Founder of Chicago Economics

Milton Friedman was born on July 31, 1912, in Brooklyn, New York. He became one of the most influential economists of the 20th century, shaping modern free-market economic thought and pioneering monetarism. A leading figure of the Chicago School of Economics, he championed free markets, limited government intervention, and the importance of monetary policy in controlling inflation. His work significantly challenged the dominant Keynesian economic model, arguing that government spending was often ineffective and that controlling the money supply was the key to economic stability.

Friedman studied at Rutgers University, earning degrees in mathematics and economics, before completing his Ph.D. at Columbia University in 1946. He spent much of his career at the University of Chicago, where he mentored generations of economists and shaped economic policy debates. His most influential work, A Monetary History of the United States (1963), co-authored with Anna Schwartz, argued that the Great Depression was largely caused by Federal Reserve mismanagement, shifting economic thinking toward monetary explanations for economic fluctuations. He also developed the permanent income hypothesis, which revolutionized understanding of consumption and savings, and introduced the natural rate of unemployment, which critiqued the long-term effectiveness of government intervention in labor markets.

His 1962 book, Capitalism and Freedom, outlined his belief that economic and political freedom are inseparable, advocating for policies such as school choice, a volunteer military, and a negative income tax. His later work, Free to Choose (1980), co-written with his wife Rose Friedman, expanded his ideas to a general audience through both a book and an accompanying television series. His policy prescriptions deeply influenced Reaganomics in the U.S. and Margaret Thatcher’s economic reforms in the UK, emphasizing tax cuts, deregulation, and reduced government spending.

Awarded the Nobel Prize in Economic Sciences in 1976, Friedman’s work on monetary theory, consumption, and stabilization policy remains foundational in economics. He passed away on November 16, 2006, leaving behind a lasting legacy as a defender of free markets and individual liberty.