Profile

on Milton Friedman
Kyle du Preez
POLS 1100

Milton was a born to immigrant parents in Brooklyn, New York on July 31,
1912. He was born into a Jewish family (let the stereotypical jokes roll), however
Milton later on in life rejected the Jewish faith, and all religions for that matter. From
a young age it was apparent that Milton possessed a brilliant mind. By the age of 16
he had graduated high school, and four years later (age 20) he graduated from
Rutgers University with his B.A. in mathematics and economics. After this he was
offered scholarships to Brown University for Mathematics, and to the University of
Chicago for Economics, he chose the latter and earned his M.A. (age 21) in
Economics. He then pursued a Ph.D. at Columbia University (age 34). He went on to
win numerous awards for Economics, including a Nobel Memorial Prize in Economic
Sciences, and inevitably became "the most influential economist of the second half of
the 20th century ... possibly of all of It." (A Heavy Weight Champ at Five Foot Two)
Milton spent most of his career in the Academic arena, or as an advisor to
some notably influential individuals of the time. However Milton did not start at the
top. He started on the research staff of the National Bureau of Economic Research in
New York City (1937). This allowed him and Rose Director (whom he meet at the
university of Chicago, who was a philosophy major) to have the financial stability
they needed to get married. A few years later (1940) he accepted a position at the
University of Wisconsin, however this was short lived as he was forced to resign due
to a conflict with other staff over the United States involvement in World War II.
During the World War he worked in the treasury department, where he helped

create the Federal withholding tax system. Towards the end of the war Milton used
his mathematical prowess on weapons design, military tactics, and metallurgical
experiments. After the war (1945) Milton published Incomes from Independent
Professional Practice (co-authored by Kuznets). It was actually completed in 1940,
but was held till the end of the war for publication. Columbia University awarded
him a Ph.D. in 1946, which he essentially earned at age 28. During the same time as
receiving his Ph.D. he was also able to father his first child, David Friedman. During
this year Milton was a Professor at the University of Minnesota, and after one year
accepted an offer from the University of Chicago. The next 30 years Milton spent
teaching at the University of Chicago, while also retaining a position in the Bureau of
Economic Research.
During his time at the Bureau, Milton studied the role of money in the
business cycle. Since he was also working at the University of Chicago, he started a
workshop there called Workshop in Money and Banking. This workshop helped
bring monetary studies back to the forefront across the United States. Milton was at
the forefront of the debate between the Keynesian Economic model, and that of the
Neo-Classical Model (Monetary), most schools across the worlds taught the
Keynesian Model. The Primary difference between these two economic mindsets are
that the Monetary model sees the supply of money as being the major factor in the
business cycle and inflation, while the Keynesian Model focuses on spending
(aggregate demand) as the being the major factor. Milton would end up spending a
year at Cambridge. He believed he was invited since the economic department at

Cambridge was split between the Keynesian model and the Monetary Model, but
both sides disagreed with his thoughts.
Milton was not only known for his philosophies on economics, but also his
views on many other topics. He was an avid supporter of floating exchange rates.
Eliminating the Reserve Board, and rather than having them decide on the amount
of money in circulation, have a mechanical system that slowly increased the amount
of money in circulation at a steady rate. He believed in the school voucher programs,
which is still debated about today, and the list goes on. Between 1966 and 1983
Milton wrote a column for Newsweek magazine, which allowed him to express his
thoughts and feelings on these subjects. Milton also was able to share his views on a
lot more of a grand scale when advices numerous presidential candidates, which
included Richard Nixon. He was also a heavy influence to Keith Joseph, who was an
advisor on economic affairs to the British Prime minster Margret Thatcher. Milton
would visit the United Kingdoms regularly and lecture on Economics in a number of
forums. He was also able to hold lectures in countries around the world (i.e., South
Africa, Chile, Rhodesia, and in the later years China). One of Miltons quotes says
Governments never learn. Only people learn. Which is evident in his travels across
the world to educate the populous about economics.
In 1976 he won the Nobel Prize in Economics for his achievements in the
fields of consumption analysis, monetary history and theory and for his
demonstration of the complexity of stabilization policy. Within a year of winning
this award he retired from his position at the University of Chicago, however he

retained his title of Paul Snowdon Russell Distinguished Service Professor Emeritus
of Economics at the University.
In the 1980s Miltons ideas were really taken to heart across the world, as
governments made policies and listened to advice and thoughts he had shared. This
was especially true in that of the United States (Ronald Reagan Administration) and
Great Britain (Margret Thatcher Administration, as mentioned prior), and his ideas
played a major role in the structure changes in the Chinese Economy. While his
economic ideas where idealized by conservatives, his other views put him at odds
with the conservatives. An example of this is his support of LBGT rights, and the
decriminalization of drugs and prostitution.
Over the years of his life Milton wrote many books, with a fair amount being
co-written with his wife Rose. Some of his most famous work includes Capitalism
and Freedom as well as Free to Choose, and the list goes on. To this day his work
and ideas are studied in economic classes across the world. While he was a small
man in stature (52) he was and always will be a giant in the economic world. We
owe a great deal to his work, as it was highly influential in the events that transpired
after the 2008 collapse, and I am sure it will continue to impact the economic world
and the policies and procedures made for many years to come.

References:

"A Heavyweight Champ, at Five Foot Two." The Economist.

The Economist Newspaper, 23 Nov. 2006. Web. 11 Dec. 2015.

<http://www.economist.com/node/8313925>.

Denning, Steve. "The Origin Of 'The World's Dumbest Idea': Milton Friedman."

Forbes. Forbes Magazine, 26 June 2013. Web. 11 Dec. 2015.

<http://www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-

the-worlds-dumbest-idea-milton-friedman/>.

"Milton Friedman." The Concise Encyclopedia of Economics.




The Library of Economics and Liberty. Web. 11 Dec. 2015.

<http://www.econlib.org/library/Enc/bios/Friedman.html>.

"Milton Friedman." Wikipedia. Wikimedia Foundation. Web. 11 Dec. 2015.

<https://en.wikipedia.org/wiki/Milton_Friedman#cite_note-36>.

"Milton Friedman - Biographical." Milton Friedman - Biographical. Web. 11 Dec.

2015. <http://www.nobelprize.org/nobel_prizes/economic-

sciences/laureates/1976/friedman-bio.html>.

"Milton Friedman Biography." Academy of Achievement. Academy of Achievement,

12 July 2010. Web. 11 Dec. 2015.

<http://www.achievement.org/autodoc/page/fri0bio-1>.

Nobel, Holcomb. "Milton Friedman, 94, Free-Market Theorist, Dies."
The New York Times. The New York Times, 16 Nov. 2006. Web. 11 Dec. 2015.

<http://www.nytimes.com/2006/11/17/business/17friedman.html?pagew

anted=all&_r=0>.