Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”     Samuel Adams

November 22, 2006

The Legacy Of Milton Friedman III

by Doug Mataconis

In article at Reason, Brian Doherty makes the point that, as the article’s title puts it: It’s Milton Friedman’s World, We’re Just Living In It.

When celebrated public intellectuals of Nobel-prize-winning heft die, the newspapers are packed with encomiums on their brilliance and importance. It isn’t always obvious, though, where the rubber of their lofty scholarly words hits the road of our day-to-day life. With Dr. Milton Friedman, winner of the 1976 Nobel in economics, most celebrated figure of the Chicago School of economics, author of the 1980 nonfiction bestseller Free to Choose, seeing his (invisible?) hand in the workaday world isn’t all that hard.

If you or your children have not been forced into the armed services in the past three decades—which you haven’t—thank Friedman. He was the intellectual sparkplug for the Nixon-era Gates Commission that convinced Nixon a volunteer army is both workable and the right thing to do.

If the dollars in your pocket are worth somewhere close to what they were a year ago, not 8 percent or more less, thank Dr. Friedman. His work as an economist convinced Federal Reserve chiefs, after the grim late 1970s dominated by stagflation (high inflation combined with recession), that we should strive to keep money supply growth low to restrain both inflation and unemployment. While the world’s central banks haven’t followed every technical detail of his plan, the old and destructive belief that government can tax and spend and inflate our way to prosperity is gone, and Friedman is why.

And that’s not all, Doherty lists a whole host of public policy issues where Friedman’s influence has shaped the world we live in:

Who should decide where our kids go to school, and who should control the money used to pay for it?

(…)

Who should decide what we can eat and how we enjoy ourselves?

(…)

Who should decide how we get to spend our money?

(…)

Who should decide the value of currencies in relation to other currencies—national governments, or the decentralized decisionmaking of all economic players?

In other words, Friedman was much more than an economist. He was a thinker, and his ideas will have influence long after he’s gone, if we choose to listen to them that is:

To the extent that we choose to heed Friedman in the future, we’ll have more even choices we can make for ourselves–and be richer for it.

I can’t think of a more fitting legacy.

Previous Posts:

The Legacy of Milton Friedman
The Legacy of Milton Friedman II

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2 Comments

  1. From 1964 to 1999 the GOP tried to put Dr. Friedman’s ideas into practice. Had great success from 1981 – 1988 and from 1994 – 1999. Then in 2001 for some unknown reason they abandoned his ideas and went back to Lork K? And now the American people have abandoned the GOP. The “multiplier” has once again beat the “invisible hand”. And the whole world is and will suffer for it.

    Comment by Rodney A Stanton — November 24, 2006 @ 4:07 pm
  2. The failure from 88 to 94 was electing Bush 41, an internationalist, but not a liberal (in the old sense of the word).

    Comment by Adam Selene — November 25, 2006 @ 11:11 am

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