Milton Friedman
Full Name and Common Aliases
Milton Friedman was a towering figure in the field of economics, known for his profound influence on economic theory and policy. Often referred to simply as "Friedman," he was a leading advocate for free-market capitalism and is frequently associated with the Chicago School of Economics.
Birth and Death Dates
Milton Friedman was born on July 31, 1912, and passed away on November 16, 2006. His life spanned nearly a century, during which he witnessed and influenced significant economic and political changes.
Nationality and Profession(s)
Friedman was an American economist, statistician, and public intellectual. He served as a professor at the University of Chicago for over three decades and was a prolific author and advisor on economic policy.
Early Life and Background
Milton Friedman was born in Brooklyn, New York, to Jewish immigrants from Eastern Europe. His early life was marked by modest means, but his intellectual curiosity and academic prowess were evident from a young age. Friedman attended Rutgers University, where he earned a degree in mathematics and economics. He continued his education at the University of Chicago, earning a master's degree, and later completed his Ph.D. at Columbia University. These formative years laid the groundwork for his future contributions to economic thought.
Major Accomplishments
Friedman's career was distinguished by numerous accomplishments that reshaped economic policy and theory. He was awarded the Nobel Memorial Prize in Economic Sciences in 1976 for his research on consumption analysis, monetary history, and the complexity of stabilization policy. His work on the permanent income hypothesis and the natural rate of unemployment challenged prevailing Keynesian economics and introduced new paradigms in macroeconomic thought.
Notable Works or Actions
Among Friedman's most influential works is his book "Capitalism and Freedom," published in 1962, which argued for the role of competitive capitalism as a means of achieving economic and political freedom. Another seminal work, "A Monetary History of the United States, 1867–1960," co-authored with Anna Schwartz, provided a comprehensive analysis of the role of monetary policy in the Great Depression and beyond. Friedman's advocacy for monetarism, which emphasizes the role of governments in controlling the amount of money in circulation, was a cornerstone of his economic philosophy.
Impact and Legacy
Milton Friedman's impact on economics and public policy is profound and enduring. His ideas influenced the economic policies of several governments, most notably during the Reagan administration in the United States and the Thatcher government in the United Kingdom. His advocacy for free markets, deregulation, and a limited role for government in economic affairs became central tenets of neoliberal economic policy. Friedman's legacy is also evident in the widespread adoption of his ideas on monetary policy, which have become integral to central banking practices worldwide.
Why They Are Widely Quoted or Remembered
Milton Friedman is widely quoted and remembered for his incisive and often provocative insights into economic and social issues. His ability to communicate complex economic concepts in accessible language made his ideas resonate with both academics and the general public. Friedman's quotes often reflect his belief in individual freedom, the power of markets, and skepticism of government intervention. His famous assertion that "there's no such thing as a free lunch" encapsulates his view that economic decisions always involve trade-offs. Friedman's enduring influence is a testament to his role as a champion of free-market principles and a pivotal figure in the evolution of modern economic thought.
Quotes by Milton Friedman
Milton Friedman's insights on:
Government has three primary functions. It should provide for military defense of the nation. It should enforce contracts between individuals. It should protect citizens from crimes against themselves or their property.
When government - in pursuit of good intentions - tries to rearrange the economy, legislate morality, or help special interests, the cost come in inefficiency, lack of motivation, and loss of freedom. Government should be a referee, not an active player.
I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.
Unfortunately, the hardest thing for people to understand is that maybe if you leave things alone, it’ll be better than stepping in and trying to do something.
Government actions often provide substantial benefits to a few while imposing small costs on many.
On another level compulsion would change matters drastically: the kind of society that would emerge if such acts of redistribution were voluntary is altogether different – and, by our standards, infinitely preferable – to the kind that would emerge if redistribution were compulsory.
It is extremely convenient to have a label for the political and economic viewpoint elaborated in this book. The rightful and proper label is liberalism. Unfortunately, “As a supreme, if unintended compliment, the enemies of the system of private enterprise have thought it wise to appropriate its label”,′ so that liberalism has, in the United States, come to have a very different meaning than it did in the nineteenth century or does today over much of the Continent of Europe.
Only people have incomes and they derive them through the market from the resources they own, whether these be in the form of corporate stock, or of bonds, or of land, or of their personal capacity.
Here, too, we tend to be schizophrenic. We would all like to see government spending go down, provided it is not spending that benefits us. We would all like to see deficits reduced, provided it is through taxes imposed on others.
What you have as a result of past policies is that German entrepreneurs go outside of Germany for many of their activities. They are investing abroad instead of at home because there isn’t the openness, fluidity and opportunity they find outside their borders.