Wealth is the abundance of valuable resources or material possessions. The word wealth is derived from the old English ''wela'', which is from an Indo-European word stem. An individual, community, region or country that possesses an abundance of such possessions or resources is known as wealthy.

The concept of wealth is of significance in all areas of economics, especially development economics, yet the meaning of wealth is context-dependent and there is no universally agreed upon definition. Generally, economists define wealth as "anything of value" which captures both the subjective nature of the idea and the idea that it is not a fixed or static concept. Various definitions and concepts of wealth have been asserted by various individuals and in different contexts. Defining wealth can be a normative process with various ethical implications, since often wealth maximization is seen as a goal or is thought to be a normative principle of its own.

Although precise data is not available, the total household wealth in the world has been estimated at $125 trillion (USD 1.25 x10¹²) in year 2000.

About 90% of global wealth is distributed in North America, Europe, and "rich Asia-Pacific" countries (not including China or India), and 1% of adults are estimated to hold 40% of world wealth, a number which falls to 32% when adjusted for purchasing power parity.

Definition

For definitions of "wealth," see also Adam Smith, ''The Wealth of Nations'' and Max Weber, ''The Protestant Ethic and the Spirit of Capitalism''.

Adam Smith, in his seminal work ''The Wealth of Nations'', described wealth as "the annual produce of the land and labour of the society". This "produce" is, at its simplest, that which satisfies human needs and wants of utility. In popular usage, wealth can be described as an abundance of items of economic value, or the state of controlling or possessing such items, usually in the form of money, real estate and personal property. An individual who is considered wealthy, affluent, or rich is someone who has accumulated substantial wealth relative to others in their society or reference group. In economics, net wealth refers to the value of assets owned minus the value of liabilities owed at a point in time. Wealth can be categorized into three principal categories: personal property, including homes or automobiles; monetary savings, such as the accumulation of past income; and the capital wealth of income producing assets, including real estate, stocks, bonds, and businesses. All these delineations make wealth an especially important part of social stratification. Wealth provides a type of social safety net of protection against an unforeseen decline in one’s living standard in the event of job loss or other emergency and can be transformed into home ownership, business ownership, or even a college education.

'Wealth' refers to some ''accumulation'' of resources, whether abundant or not. 'Richness' refers to an ''abundance'' of such resources. A wealthy (or rich) individual, community, or nation thus has more resources than a poor one. Richness can also refer to at least basic needs being met with abundance widely shared. The opposite of wealth is destitution. The opposite of richness is poverty.

The term implies a social contract on establishing and maintaining ownership in relation to such items which can be invoked with little or no effort and expense on the part of the owner. The concept of wealth is relative and not only varies between societies, but varies between different sections or regions in the same society. A personal net worth of US $10,000 in most parts of the United States would certainly not place a person among the wealthiest citizens of that locale. However, such an amount would constitute an extraordinary amount of wealth in impoverished developing countries.

Concepts of wealth also vary across time. Modern labor-saving inventions and the development of the sciences have enabled the poorest sectors of today's society to enjoy a standard of living equivalent if not superior to the wealthy of the not-too-distant past. This comparative wealth across time is also applicable to the future; given this trend((cn)) of human advancement, it is likely that the standard of living that the wealthiest enjoy today will be considered impoverished by future generations.

Industrialization emphasized the role of technology. Many jobs were automated. Machines replaced some workers while other workers became more specialized. Labour specialization became critical to economic success. However, physical capital, as it came to be known, consisting of both the natural capital and the infrastructural capital, became the focus of the ''analysis of wealth''.

Adam Smith saw wealth creation as the combination of materials, labour, land, and technology in such a way as to capture a profit (excess above the cost of production). The theories of David Ricardo, John Locke, John Stuart Mill, in the 18th century and 19th century built on these views of wealth that we now call classical economics.

Marxian economics (''see labor theory of value'') distinguishes in the ''Grundrisse'' between material wealth and human wealth, defining human wealth as "wealth in human relations"; land and labour were the source of all material wealth.

Economic analysis

In economics, wealth is the net worth of a person, household, or nation, that is, the value of all assets owned net of all liabilities owed at a point in time. For national wealth as measured in the national accounts, the net liabilities are those owed to the rest of the world. The term may also be used more broadly as referring to the productive capacity of a society or as a contrast to poverty. Analytical emphasis may be on its determinants or distribution.

Economic terminology distinguishes between two types of variables: stock and flow. Wealth, as measurable ''at a date'' in time, is a ''stock'', like the value of an orchard on December 31 minus debt owed on the orchard. For a given amount of wealth, say at the beginning of the year, income from that wealth, as measurable ''over'' say a year is a ''flow''. What marks the income as a flow is its measurement per unit of time, like the value of apples yielded from the orchard per year.

In macroeconomic theory the 'wealth effect' may refer to the increase in aggregate consumption from an increase in national wealth. One measure of it is the wealth elasticity of demand. It is the percentage change in the amount demanded of consumption for each one-percent change in wealth.

Wealth may be measured in nominal or real values, that is in money value as of a given date or adjusted to net out price changes. The assets include those that are tangible (land and capital) and ''financial'' (money, bonds, etc.). Measurable wealth typically excludes intangible or nonmarketable assets such as human capital and social capital. In economics, 'wealth' corresponds to the accounting term 'net worth'. But analysis may adapt typical accounting conventions for economic purposes in social accounting (such as in national accounts). An example of the latter is generational accounting of social security systems to include the present value projected future outlays considered as liabilities. Macroeconomic questions include whether the issuance of government bonds affects investment and consumption through the wealth effect.

Environmental assets are not usually counted in measuring wealth, in part due to the difficulty of valuation for a non-market good. Environmental or green accounting is a method of social accounting for formulating and deriving such measures on the argument that an educated valuation is superior to a value of zero (as the implied valuation of environmental assets).

Sociological treatments

"Wealth provides an important mechanism in the intergenerational transmission of inequality." Approximately one half of the wealthiest people in America inherited family fortunes. But the effect of inherited wealth can also be seen on a more modest level. For example, a couple who buy a house with financial help from their parents or a student who has his or her college education paid for; in both scenarios the participants are benefiting directly from the accumulated wealth of previous generations.

Partly as a result of different economic conditions of life, members of different social classes often have different value systems and view the world in different ways. As such, there exist different "conceptions of social reality, different aspirations and hopes and fears, different conceptions of the desirable." The way the various social classes in society view wealth vary and these diverse characteristics are a fundamental dividing line among the classes. According to Richard H Ropers, the concentration of wealth in the United States is inequitably distributed. In 1996, the United States federal government reported that the net worth of the top 1 percent of people in the United States was approximately equal to that of the bottom 90 percent.

The Upper Class

Upper class values include higher education, the accumulation and maintenance of wealth, the maintenance of social networks and the power that accompanies such networks. Children of the upper class are typically schooled on how to manage this power and channel this privilege in different forms. It is in large part by accessing various edifices of information , associates, procedures and auspices that the upper class are able to maintain their wealth and pass it to future generations.

The Middle Class

The middle class places a greater emphasis on income. The middle class views wealth as something for emergencies and it is seen as more of a cushion. This class comprises people that were raised with families that typically owned their own home, planned ahead and stressed the importance of education and achievement. They earn a significant amount of income and also have significant amounts of consumption. However there is very limited savings (deferred consumption) or investments, besides retirement pensions and homeownership. They have been socialized to accumulate wealth through structured, institutionalized arrangements. Without this set structure, asset accumulation would likely not occur.

The Lower Class

Those with the least amount of wealth are the welfare poor. (see underclass) Wealth accumulation for this class is to some extent prohibited. People that receive AFDC transfers cannot own more than a trivial amount of assets, in order to be eligible and remain qualified for income transfers. Most of the institutions that the welfare poor encounter discourage any accumulation of assets.

Distribution

Wealth in the form of land

In the western tradition, the concepts of owning land and accumulating wealth in the form of land were engendered in the rise of the first state, for a primary service and power of government was, and is to this day, the awarding and adjudication of land use rights.

Land ownership was also justified according to John Locke. He claimed that because we admix our labour with the land, we thereby deserve the right to control the use of the land and benefit from the product of that land (but subject to his Lockean proviso of "at least where there is enough, and as good left in common for others.").

Additionally, in our post-agrarian society (Industrial society) this argument has many critics (including those influenced by Georgist and geolibertarian ideas) who argue that since land, by definition, is not a product of human labor, any claim of private property in it is a form of theft; as David Lloyd George observed, "to prove a legal title to land one must trace it back to the man who stole it."

Many older ideas have resurfaced in the modern notions of ecological stewardship, bioregionalism, natural capital, and ecological economics.

Resources

See also

Affluence in the United States

Capital accumulation

Capital (economics)

Distribution of wealth

Financial independence

Household income in the United States

Income in the United Kingdom

International Ranking of Household Income

List of Average Wages per Country

Lists of billionaires

Personal income in the United States

Poverty

Private banking

Surplus product

Value added

Wealth and religion

Wealth condensation

Wealth in the United States

References

Category:Macroeconomics Category:Microeconomics Category:National accounts Category:Economic indicators Category:Index numbers Category:Welfare economics Category:Economics terminology

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name	Milton Friedman
school tradition	Chicago School of Economics
color	maroon
birth date	July 31, 1912
birth place	Brooklyn, New York
death date	November 16, 2006
death place	San Francisco, California
nationality	American
institution	Hoover Institution (1977–2006)University of Chicago (1946–77)Columbia University (1937–41, 1943–45, 1964–65)NBER (1937–40)
field	Economics
alma mater	Columbia University (Ph.D.), 1946, University of Chicago (M.A.), 1933 Rutgers University (B.A.), (1932)| influences Adam Smith, Irving Fisher, Frank Knight, Murray Rothbard, Jacob Viner, Harold Hotelling, Arthur Burns, Friedrich Hayek, Homer Jones, Ludwig von Mises, Henry Simons, George Stigler
opposed	John Maynard Keynes, John Kenneth Galbraith, Murray Rothbard
influenced	David D. Friedman, Anna J. Schwartz, Ben Bernanke, Gary Becker, Thomas Sowell, Harry Markowitz, Chicago Boys, William F. Buckley, Jr., Cato Institute
contributions	Price theory, Monetarism, applied macroeconomics, floating exchange rates, volunteer military, Permanent income hypothesis, Friedman test
awards	John Bates Clark Medal (1951)Nobel Memorial Prize in Economics (1976)Presidential Medal of Freedom (1988)National Medal of Science (1988)
signature	}}

Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades. He was a recipient of the Nobel Memorial Prize in Economic Sciences.

Among scholars, he is best known for his theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy. He was an economic advisor to U.S. President Ronald Reagan. Over time, many governments practiced his restatement of a political philosophy that extolled the virtues of a free market economic system with little intervention by government. As a leader of the Chicago school of economics, based at the University of Chicago, he had great influence in determining the research agenda of the entire profession. Milton Friedman's works, which include many monographs, books, scholarly articles, papers, magazine columns, television programs, videos, and lectures, cover a broad range of topics of microeconomics, macroeconomics, economic history, and public policy issues. ''The Economist'' described him as "the most influential economist of the second half of the 20th century…possibly of all of it."

Friedman was originally a Keynesian, a supporter of the New Deal and an advocate of government intervention in the economy. However, his 1950s reinterpretation of the Keynesian consumption function challenged the standard Keynesian model of that time. At the University of Chicago, Friedman became the main advocate opposing activist Keynesian government policies. During the 1960s he promoted an alternative macroeconomic policy known as "monetarism". He theorized there existed a "natural" rate of unemployment, and argued that governments could not change this natural rate by varying aggregate demand. (Among macroeconomists, the "natural" rate has been increasingly replaced by James Tobin's NAIRU, the non-accelerating inflation rate of unemployment, which is seen as having fewer normative connotations.) He argued that the Phillips Curve was not stable, and predicted that then-existing Keynesian policies would cause high inflation and minimal growth (later termed stagflation). Friedman's claim that monetary policy could have prevented the Great Depression was an attempt to refute the analysis of Keynes, who argued that monetary policy is ineffective during depression conditions, and that large-scale deficit spending by the government is needed to decrease mass unemployment. Though opposed to the existence of the Federal Reserve, Friedman argued that, given that it does exist, a steady, small expansion of the money supply was the only wise policy, and he warned against efforts by a treasury or central bank to do otherwise.

Influenced by his close friend George Stigler, Friedman opposed government regulation of many types. He once stated that his role in eliminating U.S. conscription was his proudest accomplishment, and his support for school choice led him to found The Friedman Foundation for Educational Choice. Friedman's political philosophy, which he considered classically liberal and libertarian, emphasized the advantages of free market economics and the disadvantages of government intervention and regulation, strongly influencing the opinions of American conservatives and libertarians. In his 1962 book ''Capitalism and Freedom'', Friedman advocated policies such as a volunteer military, freely floating exchange rates, abolition of medical licenses, a negative income tax, and education vouchers. His books and essays were well read and were even circulated illegally in Communist countries.

Most economists during the 1960s rejected Friedman's economic views, but since then they have had an increasing international influence. Some of his laissez-faire ideas concerning monetary policy, taxation, privatization and deregulation were used by governments, especially during the 1980s. A combination of his monetary theory in regard to credit and Keynes's belief in deficit spending to stimulate growth has influenced economists such as Ben Bernanke and the Federal Reserve's response to the financial crisis of 2007–10.

Early life

Friedman was born in Brooklyn, New York, to recent Jewish immigrants Jenő Friedman and Sára Landau from Beregszász in Hungary (now Berehove, part of Ukraine), both of whom worked as dry goods merchants. Shortly after Milton's birth, the family relocated to Rahway, New Jersey. A talented student, Friedman graduated from Rahway High School in 1928, just before his 16th birthday.

Friedman graduated from Rutgers University in New Jersey, where he specialized in mathematics and initially intended to become an actuary. During his time at Rutgers, Friedman became influenced by two economics professors, Arthur F. Burns and Homer Jones, who convinced him that modern economics could help end the Great Depression. Friedman did graduate work at the University of Chicago, earning an M.A. in 1933. He was strongly influenced by Jacob Viner, Frank Knight, and Henry Simons. It was at Chicago that Friedman met his future wife, economist Rose Director. During 1933–34 he had a fellowship at Columbia University, where he studied statistics with renowned statistician and economist Harold Hotelling. He was back in Chicago for 1934–35, spending the year working as a research assistant for Henry Schultz, who was then working on ''Theory and Measurement of Demand''. That year, Friedman formed what would prove to be lifelong friendships with George Stigler and W. Allen Wallis.

Public service

Friedman was initially unable to find academic employment, so during 1935, he followed his friend W. Allen Wallis to Washington, where Franklin D. Roosevelt's New Deal was "a lifesaver" for many young economists. At this stage, Friedman said that he and his wife "regarded the job-creation programs such as the WPA, CCC, and PWA appropriate responses to the critical situation," but not "the price- and wage-fixing measures of the National Recovery Administration and the Agricultural Adjustment Administration." Foreshadowing his later ideas, he believed price controls interfered with an essential signaling mechanism to help resources be used where they were most valued. Indeed, Friedman later concluded that all government intervention associated with the New Deal was "the wrong cure for the wrong disease," arguing that the money supply should simply have been expanded, instead of contracted. In the publication ''Monetary History of the United States'' by Friedman and Anna Schwartz, they argue that the Great Depression was caused by monetary contraction, which was the consequence of poor policymaking by the Federal reserve and the continuous crises of the banking system.

During 1935, he began work for the National Resources Committee, which was then working on a large consumer budget survey. Ideas from this project later became a part of his ''Theory of the Consumption Function''. Friedman began employment with the National Bureau of Economic Research during autumn 1937 to assist Simon Kuznets in his work on professional income. This work resulted in their jointly authored publication ''Incomes from Independent Professional Practice'', which introduced the concepts of permanent and transitory income, a major component of the Permanent Income Hypothesis that Friedman worked out in greater detail in the 1950s. The book hypothesizes that professional licensing artificially restricts the supply of services and raises prices.

During 1940, Friedman was appointed an assistant professor teaching Economics at the University of Wisconsin–Madison, but encountered antisemitism in the Economics department and decided to return to government service. Friedman spent 1941–43 working on wartime tax policy for the Federal Government, as an advisor to senior officials of the United States Department of the Treasury. As a Treasury spokesman during 1942 he advocated a Keynesian policy of taxation, and during this time he helped to invent the payroll withholding tax system. He later said in an interview, "I have no apologies for it, but I really wish we hadn't found it necessary and I wish there were some way of abolishing withholding now." As Friedman grew older he reversed himself; during 2006 he observed, "You know, it's a mystery as to why people think Roosevelt's policies pulled us out of the Depression. The problem was that you had unemployed machines and unemployed people. How do you get them together by forming industrial cartels and keeping prices and wages up?"

Academic career

Early years

During 1943, Friedman joined the Division of War Research at Columbia University (headed by W. Allen Wallis and Harold Hotelling), where he spent the rest of the war years working as a mathematical statistician, focusing on problems of weapons design, military tactics, and metallurgical experiments. Then during 1945, Friedman submitted ''Incomes from Independent Professional Practice'' (co-authored with Kuznets and completed during 1940) to Columbia as his doctoral dissertation. The university awarded him a Ph.D. during 1946. Friedman spent the 1945–46 academic year teaching at the University of Minnesota (where his friend George Stigler was employed). On February 12, 1945, his son, David D. Friedman was born.

University of Chicago

During 1946, Friedman accepted an offer to teach economic theory at the University of Chicago (a position opened by departure of his former professor Jacob Viner to Princeton University). Friedman would work for the University of Chicago for the next 30 years. There he helped build an intellectual community that produced a number of Nobel Prize winners, known collectively as the Chicago School of Economics.

At that time, Arthur Burns, who was then the head of the National Bureau of Economic Research, asked Friedman to rejoin the Bureau's staff. He accepted the invitation, and assumed responsibility for the Bureau's inquiry into the role of money in the business cycle. As a result, he initiated the "Workshop in Money and Banking" (the "Chicago Workshop"), which promoted a revival of monetary studies. During the latter half of the 1940s, Friedman began a collaboration with Anna Schwartz, an economic historian at the Bureau, that would ultimately result in the 1963 publication of a book co-authored by Friedman and Schwartz, ''A Monetary History of the United States, 1867–1960''.

Friedman spent the 1954–55 academic year as a Fulbright Visiting Fellow at Gonville and Caius College, Cambridge. At the time, the Cambridge economics faculty was divided into a Keynesian majority (including Joan Robinson and Richard Kahn) and an anti-Keynesian minority (headed by Dennis Robertson). Friedman speculates that he was invited to the fellowship because his views were unacceptable to both of the Cambridge factions. Later his weekly columns for ''Newsweek'' magazine (1966–84) were well read and increasingly influential among political and business people.

Friedman was an economic adviser to Republican presidential candidate Barry Goldwater during 1964.

Nobel memorial prize and retirement

In 1976 Friedman won the Nobel Memorial Prize in Economics "for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy." During the banquet speech he made a reference to “the Prize in Economic Sciences in Memory of Alfred Nobel”. In that he was the first recipient to do so, and it wasn’t until 2006 that a recipient of the prize called it by its proper name. During 1977, at age 65, Friedman retired from the University of Chicago after teaching there for 30 years. He and his wife moved to San Francisco. From 1977 on, he was affiliated with the Hoover Institution at Stanford University. During the same year, Friedman was approached by the Free To Choose Network and asked to create a television program presenting his economic and social philosophy. The Friedmans worked on this project for the next three years, and during 1980, the ten-part series, titled ''Free to Choose'', was broadcast by the Public Broadcasting Service (PBS). The companion book to the series (co-authored by Milton and his wife, Rose Friedman), also titled ''Free To Choose'', was the bestselling nonfiction book of 1980 and has since been translated into 14 foreign languages.

Friedman served as an unofficial adviser to Ronald Reagan during his 1980 presidential campaign, and then served on the President's Economic Policy Advisory Board for the rest of the Reagan Administration. During 1988, he received the National Medal of Science and Reagan honored him with the Presidential Medal of Freedom. Milton Friedman is known now as one of the most influential economists of the 20th century. Throughout the 1980s and 1990s, Friedman continued to write editorials and appear on television. He made several visits to Eastern Europe and to China, where he also advised governments.

Scholarly contributions

Economics

Friedman was best known for reviving interest in the money supply as a determinant of the nominal value of output, that is, the quantity theory of money. Monetarism is the set of views associated with modern quantity theory. Its origins can be traced back to the 16th-century School of Salamanca or even further but Friedman's contribution is largely responsible for its modern popularization. He co-authored, with Anna Schwartz, ''A Monetary History of the United States'' (1963), which was an examination of the role of the money supply and economic activity in U.S. history. A striking conclusion of their research was one regarding the role of money supply fluctuations as contributing to economic fluctuations. Several regression studies with David Meiselman during the 1960s suggested the primacy of the money supply over investment and government spending in determining consumption and output. These challenged a prevailing but largely untested view on their relative importance. Friedman's empirical research and some theory supported the conclusion that the short-run effect of a change of the money supply was primarily on output but that the longer-run effect was primarily on the price level.

Friedman was the main proponent of the monetarist school of economics. He maintained that there is a close and stable association between price inflation and the money supply, mainly that price inflation should be regulated with monetary deflation and price deflation with monetary inflation. He famously quipped that price deflation can be fought by "dropping money out of a helicopter."

Friedman's arguments were designed to counter popular claims that price inflation at the time was the result of increases in the price of oil, or increases in wages: as he wrote,

Friedman rejected the use of fiscal policy as a tool of demand management; and he held that the government's role in the guidance of the economy should be restricted severely. Friedman wrote extensively on the Great Depression, which he termed the Great Contraction, arguing that it had been caused by an ordinary financial shock whose duration and seriousness were greatly increased by the subsequent contraction of the money supply caused by the misguided policies of the directors of the Federal Reserve.

Friedman also argued for the cessation of government intervention in currency markets, thereby spawning an enormous literature on the subject, as well as promoting the practice of freely floating exchange rates. His close friend George Stigler explained, "As is customary in science, he did not win a full victory, in part because research was directed along different lines by the theory of rational expectations, a newer approach developed by Robert Lucas, also at the University of Chicago."

Friedman was also known for his work on the consumption function, the permanent income hypothesis (1957), which Friedman himself referred to as his best scientific work. This work contended that rational consumers would spend a proportional amount of what they perceived to be their permanent income. Windfall gains would mostly be saved. Tax reductions likewise, as rational consumers would predict that taxes would have to increase later to balance public finances. Other important contributions include his critique of the Phillips curve and the concept of the natural rate of unemployment (1968). This critique associated his name, together with that of Edmund Phelps, with the insight that a government that brings about greater inflation cannot permanently reduce unemployment by doing so. Unemployment may be temporarily lower, if the inflation is a surprise, but in the long run unemployment will be determined by the frictions and imperfections of the labor market.

Friedman's essay "The Methodology of Positive Economics" (1953) provided the epistemological pattern for his own subsequent research and to a degree that of the Chicago School of Economics. There he argued that economics as ''science'' should be free of value judgments for it to be objective. Moreover, a useful economic theory should be judged not by its descriptive realism but by its simplicity and fruitfulness as an engine of prediction.

Statistics

One of his most famous contributions to statistics is sequential sampling. "Friedman did statistical work at the Division of War Research at Columbia. He and his colleagues came up with a sampling technique, known as sequential sampling, which became, in the words of ''The New Palgrave Dictionary of Economics'', 'the standard analysis of quality control inspection.' The dictionary adds: 'Like many of Friedman’s contributions, in retrospect it seems remarkably simple and obvious to apply basic economic ideas to quality control; that however is a measure of his genius.'"

Other work

Friedman was an important member of the team during World War II that developed a new proximity fuse for anti-aircraft projectiles, which prevented shells from exploding unless they were near the object they are meant to destroy.

Public policy positions

Friedman believed that if the money supply was to be centrally controlled (as by the Federal Reserve) that the preferable way to do it would be with a mechanical system that would keep the quantity of money increasing at a steady rate. However, instead of government involvement at all, he was open to a "real," non-government, gold standard where money is produced by the private market: "A real gold standard is thoroughly consistent with [classical] liberal principles and I, for one, am entirely in favor of measures promoting its development." He did however add this caveat, "Let me emphasize that this note is not a plea for a return to a gold standard.... I regard a return to a gold standard as neither desirable nor feasible—with the one exception that it might become feasible if the doomsday predictions of hyperinflation under our present system should prove correct." He said the reason that it was not feasible was because "there is essentially no government in the world that is willing to surrender control over its domestic monetary policy," however it could be done if "you could re-establish a world in which government's budget accounted for 10 percent of the national income, in which laissez-faire reigned, in which governments did not interfere with economic activities and in which full employment policies had been relegated to the dustbin..."

He was critical of the Federal Reserve's influence on the economics profession. In a 1993 letter to University of Texas economics professor and former House Banking Committee investigator Robert Auerbach, Friedman wrote:

I cannot disagree with you that having something like 500 economists is extremely unhealthy. As you say, it is not conducive to independent, objective research. You and I know there has been censorship of the material published. Equally important, the location of the economists in the Federal Reserve has had a significant influence on the kind of research they do, biasing that research toward noncontroversial technical papers on method as opposed to substantive papers on policy and results.

In his 1955 article "The Role of Government in Education" Friedman proposed supplementing publicly operated schools with privately run but publicly funded schools through a system of school vouchers. Reforms similar to those proposed in the article were implemented in, for example, Chile in 1981 and Sweden in 1992. In 1996 Friedman, together with his wife, founded the The Foundation for Educational Choice to advocate school choice and vouchers. Friedman also supported libertarian policies such as legalization of drugs and prostitution. Milton Friedman was a major proponent of a volunteer military, stating that the draft was "inconsistent with a free society." In ''Capitalism and Freedom'', he argued that conscription is inequitable and arbitrary, preventing young men to shape their lives as they see fit. During the Nixon administration he headed the committee to research a conversion to paid/volunteer armed force. He would later state that his role in eliminating the conscription in the United States was his proudest accomplishment. Friedman did, however, believe a nation could compel military ''training'' as a reserve in case of war time.

He served as a member of President Reagan's Economic Policy Advisory Board during 1981. During 1988, he received the Presidential Medal of Freedom and the National Medal of Science. He said that he was a libertarian philosophically, but a member of the U.S. Republican Party for the sake of "expediency" ("I am a libertarian with a small 'l' and a Republican with a capital 'R.' And I am a Republican with a capital 'R' on grounds of expediency, not on principle.") But, he said, "I think the term classical liberal is also equally applicable. I don't really care very much what I'm called. I'm much more interested in having people thinking about the ideas, rather than the person."

Friedman was supportive of the state provision of some public goods that private businesses are not considered as being able to provide. However, he argued that many of the services performed by government could be performed better by the private sector. Above all, if some public goods are provided by the state, he believed that they should not be a legal monopoly where private competition is prohibited. For, example, in response to the United States Post Office's legal monopoly of mail, he said

Friedman made newspaper headlines by proposing a negative income tax to replace the existing welfare system, and then opposing a bill to implement it because the bill merely proposed to supplement the existing system rather than replace it.

During 2005, Friedman and more than 500 other economists advocated discussions regarding the economic benefits of the legalization of marijuana.

Michael Walker of the Fraser Institute and Friedman hosted a series of conferences from 1986 to 1994. The goal was to create a clear definition of economic freedom and a method for measuring it. Eventually this resulted in the first report on worldwide economic freedom, ''Economic Freedom in the World''. This annual report has since provided data for numerous peer-reviewed studies and has influenced policy in several nations.

Along with sixteen other distinguished economists he opposed the Copyright Term Extension Act and filed an amicus brief in ''Eldred v. Ashcroft''. He supported the inclusion of the word "no-brainer" in the brief.

Friedman argued for stronger basic legal (constitutional) protection of economic rights and freedoms in order to further promote industrial-commercial growth and prosperity and buttress democracy and freedom and the rule of law generally in society.

Honors, recognition, and influence

Friedman allowed the Cato Institute to use his name for its biannual Milton Friedman Prize for Advancing Liberty beginning in 2001. A Friedman Prize was given to the late British economist Peter Bauer during 2002, Peruvian economist Hernando de Soto during 2004, Mart Laar, former Estonian Prime Minister during 2006 and a young Venezuelan student Yon Goicoechea during 2008. His wife Rose, sister of Aaron Director, with whom he initiated the Friedman Foundation for Educational Choice, served on the international selection committee. Friedman was also a recipient of the Nobel Memorial Prize in Economic Sciences.

Hong Kong

Friedman once said, "If you want to see capitalism in action, go to Hong Kong." He wrote in 1990 that the Hong Kong economy was perhaps the best example of a free market economy.

One month before his death, he wrote the article "Hong Kong Wrong – What would Cowperthwaite say?" in the ''Wall Street Journal'', criticizing Donald Tsang, Chief Executive of Hong Kong, for abandoning "positive noninterventionism." Tsang later said he was merely changing the slogan to "big market, small government," where small government is defined as less than 20% of GDP. In a debate between Tsang and Alan Leong, rivals for the job of Chief Executive, Leong introduced the topic and jokingly accused Tsang of angering Friedman to death.

Chile

During 1975, two years after the military coup that ended the government of Salvador Allende, the economy of Chile experienced a crisis. Friedman accepted the invitation of a private foundation to visit Chile and speak on principles of economic freedom. He spent seven days in Chile giving a series of lectures. One of the lectures was entitled "The Fragility of Freedom," and according to Friedman, "dealt with precisely the threat to freedom from a centralized military government." Friedman encapsulated his philosophy in a lecture at Universidad Católica de Chile, saying: "free markets would undermine political centralization and political control."

Friedman also met with military dictator President Augusto Pinochet during his visit. He never served as an adviser to the Chilean government, but did write a letter to Pinochet outlining what Friedman considered the two key economic problems of Chile. The letter listed a series of monetary and fiscal measures deemed a "shock program" to end hyperinflation and promote a market economy. His letter suggested (among other, more specific prescriptions) that a brief period of cutting government spending would reduce its fiscal deficit and thus reduce the rate of increase of the quantity of money in the country that was driving inflation. The economist did however admit his knowledge of Chile was "too limited to enable [him] to be precise or comprehensive" and that the measures he outlined were "to be taken as illustrative." Friedman felt that there might be a brief period ("measured in months") of higher unemployment, followed by recovery once inflation was tamed. His letter also suggested that cutting spending to reduce the fiscal deficit would result in less transitional unemployment than raising taxes to do so. Later, Friedman said he believed that market reforms would undermine Pinochet. Chilean graduates of the Chicago School of Economics and its new local chapters had been appointed to important positions in the new government soon after the coup, which allowed them to advise Pinochet on economic policies in accord with the School's economic doctrine.

According to his critics, Friedman did not criticize Pinochet's dictatorship at the time, nor the assassinations, illegal imprisonments, torture, or other atrocities that were well known by then. In his 1980 documentary ''Free to Choose'', he said the following: "Chile is not a politically free system, and I do not condone the system. But the people there are freer than the people in Communist societies because government plays a smaller role. ... The conditions of the people in the past few years has been getting better and not worse. They would be still better to get rid of the junta and to be able to have a free democratic system." In 1984 Friedman proclaimed he has "never refrained from criticizing the political system in Chile."

Friedman defended his activity in Chile on the grounds that, in his opinion, the adoption of free market policies not only improved the economic situation of Chile but also contributed to the amelioration of Pinochet's rule and to the eventual transition to a democratic government during 1990. That idea is included in ''Capitalism and Freedom'', in which he declared that economic freedom is not only desirable in itself but is also a necessary condition for political freedom. He stressed that the lectures he gave in Chile were the same lectures he later gave in China and other socialist states. During the 2000 PBS documentary ''The Commanding Heights'', Friedman continued to argue that criticism over his role in Chile missed his main contention that freer markets resulted in freer people, and that Chile's unfree economy had caused the military government. Friedman suggested that the economic liberalization he advocated caused the end of military rule and a free Chile.

Iceland

Friedman visited Iceland during the autumn of 1984, met with important Icelanders and gave a lecture at the University of Iceland on the "tyranny of the ''status quo''." He participated in a lively television debate on August 31, 1984 with socialist intellectuals, including Ólafur Ragnar Grímsson, who later became the president of Iceland. When they complained that a fee was charged for attending his lecture at the University and that hitherto, lectures by visiting scholars had been free-of-charge, Friedman replied that previous lectures had not been free-of-charge in a meaningful sense: Lectures always have related costs. What mattered was whether attendees or non-attendees covered those costs. Friedman thought that it was fairer that only those who attended paid. In this discussion Friedman also stated that he did not receive any money for delivering that lecture.

Estonia

Although Friedman never visited Estonia, his book ''Free to Choose'' exercised a great influence on that nation's then 32-year-old prime minister, Mart Laar, who has claimed that it was the only book on economics he had read before taking office. Laar's reforms are often credited with responsibility for transforming Estonia from an impoverished Soviet Republic to the "Baltic Tiger." A prime element of Laar's program was introduction of the flat tax. Laar won the 2006 Milton Friedman Prize for Advancing Liberty, awarded by the Cato Institute.

United Kingdom

Milton Friedman influenced the thinking of Alan Walters and Patrick Minford, two of Margaret Thatcher's main macroeconomic advisers. See the book ''Margaret Thatcher's Revolution: How it Happened and What it Meant'', edited by Subroto Roy & John Clarke, Continuum 2005

Criticism

Keynesian criticism

During the financial crisis of 2007–2010, several Keynesian economists such as James Galbraith and Joseph Stiglitz blamed the free market philosophy of Friedman and the Chicago school for the economic turmoil. In response to these criticisms, University of Chicago Magazine noted that Chicago's Rajan, Thaler, and Vishney warned the US government that regulations are needed and, “The Chicago School never said we wanted blind deregulation ... We should really ask who were the people in 2000 who decided markets don’t need regulating. Those were not Chicago economists. Some of them were Clinton officials, and some of them are now advising Obama” and noted other examples to claim that their economists are often mischaracterized regarding their views on deregulation.

After Friedman's death, Keynesian Nobel laureate Paul Krugman, while regarding Friedman as a "great economist and a great man," criticized him during 2007 by writing that "he slipped all too easily into claiming both that markets always work and that only markets work. It's extremely hard to find cases in which Friedman acknowledged the possibility that markets could go wrong, or that government intervention could serve a useful purpose." National Bureau of Economic Research economist and Friedman's long-time colleague and co-author Anna Schwartz, and Edward Nelson of the Centre for Economic Policy Research responded that Krugman "doubletalks throughout his essay," and asked "How can he say Friedman was a great economist and a great man, if he believes Friedman to have been intellectually dishonest?"

Austrian school criticism

During 1971, libertarian economist Murray Rothbard criticized Friedman's efforts to make the government more efficient as detrimental to individual liberty. He concluded that "And so, as we examine Milton Friedman’s credentials to be the leader of free-market economics, we arrive at the chilling conclusion that it is difficult to consider him a free-market economist at all." Friedman's position on governmental control of money changed since 1971 when this criticism was made. In a 1995 interview in ''Reason'' magazine he said the "difference between me and people like Murray Rothbard is that, though I want to know what my ideal is, I think I also have to be willing to discuss changes that are less than ideal so long as they point me in that direction." He said he actually would "like to abolish the Fed," and points out that when he has written about the Fed it is simply his recommendations of how it should be run given that it exists.

Other criticism

In her book ''The Shock Doctrine: The Rise of Disaster Capitalism'', journalist and author Naomi Klein critiqued Friedman's ideology and the principles that guided the economic restructuring that followed the military coups in countries such as Chile and Indonesia, drawing analogies between the way that Friedman proposed using the social "shock" of the coups to create an economic "blank slate" with Ewen Cameron's controversial medical experiments that used electroshock therapy to create a mental "blank slate" in patients with mental disorders. Based on the extent to which the application of neoliberal policies has contributed to income disparities and inequality, both Klein and Noam Chomsky have suggested that the primary role of neoliberalism was as an ideological cover for capital accumulation by multinational corporations. Chilean economist Orlando Letelier asserted that Pinochet's dictatorship resorted to repression because of popular opposition to Chicago School policies in Chile.

Klein's critique of Friedman is disputed by economists, including Tyler Cowen and Don Boudreaux. Johan Norberg, a senior fellow at the libertarian think tank Cato Institute, accused Klein of distorting quotations from Friedman's writings and of "link[ing] him to Augusto Pinochet's brutal military dictatorship in Chile in the 1970s."

Personal life

According to a 2007 article in ''Commentary'' magazine, his "parents were moderately observant [Jews], but Friedman, after an intense burst of childhood piety, rejected religion altogether." He described himself as an agnostic.

Friedman wrote extensively of his life and experiences, especially in 1998 in his memoirs with his wife Rose, titled ''Two Lucky People''. He died of heart failure at the age of 94 years in San Francisco on November 16, 2006. He was survived by his wife (who died on August 18, 2009) and their two children, David, who is a philosopher and anarcho-capitalist economist, and Janet. David's son, Patri Friedman, is the executive director of the Seasteading Institute.

See also

Works of Milton Friedman

Friedman–Savage utility function

Friedman rule

Friedman's k-percent rule

Friedman test

List of economists

List of Jewish Nobel laureates

List of notable Presidential Medal of Freedom recipients

History of economic thought

Notes

Bibliography

References

Wood, John Cunningham, and Ronald N. Wood, ed. (1990) ''Milton Friedman: Critical Assessments'', v. 3. Scroll to chapter-preview links. Routledge.

Further reading

Friedman, Milton (1948). "A Monetary and Fiscal Framework for Economic Stability," '' American Economic Review'', 38(3), pp. 245-264. Also in Friedman (1953), pp. 133–56.

Friedman, Milton (1953). ''Essays in Positive Economics'', University of Chicago Press. Chapter- preview links.

Friedman, Milton (1959). ''A Program for Monetary Stability''. Fordham University Press. New York. TOC chapter-preview links.

External links

The Milton Friedman papers at the Hoover Institution Archives

Selected Bibliography for Milton Friedman at the University of Chicago Library

Inflation and Unemployment 1976 lecture at NobelPrize.org

Profile and Papers at Research Papers in Economics/RePEc

Milton Friedman, ''Commanding Heights'', PBS, October 1, 2000, interview, profile and video

Becker Friedman Institute at the University of Chicago

Milton Friedman at the Cato Institute

Free to Choose Network

The Foundation for Educational Choice

Milton Fridman at Scarlett

Milton Friedman:Why Not a Volunteer Army?, ''New Individualist Review'', Spring 1967

The Social Responsibility of Business is to Increase its Profits, Milton Friedman, ''The New York Times Magazine'', September 13, 1970

Interview with Milton Friedman, Dominic Streatfeild, May 25, 2000, source material for ''Cocaine: An Unauthorised Biography''

Milton Friedman vs. The Fed Bailout by Michael Hirsh, ''Newsweek'', July 17, 2009

Four Deformations of the Apocalypse, David Stockman, ''The New York Times'', July 31, 2010

The Case for Free Trade by Milton and Rose Friedman

How to Cure Inflation : Milton Friedman

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name	Hans Rosling
birth date	July 27, 1948
death date
workplaces	Karolinska Institute
alma mater	Uppsala University, St. John's Medical College
known for	Gapminder Foundation and Trendalyzer
signature
spouse	}}

Hans Rosling (born 27 July 1948 in Uppsala, Sweden) is a Swedish medical doctor, academic, statistician and public speaker. He is Professor of International Health at Karolinska Institute and co-founder and chairman of the Gapminder Foundation, which developed the Trendalyzer software system.

Study and career

From 1967 to 1974 Rosling studied statistics and medicine at Uppsala University, and in 1972 he studied public health at St. John's Medical College, Bangalore. He became a licenced physician in 1976 and from 1979 to 1981 he served as District Medical Officer in Nacala in northern Mozambique.

On 21 August 1981, Rosling discovered an outbreak of konzo, a paralytic disease, and the investigations that followed earned him a Ph.D. degree at Uppsala University in 1986. He spent two decades studying outbreaks of this disease in remote rural areas across Africa and supervised more than ten Ph.D. students. Outbreaks occur among hunger-stricken rural populations in Africa where a diet dominated by insufficiently processed cassava results in simultaneous malnutrition and high dietary cyanide intake.

Rosling's research has also focused on other links between economic development, agriculture, poverty and health in Africa, Asia and Latin America. He has been health adviser to WHO, UNICEF and several aid agencies. In 1993 he was one of the initiators of Médecins Sans Frontières in Sweden. At Karolinska Institutet he was head of the Division of International Health (IHCAR) from 2001 to 2007. As chairman of Karolinska International Research and Training Committee (1998–2004) he started health research collaborations with universities in Asia, Africa, the Middle East and Latin America. He started new courses on Global Health and co-authored a textbook on Global Health that promotes a fact-based world view.

Rosling presented the television documentary ''The Joy of Stats'', which was broadcast in the United Kingdom by BBC Four in December 2010.

Gapminder

Rosling co-founded the Gapminder Foundation together with his son Ola Rosling and daughter-in-law Anna Rosling Rönnlund. Gapminder developed the Trendalyzer software that converts international statistics into moving, interactive graphics. His lectures using Gapminder graphics to visualise world development have won awards. The interactive animations are freely available from the Foundation's website. On 16 March 2007 Google acquired the Trendalyzer software with the intention to scale it up and make it freely available for public statistics. In 2008 Google made available a Motion Chart Google Gadget and in 2009 the Public Data Explorer.

Rosling is also a sword swallower, as demonstrated in the final moments of his second talk at the TED conference. In 2009 he was listed as one of 100 leading global thinkers by Foreign Policy Magazine and in 2011 as one of 100 most creative people in business by the Fast Company Magazine . In 2011 he was elected member of the Swedish Academy of Engineering Sciences.

Awards

2007 – Statistician of the Year Award from the Swedish Association for Statistics

2007 – Jubilee Prize from the Swedish Medical Society

2007 – Knowledge Prize from the National Encyclopaedia of Sweden

2008 – Speaker of the Year from the Swedish Event Academy

2008 – The Big Debate Award from Dagens Medicine

2009 – Georg and Greta Borgstrom Award from the Swedish Royal Academy of Agriculture and Forestry

2010 – Illis Quorum, Highest Award conferred by the Government of Sweden

2010 – The Big Prize from the Royal Institute of Technology, Stockholm, Sweden

2010 – Gold Medal from Swedish Academy of Engineering Sciences

2010 – World Technology Award in Design together with Ola Rosling & Anna Rosling Rönnlund

2010 – The Gannon Award for the Continued Pursuit of Human Advancement (US)

Selected Publications

References

External links

Hans Rosling shows the best stats you've ever seen at the 2006 TED Conference in Monterey, CA highlighting novel ways of presenting global statistics.

Hans Rosling's new insights on poverty, from TED2007, featuring a surprise ending. (video)

Video of Hans Rosling speech at the OECD World Forum in Istanbul

Hans Rosling's blog

Ola Rosling giving a Gapminder presentation at Google (video)

Motion Chart Google Gadget

Hans Rosling: Global health expert; data visionary profile on TED.com

Category:1948 births Category:People from Uppsala Category:Karolinska Institutet faculty Category:Swedish bloggers Category:Public health education Category:Living people Category:Sword swallowers

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Name	Samuel Joseph Wurzelbacher
Birth date	December 03, 1973
Residence	Holland, Ohio, United States
Citizenship	United States
Other names	"Joe the Plumber"
Occupation	Commentator/correspondent Former plumber's assistant

Samuel Joseph Wurzelbacher (; born December 3, 1973), is a resident of Ohio, United States who gained significant attention during the 2008 U.S. presidential election. As an employee of a plumbing contractor, he was given the moniker "Joe the Plumber" after he was videotaped questioning then-Democratic candidate Barack Obama about his small business tax policy during a campaign stop in Ohio. The Republican McCain-Palin campaign later applied "Joe the Plumber" as a metaphor for middle-class Americans. He subsequently published a book about his experiences, and has appeared as a motivational speaker and commentator.

Involvement in the 2008 presidential election

Encounter with Barack Obama

On October 12, 2008, three days before the final presidential debate, Obama met residents in Wurzelbacher's Ohio neighborhood. Wurzelbacher, who had been playing football with his son in his front yard at the time, asked Obama about his tax plan. Wurzelbacher suggested that Obama's tax plan would be at odds with "the American dream." Wurzelbacher said, "I'm getting ready to buy a company that makes 250 to 280 thousand dollars a year. Your new tax plan's going to tax me more, isn't it?"

Obama responded with an explanation of how his tax plan would affect a small business in this bracket. Obama said, "If you're a small business, which you would qualify, first of all, you would get a 50 percent tax credit so you'd get a cut in taxes for your health care costs. So you would actually get a tax cut on that part. If your revenue is above 250, then from 250 down, your taxes are going to stay the same. It is true that, say for 250 up — from 250 to 300 or so, so for that additional amount, you’d go from 36 to 39 percent, which is what it was under Bill Clinton."

Obama also said, "It's not that I want to punish your success. I just want to make sure that everybody who is behind you, that they've got a chance at success, too… My attitude is that if the economy’s good for folks from the bottom up, it’s gonna be good for everybody. If you’ve got a plumbing business, you’re gonna be better off [...] if you’ve got a whole bunch of customers who can afford to hire you, and right now everybody’s so pinched that business is bad for everybody and I think when you spread the wealth around, it’s good for everybody."

Presidential debate

During the third and final Presidential debate on October 15, 2008, at Hofstra University, many references were made to "Joe the Plumber." In the debate, McCain repeatedly brought up "Joe the Plumber" and Obama and McCain then made statements aimed directly at Wurzelbacher. As a result, subsequent media attention was directed at Wurzelbacher.

After the debate, Wurzelbacher did not declare his vote for either candidate. He expressed concern that Obama's plans were "one step closer to socialism." Obama's running mate Joe Biden argued that 98% of small businesses take in less than $250,000 a year in income and thus wouldn't be subject to higher taxes under Obama's plan. McCain stated that Wurzelbacher would see higher taxes under Obama's plan.

2008 media appearances

Wurzelbacher spoke to Katie Couric of ''CBS Evening News'' on October 15, shortly after the conclusion of the final debate. Asked whether Obama's proposed $250,000 tax threshold would affect him, Wurzelbacher replied: "Not right now at presently, but (...) he's going to do that now for people who make $250,000 a year. When's he going to decide that $100,000 is too much? (...) You're on a slippery slope here. You vote on somebody who decides that $250,000 and you're rich? And $100,000 and you're rich? (...) Where does it end?" He also said, “I asked the question but I still got a tap dance ...almost as good as Sammy Davis, Jr.”

Wurzelbacher held a press conference at his home on the morning of October 16, following the debates, where he refused to express support for either candidate. "I'm not telling anybody anything" about which candidate he prefers, he said, adding, "It's a private booth. I want the American people to vote for who they want to vote for."

On October 16, Wurzelbacher appeared on ''Your World with Neil Cavuto'' on Fox News. Neil Cavuto asked if Wurzelbacher was persuaded by Obama's plan. Wurzelbacher said that he was not and that he was more frightened upon hearing it. Wurzelbacher suggested that Obama's plan was socialist in nature.

That same day, Wurzelbacher also appeared on ''Good Morning America''. Diane Sawyer asked him if he was taking home $250,000 now, Wurzelbacher said with a laugh "No, not even close." Sawyer asked Wurzelbacher, "And the McCain camp, some people have said did they contact you and tell you that you were going to be a major part of this, and had they contacted you before that encounter with Senator Obama?" Wurzelbacher answered, "Oh no, no, no one's contacted me as far as if I was going to be on the debate or as far as my name being used. No. I have been contacted by them and asked to show up at a rally. But, other than that, no. I just happened to be here and Barack Obama happened to show up."

On November 2, Wurzelbacher appeared again on ''Your World with Neil Cavuto'', where he expressed concern that Barack Obama's tax plans would go down "a slippery slope" and eventually raise his taxes. Wurzelbacher also questioned Obama's patriotism saying "there's too many questions with Barack Obama, and his loyalty to our country."

References on the campaign trail

On October 18, McCain told a campaign rally in Melbourne, Florida that he had phoned Wurzelbacher for the first time on October 17. McCain said, "He's a great guy, proud of his grandfather who served in the US Marine Corps. We're going to fight for Joe, my friends, we are going to fight for him. The question Joe asked about our economy is important, because Senator Obama's plan would raise taxes on small businesses that employ 16 million Americans. Senator Obama's plan will kill those jobs at just the time when we need to be creating more jobs. My plan will create jobs, and that's what America needs."

The McCain-Palin campaign's senior strategist Steve Schmidt said that John McCain's strategy in the final weeks of the presidential campaign was based primarily around his differences with Obama on economic issues, which they would continue to highlight through the story of Joe the Plumber.

After the final presidential debate, McCain and his running mate Sarah Palin frequently repeated the charge in campaign speeches that "Joe the Plumber" would pay higher taxes under Obama and Biden's plan, although according to tax analysts neither Wurzelbacher nor the company he works for would actually be subject to higher taxes under Obama's tax plan. Obama's "spread the wealth around" quote was later used by the McCain campaign, comparing the Democrat's policies to socialism. McCain said, "[Obama] wants government to take Joe's money and give it to somebody else." Obama said in a campaign rally on October 24 that McCain was "not fighting for Joe the Plumber. He's fighting for Joe the Hedge Fund Manager... He likes to talk about Joe the Plumber but he's in cahoots with Joe the CEO." Obama then promoted a plan for middle-class tax cuts and "asked for a show of hands at the rally in the Richmond Coliseum from those making less than $250,000. Nearly all of the 13,000 people raised their hands."

Aides to the McCain-Palin campaign said on October 24 that they would "spend heavily" on a new TV advertisement invoking Wurzelbacher's nickname. The ad would feature "several different people looking into the camera and saying, 'I'm Joe the Plumber.' One man accuses Obama of wanting to use the man's 'sweat to pay for his trillion dollars in new spending. McCain also ran several other commercials with this theme.

Joint appearances with John McCain

On October 30, Wurzelbacher made appearances with John McCain during Ohio campaign stops in Sandusky, Elyria, and Mentor. In Sandusky, McCain accused the Obama campaign of attacking Wurzelbacher, and in Mentor, Wurzelbacher was allowed to address the crowd, saying, "Once you find out the facts, they become quite obvious," while pointing at McCain.

Earlier in the day, at a rally in Defiance, Ohio, McCain thought that Wurzelbacher was supposed to be in the crowd and called for him to stand up. When it became clear that Joe wasn't in attendance, McCain ended the silence by telling the whole crowd instead to stand up, stating, "You're all Joe the Plumber."

Political ambitions

After his meeting with Barack Obama, a campaign to draft Wurzelbacher to run for the United States House of Representatives in the 2010 election started with the website joewurzelbacher2010.com The ''Washington Times'' and the ''Boston Herald'' reported that the campaign's goal was to draft Wurzelbacher to run against Rep. Marcy Kaptur of , although the possibility also existed for Kaptur to choose to run for the senate seat being vacated by George Voinovich. The website was created by Trevor Lair (at that time, the chairman of the Massachusetts College Republicans), Derek Khanna, and the Massachusetts Alliance of College Republicans. The website encouraged visitors to sign an online petition that supported Wurzelbacher’s run for office. Laura Ingraham asked Wurzelbacher, on October 24, 2008, if he would run against Kaptur. Wurzelbacher responded that he had considered the run and would be "up for it." However, in a 2009 interview with WorldNetDaily, Wurzelbacher indicated that he was no longer considering running for political office, and he added that he "talked to God about that and He was like, 'No.'"

In August 2011 The Toledo Blade reported that Wurzelbacher is considering challenging Marcy Kaptur in 2012.

Personal controversy

Regarding his statement to Barack Obama about intending to buy the plumbing firm that employed him, Wurzelbacher later said that the idea of buying the company was discussed during his job interview six years prior. According to MSNBC and Fox News, court records show that Wurzelbacher made $40,000 in 2006. Dun & Bradstreet's report estimated that A. W. Newell Corporation, the full corporate name, had $510,000 in annual sales and eight employees. As part of the background on McCain's use of "Joe the Plumber," several media outlets researched his professional plumbing credentials. One ''Toledo Blade'' article stated, "Mr. Wurzelbacher said he works under Al Newell’s license, but according to Ohio building regulations, he must maintain his own license to do plumbing work. He is also not registered to operate as a plumber in Ohio, which means he’s not a plumber." "Mr. Joseph [business manager of the local union] said Mr. Wurzelbacher could only legally work in the townships, but not in any municipality in Lucas County or elsewhere in the country." Wurzelbacher has since stated that he is no longer employed at Newell.

ABC News reported on October 16, 2008, that there was a judgment lien against Wurzelbacher for non-payment of $1,182 in owed Ohio state income taxes dating to January 2007, but "no action has been taken against him outside of filing the lien." Barb Losie, deputy clerk of the Lucas County Court of Common Pleas, said that "there is a 99 percent chance [Wurzelbacher] doesn't know about the lien, unless he did a credit report or was ready to pay his taxes." While on ''Hannity & Colmes'', Wurzelbacher stated that he was unaware of the tax lien prior to it being reported in the press, and thought he was being attacked because of his question to Obama.

Since the 2008 election

Wurzelbacher has signed with a publicity management agent regarding media relationships, including "a possible record deal with a major label, personal appearances and corporate sponsorships."

In November 2008, Wurzelbacher was hired for a series of commercials reminding people to convert analog television to digital. Wurzelbacher was hired to help consumers understand the DTV transition in the United States through a series of videos designed to explain the changeover.

In November 2008, Wurzelbacher began promoting his book ''Joe the Plumber: Fighting for the American Dream''. Co-written with novelist Thomas Tabback and published by PearlGate Publishing of Austin, Texas, the book addresses Wurzelbacher’s ideas concerning American values. In particular, Wurzelbacher criticizes John McCain and states that he did not want him as the Republican presidential nominee. According to the ''Toledo Blade'', Wurzelbacher criticized McCain as a candidate, saying that the election was "the lesser of two evils." On December 10, 2008, it was reported that Wurzelbacher also criticized McCain for voting for the $700 billion Emergency Economic Stabilization Act of 2008, also known as the bank bailout. When it comes to taxation, he does not consider himself to be a supporter of either party.

In January 2009, Wurzelbacher began work as a motivational speaker and commentator. His first assignment was to comment from Israel on the fighting between the Israeli Defence Forces and Hamas, focusing on the Israeli experience of the conflict. On February 26, Wurzelbacher spoke at the Conservative Political Action Conference, where he led a panel titled "conservatism 2.0". On February 27, he spoke at the Washington, D.C. American Tea Party protest in Lafayette Park. In March, Wurzelbacher attended two conferences in Milwaukee, Wisconsin, first speaking to the "Conservative Young Professionals of Milwaukee," and then at the “Defending the American Dream Summit." On April 15, he spoke at the Michigan Tax Day Tea Party in Lansing. On May 6, 2009, Wurzelbacher appeared at a campaign event on behalf of New Jersey Gubernatorial Candidate Steve Lonegan. In May 2009, ''Time'' magazine reported that Wurzelbacher was quitting the Republican Party. On September 19 he spoke at a Tea Party protest at Veteran's Park in Milwaukee.

On February 13, 2010 Wurzelbacher attended a political event for Pennsylvania gubernatorial candidate Sam Rohrer. Speaking to a reporter afterwards, Wurzelbacher said that "McCain was trying to use [him]", and accused McCain of having "really screwed [Wurzelbacher's] life up".

In Wisconsin, on February 2011, he spoke at a counter-demonstration, during protests against governor Walker's attempts to abolish collective bargaining rights of some public employees.

Ohio database search controversy

Prior to the 2008 election, Vanessa Niekamp, an employee of Ohio's Department of Job and Family Services, at the behest of its director, Helen Jones-Kelley, used state computers to search for information on Joe Wurzelbacher. On November 20, 2008, Niekamp reported the violation to the State Inspector General. State and local officials completed an investigation into Jones-Kelley's order, concluding that the searches were improper. On December 17, 2008, Jones-Kelley resigned. In response to the event, Republican Ohio state representative Shannon Jones sponsored House Bill 648, which mandates civil and criminal penalties for improper access of personal information on state databases. On January 6, 2009, Governor Ted Strickland signed the legislation, which became effective after 90 days.

On March 5, 2009, on behalf of Joe Wurzelbacher, Judicial Watch filed a lawsuit in a U.S. District Court in Columbus charging that Jones-Kelley and fellow ODJFS employees Fred Williams and Doug Thompson improperly searched "confidential state databases" in an attempt to retaliate against Wurzelbacher's criticism of then-presidential candidate Barack Obama. The lawsuit claims that "officials of the State of Ohio violated Mr. Wurzelbacher's constitutional rights," and that "Wurzelbacher suffered emotional distress, harassment, and embarrassment as a result of the search." Tom Fitton, the president of Judicial Watch, stated that "no American should be investigated for simply asking a question of a public official." The lawsuit seeks unspecified punitive damages. On August 4, 2010, the U.S District Court in Columbus dismissed the lawsuit on the grounds that the state database search didn't amount to a constitutional violation to the right to privacy. ''Judicial Watch'' stated it will appeal.

On October 14, 2009, the ''Columbus Dispatch'' reported that, "A former contractor for the Ohio Association of Chiefs of Police has been charged with rummaging through state computers to retrieve confidential information about 'Joe the Plumber.'" The State Highway Patrol has stated that, "this individual has also used a law-enforcement computer network on Oct. 16, 2008 to access personal information about Samuel Joseph Wurzelbacher."

See also

Tito the Builder

References

External links

Full, unedited video of the conversation between Wurzelbacher and Obama

Category:People associated with the United States presidential election, 2008 Category:Ohio Republicans Category:People from Lucas County, Ohio Category:1973 births Category:Living people

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