Friedman, Milton

Born July 31, 1912, in New York, NY; died of heart failure, November 16, 2006, in San Francisco, CA. Economist and educator. One of the premiere economists in the late 20th century, Milton Friedman’s economic policies were favored by many country leaders, including President Ronald Reagan of the United States, Prime Minister Margaret Thatcher of the United Kingdom, and military dictator Augusto Pinochet of Chile. His 30year tenure at the University of Chicago ushered in a new school of economic thought that produced several scholars and economic leaders who went on to win Nobel prizes. Friedman himself would win the Nobel Prize in 1976. Allan H. Meltzer, an economic scholar at Carnegie Mellon University, told the Los Angeles Times, “He was a great man. It’s hard to think of anybody who never held a government position of any importance who influenced our country—and the whole world—as much as he did.”

Friedman was born in the borough of Brooklyn in New York City in 1912. He was the youngest of four and the only son born to Jewish parents who immigrated from a region that is now a part of Ukraine. The family moved to Rahway, New Jersey, when Friedman was still a baby. His parents struggled to make ends meet. His father died during Friedman’s senior year of high school. He earned a scholarship to Rutgers University, where he worked as a waiter, store clerk, and a tutor to supplement his income.

After graduation, Friedman enrolled at the University of Chicago, where he earned a masters degree in economics in 1933. He also met Rose Director, who would later become his wife. After receiving his masters, Friedman worked with the U.S. government’s national Resources Committee. He helped to design the federal withholding tax system. He would later criticize this type of federal agency and programs, believing they imposed on personal choice and freedom. Friedman also worked at the National Bureau of Economics. He briefly taught at the University of Minnesota.

In 1946 Friedman earned a doctorate in economics from Columbia University. That same year, he began his career at the University of Chicago. He and the other professors in the economics program turned the department into one of the leading economics departments in the United States. Friedman also influenced a number of students, including renowned economist Gary Becker, who would later win the Nobel Prize.

Friedman was very personable and could talk in a language easily understood by the common person who had an interest in economics. He was conservative in his policy-making and thinking. The conservative right used him to speak on their issues and he became a popular speaker and lecturer. He advised presidents Lyndon B. Johnson and Richard M. Nixon on economic policies. His popularity with common folk led him to tour around the United States, speaking on economic policy. Friedman would later use his notes from the tour to write a book, Free to Choose, and he hosted a PBS television show of the same name in 1980.

While everyone followed the theories and policies of British economist John Maynard Keynes, who believed that government should be involved in the ebb and flow of its economy, Friedman was touting less government involvement. However, the post-World War II boom that the United States and other countries experienced proved Keynes was right. In the 1970s unemployment would reach new highs and oil prices surged upward, and everyone began listening to Friedman. His free-market or laissez-faire policies were put into practice by both the U.K. and U.S. governments. Unfortunately, Friedman’s theories failed all expectations and both governments soon implemented other practices in an effort to thwart the recession both countries had entered.

Friedman was unapologetic and stood his ground. His thought of less government involvement reached beyond the economy. He was on the board that recommended the end of using a draft in times of war; Nixon would end the use of the draft in 1973. Friedman wanted to legalize drugs and prostitution. He also spoke against licensing boards, including the issuance of driver’s licenses.

Friedman also became a prolific author. His book, A Monetary History of the United States, 1867-1960, co-authored with Anna J. Schwartz, became a classic that was used in colleges and universities globally. He also wrote Capitalism and Freedom, which expounded on his theories on income tax and airline deregulation. Friedman also wrote several books with his wife, who was also a leading economist. Together they wrote their memoir, Two Lucky People, which was released in 1998.

Friedman was not without controversy. He gave several lectures in Chile and made recommendations to dictator Augusto Pinochet. His critics de-cried his theories; Friedman was not one to step down from his opinion and would engage in debates with many, including his rival and lifelong friend, John Kenneth Galbraith. Robert M. Solow, who was with the Massachusetts Institute of Technology and a fellow Nobel laureate, told the New York Times that Friedman was one of “the greatest debaters of all time.” Upon receipt of his Nobel Memorial Prize in Economics, Friedman was met with protests outside the ceremony.

After 30 years, Friedman retired from the University of Chicago. He and his family moved to San Francisco, California. He became a senior research fellow at the Hoover Institution at Stanford University. He had begun writing a column for Newsweek magazine in the 1960s and he continued until the early 1980s. Friedman, along with his wife, established a foundation that promoted school vouchers, believing that parents should have the opportunity to choose the schools their children attended.

Friedman suffered from heart failure and died on November 16, 2006. He was 94. He is survived by his wife, his son, Daniel; his daughter, Janet; and three grandchildren. Federal Reserve Chairman Ben S. Bernanke told the Los Angeles Times, “In his humane and engaging way, Milton conveyed to millions an understanding of the economic benefits of free, competitive markets, as well as the close connection that economic freedoms bear to other types of liberty.” Sources: Chicago Tribune, November 17, 2006, sec. 1, p. 1, p. 4; Los Angeles Times, November 17, 2006, p. A1, pp. A26-27; New York Times, November 17, 2006, p. A1, p. A28; Times (London), November 17, 2006, p. 78; Washington Post, November 17, 2006, p. A1, p. A13.

—Ashyia N. Henderson