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Friedman, a Harvard economics professor who also wrote Day of Reckoning (about Reaganomics), tracks the correlation between prosperous times and tolerance within a society and of difficult times with intolerance. “Economic growth – meaning a rising standard of living for the clear majority of citizens – more often than not fosters greater opportunity, tolerance of diversity, social mobility, commitment to fairness, and a dedication to democracy.” (P 4) He also states that there has been a general decline in the income of Americans since Reagan, with a slight rise under Clinton. “After allowing for higher prices, the average worker in American business in 2004 made 16 percent less each week than thirty years earlier.” (P 6) (This decline, by the way, has continued.) Real democracy, where individuals express their freedoms and respect those of others, exist most readily in times of prosperity. “…the countries where this movement toward freedom and democracy have been most successful have, more often than not, been countries where average incomes have risen…” (P 9)

Trade that lifts a nation can only take place when there is general prosperity among the bulk of residents, whereas subjugation leads to general poverty. For Adam Smith (The Wealth of Nations, 1776) “the route to national wealth was commerce, not conquest.” (P 17) In an economy where only some prosper and others are struggling, there is bound to be competition among classes as well as a desire to find someone to blame for those who find themselves economically disadvantaged. “…in a stagnant economy, where one person’s gain is necessarily someone else’s loss, people who get ahead are seen…as doing so at others’ expense…” (P 86) Of course, public education is considered a great equalizer, but it wasn’t always a right in this country. It is only in a setting of relative prosperity that a nation can even consider educating children at all economic levels, which happened in the US in the first decade of the 20th century. It was only then that this country developed child labor laws that prevented “children under age 14 working more than eight hours per day or more than six days per week.” (P 140) (I remember getting off a train in Venice in the early morning in 1968 and seeing children entering a bar; when I expressed surprise that children of ages 11 or 12 drink on their way to school, I was told that they actually were on their way to work at the factory.)

After WWI our economy stagnated, and the Klan flourished. (P 148) To combat poverty and intolerance during the lows of the Great Depression, FDR, who understood the importance of human dignity, began programs to establish not only “social justice,” but “an economic bill of rights.” (P 170) Social Security was then expanded by Eisenhower, (P 177) and the precursors to Medicare and Medicaid were started under Johnson. (P 193) These programs were expanded by Nixon, who also recognized the need to respect our environment by signing on for the Environmental Protection Agency and OSHA. (P 194)

In Europe, Friedman points out that tolerance for other races and religions was also stronger during periods of economic strength from the late 19th century into WWI. We all know of the great intolerance upon which the German nation was built after this war. (Pp 238-279) Even in Asia, greater prosperity lowered the gap in incomes during the 1970s and led to greater equality. (P 300) As more money has been entering China over the last 20 years (much of it from the U.S.), more economic freedom and decision making has been allowed as authorities see that entrepreneurship leads to greater prosperity, Spreading economic opportunities through all levels of society is most likely to lead to a respect for democratic ideals. “What matters for this purpose is not just the size and vitality of the growing middle class but that its members be distributed widely throughout society; not only business people but doctors, lawyers, teachers…and others…with democratic values and whose economic success gives them a sense that they have a stake in helping to promote a stable, modern society…” (P 307) Perhaps most important is a vision among a people that they can work together to cooperatively overcome their societal woes. “The willingness to think and act in new ways – to adapt, to innovate, to create – also matters for economic growth.” (P 330) A vision that includes an understanding of the importance of making available publicly supported education that prepares students for the world of the future is essential. “…providing scholarships and loans for children of lower-income parents has …raised America’s overall level of education…” (P 333)

And how is an equitable society financed? By expecting those who can afford it to invest in a world that will benefit them as well as society as a whole. “Critics of the 1993 budget package warned that…higher taxes would squelch the still fragile recovery…The critics were wrong. After 1993 the business expansion gained momentum, incomes and profits surged ahead, and the resulting increase in tax revenues contributed enormously to decreasing the deficit…” (P 411) We also need to invest in keeping up the supply of skilled workers to keep the economy functioning at a high level, which increases tax revenues and leads to an increased ability of our government to meet its obligations. “It also is an investment, and the evidence makes clear that the return, in terms of added productivity for the economy as a whole, can be large.” (P 422) An emphasis on training those who are in danger or living a life of crime not only benefits society, but saves money. “Job Corps is expensive…$20,000 per participant per year…a year in prison is about $25,000.” (P 435)

This book provides a clear blueprint for how we can emerge from our country’s – and world’s – economic woes for those of our leaders who choose to listen.