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“Milton Friedman: The Last Conservative” – A Biography of Ideas and Influence
In the words of Joe Biden, “Milton Friedman isn’t running the show anymore.” This sentiment resonates not only with center-left American opinion but also with significant segments of American conservatism that have fallen out of love with free markets.
However, it wasn’t always this way. Milton Friedman, a prominent economist, held considerable influence over economics and economic policy until his death in 2006. His ideas were a major reference point for both the American right and parts of the left, including figures like Larry Summers, former Treasury secretary in the Clinton administration.
Yet, the awe surrounding Friedman began to unravel after the 2008 financial crisis, and some of his ideas lost traction over the subsequent decade. This serves as the backdrop for Jennifer Burns’ new biography, ”Milton Friedman: The Last Conservative.” As a Stanford history professor and research fellow at the Hoover Institution, Burns provides a comprehensive study of Friedman’s life in the world of ideas.
While the biography delves into Friedman’s personal life and challenges, its primary focus lies in three interconnected areas. First, it explores Friedman’s role in shaping the thinking of influential economists. Second, it examines his impact on policymakers from 1960 onwards. Finally, it delves into his contribution to the formation of the modern American conservative movement.
Unlike a deeply personal account, Burns’ biography is an intellectual and political exploration of Friedman’s battles of ideas over several decades. It traces his journey from a son of poor Eastern European Jewish immigrants to becoming a prominent economist at the University of Chicago.
Throughout the book, Burns highlights Friedman’s pivotal role in challenging interventionists’ grip on economic theory and policy in the postwar West. She demonstrates how Friedman operated in the realms of ideas, politics, and the media, much like the 20th-century prophet of interventionism, John Maynard Keynes.
Moreover, Friedman actively sought to shape the character of modern American conservatism. He associated himself with figures like William F. Buckley and the nascent National Review, pioneering what would eventually be known as fusionist conservatism. Friedman’s efforts to influence policy and policymakers on the right gained momentum after reaching out to Senator Barry Goldwater.
However, Friedman’s views did not always prevail within the Republican party. Richard Nixon famously ignored his advice on price controls and inflation, to the detriment of the economy. Nevertheless, Friedman’s ideas found a receptive audience abroad, including the Pinochet regime in Chile.
While Friedman faced criticism for engaging with a regime known for human rights abuses, Burns dispels clichés surrounding his visit to Chile. She reveals that Friedman believed engaging with the regime was the right decision, despite the harassment he faced from left-wing activists.
Over time, Friedman came to realize the indivisible connection between economic and political liberty. He modified his position on Chile, emphasizing that there should be no trade-off between the two. This put him at odds with fellow Nobel Laureate F.A. Hayek, whose apologias for Chile’s military junta were deemed ill-considered by Burns.
By applying the label “conservative” to Friedman, Burns acknowledges his contributions to a historically identifiable American political movement. She argues that the movement, which synthesized free market economics, anti-Communism, and defense of traditional values, has fractured in recent years. Friedman is now caricatured as the arch ”market fundamentalist” by some conservatives.
However, Burns envisions a future where Friedman’s ideas can serve as a resource for those grappling with economic growth, state power, social welfare, and individual liberty. The question remains whether enough American conservatives will possess a Friedmanite-like imagination to revitalize the power of these connections.
Overall, “Milton Friedman: The Last Conservative” offers a captivating exploration of Friedman’s ideas and influence, shedding light on his role in shaping economic thought and policy in the postwar era.
Book Details:
- Title: Milton Friedman: The Last Conservative
- Author: Jennifer Burns
- Publisher: Farrar, Straus and Giroux
- Pages: 592
- Price: $35
Samuel Gregg is Distinguished Fellow in Political Economy and Senior Research Faculty at the American Institute for Economic Research. His most recent book is The Next American Economy: Nation, State, and Markets in an Uncertain World (2022).
In what ways did the 2008 financial crisis expose flaws in Friedman’s free-market ideology, and how did it lead to questions about the efficacy of his theories and the unfettered capitalism he endorsed?
Best way to promote economic freedom and liberalization, even though he did not condone the human rights abuses.
Furthermore, Burns delves into the role of Friedman’s monetarist ideas in shaping economic policy during the 1960s and 1970s. She explains how his advocacy for a floating exchange rate, monetary discipline, and limited government intervention influenced policymakers and economists alike. Despite facing opposition from Keynesian economists, Friedman’s ideas gained traction under the Reagan and Thatcher administrations, leading to significant policy changes and economic transformations.
However, Burns also acknowledges the shortcomings of Friedman’s ideas. She highlights how the 2008 financial crisis exposed flaws in the free-market ideology he championed. The subsequent economic inequality, market failures, and social unrest led many to question the efficacy of Friedman’s theories and the unfettered capitalism they endorsed.
In the aftermath of the crisis, Friedman’s influence began to wane, and his ideas were challenged by alternative economic theories and policy approaches. Critics argued that his emphasis on limited government intervention and deregulation contributed to the crisis and its aftermath.
Overall, Burns’ biography offers readers a comprehensive examination of Milton Friedman’s life and intellectual contributions. While acknowledging his influence and the lasting impact of his ideas, she also presents a nuanced analysis of their limitations and the challenges they face in the modern world.
As Friedman stated himself, “The only relevant test of the validity of a hypothesis is comparison of prediction with experience.” Burns’ biography allows readers to evaluate Friedman’s hypotheses and their real-world outcomes. It encourages engaging with his ideas critically and understanding their complexities in the context of a changing economic and political landscape.
Whether one agrees or disagrees with Friedman’s ideas, it is undeniable that he was a towering figure in the field of economics and a driving force behind the development of conservative thought. Burns’ biography provides an insightful exploration of his life, ideas, and profound influence on economics, policy, and the conservative movement. It is a must-read for anyone interested in understanding the evolution of economic thought and the lasting impact of one of its most influential proponents.
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