The Importance of Being Milton
Jim McCabe
Issue date: 11/24/03 Section: Perspectives
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During the recent California recall campaign, I was rooting for Arnold Schwarzenegger. Not because I had a vested interest in the outcome, but because his victory was, by far, the most entertaining result imaginable. I had nothing against Arnold, but the mere fact that he was running was, in itself, amusing to me. I began to take him more seriously, however, when I saw him at a press conference, flanked by his advisors, including 91-year old Milton Friedman. The presence of Warren "If I can afford higher taxes, who can't?" Buffet mitigated the feeling, but only somewhat
Friedman is a big name around these parts, of course, and as such, he sometimes falls victim to caricature. Milton is alternately lauded and denigrated, sometimes unthinkingly, without reference to his actual ideas and to his impact on society. It's important, therefore, to stop to reflect on why Milton Friedman is about as close to being a household name as an economist can get, and why he remains important to us today.
To begin with, we need to remember that when Friedman began to write about monetary policy, government overreach, and individual freedoms, no one was much interested in listening. He (along with his faculty colleague, Friedrich von Hayek, a fellow Nobel Laureate) warned us of the dangers of increased government control way back in the late forties and early fifties, when socialism was on the rise (particularly in Europe). His landmark Capitalism and Freedom, first published in 1962, was not embraced by politicians of either party (except for Goldwater Republicans). The book was pretty much ignored by the press, despite being written for the general public by a respected scholar at a major U.S. university. At that time, it seemed that Friedman was swimming against the tide, not only of prevailing elite opinion, but also of history itself. The notion that growth in government was detrimental to our economic and political well-being simply did not fit with the then current vision of the Great Society and the growing welfare-state. Even in 1976, when he was awarded the Nobel Prize in Economics; his ideas were not widespread outside the insular world of economists.
Friedman is a big name around these parts, of course, and as such, he sometimes falls victim to caricature. Milton is alternately lauded and denigrated, sometimes unthinkingly, without reference to his actual ideas and to his impact on society. It's important, therefore, to stop to reflect on why Milton Friedman is about as close to being a household name as an economist can get, and why he remains important to us today.
To begin with, we need to remember that when Friedman began to write about monetary policy, government overreach, and individual freedoms, no one was much interested in listening. He (along with his faculty colleague, Friedrich von Hayek, a fellow Nobel Laureate) warned us of the dangers of increased government control way back in the late forties and early fifties, when socialism was on the rise (particularly in Europe). His landmark Capitalism and Freedom, first published in 1962, was not embraced by politicians of either party (except for Goldwater Republicans). The book was pretty much ignored by the press, despite being written for the general public by a respected scholar at a major U.S. university. At that time, it seemed that Friedman was swimming against the tide, not only of prevailing elite opinion, but also of history itself. The notion that growth in government was detrimental to our economic and political well-being simply did not fit with the then current vision of the Great Society and the growing welfare-state. Even in 1976, when he was awarded the Nobel Prize in Economics; his ideas were not widespread outside the insular world of economists.