MILTON

Milton Friedman



Milton Friedman

Introduction

Milton Friedman is an extremely important part of human history. His contributions to economics are numerous. Individuals who once opposed his claims, suggestions and principles have acknowledged his intellect with time. This paper takes a closer look at Friedman's contributions, explaining his importance, how he shaped economics and what his views would be if he were alive today.

Thesis

“Milton Friedman was an exceptional man and his contributions to economics will remain unmatched for many years to come.”

Importance of Milton Friedman

Milton Friedman was truly a gift to society. His importance can be seen in his contributions to the world of economics. The man and his work are both widely revered by economists and scholars alike. Friedman was one of the century's most prevalent advocates with regard to the free market principle. Born to Jewish immigrants residing in New York City in 1912, Friedman showed signs of high intellect throughout high school. He went on to the Rutgers University and successfully earned his B.A. at the age of 23. He then went on to acquire his M.A. from the University of Chicago and then his Ph.D. from Columbia University in 1933 and 1946 respectively (Davis et al, 2011).

Later, Milton Friedman received the John Bates Clark Medal in 1951 in honour for his outstanding achievements before reaching the age of forty. He went on to win the Nobel Prize for economics in 1971. The award was in honour of his achievements in the field of monetary history, theory, consumption analysis and for demonstrating the complexities of the stabilization policy. Prior to receiving this prestigious honour, Milton served in President Richard Nixon as an advisor during his term in office. He was also the president of the American Economic Association in 1967. Another example that signifies his importance and respect in society is that in 1977, when he had retired from the University of Chicago, Friedman then went on to become a senior research fellow at the prestigious Hoover Institution at Stanford (Davis et al, 2011).

How Milton Helped Economics

Friedman argued on state licensing procedure and said that they limited entry to the profession of medicine. The licensing procedures in place at the time allowed doctors to charge their patients as they saw fit. Unfortunately, what they saw fit was a lot higher than they would have to charge if there was more competition. This argument came out in the form of his paper, Income from Independent Professional Practice. The paper was co-authored by Simon Kuznets and greatly helped establish the two. It also highlighted to the general public the benefits of open and free market principles, something he strived to do till his unfortunate demise in 2006.

In 1957, Friedman came up with A theory of the Consumption Function. This paper was truly set him apart from the rest of the economists in the world and truly established him as a great mind. The paper directly took on Keynesian views that individual people, and their households, change, increase or ...