...Milton Friedman Milton Friedman was born on the 31st of July 1912 and died on the 16th of November 2006. In 1938 on the 25th of June he got married to Rose Friedman and the years later, he won a Nobel prize for economics science in 1976. He was influenced by John Keynes, Friedrich Hayek and he influenced Margaret Thatcher, Gary Becker Matt Laar and many more. Milton Friedman believed in the free market, this is when there is little or no control by the government. The government only impact the market when necessary. The price people pay for items is agreed through the buyers and sellers. Another one of Milton’s theory’s is the ‘stockholder’ theory or otherwise known as the ‘Friedman Doctrine’. This theory means that the companies only responsibility is to increase profits for the owners as long as it doesn’t get the attention of fraud. According to this theory we will make decisions on how much to spend depending on how much income we believe we will have. An example of this is if we earn $150 a week we will only buy what is necessary. One of Milton Friedman’s famous quotes about the free market is “A major source of objection to a free economy is precisely that it ... gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself.” (Study.com)...
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...Milton Friedman Jordan Locke Economics 10 April, 2013 Jordan C. Locke 10 April, 2013 Period: 2 Ms. House Milton Friedman Milton Friedman once said, "If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand”. Due to Friedman's many accomplishments and published works in the Economics field, I felt that he would be a great economist to write about. Milton Friedman was born in 1912, to two Jewish immigrant parents that lived in New York City. He earned his Bachelor's degree at Rutgers University at the age of twenty. He then went to the University of Chicago in 1933 to earn his Masters. In 1946, he earned his Doctorate at the Columbia University. He received the John Bates Clark Medal, honoring economists that had achieved the most outstanding levels of achievement by the age of Forty. He received the Nobel Peace Prize for his achievements in the field of consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy. He served as an adviser for President Richard Nixon, and he was the president of the American Economic Association in 1967. He retired from the University of Chicago in 1977, and became the senior researcher at the Hoover Institute at Stanford University. He was the premier spokesman for the monetarist school of economics and a pioneer in promoting the value of free market economics, when the position was not popular. Milton Friedman was...
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...to go see the play “Chicago Boys” at the Goodman Theater. The Goodman Theatre takes a strong stand in supporting the new plays of working playwrights. “Chicago Boys” introduces a fictional story based around economist Milton Friedman during the early 1970’s when Chile found itself in a state of political unrest. The plot follows Joe Nelson (Derek Gaspar), considered to be Friedman’s protégé and during the first moments of the play he truly admires the theories and ideas Friedman has built his economic foundation on. As the play progresses we see how Joe’s original thoughts on Friedman’s motives begin to change as he experiences a country where the economic system is starting to rupture. Joe floats between his own ambitions and representing the great mind of Milton Friedman, who is having problems of his own back in Chicago with protesters. Milton Friedman was a very arguable figure. The economist spent more than thirty years teaching at the University of Chicago, and was even awarded the Nobel Prize for Economics in 1975. During the outlashing in Chile during the mid-70’s, Friedman gave several lectures expressing economic freedom, which lead to civil unrest among citizens in Chicago. “Chicago Boys” is loosely based around the ideas and theories Friedman believed while examining a fictional story through the eyes of a young man. I was not the only one however. You know your show isn’t doing too well when a large portion of your audience leaves during intermission. ...
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... Milton Friedman is considered to be one of the most prominent and influential economists of the twentieth century. Friedman’s ideas have changed economic theories as a result of his beliefs in free-market capitalism, competition in education and less government control. He received worldwide recognition for contributing to the balancing and solving of economic issues. He has been recognized by creditable universities and international governments. Friedman developed economic theories that could possibly be studied forever. His theories on economics have contributed excessive cash flow to the world over an extended period of time (Ebenstein). Friedman was born in 1912 and died in 2006. He was an economist, an educator and a leading proponent of monetarism. He received degrees from Rutgers University, University of Chicago and finally a Ph.D. from Columbia University. In 1976 he received the Nobel Prize for economics. Friedman felt that the understandings of economics enabled one to understand how the real world worked (Ebenstein). Friedman studied income and wealth distribution along with distribution of personal finances. His career included working for the National resource Committee on Consumer Budget Studies in 1935, the National Bureau of Economic Research in 1937, the Department of Treasury Division of Tax Research during World War II and he also taught at the University of Chicago. He advised President Nixon and President Reagan on Wilson 2 economic policies...
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...ADVANCE MACRO-ECONOMICS Topic: Milton Friedman Submitted to: Ms Zubaira Hassan Submitted by: Meeran Haque Semester: 5 Major: Economics Dated: 28th Oct 2015 ID: F13BECO 008 MILTON FRIEDMAN Introduction Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist who got the 1976 Nobel Memorial Prize in Economic Sciences for his examination on utilization investigation, money related history and hypothesis and the intricacy of adjustment policy. Milton Friedman's works incorporate numerous monographs, books, academic articles, papers, magazine segments, TV projects, and addresses, and cover a wide scope of financial subjects and open arrangement issues. His books and papers have had a universal impact, incorporating...
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...Milton Friedman Milton Friedman was a well-recognized economist, stastiscian, and professor who taught at the University of Chicago for several years. During this essay, we are going to analyze some of the aspects that lead Milton Friedman to be one of the most influential economists of the 20th century, as well of being the winner of the Nobel Prize in Economics in 1976. He was also considered by some experts such as George Will in the article “The Origin of the World’s Dumbest Idea” by Steve Denning in the Forbes Magazine, as “the most consequential public intellectual of the 20th century” In this essay, we are also going to talk about a few things about his early life, where he studied and how he became the leader in the Economics school at the University of Chicago. We are also going to mention his notable ideas and theories on the economics world and about his achievements in the field of consumption analysis monetary history and theory as well about his demonstration of the complexity of stabilization policy. His knowledge in these sections of economy where the primordial factors that gave him the Nobel Prize in 1976. Finally, we are going to make mention on how he has been highly criticized by some modern economists and writers for coming up with “the dumbest idea on economy” as Steve Denning quoted on one of his articles. We are going to analyze what were the main factors to receive such claim on one of his ideas that started to make controversy on how such recognized...
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...Capitalism and Freedom By: Milton Freidman In Milton Friedman’s book Capitalism and Freedom, Friedman presents his theory, which is the importance of a free economy that is, without government interference. He strongly believes the government should stay out of anything to do with the economy. Friedman is under the impression that any government that is not the most basic government is bad. He thinks that it is important to let the invisible hand do its job and that by interfering with the natural process the system will get messed up. He introduces some radical ideas such as non-licensed doctors and school vouchers. Friedman was under the impression that if doctors were not required to obtain licenses, a better breed of doctors would come along. He thinks that by allowing the modern doctors to dictate whom the future doctors will be the competition for better doctors is impaired. By putting guidelines on who can practice medicine the system is creating the same level of doctor consistency. Friedman disagrees with this process because he sees competition a driving force that makes people to be the best they can be. Therefore, by making want-to-be doctors conform to a certain mold, the cycle of survival of the fittest is ruined. No better doctors or forms of practicing medicine will come along if this process is stunted. Friedman is also for school vouchers. This system of vouchers is the idea of the government giving parents a certain amount of money to spend on their children’s...
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...| The Abuse of Keynes’ Theory of Government Spending | And Why Government Spending Needs to Stop | | Chase Cooper | 12/13/2012 | Political Economy Dr.Ramos Abstract: The goal of my research paper is to analyze and present how John Maynard Keynes’ theory on government spending is being abused by the American government insofar that the American government is not following the guidelines and foundations that premised Keynes’ theory, and instead are picking the parts of the theory that allow them to spend at unsustainable levels, creating problems that, one way or another, eventually have to be resolved. My research will prove how the American government is conducting fiscal policy in a way that abuses Keynes’ theory on government spending, and, as a result, why Keynes would not support the American government in their spending endeavors, despite using his theory as their justification. I will be critiquing the application of Keynes’ theory from the Austrian, specifically the works of Friedrich A. Hayek, and Monetarist perspectives, supported by arguments given by Milton Friedman. Section 1: Keynes’ Theory on Government Spending John Maynard Keynes published his famous work, The General Theory of Employment, Interest, and Money, in 1936, during the Great Depression. Economies all over the world were suffering severely from the Great Depression, and there was little hope of economic recovery in the near future. Keynes agreed with the classical economist’s notion...
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...Milton Friedman started the documentary Free to Choose part-3 Anatomy of a Crisis with the genesis of the Great Depression of 1930. Friedman articulated it was the Wall Street Crash on October 29, 1929 better known as “Black Thursday” that began the trickledown effects on the United States economy. Friedman claimed that bellied up businesses and bank failures in the south and mid-west of the United States contributed to the Great Depression. Friedman believed that it was not deemed a crisis until failures reached New York. One casualty the Bank of the United States in New York, New York was in jeopardy of bank failure. Friedman express that although the Federal Reserve Bank of New York whose primary functions are to prevent and or assist banks from bank failure was unsuccessful regarding the Bank of the United States dilemma. With several attempts Federal Reserve Bank proposed that the Bank of the United States merged with other local banks. By doing so a guarantee fund for depositors would cover the Bank of the United States loss and keep it afloat. Ultimately the Bank of the United States shut down December 10, 1930 due to competition from surrounding banks and racism. Friedman goes on about how the Federal Reserve Bank and their unwillingness to create new money by purchasing government securities at a grand scale. Friedman conveyed that the bank failure of the Bank of the United States would have been handled differently and fitting during that time if a Benjamin Strong...
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...Milton Friedman once said “The government solution to a problem is usually as bad as the problem” (1975). His extensive collection of books, articles, and lectures echoed his theory of free markets and a reduction in the size of government’s role in them. Whether the topic was public education, government spending or regulation, economic stability, or monetary policy, Milton Friedman viewed government control and regulation as the source of many of the nation’s woes. His works focus on the disadvantages that an extensive, controlling federal government asserts on its citizens. After all, "The strongest argument for free enterprise is that it prevents anybody from having too much power” (1980). Milton knew that “The most important single central fact about a free market is that no exchange takes place unless both parties benefit” (1980). He advocated that a free market economy (with very minimal government intervention) was the cause and effect to the U.S.’s historical economical booms and depressions throughout the years. He even went on to propose that Hong Kong’s government was an ideal example of a free market economy and that the U.S. could learn from it and improve our nation’s economic standing and health. Milton saw mass unemployment (and the ensuing depressions) as a result of this government oversight. This could have been avoided by adopting a free market economy void of unchecked government rule. He insisted “The Great Depression, like most other periods of...
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...Social Responsibility Views on Corporate Social Responsibility Abstract This dissertation examines R. Edward Freeman and Milton Freidman perspectives surrounding corporate social responsibility by summarizing their respective articles titled: “Stakeholder Theory and The Corporate Objective Revisited” and “The Social Responsibility of Business is to Increase its Profits”. By examining their articles, I will provide a personal opinion of which of their economic models should be the leading model when it comes to business and corporate social responsibility. Summary of Articles Author R. Edward Freeman’s article “Stakeholder Theory and The Corporate Objective Revisited,” emphasized a response to a piece put out by Sundaram and Inkpen titled “The Corporate Objective Revisited” by clarifying misconceptions about stakeholder theory and concluding that truth and freedom are best served by seeing business and ethics as connected (Freeman, Wicks, & Parmar, 2004). Freeman supports the above statement by providing the following three main critiques: 1) the mischaracterization of stakeholder theory; 2) the primacy of creating value for stakeholders, and; 3) the real issues of economic and political freedom (Freeman, Wicks, & Parmar, 2004). In response to social responsibility, Freeman clarifies that stakeholder theory claims that no matter what the ultimate mission of the corporations or any form of business activity, managers and owners must take into account the legitimate...
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...It is hard to imagine that the sustained economic prosperity of the Roaring Twenties was soon followed by a severe worldwide economic depression. In 1929, the Great Depression began in the United States. By the time the economy hit rock bottom in 1933, real GDP plunged nearly 30%. Real per capita disposable income sank nearly 40%. More than 12 million people were thrown out of work; the unemployment rate soared from 3% in 1929 to 25% in 1933. Some 85,000 businesses failed. Hundreds of thousands of families lost their homes (Wheelock 2008). The money supply had fallen 35%, prices plummeted by about 33%, and more than one-third of banks in the United States were either closed or taken over by other banks (Parker 2010) . Milton Friedman and Anna Schwartz, in their 1963 book A Monetary History of the United States, 1867–1960, call this massive drop in the supply of money “The Great Contraction.” Monetarists, including Friedman, argue that the Great Depression was mainly caused by this monetary contraction, poor policy-making by the American Federal System, and continued crisis in the banking system. While there are many credited theories that provide an explanation for the Depression, this essay will focus on Monetarism and John Maynard Keynes’s argument for government stimulus in order to combat the economic downturn. Causes For The Great Depression In their book A Monetary History of the United States, 1867–1960, Friedman and Anna Schwartz stated that the Depression began with...
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...Chilean Economic Structure An analysis of the Chilean economic structure reveals that this country has overcome the 1970’s Marxist economic rule, austerity and mass privatization to obtain the strongest sovereign bond rating in South America. Under the rule of socialist President Salvador Allende from 1970 to 1973, Chile experienced civil unrest and the county spun out of control as President Allende’s economic policies polarized an already fragile nation. During President Allende’s brief tenure, the astronomical rise in the prices of goods and services coincided with a plummeting consumer purchase power rate cased massive inflation that plunged the country into a huge recession. The following details the Chilean economic structure and the role the government played during its pedestrian growth in the 1950’s, its fall in the 1970’s and its current day resurrection. During the 1950’s to 1970, Chile had the poorest economic performance among Latin America’s large and medium-sized countries. This pedestrian growth was attributed to the government and its overvaluation of the domestic currency. The government continually resorted to controlling agricultural prices in order to subsidize the urban and middle classes. This subsidy caused a lag in the growth of the agricultural sector, was one of the most glaring symptoms of Chile’s economic woes during the 1950’s. At the beginning of the 1950’s, inflation, which had already and economic problem and been since the 1880’s, became...
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...Freeman vs. Friedman In their theories of how a business should operate, R. Edward Freeman and Milton Friedman hold virtually opposite beliefs as to what businesses’ responsibilities should be. In favor of the Stakeholder theory, Freeman believes that any person or organization that has a “stake” in the business should also play a role of participation in the business’s actions and decisions. In the other corner of the ring stands Milton Friedman, who holds the belief that said business is only responsible for those that actually own stock in the business – the owners, or stockholders. A strong believer in his reconceptualized Stakeholder Theory of the Modern Corporation, R. Edward Freeman believes the key to success in business is several stakeholders working together in a sort of interconnected “corporate system”. Freeman begins his argument by raising a simple question: For whose benefit and at whose expense should the firm be managed? To answer this question, Freeman attempts to explain why managerial capitalism no longer works. He notes, “The basic idea of managerial capitalism is that in return for controlling the firm, management vigorously pursues the interest of the stockholders” (Freeman, 38). Freeman begins to attack this idea of managerial capitalism with several arguments pertaining to why this form of capitalism no longer can work. He argues that corporations act with limited liability for their actions and remain seemingly immortal since the existence...
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...Friedman believes that corporations are a species of private property and, consequently, that they have exactly the same social responsibility as other businesses. His approach to managing business takes the classical perspective. This is an approach to management that advocates allow the “invisible hand” of free market forces, with their allocative and coordinating efficiencies in resource allocation, to regulate business for society’s betterment and to dictate the actions of business. In its basic formulation, it espouses that the entire social responsibility of a business entity is to “make profits and obey the law” Bartol et al., (1998, p131). This approach to management contends that it creates the greatest good for the greatest number, and...
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