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Friedman Paper
Friedman Paper
big of a responsibility does the government hold when it comes to education. The book was
written in 1962 but the general principles would apply in todays world. A theory of the
consumption function explains the relationship between disposable income and consumer
spending behavior. Im not against the idea of reading either of these books but the language
would likely overwhelm me.
When I first heard Chicago school of economics, I simply assumed that it was the
economics department within the University of Chicago. Instead, it ended up being an economic
thought (it did originate from the University of Chicago, however). One of the main arguments
of this thought is that minimal governmental regulation makes for an ideal economy and that
letting the free market allocate resources within that economy is encouraged. Apparently this
contradicts John Keynes beliefs (a name I recognize from our class material). Basically, it comes
down to pro-governmental regulation vs anti-governmental regulation.
This begs the question, Does each individual know whats best for himself/herself rather
than what the government or intellectuals claim is best for them? Each persons utility or
measure of happiness is different. Id be inclined to agree that it should be up to each individual
to determine what maximizes his or her utility and while governmental intervention can be
beneficial in moderation, it shouldnt dictate how people spend or save their money, for example.
Intellectuals can guide the uninformed to make more sound economic decisions but in order for
each of us to maximize our utilities, we need to put in the work to figure out what we are really
looking for.