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Milton Friedman's Ideas Essay

1756 words - 8 pages

Milton Friedman’s ideas where thought to be radical, but he was the most authoritative figure in the economics field in the 20th century, (Placeholder2) and was known most for his thoughts on free enterprise, classical liberalism and limited government. (Placeholder3) His views shaped modern capitalism. (Placeholder2) He was against government intervention and favored free markets (Placeholder6).
"If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand." – Milton Friedman

His contributions were many, to name a few:
• Monetary theory and policy
• Price theory
• Permanent Income
• Quantity Theory
• Consumption function and permanent-income hypothesis
• Friedman-Phelps Phillip’s Curve related macro-policy theorizing and findings
• International finance and exchange rate policy
• Negative Income Tax (became the Earned Income Tax Credit)
• School Vouchers to improve the education system.
Milton Friedman was ahead of his times and his views still shape capitalism today.

Milton Friedman was born in Brooklyn in 1912 to the parents of Jewish immigrants. He had three siblings. He went to Rutgers University, Chicago University and Columbia. He focused on mathematics and economies. (Placeholder6)

Milton Friedman enrolled at Rutgers University at 16 years old in 1928 and graduated college in 1932 during the great depression. As a young man, Friedman was not actively interest in economics and social policy. He was interested in mathematics and statistics and then economics. (Placeholder8) He graduated Rutgers with an economics major. He later enrolled in the University of Chicago’s graduate program in economics. He transferred to Columbia University to study mathematical economics. (Placeholder8) In the need to understand the problems of society and life during the depression era led him to economic policy. He saw a need to reduce unemployment and wanted to understand the “paradox of great need on one hand and unused resources on the other.” At the time, he thought that “becoming an economist seemed more relevant to the burning issues of the day than becoming an applied mathematician or an actuary.” (Placeholder1)

Friedman held many jobs, one of which was working for the Treasury Department during WWII.
In an effort to finance the war effort, he designed the income tax withholding system. It was supposed to be a temporary emergency measure but the government later made it a permanent part of its peacetime taxation. He would always reget forcing withholding on Americans. (Placeholder6). (Placeholder8)

Another job Friedman held was author, creator and narrator of the PBS TV documentary series Free to Choose. and he worked as a columnist for Newsweek for over 15 years authoring several books, technical academic papers and columns. His books, Capitalism and Freedom and Free to Choose were best sellers. (Placeholder3) He had also won the Noel Prize for...

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