Milton Friedman's Economic Thought: Free Markets & Monetarism

Introduction to Friedman's Selected Papers

Friedman is considered one of the more influential thinkers of his time, and Milton Friedman on Economics: Selected Papers is a collection of much of his work. Many of the enclosed papers were originally published in the Journal of Political Economy. The collection opens with his 1977 Nobel Lecture and then spans a great part of his life and career, including works from as early as 1948 through 1990. Because he was so influential over the course of his career, this series of papers provides a great opportunity not only to gain an introduction to his line of reasoning, but also to access a historic blueprint of detailed economic thought. Milton Friedman offers enduring insights into twentieth-century economics and political policy.

Milton Friedman is considered to have been one of the great economic thinkers of our time, and he was clearly respected because of it. As both an economist and an intellectual, he became the leading voice of an economic movement. His views were at times controversial, as economics crossed over into politics through his deeply held laissez-faire convictions. His Nobel Prize for economics in 1976 was acknowledgment of his achievements in consumption analysis, monetary history and theory, as well as his understanding of stabilization policy. Friedman passed away in the fall of 2006; however, his influence can still be felt through his views on economic participation in a new global context. Through his many past speeches, meetings, and writings, he expressed a desire for citizens to be educated and for leaders to pursue sound economic policy.

Friedman's Free-Market Philosophy and Controversies

Milton Friedman was one of the founders of the line of reasoning that became the free-market economic theory of the post-World War II era. Because of his impact on national and global economics, he can be considered one of the most influential economists of the twentieth century. This did not prevent him from having intellectual adversaries. Through his notes, it is apparent that he was strongly opposed to unionization, and especially to teachers' unions in the United States. His writing clearly reflects that he was very critical of the National Education Association and the American Federation of Teachers, at one point blaming them directly for preventing American children from achieving basic literacy.

Another controversial position was his outspoken advocacy for the legalization of drugs. He was not voicing this view carelessly — he presented the reasoning behind the idea rationally. His view was that outlawing drugs was the root cause of many national and global problems. He believed that legalizing drugs would reduce the need for prisons and, consequently, the number of prisoners. He also argued that the prohibition of drugs was a root cause of high murder rates and that urban areas would become more economically and socially active in a legalized environment. He drew direct comparisons between the then-current war on drugs and the alcohol prohibition he had witnessed as a young economist.

Conclusion

Milton Friedman will be remembered as one of the world's foremost economists. He was both bold and ambitious in communicating his views in ways that could be broadly understood and appreciated. He advocated for small government, free markets, the legalization of drugs, and many other controversial positions, underpinning each with empirical evidence that challenged the prevailing paradigms of his day.

References

Friedman, Milton. 1977. "Nobel Lecture: Inflation and Unemployment." Journal of Political Economy 85: 451–472.

Friedman, Milton. 2008. Milton Friedman on Economics: Selected Papers. Chicago: University of Chicago Press Journals.