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Milton Friedman

Milton Friedman (1912–2006) was an American economist and the leading advocate of monetarism who taught for three decades at the University of Chicago, later became a senior research fellow at the Hoover Institution, and received the 1976 Nobel PrizeNobel PrizeThe Nobel Prize is an international award established under the will of Alfred Nobel, comprising five prizes in physics, chemistry, physiology or medicine, literature and peace, awarded since 1901; its funds are managed by the Nobel Foundation, whose Board is based in Stockholm. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, established in 1968, is not a Nobel Prize.Open the full entry in Economic Sciences.

Contents15 sections
Key facts

Birth in Brooklyn, New York City

Milton Friedman was born in Brooklyn, New York City, on July 31, 1912, the fourth and last child and the first son of his family. His parents, Sarah Ethel (Landau) and Jeno Saul Friedman, were both born in Carpatho-Ruthenia and emigrated to the United StatesUnited StatesThe United States is a federal country in North America made up of 50 states, the District of Columbia as the seat of government, and territories such as Puerto Rico and Guam; its capital is Washington, D.C. The Continental Congress adopted the Declaration of Independence on July 4, 1776. The 2020 census (April 1, 2020) counted a resident population of 331,449,281, and the 435 seats of the House of Representatives are apportioned among the states on the basis of the census.Open the full entry in their teens; his mother ran a small retail dry goods store, while his father pursued a series of mostly unsuccessful “jobbing” ventures.⁠[1][2]

Rutgers, Chicago and Columbia

Friedman attended Rutgers University on a competitive scholarship, first studying mathematics and then economics, and graduated in 1932 having completed the equivalent of majors in both.⁠[1][3]

National Bureau of Economic Research and Wartime Service

In the fall of 1937 Friedman joined the National Bureau of Economic Research to assist Simon Kuznets; their joint study, “Incomes from Independent Professional Practice,” which became his doctoral dissertation, was completed by 1940 and published after the war.⁠[1]

From 1941 to 1943 he worked on wartime tax policy at the U.S. Treasury Department; from 1943 to 1945 he was a mathematical statistician in a statistical research group at Columbia University; and in 1945–46 he taught at the University of Minnesota. He received his Ph.D. from Columbia University in 1946.⁠[1][4]

University of Chicago

Friedman joined the University of Chicago in 1946 to teach economic theory and remained there until he retired in 1977, becoming the leading American advocate of monetarism. Around 1946 he also rejoined the National Bureau of Economic Research to lead its study of the role of money in the business cycle, assisted by Anna J. Schwartz.⁠[1][5][4]

In the fall of 1950 he spent a quarter in Paris as a consultant to the Marshall Plan agency, studying the Schuman Plan; in 1953–54 he was a Fulbright Visiting Professor at Gonville & Caius College, University of CambridgeUniversity of CambridgeThe University of Cambridge is a university in Cambridge, England, United Kingdom. It gives 1209 as its founding date, is made up of Schools, Faculties, Departments and autonomous Colleges, and is a member of the Russell Group.Open the full entry; and in 1964–65 he was a visiting research professor at Columbia University.⁠[1][4]

Policy Advising and the Newsweek Column

Nobel Prize in Economic Sciences

Friedman was the sole recipient of the 1976 Nobel Prize in Economic Sciences, formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred NobelAlfred NobelAlfred Nobel (1833–1896) was a Swedish chemist, engineer, inventor and industrialist who invented dynamite, the blasting cap, blasting gelatine and the smokeless powder ballistite and founded enterprises in more than 20 countries. Through his will he left his fortune to establish the five Nobel Prizes in physics, chemistry, physiology or medicine, literature and peace.Open the full entry, “for his achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy”; at the time of the award he was affiliated with the University of Chicago.⁠[2]

Senior Research Fellow at the Hoover Institution

Free to Choose and Advising Ronald Reagan

In January 1980 the ten-part television series “Free to Choose,” presented by Friedman, began airing on PBS; the companion book, written with Rose D. Friedman, was published the same year by Harcourt Brace Jovanovich.⁠[1][6]

National Medal of Science and Presidential Medal of Freedom

On July 15, 1988, President Ronald Reagan presented Friedman with the National Medal of Science at a White House ceremony, recognizing his theoretical contributions and his application of scientific empirical and statistical methods to economics, the social sciences and problems of national concern; he was then a senior research fellow at the Hoover Institution.⁠[7]

On October 17, 1988, Reagan presented the Presidential Medal of Freedom at the White House to eight recipients, including Friedman, whose citation read: “Teacher, scholar, and theorist -- Milton Friedman restored common sense to the world of economics.”⁠[8]

Foundation and Memoirs

In 1996 the Friedmans established the Milton and Rose D. Friedman Foundation to promote parental choice in schooling through vouchers. In 1998 the University of Chicago Press published their joint memoirs, “Two Lucky People.”⁠[1][6]

Death in San Francisco

Friedman died in San Francisco, California, on November 16, 2006.⁠[2][1]

Writings

Friedman’s major works include “A Theory of the Consumption Function” (1957), “Capitalism and Freedom” (1962), written with Rose D. Friedman, “A Monetary History of the United States, 1867–1960” (1963), written with the economist Anna Schwartz, and “Monetary Trends in the United States and the United Kingdom,” the last major product of his work with Anna J. Schwartz; in 1992 he published “Money Mischief,” a collection of pieces on monetary history.⁠[5][6][1]

Columbia University’s profile quotes him: “History suggests that capitalism is a necessary condition for political freedom. Clearly it is not a sufficient condition.”⁠[4]

Academic Roles and Assessments

Friedman served as president of the American Economic Association and of the Mont Pelerin Society, and in 1987 he was inducted into the Rutgers University Hall of Distinguished Alumni.⁠[3][6]

Columbia University’s profile judges that his ideas gained national attention in the 1970s, when stagflation challenged postwar Keynesian policies, notes that he advised Presidents Richard Nixon and Ronald Reagan and British Prime Minister Margaret Thatcher, and states that his views on Social Security privatization, welfare reform and school vouchers became part of the national debate.⁠[4]

Related Organizations, Websites, and Public Accounts

Hoover Institution: Official website: https://www.hoover.org/ (opens in a new window).⁠[6]

Sources

  1. Milton Friedman – Biographical (opens in a new window)
  2. Milton Friedman – Facts (opens in a new window)
  3. Milton Friedman (opens in a new window)
  4. Milton Friedman (opens in a new window)
  5. Milton Friedman summary (opens in a new window)
  6. Milton Friedman (opens in a new window)
  7. Milton Friedman (opens in a new window)
  8. Remarks at the Presentation Ceremony for the Presidential Medal of Freedom (opens in a new window)