There is a funny detail about this video. I used to think that it was Milton Friedman himself that came up with this pencil story. But it seems that the actual unquoted and unmentioned source of this pencil story is mister Leonard Read. So when Milton Friedman explains the story, he could have finished his story by saying that he could not have told this story without Leonard Read and his essay “I, Pencil”. That would have been a fair mention of sources and a tribute to what I assume was his colleague or friend. If you watch Matt Riddley’s TED movie about ideas and how they have to mate to be productive. Matt Ridlley does quote the right source for the pencil story as Leonard Read. Mister Friedman had me fooled for a rather long while.
Please be aware and also be warned: this video is old footage and can possibly harm the MTV generation. So use Milton in low doses to prevent brain damage (-;