Milton Friedman


Here is the description of Milton Friedman in the book J is for Junk Economics: A Guide to Reality in an Age of Deception by Michael Hudson.

In the excerpt below, I took the liberty of adding the second comma in lists of three, so that they would be more readable.

Friedman, Milton (1912-2006): The most prominent Chicago School advocate of financial and fiscal austerity, Friedman popularized the monetarist theory that changes in the money supply are reflected in proportional changes in consumer prices, commodity prices, and wages.His failure to understand that bank money is spent mainly to buy real estate, stocks, and bonds blocked him from understanding asset-price inflation or its sequel, debt deflation. He was awarded the 1976 Nobel Economics Prize for his neoliberal depiction of government as pure overhead and “interference” while distracting public attention from the asset-price gains resulting from bank credit (See “As If” Argument, Junk Economics, and TINSTAAFL.)

While I am at it, I might as well include the following excerpt:

Chicago School: Named after the University of Chicago’s Business School where Milton Friedman and other monetarists established a beachhead. The University was founded by John D. Rockefeller, prompting Upton Sinclair to call it the University of Standard Oil (The Goose Step, 1923). The essence of their ideology is that government has no positive roll, but is only a deadweight burden. Euphemizing their doctrine as “free market”, they advocate deregulation, claiming that “rational markets” will steer the economy. They also support a tax shift off property onto labor, while denying that their policy create a free lunch for rentiers. The result is to centralize planning in the financial centers – short-term planning that finds debt pyramiding and asset stripping the most lucrative activity. (See Market Fundamentalism and TINSTAAFL.)

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