Posts tagged with: Milton Friedman

milton_friedman2The Book: Milton Friedman: A concise guide to the ideas and influence of the free-market economist by Eamonn Butler

The Gist: As the subtitle suggests, this short book provides a concise overview of the ideas and influence of the late economist, Milton Friedman

The Quote: “[T]he supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number—for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs–jobs that will mean more goods and services to consume.”

The Good: The book includes numerous direct quotes from Friedman . . .

The Blah: . . . but far too many of the quotes are taken from an interview in Playboy magazine rather than from Friedman’s own writings.


Who is the biggest enemy of the free market system? The late Milton Friedman, one of the 20th century’s most prominent free market champions, had a surprising answer: the business community.

Economist Arnold Kling explains why support for markets and business are not the same thing:

I spent last week in London attending a couple of stimulating conferences at the Institute for Economic Affairs (IEA) and the Transformational Business Network (TBN), and catching up with some friends and acquaintances. All of the discussions were either officially off-the-record or of a personal nature, so I can’t be too specific about who said what but my general impression, obvious to anyone who’s visited, is that London remains an extremely vibrant, forward-looking, prosperous global capital in stark contrast to much of Europe and even other parts of Britain. But the reasons why are varied and may upset some seemingly-settled orthodoxies about religion and wealth.

London’s wealth is certainly tied to the City and international finance, even if giants such as the Royal Bank of Scotland are posting record losses (£9 billion in 2013). There’s much distress about such losses, especially subsequent to the massive bailouts RBS and other banks received in the wake of the 2008 financial crisis. We often forget that making bad investments and taking losses is part of the normal, necessary functioning of the market economy; Milton Friedman went so far to say that losses are even more important the profits. Wealth can’t be created if we don’t allow losses to get rid of badly-managed or mistaken enterprises.

No one wants to fail, of course, but without failure, we can’t have success, even at the individual level. I’m reminded of a Teddy Roosevelt image we used to have at the office of my college newspaper emblazoned with the words, “The only man who never makes mistakes is the one who never does anything.” Certainly true, even if the vice of sloth and complacency often tells us otherwise; what’s more important is to learn from one’s mistakes and try again.

Critics of capitalism have often cited the constant striving and relentless competition as negative aspects; what’s the point of hard work, after all, if we can never enjoy its fruits? The austerity and disciple required by the market are sometime called “Protestant” because they supposedly imply a pessimistic, individualistic view of human nature, as opposed to Catholicism’s more positive, “relaxed,” social view. Made famous by the German sociologist Max Weber, this thesis has always seemed to contain some elements of truth but never completely accurate to me, and my time in London confirmed my doubts. (more…)

Blog author: jballor
Friday, August 23, 2013

I ran across this video yesterday (courtesy of ESA), which I thought presented some interesting challenges and issues:

The video was presented on Upworthy as an example of something “all white people could do to make the world a better place,” that is, use their white privilege to address injustices.

A number of economists, including Milton Friedman and Thomas Sowell, have written about the power of the market economy to overcome racism and discrimination, to put people into relationships on the basis of economic decision-making rather than skin color. As Friedman contended,

the preserves of discrimination in any society are the areas that are most monopolistic in character, whereas discrimination against groups of particular color or religion is least in those areas where there is the greatest freedom of competition.

But as a conversation I had with some others about the video also illustrates, there are times when (at least in the short run interests of the firm), something like profiling can seem to make some economic sense. The successful passing of one bad check can really hurt a store’s margins. Practically speaking the stores often take a complete loss.

In response to my post last Thursday on the Fed’s signaling the possibility of more quantitative easing (QE), a commentator using the pseudonym “Milton Friedman” wrote,

have you checked inflation rates lately? they are at historic lows. if the parade of horribles doesn’t happen, shouldn’t that cause you to reconsider your understanding of the economy? economists have learned quite a few things since 1609…

As I responded on that post, I’m not sure what “parade of horribles” he is referring to; my point was simply that the short term gain of inflationary policy now is not worth risking the likely long term disadvantages and need not be taken as apocalyptic.

Furthermore, as a matter of fact, inflation rates do not appear to be at “historic lows” in 2012, especially given the short bout of deflation we experienced from March to October 2009. I’ll let readers make up their own minds on that point, however, since it really doesn’t affect my argument.

What is far more important to me is pseudo-Friedman’s comment that “economists have learned quite a few things since 1609.” The reference to 1609 is due to the fact that I was highlighting the work of Spanish scholastic Juan de Mariana’s analysis of the effects of inflationary policies in medieval Spain. Is pseudo-Friedman right? Is Mariana’s analysis invalid due to its antiquity? (more…)

July 31st marks the 100th birthday of the economist Milton Friedman. Celebrations planned by proponents of free-markets will take place across the country to recognize and pay tribute to his legacy and the power of his ideas. I am speaking at an Americans for Prosperity event in town on the topic of school choice on his birthday.

My commentary this week is on school choice. Nobody has influenced and shaped the school choice movement more than Friedman. In my piece, I stressed the moral power of pivoting away from bureaucratic centralized schooling and encourage greater parental involvement in education. Simply put, school choice allows for parents to better shape the spiritual formation of their children. Nobody can make better decisions about the education of their children than the parents.

Finally, schools that have to compete for students and tax dollars will be forced to improve and be innovative for today’s complex and global marketplace.

Blog author: rnothstine
Tuesday, January 10, 2012

“Stupid is the new smart,” and “Pop culture is a wasteland” are just a few lines from Daniel J. Flynn’s introduction to Blue Collar Intellectuals: When the Enlightened and the Everyman Elevated America. Certainly, one does not need to read Flynn’s account to surmise that there are grave problems with our culture. But many would miss some great stories and a return to a people and time that crafted a great uplifting for mass audiences.

Flynn has profiled six intellectuals or thinkers who sprung out of the immigrant backgrounds and / or a working “blue collar” origins. They opened up and popularized the great works, theories, and conversations of Western Civilization for the everyman. It seems it is of little coincidence that in profiling Mortimer Adler, Eric Hoffer, Ray Bradbury, Will and Ariel Durant, and Milton Friedman, Flynn touches on diverse streams of thought such as history, literature, economics, philosophy, and popular story teller. Flynn laments that we do not see these type of public intellectuals today and we are surrounded by passive and meaningless entertainment that not only debases but detaches us from the great ideas and a common heritage.

Will and Ariel Durant popularized history with their widely popular 11-volume The Story of Civilization. Flynn lauds them as writers who “extracted history from the academic ghetto whither it had retreated, opening the conversation about the past to all comers.”

Mortimer Adler, who compiled The Great Books of the Western World set, once quipped, “The only education I got at Columbia was in one course.” That course studied the classic works of Western Civilization and Adler sought to package them for mass consumption. A brilliant mind, Adler received a Ph.D from Columbia without ever receiving a high school diploma, bachelor’s, or master’s degree. Adler held a disinterest and disdain for the academic bubble, and in turn academics turned their noses up at his work for packaging and popularizing the great works. “The Great Books Movement, for better or worse, offered education minus the middleman. It is no wonder the middleman objected so vociferously,” says Flynn.

The idea that somebody who took on entrepreneurial endeavors and worked a myriad of jobs in the economy might make a better or more notable economist makes sense. But it’s not always the case, when one looks at say the lifelong academic John Maynard Keynes. Flynn notes what many free marketers already know about Milton Friedman and that is he “waited tables, peddled socks door-to-door, and manned roadside fireworks stands. He attended the public schools and lived in rent controlled apartments.” Friedman harnessed his experiences, professorship, books, a “Newsweek” column, and a PBS series to popularize libertarian free-market economic principles. He transformed public policy and much of the economic lingo and ideas we borrow today directly comes from the free-market economist.

Eric Hoffer, the longshoremen philosopher, was the favorite author of President Dwight D. Eisenhower. His book The True Believer covers the psychology of mass movements. “Hoffer’s patriotism stemmed from the belief that America was the workingman’s country. That the everyman became president hardly proved America’s mediocrity; it proved the excellence of the American everyman,” says Flynn.

Ray Bradbury, still writing, and most noted for Fahrenheit 451, could not afford college. He has proudly said that he is an alumnus of the Los Angeles Public Library. Bradbury glamorized small town Midwestern life and the significance of books, while slamming the detached superficial culture that suffers from a lack of education and critical thinking.

Flynn has weaved together some wonderful stories to remind us that great culture and deeper ideas are accessible to the masses. I have often wondered how some history professors could turn a lively and passionate subject boring. History, and other academic subjects, have too often been turned into gender-bending, “evil colonialist” type studies, eschewing much of the established work of Western Civilization. They deliberately use their own inner language and codes. “The ivory tower has become a tower of babble,” Flynn says.

He makes the easy case that a vapid society is objectionable and bankrupt of purpose, meaning, and ideas. He also highlights the less known significance on society of six influential thinkers, who because of their background, were able to help uplift the masses to the great ideas and release those ideas from an academic ghetto. Outside of Friedman, I did not know much about these figures and the stories he tells are lively and I did not realize how some of these thinkers already had had an influence on me. Growing up, my family had the set of The Great Books of the Western World, so it was fascinating to hear the story behind it.

As somebody with a divinity degree, and as an observer of ministry and churches, I thought about this problem in our faith culture. Today, there is a serious issue with the need to see Church as a form of entertainment first. Too often churches reflect the very same problems that plague our culture. There is little use for serious deeper reflection in some churches, and little use for the study of doctrine and traditions. The consequences are that confusion abounds today about what Christianity teaches and its transformative power. A revival and renewal is not just needed in culture, but in many of our churches too. There is a great need for teachers and preachers to deliver that word in days such as these as well.