
05:19
in the town and run it keeping now all
05:22
growth in other words they’re kind of
05:23
prevent any kind of expansion any kind
05:25
of any kind of business growth and
05:29
whatever so they other words the whole
05:30
thing is on a big zoning man up building
05:32
card cop zoning laws it uses a way of
05:34
restricting production keeping supply
05:37
them with everything for the left line
05:39
houses I’ve prayed merchant stores
05:41
whatever so Clint Eastwood owned a
05:43
restaurant and cart out and come home
05:45
what he want to do is expand it you want
05:46
to get permission to expand it a little
05:47
bit they refused to do it they were very
05:49
severe anti-growth policy car now you
05:52
ever been the coming to see why and so
05:55
they came here on a basis of free market
05:58
ticket an where’s the bus the
05:59
anti-growth zoning cartels are really
06:02
amounts to he doesn’t use the word
06:03
cartel that’s what it is yeah so he
06:06
mobilized the masses and ran kan and won
06:09
by 20 1 so any right this is all thing
06:11
but you have all throughout the United
06:13
States on a local level on a federal
06:15
level is this kind of compulsory cartel
06:17
in various areas in this case is
06:19
supposed to be housing and zoning toy
06:21
telephone amounts to california by way
06:26
shot with at me shot through with
06:27
housing cartels we try to keep out
06:29
people you don’t like by having by
06:31
zoning the amount of existing them
06:33
preventing them from coming in progress
06:34
to the
06:39
okay another another case of our country
06:43
cartels well apparently the whole bunch
06:45
of caged licensing in general as there’s
06:52
a example of every business almost every
06:59
business is now licensed I’m everything
07:00
you can think of and the licensing is 0
07:02
is the excuse for life what’s the excuse
07:04
excuse of course the public welfare
07:05
common good fuses we have to protect the
07:08
public by licensing this profession well
07:11
the medical profession I have a stick it
07:13
sounds more plausible other profession
07:15
that’s not the only it’s not the real
07:16
reason of medical licensing either but
07:18
in some cases it’s obviously idiotic
07:20
like photographers are licensed why do
07:23
you have to have only licensed
07:24
photographers my brother-in-law for
07:26
example is an excellent photographer he
07:28
doesn’t he doesn’t have a license
07:31
because life is very expensive he’s in
07:32
the state of Virginia the licenses are
07:34
very expensive as you have an expensive
07:36
license this of course pushes the supply
07:38
curve of photographers the left and
07:40
raises the price of the consumer he
07:42
would like to be a part-time
07:43
photographer he’s really a printer a
07:46
photographer is a sign line a very good
07:47
one he could be but he can’t he doesn’t
07:50
he doesn’t have enough money to be a
07:50
light it’s not worth his while I have
07:52
got a coal license so they don’t have a
07:55
Gestapo in Virginia searching every
07:57
pound for photographers so he can he
08:00
could be a illegal photographer except
08:02
you can’t take out you can’t take it on
08:03
ad he can’t have me on the yellow pages
08:05
can’t say photographer but you know it’s
08:08
etc because any be from the state
08:10
licensing Bureau crack down on his
08:12
business is restricted by the fact that
08:13
he can’t advertise and he can’t can’t
08:15
make it public so this is what happens
08:17
the purpose of repair oh and the purpose
08:20
of licenses is to keep out this pushes
08:23
of micro a web keep out new entrance
08:25
alot of me and one of the things about
08:27
licenses will see time and again here
08:29
and Miller mentions this is so cool
08:32
grandfather clause grandfathering
08:36
grandfather clause means you you say
08:40
this profession whether whatever it is
08:42
whose occupation needs to be licensed
08:44
that we have to serve the public after
08:46
we make sure for example a photographers
08:48
are a good moral character or the
08:49
heavily educator ever hug it is okay if
08:51
taken
08:52
three years of courses in some
08:53
photography school well these
08:55
restrictions are come in they’re not
08:56
apply to existing people existing people
08:59
are grandfathered out in other words
09:01
let’s say you pass along and the junior
09:03
that in order to be photographer you
09:06
have to get have to go two years old
09:07
photography school license photography
09:10
school is very expensive this was
09:12
questions pine cove 11 then you say
09:14
existing photographers are exempt in
09:17
this regulation so this is a blatant
09:19
monopolistic are colossal explain
09:21
obviously has nothing to do with a
09:22
public welfare because you want to serve
09:25
the public welfare you’ve applied
09:25
everybody including through this thing
09:27
photographer is really important the
09:29
photographer’s get a university
09:30
education or they get learn about
09:32
physics or something like that then
09:35
you’d make it apply everybody know it
09:36
only applies to new people coming in
09:38
that’s the tip off the whole thing is a
09:40
racket the grandfather clause is a
09:42
tip-off for the racketeering nature of
09:44
licensing now for example a ball bearing
09:46
profession what they do is you see every
09:49
20 years or so they increase the
09:50
requirements because the new generation
09:52
comes in they want to be grandfathered
09:53
too so every 20 years or every 15 years
09:57
as a big increase in tightening a
09:58
requirement them with every profession
09:59
Bob bring is a marvel i unfortunately
10:01
lost the clipping a great little story
10:04
about Bob brain history of barbering
10:05
initially of course you don’t know
10:07
barbers are not licensed you come a
10:09
barber let’s say you cut hair and that’s
10:11
it you’re good for your lousy hair
10:12
cuttery go out of business or good in
10:14
here car you stay in business any rate
10:16
barbers got together and in a guild and
10:19
they began a ma be for licensing and
10:22
every ten years they raise the
10:23
restrictions in other words you have to
10:25
go for six months of barbering school
10:27
and then ten years later they have to go
10:29
a year to barbarac so I think now it’s
10:30
like three and a half years the
10:32
barbering school you have to pass
10:34
courses in the history of barbering like
10:37
if I have to take 104 here right history
10:40
of barbering the protecting a robbery
10:43
technology in late 1600 you have the
10:46
passports of the ethics of barbering as
10:48
if farming in his own ethics you don’t
10:50
cut the guys neck i guess it’s big
10:51
anyone go hey
10:54
huh that’s right that’s like 10 life
10:58
like any a tightening requirements and
11:00
then in each case the existing people
11:02
were exempt know each case you say well
11:04
from now on everybody’s got past the
11:05
course in history of barbering but the
11:07
existing Barbara don’t have to do it
11:08
again it’s a tip officer racket and and
11:12
so every every five or ten years are
11:14
keeping increase their requirement have
11:15
to be a citizen the minimum age keeps
11:18
going up used to be 16 or 17 out about
11:20
21 or something like that to keep
11:21
raising the age increasingly education
11:24
requirements have to be a citizen and
11:26
God knows what all sorts of ways to
11:28
restrict and creative profession in
11:31
Chicago but the thing of jacala Jehiel
11:34
is very heavy unionized town much more
11:36
than New York and much much more Gil Gil
11:39
operated in Chicago technically aren’t
11:41
technically if a rule really followed
11:43
the illegal to shave yourself without a
11:45
license because it says in order to
11:49
shave anybody if anybody you have to
11:51
have a license and so only licensed
11:53
broker can shave people so technically
11:55
it’s illegal to shave yourself in
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Chicago you can see the Gestapo making
12:00
every guys home you’re shaming yourself
12:01
you’re under arrest it is not licensed
12:04
barber so fortunately of course these
12:06
are not enforce these insane
12:08
requirements but they’re part of a rule
12:09
you know a lot of people think that’s
12:11
part of what should be in force of the
12:12
hill well that’s part of the law in
12:13
Chicago it’s not being enforced the help
12:16
there’s a lot of laws like that by the
12:18
way if you’re crazy laws or sevilla by
12:19
it out even though they’re still on the
12:21
books but this shows you how far the
12:23
licensing situation goes for example if
12:27
a photography svcs or any most of these
12:29
why you have to be certified as a good
12:30
moral character what does that mean what
12:31
I mean what do you some Board of some
12:34
Board of photographers in Virginia
12:35
certifying everybody but what do they
12:37
know about moral character in any way
12:38
why they experts of morality but all
12:41
this is part of this whole gimmick ya
12:52
know it depends on each occupation in
12:55
summer example New York their company
12:57
trying to crack down on peddlers I’m
12:59
going to mention this before that’s part
13:00
of the whole thing see them leave the
13:02
sea part of one of the things I for
13:05
months tell you about competition it’s
13:07
not
13:08
necessarily true the small business can
13:09
be on computed by big mothers in many
13:11
areas small businesses are more
13:12
efficient better able to compete in big
13:14
businesses for example we tailor retail
13:16
profession we have retail in general
13:18
peddlers can often out-compete retail
13:20
stores because peddlers them come in
13:22
once they’re not there on the corner
13:24
when it’s raining at a lower lower
13:25
capital requirement don’t the paying
13:27
rent after pay fixed fixed equipment
13:29
right they can nip in with one day
13:31
supply of purses or scars and sell it
13:34
that the training I don’t show up so the
13:35
mobile highly mobile and they can often
13:38
out-compete retail stores to the extent
13:40
that retail stores always trying to
13:42
outlaw them and putting on special
13:44
licenses on peddlers hot dog stands or
13:46
ever so many of these guys are
13:48
constantly every what’s a while the
13:50
mayor whoever the mayor is announces a
13:52
crackdown on peddlers hell is a great i
13:54
think probably the fantastic they’re
13:55
cheaper stuff is course much cheaper we
13:58
have in our neighborhood grab a
13:59
magnificent florist an illegal Flores
14:01
wasn’t selling flower the same corner
14:03
for many years and he go to the to an
14:05
official license floor through k or
14:08
something course ten bucks with him as a
14:10
dollar and a half of magnificent cuz
14:12
he’s got better fresher stuff the
14:14
organized for us are trying to always
14:15
keep me put them out of business they
14:17
get the cops on course in a conscious
14:18
and if he pays off the cops so he’s a
14:21
confident as a contest between who gets
14:23
you know the official official pressure
14:26
and every once awhile a mayor says gotta
14:27
crank down on the peddler what’s one of
14:29
the peddlers valley says they’re a spoil
14:32
of beauty of this new york city streets
14:33
it’s great i mean new york city has many
14:36
advantages of a beautiful streets is not
14:38
one of them okay so the whole thing is
14:40
obviously absurd argument which we use
14:42
any sort of argument because the
14:43
pressure of retail inefficient retail
14:45
stores or can’t compete please God so
14:47
it’s not and sped leurs of the smallest
14:49
possible business they have one day
14:51
supply of capital in some case they
14:53
won’t well they have is like a suitcase
14:54
they spread out the stuff and that’s it
14:56
then when you have a pushcart pushkar’s
14:58
already a high status symbol of peddling
15:00
profession means you have enough money
15:01
to buy a pushcart and yet they have bang
15:04
them is there that’s a great way to for
15:05
immigrants the 22 or rise up in the
15:08
world hadn’t have been on the path for
15:09
licensing and also a great way to
15:11
compete in some it’s marvelous to the
15:13
consumer and for uncorrect those are one
15:15
opportunity but of course organized
15:17
retailing organized retail by the way
15:19
has always been 20
15:20
all other compact competitions been
15:21
going on for a hundred over a hundred
15:23
years every innovation and retail
15:25
industry every successful technological
15:27
innovations of combat of legally by the
15:29
organized interest in the retail field
15:31
for example in the mid 19th century when
15:34
railroads first came in Allen first time
15:37
we had cheap transportation and over a
15:41
land at so bland railroad came in the
15:43
institution of traveling salesman came
15:44
at work which stores wholesalers in New
15:47
York let’s say I’m Chicago look but send
15:49
traveling salesman out with sample cases
15:51
the show to the various retailers well
15:54
the organized wholesalers are saying you
15:56
know Dayton Ohio didn’t like the fact
15:58
how my salesman suddenly popping up
16:00
intra competing with them in other words
16:02
New York stores cannot compete with our
16:06
wholesale’s can I compete with Dayton
16:08
they had taxes to put them out of
16:10
business special license fees they said
16:12
they were evil with terrible things
16:13
unfair competition I have traveling
16:15
salesman it’s by the way is the reason
16:17
the origin a family salesman dirty
16:19
traveling salesman jokes because having
16:21
says I’m usually in state of illegality
16:23
because they’re finally vague thousand
16:25
dollars for example they don’t have to
16:26
pay like a thousand dollars a year
16:27
license fees to operate each town and it
16:31
only making about three thousand a year
16:32
they’re obviously they couldn’t pay it
16:34
so they they try to slip in out of town
16:36
unseen you see before the retail
16:37
wholesale are can get after them
16:39
wholesale competitors so for about 20 or
16:43
30 years that family salesman basically
16:44
illegal and finally the Supreme Court
16:46
says unconstitutional and they were
16:48
probably leaving us special taxes and
16:50
license fees then after they they were
16:53
probably absorbed and the wholesalers
16:55
and they started employing traveling
16:58
salesman c2 so the whole thing began to
17:00
finally get accepted then after they
17:03
were accepted ah 1890 or so a new
17:06
institution comes in the department
17:08
store and I was hysteria directly after
17:10
was unfair competition is more than one
17:12
floor horrible thing is something more
17:14
than one product and mah blah blah
17:15
outlaw them packs them so about 20 or 30
17:18
years or special taxes place on the
17:20
department store then attempts to outlaw
17:21
ever and then the same thing happened
17:24
with mail order my god mail order they
17:26
can buy stop by mail Sears Roebuck and
17:27
Montgomery war they don’t even act a
17:29
higher salesman it’s unfair because they
17:32
can just send
17:33
catalogue that sits there in Chicago and
17:35
tell you is that turbo think Chris
17:37
consumers loved it but all over the
17:38
United States who are bonfire parties to
17:41
burn Sears Roebuck catalog would be
17:43
unfair competition organised a lot in
17:45
retailers in each area claiming to be
17:48
put out of business by EBO Montgomery
17:49
Ward and he will Sears Roebuck finally
17:52
they were accepted okay that comes the
17:53
change store same damn thing happens to
17:55
them about nineteen twenties Chris
17:57
change stores Thor of anp with a major
17:59
chain liberals were calling for breaking
18:01
up a and pap as a monopoly their evil
18:03
break them up because they can so stuff
18:06
at a cheaper car they’re getting
18:07
discounted you know manyam discounts
18:08
they can buy stuff cheaper and I was
18:12
growing up there was the liberal liberal
18:14
United States we’re calling for the
18:15
breakup of a MP well I was finally
18:16
rendered obsolete by the supermarkets
18:18
which came in a MP of course the last
18:21
people understand the importance of the
18:23
supermarket the last people clue in on
18:24
it it was still mutton you know mired on
18:27
the old change store technology and so
18:29
they they leave they fell behind ever
18:31
I’ve competed by the newcomers like
18:33
Safeway and ran Union so forth and if
18:36
you even now even right now A&P; store
18:38
usually the worst in the city so we have
18:39
a the crummy wooden floors on the rest
18:41
of a 30-year and so they were they could
18:44
put them on they almost came and went
18:45
out of business they almost went
18:46
bankrupt so-called monopolist they
18:48
didn’t have to be Boca up they fell
18:50
behind the competitive race cuz like
18:51
most big business many big business i
18:53
should say they didn’t understand the
18:54
new they weren’t alive for new
18:55
developments the chain was a lot chain
19:00
is what civil lawyers can also be a
19:01
chain but the chain was he had
19:03
mom-and-pop stores and we go to the
19:05
counter he asked for two pounds of
19:07
butter or something okay a very few of
19:09
them left there’s something neighborhood
19:10
stores like that film i changed the word
19:12
me had them he still had to go to the
19:15
counter and ask them but they were you
19:16
know different there are branches all
19:18
over the place and each one more
19:20
impersonal he didn’t have you couldn’t
19:22
get credit as well they were cheaper the
19:24
other hand you couldn’t get credit they
19:25
didn’t know you and that sort of stuff
19:26
and the deliveries Werner’s so their
19:28
trade offs and a lot of people still
19:30
prefer to the mom-and-pop stores get
19:31
cheaper credit and liberated at night in
19:34
whatever it is but then you see when
19:36
supermarket came in me it was purely
19:38
self service which is a great tremendous
19:40
new concept after world war two weekly
19:43
on her don’t even have to go and ask the
19:44
guy to get this
19:45
of the great great development and they
19:47
MP fall behind on that yeah they find it
19:51
surely but they almost went bankrupt in
19:53
fact they reduce a lot of their stores
19:55
because of that so at any rate so in the
20:01
reach after that after after they
20:03
changed over finally accept the
20:05
supermarket here except that then they
20:07
thought of belly I came at discount
20:08
houses which we were last big innovation
20:11
in the 16 19 15 and 60 they use the hand
20:14
I get they hand us by the ways quit and
20:17
mother created by the retailer
20:18
associations trade association resale
20:21
price maintenance bloons came in in
20:23
1930s as an alleged anti-depression
20:26
device of course continued 30 years
20:29
after the pressure was over we sell
20:31
price maintenance or than men if a
20:33
manufacturer signed a contract with a
20:36
retailer let’s say to sell some
20:39
appliance for a certain amount for a
20:40
certain minimum price let’s say saw
20:42
electric shaver for no less than thirty
20:44
dollars then no other retailer could cut
20:46
the price any polite even though he what
20:48
he do he wasn’t bound by any contract
20:49
the lower then imposed a minimum price
20:53
for these products for all retailers all
20:55
over the country this is so for resale
20:57
price maintenance law so why not
21:01
manufacture who doesn’t care why should
21:02
I manufacture abuse if your son being
21:04
company was selling savoured why should
21:06
you care what the retail price is long
21:07
as you get your price you want from the
21:09
wholesaler a jobber and so they didn’t
21:11
they didn’t care what happened was the
21:13
organized retail associations what the
21:14
Sun themes that look what boy kanya we
21:16
don’t buy something what you impose a
21:18
minimum price of whatever was thirty
21:20
dollars or whatever so in other words
21:22
the whole idea was through a strict
21:23
production and raise price and
21:27
inefficient retailers one of the screw
21:30
the consumer by organizing a cartel and
21:33
getting the federal government and state
21:34
governments along with them opposed the
21:37
cartels who we sale price maintenance
21:38
Lord which said once they manufacture
21:41
announces the price everybody is
21:42
committed to it retailer can’t cut it so
21:45
finally what happened was that two
21:47
heroic so-called discount houses in New
21:50
York masters and Corvette simply started
21:55
cutting prices however we defy the law
21:57
week
21:58
the constitutionality I but they started
22:01
selling stuff way below much cheaper and
22:03
way they were able to do it by no frills
22:05
salesmanship course and the words Lee
22:06
instead of having a salesman at your
22:09
beck and call what you want saratov you
22:11
have to line up like you do now if you
22:13
know 47 feet photos ever you just you
22:16
know what you have to know what you want
22:17
ahead of time you’re going in line up
22:18
and pay for it and so that was enabling
22:21
the cut the cost cut the price and so
22:23
they they start undercutting with
22:25
magnificence everybody flock of course
22:26
the Masters in Corvette and went out to
22:28
the Supreme Court the retailer’s
22:29
organized retail sort of bitter lady hey
22:31
does this thing it’s a car almost unfair
22:33
and blah blah blah its monopolistic
22:35
here’s another favorite argument of
22:37
these guys they say well look if you
22:40
allow free competition then cartel us
22:43
always say if you’re a free competition
22:44
eventually some firms will get very big
22:47
and I put the other firms out of
22:48
business then they’ll raise the price in
22:50
other words their argument is thought to
22:52
preclude the part of the possibility of
22:55
an efficient monopoly 20 years from now
22:57
it will eventually raised by let’s
22:59
enforce it and in a fisherman ugly right
23:01
now let’s have a government cartel
23:03
forcing you to raise the price an
23:05
obviously idiotic argument which can
23:07
only be hell might somebody’s doing this
23:09
for public you know to propose an
23:11
efficient cartel on their own behalf I
23:13
mean you look at it logically whole
23:16
thing’s a biotic so it’s the only pushed
23:18
people were special pleaders for this
23:21
thing so these are their argument if you
23:24
will you can’t be terrible things larger
23:26
we tell the takeover and they’ll be
23:28
efficient I’ll finally eventually raised
23:30
the price court they eventually never
23:31
come prices get lowered by competition
23:34
so any rate this kind of masters of
23:36
covet were hated by everybody attacked
23:39
by all the retailer’s finally the
23:40
supreme court said you’re right resale
23:42
price maintenance or unconstitutional
23:44
and since the nineteen sixties I think I
23:46
forget one this year a year this past
23:48
anyway since 1960s discount housing has
23:51
been have been accepted you know
23:52
everybody discounts especially in New
23:54
York and I fact Corvette just went
23:56
bankrupt year or two ago they had no
23:58
other ya know function everybody was
24:00
discounting there is no longer a special
24:02
place so New York by the way a great
24:07
fortune in most places in the country
24:08
don’t have the discount I like
24:11
tonic discount places like that so so
24:16
this is again an example of innovation a
24:18
retailer in this case the retail
24:19
industry fighting against battling
24:21
against compulsory cartels they have to
24:24
be compulsory in order to work at all
24:25
and find out you know breaking through
24:27
this whole soul crust of cartel of them
24:31
this still is I think I’m not how is
24:34
with vitamins now but they used to be
24:36
very Pike this can’t I just counting for
24:38
vitamins the name of health I remember
24:40
when I was I used to get Sarah Graham
24:43
vitamin sure Richard squibs thorough
24:45
Graham which is both of all by i’ma cook
24:46
the list price those days it might still
24:48
be about 10 bucks which is totally
24:50
insane so they were selling it for about
24:52
six dollars the market price about six
24:54
so I went into this drug store
24:56
neighborhood drug so nice and I like
24:57
thur erase any looking he got look at me
24:58
so you live in the neighborhood strange
25:00
question might think to ask I said yes
25:03
yes yes I’m home I’ve seen you around he
25:06
then sold me the vitamin for six dollars
25:08
of a pen in other words what he was
25:10
worried about I might be a stop our i
25:12
remember in other words memorably of a
25:13
secret police of whatever they call them
25:17
for the federal Food and Drug whatever
25:19
you’re on it in New York regulates the
25:21
retail industry the gum around to make
25:22
sure the vitamins an old soul but no
25:24
less than list price other words minimum
25:26
price control espionage agents as Abby
25:30
has been source of the retailer the
25:31
organized retail of the cartel which
25:33
doesn’t want any given retail store to
25:35
bust the price so of course this is now
25:38
busting their nobody saw the nine-member
25:39
seen any throat after nine ten dollars
25:41
going about five or six so that too is
25:43
busted them but intriguing it even in
25:45
New York here we had a situation where
25:47
you have to make sure the guys safe that
25:48
I’m a neighborhood person out some
25:50
floating spy for the local Bureau so
25:54
anyway this is a man out of court that
25:57
this cancel / in vitamins but them this
25:59
is still going off of the liquor
26:00
business the liquor trust it’s been
26:04
loosing a little bit recently but
26:06
basically what you have is the liquor
26:07
industry Brooke liquor retail liquor
26:10
store tightly so the supply is tightly
26:13
controlled you have to get a license
26:17
personally there are no new liquor
26:19
licenses so it’s very much like the taxi
26:20
business which we get to one another
26:22
they’re only a fixed amount
26:24
we hear liquor store licenses since they
26:26
don’t issue anymore in order to get the
26:28
notice hosing you want to open up a
26:30
liquor store you can only do it by
26:31
buying some other existing liquor stores
26:33
license some liquor store owner wants to
26:35
retire go out of business or sell out
26:37
you have to buy his liquor license of
26:40
course there are many thousands of
26:41
dollars whatever it is enormous amount
26:43
of money to be able to open up to have a
26:45
right to open up a liquor store so in
26:47
other words the supply of liquor stores
26:49
originally fixed this of course raising
26:50
the price obviously in addition of that
26:52
is minimum distance requirements in
26:55
other ways you can’t open a liquor store
26:56
less than 100 yards of 200 yards
26:58
whatever is from some other liquor store
27:00
giving this existing liquor store some
27:02
from a geographical monopoly three
27:04
blocks however it was important in New
27:05
York three blocks is a lot in other
27:07
words you can’t invade his turf it’s
27:10
again the pure cart is not the fact to
27:12
of any others any other business court
27:13
you think you know about the grocery
27:15
store right of course the speaking
27:16
another one but in the case are in
27:18
retina on clothing store whatever in
27:20
case of liquor however especially
27:20
regulated by the New York State Liquor
27:22
Authority and so you’ve got geographical
27:26
monopoly my first moved out of my
27:27
neighborhood on the west side there was
27:29
a one big liquor store here’s another
27:31
fairly large one there and the teeny
27:34
lovable teeny one right here right next
27:36
door to me the teeny one was put out of
27:38
business but these two guys I got
27:39
together complainer liquor a story they
27:41
were less than 100 yards whoever it is
27:43
from the other two they were put out of
27:44
business of this they were expelled from
27:47
but ejected from business by the
27:48
statements they government at the at the
27:50
under the lobbying of these two
27:52
competitors this is the way this is the
27:54
way this is a welfare state in action
27:56
this is the welfare state this is
27:58
government regulation for the common
28:00
good quote unquote it’s the government
28:02
being used by these two competitors
28:03
through their own third competitor to
28:05
the court eliza system keep out
28:07
competition so that’s where i’m a nice
28:10
the real monopoly problem will not a
28:12
problem is i’m not pulling demand curve
28:13
will not be problem Jerry buddy has will
28:16
not be problem with the government being
28:18
used to to restrict or eliminate
28:21
competition the and a liquid filled by
28:29
the way you also have to work very high
28:31
liquor taxes plus liquor import controls
28:35
and the result of which of the pipes of
28:37
liquor in
28:38
limassol a higher than it would be in
28:39
the free market it’s incredible it would
28:43
be on the price of liquor before the
28:44
Civil War my extra liquor taxes came in
28:46
because of prohibitionists a gallon of
28:50
top scotching it for about a buck and
28:52
that’s of course let’s say the price is
28:54
now 88 times higher than that you
28:56
probably get a gallon of top shivers
28:59
regal coming about for about eight
29:00
dollars let’s think on the free market
29:02
yeah but that’s a taxes I would think
29:05
you’d be something like that yeah I’m
29:08
free market am I talking about now
29:09
talking about without taxes without
29:11
important tariffs yeah yeah okay so i’ll
29:16
leave you with that how happy thought
29:18
okay take this take a ten-minute break
29:20
is a liquor store like a license is in
29:27
the same status as a liquor store
29:29
license same status is a tobacco farm
29:32
license and also taxi license would get
29:33
two more my favorite example a great
29:36
taxi caper which was now and the news in
29:41
I’ve said this before I will repeat it
29:44
on a taxi question the 1920 there were
29:48
twenty five thousand packs he’s on the
29:49
streets of New York right and in order
29:54
to get a taxi in order to get a taxi
29:55
license you had to be like buttons all
29:57
you need to do to be able to show you to
29:58
drive a car see any of the drivers
30:01
license plus a car i think access to a
30:04
car and then you went downtown i got 10
30:07
buck license license then you’re in
30:11
business you’re in your operator taxi uh
30:13
a 1930s the number of taxis went there
30:18
for 25,000 during the boom of the 20s to
30:21
11,000 787 1937 taxi owners in New York
30:29
Associated axi Association what the New
30:31
York City said we need some help them to
30:32
break the depression he need to be
30:34
bailout and the hell was that the new
30:38
york city government said okay from now
30:40
on we issue no further taxi licenses now
30:43
from that day from 1937 of 1986 that’s
30:47
39 years no more taxi license of an
30:50
issue in the city new york that’s it
30:52
a number of times a nitrogen has been
30:53
frozen like the by divine edict in 1937
30:56
has never increased sentence there we
30:58
sit greatest boom in American history
31:01
Menace boom and income and employment
31:03
whatever you still have the same same
31:05
number of calves on the street now we
31:07
have 1937 even though of course income
31:09
is going up population in New York City
31:11
is not going up a population and suburbs
31:13
of going way up there a lot more people
31:15
trying to get cabs so you have then a
31:17
freezing of supply at the old level
31:20
therefore it can’t ordinarily of course
31:22
of going up and so what you’re really
31:24
doing is you’re restricting the supply
31:25
and raising the price keeping your
31:29
supply the linky 30-something level
31:30
saying it’s as if saying well supply of
31:32
cars an hour five of bread is now 93
31:34
seven level that’s it so in order to get
31:38
a taxi license now if you want to own a
31:39
taxi in New York yeah not only to buy a
31:42
car and then you know I’ve got to be
31:44
able to draw you also have to buy a taxi
31:46
license from something this thing taxi
31:47
owner who wants of leave the business
31:49
because we can’t get any more from the
31:51
city and sit frozen 11,000 787 so
31:55
there’s a market I hesitate to say free
31:59
market a market and taxi license
32:01
so-called medallion which is a shield on
32:03
hood of a car so if you want to own a
32:07
taxi have to spy advice of some guys
32:09
willing to retire and what we go on at
32:10
some other business and the place that
32:12
has been fluctuating force in 1913
32:14
prices somewhere near ten dollars it
32:16
wasn’t a big demand to be in a taxi
32:17
business but after World War Two and the
32:19
boom began people want to enter it and
32:23
so the price demand curve for the taxi
32:26
licenses supply as Miller says it’s
32:31
frozen 11,000 787 so the man fluctuates
32:34
it’s like an art the art market the
32:37
demand for Rembrandt’s you know the
32:38
supply of Rembrandt is fixed with
32:40
Rembrandt is dead and supply of taxis is
32:42
fixed because the goddamn city
32:43
government won’t issue any more licenses
32:45
and so we have a fluctuating a man in
32:48
accordance with all sorts of things
32:49
booths and the sessions and whatever
32:51
well the price of a taxi light well
32:53
Miller says the price of taxi license in
32:55
like mid 1980s and sixty thousand
32:57
dollars he’s way out of day already the
32:59
price of a taxi license right now on the
33:00
market is 105 thousand dollars you
33:04
own a cab and many people are cab
33:06
drivers is also a good immigrant a way
33:08
for immigrants that start making living
33:10
here as you well know if you’ve seen if
33:13
you’ve driven ridden and taxis in New
33:15
York most people don’t know English
33:16
anymore cause the taxi drivers seat huh
33:19
can’t drive either very well yeah but
33:23
but no but you have to know yeah but you
33:28
have to get the most important thing is
33:30
to be able to cough up the head of the
33:31
five thousand dollars to buy the taxi on
33:33
many of these drivers of course sir are
33:35
employees of the fleet many of them most
33:37
of them are our taxi owners and so there
33:40
we sit Hampton the market price of a
33:43
taxi licence them and Daniel’s now how
33:44
to the five thousand dollars and of
33:47
course the result of this is the
33:48
tremendous shortage of capital permit a
33:51
scarcity of cams rates are up the price
33:54
is higher than would have been and
33:55
supplies way down this means of course
33:58
the taxi drivers in the saddle just like
34:00
the rent control landlord is or the
34:01
butcher under a price control namely
34:03
that if it’s raining if it’s rush hour I
34:07
can’t no can’t can’t put their off-duty
34:08
signs are thrust on like God of every
34:11
kind of rican Sumer right so for
34:12
off-duty son that’s it you can’t find a
34:14
cam anyplace the cab drivers don’t want
34:18
to go to Brooklyn and we’ll go to the
34:19
Bronx well go to Harlem they want to
34:21
they want to hang around midtown
34:22
Manhattan really maximize their income
34:24
because there’s no competition a result
34:26
of all this was the with the growth of
34:28
the so-called gypsy cab movement the
34:30
unlicensed cab you illegal cab market
34:32
and then the gypsy cabs became
34:35
quasi-legal and I think there’s three
34:37
tiers now does the gypsy cabs are sort
34:39
of legal now as the illegal illegals and
34:42
the legally leave late you like the
34:45
medallion caps the medallion taxis are
34:47
the only ones that can officially cruise
34:50
and pick up pick up customers other cabs
34:53
can have been allocated Brooklyn the
34:56
Bronx inand whatever I’m from Manhattan
34:59
they’re basically allowed the cruise in
35:01
Brooklyn blocks and it still others
35:06
can’t can you can call them up you know
35:08
the radio cash and call them up in court
35:10
and that’s okay but I can’t Cruise of
35:11
course in real life they do cruise on
35:13
illegally there’s this whole structure
35:15
crazy structural attacking this we all
35:17
do
35:18
the licenses are no new license of an
35:21
issues with Nike 3730 49 49 years yeah
35:26
39 years is it yeah 49 years but caps
35:30
acolytes every few years mayor Koch is
35:33
trying to increase the number like let’s
35:35
have a hundred more and the taxi in the
35:37
taxi drivers are ya go on strike
35:39
dangling right biggest area uh yeah well
35:42
I’m not sure what was the thing is they
35:44
tied up I alright great yeah what’s
35:50
happenin taxi business is interesting
35:52
this is happens with old man ol
35:53
monopolist um anyway I said in Laurel
35:55
Ronald monopolies are inefficient in the
35:57
case of a license but like the market
36:00
and I’ll go into this more when we get a
36:01
little bit later on next week or two we
36:03
get you know what determines the actual
36:05
price of the market price of this kind
36:07
of license we have a monopoly price a
36:11
muffle a monopoly license light of this
36:13
sort the price on the market tends to
36:15
absorb an awfully profits in other word
36:17
if you get a big profit of am only a cab
36:21
getting a license the price of license
36:23
goes up to absorb the profit so that
36:26
means that the current gone a guy who
36:28
spends one of the five thousand dollars
36:29
on a camp he spent so much for the camp
36:31
he doesn’t feel he’s exploiting the
36:32
public his profit margin is pretty low
36:34
because he has a yes sir it’s true he’s
36:36
getting monopoly profits and keeping out
36:38
other cam yeah and he have to pay so
36:40
much for the damn license absorb as a
36:42
non profits the taxi owners don’t think
36:44
they’re exploiting us because they say
36:46
our profits are low we’re struggling to
36:48
keep alive which is true they have to
36:49
pay so much for their monopoly license
36:50
the result of all this is the only
36:52
people who really benefit the taxi
36:55
monopoly is the original guys the guys
36:56
in 1937 bordick slices for 10 bucks and
37:00
Sullivan 55 they are the windfall
37:03
so-called windfall gainers the guys will
37:05
hung on in that license for 30 years
37:06
they’re in great shape the guys the
37:09
newcomers however are no better off
37:10
anybody else the result this kind of
37:13
system benefits no one and screws up a
37:15
lot of people other where the consumers
37:16
are screw the people like to enter the
37:18
taxi industry in can’t but they have a
37:19
couple hundred five thousand a bar on
37:21
the five thousand to get the scratched
37:23
and to get the license are hurt and even
37:27
the beneficiaries don’t really benefit
37:28
any more in the long run in other words
37:30
even the monopolist don’t benefit is
37:32
their their profits were absorbed in the
37:34
prices of license they had to buy and
37:36
yet they’ll fight like hell ekipa
37:38
because they have a hundred five
37:38
thousand dollars tied up in other words
37:40
they will fight like tigers to keep any
37:42
move any more like medallions from being
37:45
issued they’re afraid that how do the
37:46
whole hunt of the five thousand will go
37:47
back to 10 bucks for it should be in
37:49
first place and it’s the same argument I
37:51
don’t know if I mentioned this in this
37:52
class are not the same argument same
37:54
thing have under slavery before the
37:55
Civil War there was an economics of
37:57
slavery the slave of a capital equipment
38:00
you’re getting the slave master is
38:02
getting monopoly profits in other words
38:04
essentially as we’ll see in a weaker
38:06
selling the free market everybody gets
38:08
some marginal productivity everybody
38:11
gets more or less the wage rate is equal
38:12
to marginal productivity the case of the
38:14
slit of slavery the slave master picked
38:16
up all the signal where he he collected
38:19
so to speak the productivity and you pay
38:21
the slave only subsistence know just
38:23
about enough to keep going and reproduce
38:25
the difference was a surplus profit
38:28
remember the surplus value and exploited
38:30
exploitation value so to speak while a
38:32
slave master you stick the slave master
38:34
we making a lot of money because they be
38:35
getting these extra profits from
38:36
exploiting the slaves however after a
38:39
few decades we’re having one of the
38:40
slavery plays were bought and sold and
38:43
so the price of a slave absorb monopoly
38:45
the slavery profits the slave master had
38:49
to pay so much for the slave and not so
38:50
much capital tied up in the slave he
38:52
felt he wasn’t any an extra profit he
38:54
was struggling I every arc everybody
38:55
else result of all this as a slavery
38:58
system they’re not benefit anybody in
39:00
the slave master the slave masters
39:01
fought like hell at keeping their with
39:03
money tied up in slavery it’s very much
39:05
like the taxi image of course much much
39:08
more important economic consequences the
39:10
political consequences on the slavery
39:11
but the same economic aspect to it in
39:13
other words you have an exploitative
39:15
system the monopoly type system you’re
39:17
screwing a whole bunch of people get
39:18
monopoly profits and yet that an ah-play
39:20
professore did or discounted away by the
39:22
market so you wind up with no extra
39:24
benefits so people benefit of the
39:27
initial slavery guys like a slave
39:29
traders abort the slave over and then
39:30
week the round mostly week a big profit
39:32
but after a while the slave profits are
39:35
absorbed in the pice of the slave so the
39:39
end of court they fought like hell are
39:40
keeping very similar current system well
39:44
so every once and while the mayor
39:45
whichever may have been saying let’s
39:46
that’s increase the number of number
39:49
license by a hundred and big hysteria
39:51
goes up if you’ll be able to means
39:53
you’re loosening up this monopoly system
39:55
the last about two years ago conch had a
39:57
pretty interesting idea it said well
39:59
here’s what he proposes them in order to
40:01
in order to quiet down the historical
40:02
taxi owners give them a free license in
40:07
other words you double as the amount the
40:09
double of them at 23,000 or whatever but
40:12
you give each existing license owner one
40:14
more license-free and the proviso it has
40:17
to be used either by him about somebody
40:18
else within a year or two years and the
40:20
word he’ll have to sell it now probably
40:23
these guys would have benefited getting
40:24
a freak you know 305,000 all thanks to
40:26
the price was going down from under than
40:28
5,000 it’s stolen all it probably would
40:30
have benefit they were so scared about
40:32
loosening up the pipe monopoly and
40:34
reducing the value 105,000 all value but
40:38
they fought hysterically against them
40:40
finally car chatter with royal a
40:41
suggestion the idea of giving every
40:43
existing owner of free free white a free
40:46
medallion which happen to you so this is
40:48
the current situation of the current
40:51
cookery then came about they just
40:54
assigned a few years ago to take the
40:57
issue 100 100 100 extra medallions to
41:02
use experimentally in diesel caps see
41:04
how these look has worked well of course
41:06
what happened was these crooks took the
41:07
hundred and and the each one was those
41:10
days worth with 60,000 at six million
41:12
dollars and somehow nobody knows what
41:14
happened to it dissipated away and
41:17
various crooks on taxi Commission but
41:19
anyway the command this is an enormous
41:21
amount of money here now 11,000 design
41:24
is one of the five thousand all of Egypt
41:25
I want it though so there’s where we sit
41:29
and it’s interesting how the market
41:30
discounts these extra profits so the
41:35
price has been going way up and of
41:36
course they’re all very happy about this
41:37
and will clinging to every every every
41:40
buck like hands situation and most most
41:45
cities have a woman packaging monopoly
41:47
or other Los Angeles you have to be a
41:49
yellow cab company have a literal
41:51
monopoly only the yellow cab Connie’s
41:53
allowed to have calves on the street
41:54
that’s it the only really free market
41:57
semi free-market taxi situation is a
42:00
Washington I’ve ever been to Washington
42:01
magnificent pack seat town even a rush
42:03
hour you can get a cab everywhere at
42:05
magnificent great because the free entry
42:08
in the taxi business numba Daniels own
42:09
not it’s true the rates are regulated
42:12
but even so as a big difference one of
42:17
the things about the races by the way
42:18
one of the reasons why they gypsy cabs
42:20
are now quasi-legal is because they
42:23
don’t cut the fair in other words
42:26
they’re finally grudgingly accepted by
42:28
the medallion taxi people because they
42:30
have a fairer they don’t they don’t
42:31
undercut a fair and I kind of a fairly
42:32
probably beaten up and be war on the
42:34
streets but says they don’t undercut the
42:36
fair they’re allowed to continue one of
42:39
these restrictions so that’s the method
42:43
will never get a really decent camps
42:46
earth in the org republic taxi mom
42:48
please broke up we get free entry in the
42:49
back even I thought I doubt whatever
42:51
happens I have to really buy these guys
42:52
off and you refused to be bought off
42:54
even though they say even one free
42:56
medallion didn’t do it so that’s the
42:59
that’s the current setup and the only
43:09
buying the mossy most economists say
43:11
which is they should be bought off a
43:12
cheaper of a consumer to buy them off in
43:14
many cases in a case of taxi people they
43:16
don’t want to be bought off afraid to be
43:17
bored off yeah yeah because it’s filled
43:25
with crooks but they have never replace
43:26
it with something else that doesn’t mean
43:27
again one neighbor now thing is the
43:31
eleventh the magic number of a lot of
43:32
thousand 787 is remaining they’re not
43:34
talking about doing away with that
43:35
unfortunately I’d love to see it maybe
43:37
someday I’ll be able to do it but the
43:40
taxi does a big a vocal minority book
43:42
called pressure group and highly a
43:46
highly political it Assizes their whole
43:48
livelihood is wrapped up in the
43:49
government here and again keeping their
43:50
monopoly so that’s that’s the real
43:52
problem monopoly once again it’s not up
43:53
falling demand curve as the sort of
43:55
stuff you can’t get in the tank
43:57
e-business let you shell out 100 five
43:58
thousand dollars and somebody’s already
44:00
in it okay
44:05
it’s similar situation as the medical
44:09
licensing it’s more complicated medical
44:11
and hospital licensing where the really
44:15
what the real the real the real sticking
44:18
point happen the real difference
44:19
occurred in the hospital licensing where
44:22
a medical school the hospitals were
44:23
brought under severe regulation around
44:26
1910 the Abraham flex they wrote a
44:31
report for a medical education in
44:36
nineteen tims responsible at Carnegie
44:38
Foundation and the Rockefeller
44:41
Foundation and his report was there too
44:44
many doctors that’s true we talked a
44:46
little bit about the quality of
44:47
education but basically he’s saying that
44:48
when he does the income of each doctor
44:50
is too low and should be higher and a
44:53
way to make it higher to restrict the
44:54
entry and once again Lee so we have a
44:56
systematic situation where they entered
44:58
supply curve is shifted to the left
45:01
there were literally half the medical
45:04
school the country will put out a
45:05
business they were not in licenses not
45:07
renewed or not issued by the state
45:09
governments each state set up a Medical
45:12
Board the American Medical Association
45:14
the trade union of doctors so to speak
45:16
was given the right to appoint the
45:19
people in other words if you have a
45:20
state photography for whoohoo running
45:22
into organized photographer and they run
45:24
in a carta lysing manner force why else
45:27
run it so each state the hospital of
45:30
medical i smelling schools were licensed
45:32
by the state the AMA had a right to a
45:35
point of the people and they of course
45:36
put half the school’s out of business
45:38
period I don’t know were they shift the
45:40
supply graphical even left a number of
45:43
doctors per person as much lower in
45:44
isolation is in most other countries
45:46
much lower than was we went for 1910 and
45:49
see if pushes my cars 11 you increase
45:52
tremendously increased support the
45:53
income of the position and one of the
45:59
things that was done we have them and
46:00
I’m a cartel yaneth there was a medical
46:02
situation medical fields and organized
46:04
cartel compulsory card fell each state
46:07
running it collaboration American
46:10
Medical Association what happened to the
46:13
cartel is that
46:14
we again when you have a card tellest
46:16
discrimination comes in this is very
46:18
much like the butcher or a landlord if
46:21
you have the right to decide who should
46:23
be in your apartment you have 50 people
46:25
for every apartment well you then you
46:26
pick the guys you’ll like a pic you’ll
46:27
release you’re interested in favor of or
46:29
whatever same way of the medical
46:31
profession when the medical schools were
46:34
pushed to the left and half of them will
46:35
put out of business by the government
46:37
the doctors then the side of while we
46:39
going to keep out people we don’t like
46:40
who they keep a blacks women and Jews
46:43
these are the three major groups of
46:44
forced out of medicine before 1910 or a
46:47
lot of blank medical schools a lot of
46:49
female doctors they were systematically
46:52
put out of business by the government
46:54
state governments thing but all the
46:56
black Medical School the pod business
46:57
being quote unqualified on quote female
47:00
schools of those at half female that
47:02
medical students with crowd business and
47:04
so the whole the whole thing shifted and
47:06
wasps basically took over a medical
47:09
profession for decades interesting
47:13
enough that people took over and this is
47:15
an economist engaged in study is this in
47:19
the medical profession the most
47:20
monopolistic part of profession of those
47:23
which are most connected with the
47:24
hospitals because the hospital of the
47:25
key to this thing key to the monopoly
47:28
control Hospital Medical School so the
47:31
more hospital oriented a physician is
47:35
the more monopolistic than his
47:36
occupation surgeons for example are
47:38
totally hostile Orion and the surgeon of
47:40
the most monopolistic man where they
47:42
charge the highest fees / / well /
47:47
income of a customer for example of
47:50
dentists that doesnõt monopolist they
47:52
basically they don’t think I connected
47:53
with hospitals but that this will charge
47:54
more the same amount anybody pulling a
47:56
tooth surgeons however take a gun and
47:59
Bradstreet report on that only on the
48:00
income of a patient and they say charge
48:03
proportion of what they think and get
48:05
away with in other words if a person is
48:07
wealthy it’s just suck on a higher fee
48:09
for the same appendant appendectomy
48:10
whatever they can only do that because
48:12
they’re associated with a hospital which
48:14
is basically with the monopolistic
48:15
license institution so the other hand
48:18
shrinks remote mostly on hospital more
48:22
or less charge the same speed mean with
48:23
within limits shrinks are basically non
48:27
monopoly
48:27
in that sense they charge more or less
48:29
the same fee for everybody they couldn’t
48:31
get away with charging more her rich the
48:33
wealthy person they just go to another
48:34
shrink and with interest shrink
48:36
competition will then do the job of
48:38
making making a price more or less
48:40
uniform but not with surgeons are they
48:42
locked in the hospital situation ama for
48:45
example you look at the power a lead of
48:47
the American Medical Association and
48:48
variably the those are running
48:50
Association of surgeons not internal
48:52
medicine not why doctors or whatever
48:54
surgeons the editors in journal American
48:57
Medical Association of surgeons the
48:59
heads of it why is that thought God
49:00
ordained and happy surgeon that surgeons
49:03
the most monopolistic there in with a
49:04
key of the monopoly which is a hospital
49:07
and one of the things that are done with
49:11
a shrinkage is you’re keeping your
49:12
getting blacks women and Jews out also
49:15
get out competing therapy those who
49:17
don’t fit in the orthodoxy I’m not
49:19
taking it to stand one way or the other
49:20
non-us position am I taking staying on
49:22
therapy one way the other one was saying
49:24
is they’re competing therapies Orthodox
49:26
therapy is not the only therapy and in
49:28
recent years has been a lot more of this
49:30
fellow alien last 10-15 years a cropping
49:33
up of unorthodox therapy because there’s
49:35
been more competition and that I will
49:36
feel you know doctors even advertising
49:38
after magnificent step it forth to
49:40
compete a little bit she was unheard of
49:42
you know 10 years ago 20 years ago
49:44
considered unethical advertised other
49:47
words the ethics of medicine is you
49:48
should never compete don’t take a client
49:50
away from a patient away from another
49:52
doctor that’s competition well it was in
49:55
a fourth card tell it’s been breaking up
49:57
last few years so they put out of
50:02
business competing therapies in other
50:04
words there wasn’t in those days before
50:08
1910 there were two basic two
50:10
respectable forms of therapy current
50:13
with milton was now called medicine
50:15
which then is cool allopathy a low-pass
50:19
theory being a few cure diseases by
50:22
massive doses of synthetic drugs that
50:23
kill the germs and other their other
50:26
field homie homeopathy was considered
50:28
just as respectable for that i would say
50:30
about one-third or more positions or
50:33
homeopaths how many passed a very
50:34
different theory their theory was
50:36
synthetic drugs are no good you use
50:38
natural herbs and my youth doses all
50:40
right no thing where the thing is they
50:42
had a good success rate to a success
50:45
rate probably least as good as the old
50:46
paths they were put out of business
50:48
every homeopathic medical school was
50:50
destroyed by the state government
50:52
regulation after 1910 the American
50:55
Medical Association rules can put your a
50:57
low path and therefore put the homeopath
50:59
out of business in Europe they still
51:01
have a lot of homeopath a very
51:03
respectable occupation United States
51:06
however there is been put out of
51:07
business from the government and was a
51:09
lot but they using the government of
51:10
crush homeopathy unless also others
51:13
there are other forms of past natural
51:15
path osteopathy east be illegal now in
51:18
chiropractors finally made it because it
51:20
was a long struggle i get to get
51:22
legalized the also of course a lot of
51:27
cancer alleged cancer cures or have been
51:29
outlawed by the government not on the
51:31
basis that they do any harm on the basis
51:33
they’re not effective i know they’re not
51:35
expect that problem is but you know it
51:36
should be up to the patient society for
51:38
me there’s a case on television a couple
51:40
weeks ago bob dr. Richie o beloved dr.
51:42
Richie Oh dr. Richie who vici I guess
51:45
yeah I Romania lovable Romanian doctor
51:47
by 85 years ago a lot of cancer patients
51:49
doing a lot of good apparently at least
51:51
the patient testified to that his
51:53
license was taken away from them by the
51:55
state government so they said his
51:57
therapy was not effective corn unquote
52:00
the other hang you have a lot of
52:02
butchery going on bio cough medicine
52:04
they said well sorry it’s a more mistake
52:07
of the way it is even though it’s not
52:11
gets it an effective cuz at the state of
52:13
the art at the state of white you know
52:14
right you get away with it so it seemed
52:17
pretty a pretty run deal outlaw cure
52:20
just because it’s coke not effective on
52:21
quota point of the government not
52:22
according to the patient that’s a
52:25
laetrile as an outlaw decently use a
52:28
wave of oxy cure whatever these however
52:30
good or bad they are people should be
52:31
able to take things to buy them it
52:33
certainly look at the basic argument of
52:35
the Hawks medicine look at the argument
52:37
they don’t say it’s these cures are
52:39
harmful what they say is not effective
52:41
and therefore they’re wasting the
52:42
patient’s money imagine you goddamn
52:44
doctors having the goal a claim of their
52:46
that other cures at wasting paper the
52:48
patient’s money they’re much cheaper
52:49
than orthotics medicine much cheaper
52:53
which is a big reason why living here
52:54
and leading the clarity illegal they’re
52:56
very cheap natural herbs are cheap movie
52:59
Chi methods cheap laetrile is cheap
53:02
officially freaking orange pits I’m
53:04
harmful almond pills peach pits preacher
53:09
April apricot pits egg pasta anyway
53:12
they’re fairly cheap never got peasant
53:14
of that the forgot would come something
53:15
at any rate there’s sheep and so since
53:20
and most people might need the scent of
53:21
people go to so-called cranky was
53:23
already going through Orthodox medicine
53:24
declared incurable they turn to these
53:27
high schoolers only last resort in most
53:29
cases so the tremendous amount of oil
53:31
these people say that they’re wasting
53:33
the consumer money at any ray so there
53:39
we have it we have a lot of these people
53:41
cut the friend of mine claimed he was
53:42
cured of diabetes by taking a
53:43
homeopathic herb and with five this you
53:46
have a herb of this much like feet all
53:48
of the feast sense of it or a five-year
53:49
supply of an herb that’s it he threw
53:52
away is insulin was this it’s much
53:53
cheaper and let’s support less side
53:55
effects the boot penny array homeopathy
53:57
should definitely be legal whether it’s
53:59
good or bad it should be consumers have
54:01
a right to patronize it now what is it
54:07
just it’s just me enough a method to the
54:09
madness here the allen pass remember
54:11
Express synthetic drugs synthetic drugs
54:13
are expensive synthetic drugs will have
54:16
to be discovered by and the research has
54:17
to be done in to the bike drug companies
54:19
and well there for particular age has
54:23
been keeping putting the natural herbs
54:25
out of business the remember I says a
54:29
flexure of court abraham flexner who
54:31
wrote the report to change medical
54:33
education in this country was not a
54:35
doctor and he was on an educator oddly
54:37
enough so why did why did he get this
54:39
big plum signing on who should be out of
54:41
business his brother was Simon Flexner
54:43
on was a doctor also head of the
54:46
Rockefeller Institute of Medical
54:47
Research the Rockefeller sudoku medical
54:49
research is in pushing ever since
54:51
synthetic drug research among the most
54:53
of their money goes into synthetic drug
54:55
research this synthetic drug companies
54:58
are heavily invested in by the
54:59
Rockefeller family Rockefeller interests
55:01
now we begin to have a connection here
55:03
you have the Rockefeller drug interests
55:07
making a lot of money on synthetic drugs
55:09
they have the Rockefeller Foundation
55:10
allegedly impartial objective scientific
55:13
outfit pushing for outlawing of
55:16
competitors this is that a drug and
55:18
Rockefeller reached the profits along
55:21
with a drug card along with a medical
55:23
card tell us at the expense of a
55:25
consumer population i’m not saying as
55:27
these this is this league anomic
55:29
situation not taking a stand for against
55:31
the navy therapy what i’m saying is the
55:32
consumer should be allowed to choose any
55:35
rate the last few years the michael
55:42
monopoly even more have been loosing a
55:44
lot there’s been a big increase of
55:46
people going to medical school as an
55:48
aloo go ever they have had advertised as
55:51
a loosening up of one of the reasons was
55:54
the medical prices of drugs and and
55:57
medicine and hustles are so high
55:59
competition is becoming in paramedics
56:02
and people like that holistic medicine
56:04
we things are much cheaper and finally
56:07
push back the monopoly stranglehold on
56:09
medicine some extent not completely but
56:11
it’s been a lot of things a lot that i
56:12
used to be i remember when i first went
56:14
out to California many years ago in the
56:15
dentists were advertising on radio it’s
56:17
really a culture shock you know go to
56:19
turn the radio on go to doctor so it’s
56:22
all you have cheese filling for 10 bucks
56:24
or over it and that’s worth a lot more
56:26
of it you got a leaflet saying go to
56:28
this hospital clinic what’s a good thing
56:30
it shows there’s some competition at
56:32
last the medical field so anyway the PAS
56:39
the monopoly problem is not following a
56:43
man curve it’s it’s compulsory cartels I
56:45
just want to say that I final I footnote
56:47
on a farm question farm price supports
56:49
again or cartilage agriculture and then
56:54
again the the milk you have the milk
56:57
cartel compulsory mill cartel with a
56:59
restriction supply and rate rise in
57:03
price while the most people are filled
57:05
with belly aching bat the fights wasn’t
57:07
high enough and like Anna’s
57:08
overproduction corn on corner with a
57:10
fool too much being produced in order to
57:12
crush them the the milk industry no cart
57:15
eliza mocha industry further federal
57:16
government are just issued a ruling
57:18
compulsory killing of a million their
57:20
age
57:20
have Lord of them sound like Nike early
57:24
nineteen thirties being done right now
57:25
they move quote three morgan quote
57:28
compulsory slaughter very very counter
57:30
to push the decrease in supply of milk
57:33
and push up advice this is a well this
57:35
is a welfare state in action people nice
57:38
for the world fair i goddamn very
57:40
interest except the rest of us so
57:42
interesting enough what’s happening is
57:43
are they killing the dairy cows usually
57:46
two kinds of cows their accountant beef
57:48
cattle okay dairy cows are milked on the
57:51
beef cattle or kill for me I said
57:53
killing of dairy cows is selling them to
57:55
me the beef cattle industry is going
57:57
crazy they’re saying hey hey is a big as
57:59
overproduction of cattle because they’re
58:01
now too much meat coming on the market
58:02
meat prices are falling there’s too much
58:06
cattle coming in markets that calling
58:07
for stopping the store or very cab they
58:09
don’t care what they do with them going
58:10
disappear somewhere then want to
58:12
competing with a beef cow on the meat
58:14
market such as the situations the life
58:16
just the life they of development I’ll
58:18
keep you apprised of the permanoids on
58:20
okay not for today

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