Speech given as part of a conference entitled: HANDS ON! HANDS OFF! Should Government Call the Shots or Let the Economic World Unfold?

Friedman speaks on inflation and declining/slow economic growth. Arguing the two as interlinked, he says they are common consequence of government growth; extensions of collectivism overwhelming individualism. He claims energy prices exacerbated both problems, but problems existed before the energy crisis.

On inflation, Friedman says it is entirely made by government policy by increasing the net quantity of money. He says it introduces static in market processes and therefore retards economic growth. He believes price and wage controls address the symptoms, but not the causes of inflation. He argues restraining monetary growth is the cure for inflation.

Similarly on slow economic growth, he argues it is caused by an over-governed society where there is too much spending and too much regulation. This, in turn, increases inflation according to Friedman.

In his introductory remarks, he labels himself a radical liberal; one in favor of getting to the roots of human freedom. He says there is no such thing as public capital; government capital is capital extracted from private individuals. He would prefer to discuss "governmental" versus private as opposed to "public" versus private.

In the question-and-answer session, Friedman discusses tax cuts in America, foreign capital within Canada and beyond, the steel industry in America, Art Laffer, and critiques the Thatcher government in the UK, saying the policies are generally good, but working too slowly.