WEBVTT

NOTE The Incredible Bread Machine Film

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The Theory of Money and Credit

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The Theory of Money and Credit

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Mr. Waller, sir.

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Mr. Valentine, Waller?

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Due to your refusal to pay Social Security taxes,

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the Internal Revenue Service is confiscating your horses to sale at public auction.

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The money will be used to fulfill your taxes.

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All legal and...

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You'll be refunded any money over the amount due to you.

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You know that it is by my faith.

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that I cannot resist we appreciate that mr. Biler yes we certainly do you

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Thank you. We appreciate that.

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Stephen Anthony!

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Stephen Anthony!

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Stephen Anthony!

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By the authority of the County of Los Angeles, under the law of the dominant domain, you are ordered to leave your property.

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Come on, Anthony, give it up. Stop making a fool of yourself. You don't have a chance and you know it.

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Don't keep us out here all night. Come on out of there.

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Stephen Anthony has held Los Angeles County sheriffs at bay for almost 10 weeks now.

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You may remember that Anthony's home and several others around it were condemned

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to make way for the construction of the Hollywood Motion Picture and Television Museum.

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Anthony's neighbors moved out, but Anthony is holding out.

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It's my house, and you're not going to take it away from me!

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The Theory of Money and Credit

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It was terrible. They tore the furniture apart. They tore everything in our house apart.

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They shouted at us and handcuffed me and put me on the bed.

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And they were violent burglars and I thought we were going to be killed.

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What the hell of it was?

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It was terrifying.

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We didn't know it at the time, of course. They were justice department agents or federal agents.

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They were looking for drugs.

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The scenes you have just witnessed are based on fact.

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The Amish farmer received $37.39 back from the Internal Revenue Service after it auctioned

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off his horses to pay his Social Security taxes.

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The man defending his home was finally arrested and his house was torn down.

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The property is now a parking lot. The private museum was never built for lack of funds.

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The narcotics officers had burst into the wrong house without properly identifying themselves.

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The victims sued, but the agents were acquitted of all charges, and no compensation for damages

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was awarded.

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Okay, it's a wrap.

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Oh, don't kill those lights yet.

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I want to play around a little bit.

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It's getting arty again. Nobody's saying anything, you guys.

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Tell Lee to keep his sound rolling.

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Are you still rolling, babe?

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I know, it's a real thing, but it's not...

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How much you may say is right, you've got to admit that what happened shows the government had good intentions.

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At least it starts out that way. But when you try and force good intentions on people, it's very easy to set up a humanitarian gift team.

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I tell you, Carly, you usually do.

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Oh, come on, that's not necessary, is it?

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Yes, it is.

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There they go, there they go.

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You guys never agree on anything, do you?

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What do you mean, we don't?

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You never agree on anything.

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You're the strangest combination of people I've ever been.

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Okay, up against the wall.

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The bus keeps knocking.

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Look, Paul, the reason you're so confused is that you can't pitch and hold it.

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We're all different and we have different ideas on a lot of things.

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Ideas.

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Everybody's got a different one on what should be done.

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When faced with a problem, most people think there ought to be a law. But who decides?

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The trouble is that laws often do more harm than good.

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Well, we have our viewpoint too, and we wanted to get it across straight, so that's why we're in the movie.

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We figured we could play ourselves better than anyone else, and we wanted our points to be made clear.

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We're saying that individuals can solve problems better than government,

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and can keep their personal and economic freedoms at the same time.

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Personal and Economic Freedoms, they go together, and that's what this movie is all about.

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People love to take chances, take all the risk out of life, and you take all the life out of life.

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I mean, the only safe way to get through life is to stay in bed so you can't trip on your own shoelaces.

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Do this, don't do that. Hey, whose life is it anyway?

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Well, you might say, isn't the freedom of choice you lose worth the protection you get?

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But who gets to draw the line? I want to draw my own line.

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I calculate my own risk, and this is my regulator.

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Hey, you ever had any trouble with the police about permits or anything like that?

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No, they all want to be in the movies.

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Hey, Scott, what if I were to say to you that all cameramen had to be licensed by the state or federal government?

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Why? I mean, why would they want to do that?

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Well, porno flicks. To keep people from making porno flicks.

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Now, that's a good idea. I approve.

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You ever worked on a porno flick?

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Oh, wait a minute. I've got to get this reaction for posterior.

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Wait a minute. Wait a minute. Wait a minute.

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It begins with a wall now, man.

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Okay.

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Once, it was boring, dumb, and the pay was lousy.

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Oh, come on, Scott. You don't have to lie.

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We're all your friends.

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This is you, isn't this you, Susan?

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Yeah, and that's good to my little girl.

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As long as I do not initiate force or fraud against others,

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I wish to live my own life in accordance with my own convictions.

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That's nice.

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But, listen, aren't there things that benefit society as a whole that should limit your freedom?

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Well, I shouldn't be allowed to initiate force or fraud.

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For example, I shouldn't be able to force you to give up something that's yours.

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I shouldn't be allowed to force you to finance something you don't believe in or have no interest in.

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Yes, I see.

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If I don't have that right, then why is it legally, morally right for the government to have it?

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The government should be protecting my rights, not violating them.

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Once upon a time, there was a land of plenty, Ceylon.

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Food was abundant, but not all were fed.

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For the blessings of heaven showered not equally on all the subjects of this country.

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For there are always a few who are hungrier than others.

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But this was accepted as one of the vicissitudes of life,

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until one day a great lady, Mrs. Bandaranaike,

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brought forth a plan wherein all would be fed equally

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and contentment would rule the land of Sri Lanka.

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Because the less fortunate of the people had not the means to pay for the food,

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It was given to them for free.

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Now clearly, her intentions were benevolent.

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But as is the way of best laid plans of the mongoose and the cobra,

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true equality seemed elusive.

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For among those people who loved equality so dearly,

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those who worked to grow their food felt unequal.

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They too felt they should have their food for free, but lo and behold, the more who ate for free, the fewer who tilled the fields.

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The land of enchantment turned into the land of discontentment, for now there was no food, although it was for free.

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Promises, promises. But now our people starve. The people's voices did plead. Patience, patience. We'll get the food. But first must come the money.

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Now the discontentment grew among not only those who cried for food, but from those forced to pay the bills.

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For the freer the food, the higher the taxes.

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Alas, the lines grew longer, the food grew shorter, for one cannot give away what one does not have,

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The voice of the people grew louder still. The press did clamor for more food.

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Hush the stinging barbed the lady charge. Now is not the time for dissent. We must pull together.

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The army faithful did not question. The deed was done. Silence reigned at the point of a gun.

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Now all is silent and peaceful again in the land of Sri Lanka.

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For problems which we cannot talk about are no problems at all.

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Let me put it to you this way. It's the classic question.

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How long can personal freedoms, freedom of speech, the press,

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be preserved in a society that denies you your economic freedom?

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But it doesn't. It doesn't at all. It's nothing. Interventionist...

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I used to think that minimum wage job was a good idea.

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Then I got this job helping me through night school.

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Then, when the government raised the minimum wage, I thought I had it made.

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But then, my boss told me that he couldn't keep me at that rate.

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so now the job's gone starting next week folks around here gonna have to put down

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a deposit and carry their own umbrellas around minimum wage

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uh lights please around the film please

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we've been talking about the housing problem in urban america which has become

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an explosive problem today we're seeing a film on urban renewal

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There's the government tearing down some housing units.

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Pretty soon we'll be replacing them, presumably, with new housing units.

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Empowered by the people's demand for urban renewal legislation,

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the government from 1940 to 1971 has torn down over 500,000 housing units,

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and has built some 200,000, which you will see in a moment, I presume.

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It seems that the government has torn down two and a half times as many units as it's built

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This is a bill at a cost of 7 to 10 billion dollars. Of the new units being erected, almost

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half are lower income units. Of course, that means more than half are upper income units.

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I think this must be a new government plan to keep people upwardly mobile.

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No, seriously, what about the people that were displaced, the poor people who lost their

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homes and then when the government tore this down and then they couldn't afford the new

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house?

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Well, I'm sure the government must have taken care of that problem. They're building these new apartment units.

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I suppose.

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Some more being torn down.

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Ah, there's a new project. Pretty expansive, fairly neat looking in a way.

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I'll be seeing some new projects. Oh, what's that?

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Uh-huh. There she goes.

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Hmm. Oh, I know what that was. That was the St. Louis Project.

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The government, as I understand it, built that project to replace a slum, but unfortunately it too turned into a slum pretty soon.

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So they had to tear it down again. Well, I guess it's back to the old drawing board in Washington.

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I don't know if I'm married or if it's because I'm a woman, but I am being discriminated against.

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Because if a married woman can have Social Security without working as her husband's dependent,

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then why should I have to pay Social Security taxes?

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You guys, they take it out of my payroll, but where does it go?

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It isn't fair, just because I'm married and working.

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Well, I knew there had to be some advantage to not being married.

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I don't see much point in worrying about it.

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The system is already billions of dollars in debt.

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And even as a single guy, I may not get anything out of it.

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It's a real fraud.

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But aren't they doing something about it?

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I mean, the Equal Rights Amendment and all that.

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So what?

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All that means is it will be equally bankrupt for everyone.

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But if it wasn't for Social Security, my grandmother would be starving.

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Hey, by the way, how is your grandmother doing these days?

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Starvings.

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Doesn't it bother any of you that people are starving everywhere?

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Sure it does. A lot of things do. Housing shortages, not enough food, unemployment, all kinds of stuff.

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The point is learning how best to solve these problems.

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And you don't solve problems by violating people's rights.

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Okay, you feel that way, but not everybody does.

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Not everybody's that smart.

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If you want to solve housing and food shortages, you've got to make more housing and food, right?

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Means you've got to produce them, which means production is the thing that counts.

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And government doesn't produce anything. People do.

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Yeah, right. Millions of electronic toothbrushes, automatic door openings, tons of non-biodegradable junk.

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And then they spend millions of dollars getting people to buy the worthless stuff.

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They can't force anyone to buy their junk.

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The Theory of Money and Credit

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Government isn't perfect. Look, I admit government isn't perfect.

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Paul, will you break down another camera?

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I mean, really, government isn't perfect.

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And I really believe in free enterprise and the free enterprise system.

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But if you don't have government regulation and big business, you know, the multinationals just take over.

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Today the country, tomorrow the world. That's how they feel.

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If you don't have government, you've got to have government to protect from the force of big business.

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Forced? What forced? How can business, operating legitimately in a free market, force anybody to do anything?

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Well, the big ones have a lot of dollar power.

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That kind of power, they just corner the market. They buy up all the competition, form cartels, monopolies, screw the people.

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This man has a monopoly in bathtub gin. He's well organized. He provides the consumers with a product they desire.

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He has a manufacturing plant, the means of distribution, salesmen and outlets.

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He sets his price and he gets it. He doesn't have to worry about competition. He controls the market.

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This is a government monopoly. The U.S. Postal Service. It provides the country with a needed service.

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The prices aren't enough to cover its costs, but the difference is made up in taxes.

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The government has simply outlawed all competitors, and the U.S. Postal Service controls the market.

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These companies are government sanctioned franchise monopolies.

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They furnish the utilities in their areas, but their rates, policies and territory are determined by government commissions.

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If you don't like it, you can lump it.

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Because of special government franchises, they control their markets.

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And there are yet other forms of market control.

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For when government has been given the power to grant legislative favors,

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private interests will not hesitate to bend that power to their own direction.

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Once there lived a king. His kingdom was California and his throne was Sacramento. His subjects were the gentlemen of the state legislature.

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From 1922 to 1950, Arthur H. Samish, a private lobbyist, ruled California.

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Since the idea of government intervention in business is widely accepted, it was just a question of getting the proper legislation passed or keeping unfavorable legislation from being passed.

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Although in his legislative activities, Samish never broke a law.

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His powerful influence as a lobbyist resulted ultimately in the use of force through legislation

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and hurt the consumer and of course business outside the Samish circle.

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Arthur Samish one day received a telephone call from Louis Rosenstiel,

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owner of famous four-year-old Schenley Whiskey in New York.

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Artie, I've got something important on my mind I want to discuss with you.

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Hello, Joseph.

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Come see me.

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Well, when the big man calls, the little man jumps.

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I met him at his office and he said to me...

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Are you?

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I'm very much concerned about Harry Hatch.

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You mean the President of Hiram Walker?

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Yes, he's a mean man.

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I'd like to see something done about him.

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What do you suggest?

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Well, he has a whiskey called Ten High, and it's the biggest seller in California.

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Tell me something about it.

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It's a three-year-old whiskey.

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Three years older. That's all I need to know.

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You leave it to me. I'll take care of Mr. Harry Hatch.

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When the legislature came back into session, I had one of my friends in the assembly introduce a bill

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The bill, which provided an all-whiskey soul in the state of California, had to be at least four years old.

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The bill zipped through the legislature without a whisper of opposition.

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Governor Olsen vetoed it, but his veto was overwritten.

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The dries loved the bill.

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For once I had him on my side. He'd vote for anything that could tail the liquor industry.

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industry. The others thought it was a good bill because it protected the

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quality of whiskey. After all, I was looking out for the public's interest. It

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just happened that the public's interest coincided with that of Louis Rosensteel.

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But getting favors from government is not sin. The sin is when the government has

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these favors to give out. Right. If the government didn't have the favors to sell,

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Well, the consumer would be king, not sammish.

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Are you ready?

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Yeah, I'm still rolling. Take this, will you?

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All right.

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Oh, give me that, bro.

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Okay, Scott, what's your problem now?

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Well, I understand the illegal monopolies, gangsters, right?

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Okay, and the phone company and Amtrak,

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And the power companies, due to government franchises, legal monopolies again.

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Okay, so we have monopolies due to private enterprises getting the government to pass

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legislation, laws, licensing, things like that, right?

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Which inhibits free enterprise.

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But do you have the guts to show how real big business monopolies can screw the people?

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Hey, hey, let me ask you a question.

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Can you give us an example, any example, of a really true, current free market monopoly?

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Well sure, every state and union...

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Now remember, a free market monopoly can't get any favors from the government.

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Listen, I know...

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No restrictions outline the competition or giving it an unfair advantage.

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There are lots...

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No tax breaks, no subsidies, no franchises, no legislation in its favor, no tariffs, no licensing...

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There's not a place in the country...

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No price fixing, a true free market monopoly.

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This is a legend of success and thunder and a man, Tom Smith, who squelched world hunger.

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Now Smith, an inventor, had specialized in toys.

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So people were surprised when they found that he, instead of making toys, was baking bread.

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The way to make bread he'd conceived cost less than people could believe.

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And not just make it, this device could in addition wrap and slice.

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The price per loaf, one loaf for many, the minuscule sum of under a penny.

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Can you imagine what this meant?

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Can you comprehend the consequence?

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The first time yet, the world well fed and all because of Tom Smith's bread.

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A citation from the president for Smith's amazing bread.

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This and other honors, too, were heaped upon his head.

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But isn't it a wondrous thing how quickly fame has flown?

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Smith, the hero of today, tomorrow, scarcely known.

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Yes, the fickle years passed by.

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Smith was a millionaire, but Smith himself was now forgot,

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though bread was everywhere.

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People, asked from where it came, would very seldom know.

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They would simply eat and ask, was not it always so?

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However, Smith cared not a bit, for millions ate his bread,

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and everything is fine, thought he.

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I am rich, they are fed.

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Everything was fine, he thought, he reckoned not with fate.

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Note the sequence of events starting on the date

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on which the business tax went up.

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Then, to a slight extent, the price on every loaf rose, too.

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Up to one full cent.

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What's going on, the public cried.

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He's guilty of pure plunder.

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He has no right to get so rich on other people's hunger.

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A prize cartoon depicted Smith with fat and drooping jowls,

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snatching bread from hungry babes,

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indifferent to their howls.

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Well, since the public does come first,

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it could not be denied that in matters such as this,

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The public must decide.

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So, antitrust now took a hand.

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Of course, it was appalled at what it found was going on.

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The bread trust, it was called.

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Now, this was getting serious,

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so Smith felt that he must have a friendly interview

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with the men in antitrust.

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So, hat in hand, he went to them.

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They'd surely been misled.

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No rule of law had he defied.

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But then their lawyer said,

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The rule of law in complex time has proved itself deficient.

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We much prefer the rule of men.

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It's vastly more efficient.

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Now, let me state the present rule.

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The lawyer then went on.

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These very simple guidelines you can rely upon.

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You're gouging on your prices if you

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You can charge more than the rest, but it's unfair competition if you think you can charge less.

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A second point that we would make to help avoid confusion.

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Don't try to charge the same amount. That would be collusion.

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You must compete, but not too much, for if you do, you see, then the market would be yours, and that's monopoly.

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Price too high, or price too low? Now, which charge did they make? Well, they weren't loath to charging both, with public good at stake.

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In fact, they went one better. They charged Monopoly. No muss, no fuss, no woe is us.

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Begat, they charged all three.

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Five years in jail, the judge then said.

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You're lucky it's not worse. Robber barons must be taught. Society comes first.

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Now bread is baked by government. And as might be expected, everything is well controlled.

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The public, well protected.

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True, loaves cost a dollar each.

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But our leaders do their best.

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The selling price is half a cent.

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Taxes pay the rest.

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The Theory of Money and Credit

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The Theory of Money and Credit

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The Theory of Money and Credit

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The Theory of Money and Credit