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Milton Friedman Quotes
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Milton Friedman was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy. With George Stigler and others, Friedman was among the intellectual leaders of the second generation of Chicago price theory, a methodological movement at the University of Chicago's Department of Economics, Law School, and Graduate School of Business from the 1940s onward. Several students and young professors that were recruited or mentored by Friedman at Chicago went on to become leading economists; they include Gary Becker, Robert Fogel, Thomas Sowell, and Robert Lucas, Jr.

Friedman's challenges to what he later called "naive Keynesian" theory began with his 1950s reinterpretation of the consumption function. In the 1960s, he became the main advocate opposing Keynesian government policies, and described his approach as using "Keynesian language and apparatus" yet rejecting its "initial" conclusions. He theorized that there existed a "natural" rate of unemployment, and argued that employment above this rate would cause inflation to accelerate. He argued that the Phillips curve was, in the long run, vertical at the "natural rate" and predicted what would come to be known as stagflation. Friedman promoted an alternative macroeconomic viewpoint known as "monetarism", and argued that a steady, small expansion of the money supply was the preferred policy. His ideas concerning monetary policy, taxation, privatization and deregulation influenced government policies, especially during the 1980s. His monetary theory influenced the Federal Reserve's response to the global financial crisis of 2007–08.

Friedman was an advisor to Republican U.S. President Ronald Reagan and Conservative British Prime Minister Margaret Thatcher. His political philosophy extolled the virtues of a free market economic system with minimal intervention. He once stated that his role in eliminating U.S. conscription was his proudest accomplishment. In his 1962 book Capitalism and Freedom, Friedman advocated policies such as a volunteer military, freely floating exchange rates, abolition of medical licenses, a negative income tax, and school vouchers. His support for school choice led him to found the Friedman Foundation for Educational Choice, later renamed EdChoice.

Milton Friedman's works include monographs, books, scholarly articles, papers, magazine columns, television programs, and lectures, and cover a broad range of economic topics and public policy issues. His books and essays have had global influence, including in former communist states. A survey of economists ranked Friedman as the second-most popular economist of the twentieth century after John Maynard Keynes, and The Economist described him as "the most influential economist of the second half of the 20th century ... possibly of all of it".

✵ 31. July 1912 – 16. November 2006
Milton Friedman photo
Milton Friedman: 158   quotes 9   likes

Milton Friedman Quotes

“In the course of General Westmoreland's testimony, he made the statement that he did not want to command an army of mercenaries. I stopped him and said, 'General, would you rather command an army of slaves?' He drew himself up and said, 'I don't like to hear our patriotic draftees referred to as slaves.' I replied, 'I don't like to hear our patriotic volunteers referred to as mercenaries.' But I went on to say, 'If they are mercenaries, then I, sir, am a mercenary professor, and you, sir, are a mercenary general; we are served by mercenary physicians, we use a mercenary lawyer, and we get our meat from a mercenary butcher.”

Milton Friedman

That was the last that we heard from the general about mercenaries.
Two Lucky People: Memoirs, Chicago: University of Chicago Press (1998) p. 380.

“I know of no severe depression, in any country or any time, that was not accompanied by a sharp decline in the stock of money and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.”

Milton Friedman

As quoted in The Money Masters (1995)

Money , Time , Country

“The business of business is business.”

Milton Friedman

Widely attributed to Friedman, and sometimes cited as being in his work Capitalism and Freedom (1962) this is also attributed to Alfred P. Sloan, sometimes with citation of a statement of 1964, but sometimes with attestations to his use of it as a motto as early as 1923.
Disputed

Motivational , Inspirational , Deep , Success

“The government solution to a problem is usually as bad as the problem and very often makes the problem worse.”

Milton Friedman

“Interview with Milton Friedman”, Playboy magazine (Feb. 1973)

Problem , Thinking

“The construction of hypotheses is a creative act of inspiration, intuition, invention; its essence is the vision of something new in familiar material. The process must be discussed in psychological, not logical, categories; studied in autobiographies and biographies, not treatises on scientific method; and promoted by maxim and example, not syllogism or theorem.”

Milton Friedman

"The Methodology of Positive Economics" (1953)

Study

“The organization of economic activity through voluntary exchange presumes that we have provided, through government, for the maintenance of law and order to prevent coercion of one individual by another, the enforcement of contracts voluntarily entered into, the definition of the meaning of property rights, the interpretation and enforcement of such rights, and the provision of a monetary framework.”

Milton Friedman

Source: (1962), Ch. 2 The Role of Government in a Free Society, p. 27

Law

“There's a smokestack on the back of every government program.”

Milton Friedman

Interview (10 February 1999) in the video production Take It To The Limits: Milton Friedman on Libertarianism http://www.youtube.com/watch?v=cl_qwo2VIlU.

“Whether it is in the slums of New Delhi or in the affluence of Las Vegas, it simply isn't fair that there should be any losers. Life is unfair — there is nothing fair about one man being born blind and another man being born with sight. There is nothing fair about one man being born of a wealthy parent and one of an impecunious parent. There is nothing fair about Muhammad Ali having been born with a skill that enables him to make millions of dollars one night. There is nothing fair about Marlene Dietrich having great legs that we all want to watch. There is nothing fair about any of that. But on the other hand, don't you think a lot of people who like to look at Marlene Dietrich's legs benefited from nature's unfairness in producing a Marlene Dietrich. What kind of a world would it be if everybody was an absolute identical duplicate of anybody else. You might as well destroy the whole world and just keep one specimen left for a museum. In the same way, it's unfair that Muhammad Ali should be a great fighter and should be able to earn millions. But would it not be even more unfair to the people who like to watch him if you said that in the pursuit of some abstract idea of equality we're not going to let Muhammad Ali get more for one nights fight than the lowest man on the totem pole can get for a days unskilled work on the docks. You can do that but the result of that would be to deny people the opportunity to watch Muhammad Ali. I doubt very much he would be willing to subject himself to the kind of fights he's gone through if he were to get the pay of an unskilled docker.”

Milton Friedman

From Created Equal, an episode of the PBS Free to Choose television series (1980, vol. 5 transcript) http://www.freetochoosemedia.org/broadcasts/freetochoose/detail_ftc1980_transcript.php?page=5.

Life , People , World , Way

“The major disadvantage of the proposed negative income tax is its political implications. It establishes a system under which taxes are imposed on some to pay subsidies to others. And presumably, these others have a vote.”

Milton Friedman

Source: (1962), Ch. 12 The Alleviation of Poverty, 2002 edition, p. 194

“Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion—the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals—the technique of the market place.”

Milton Friedman

Source: (1962), Ch. 1 The Relation Between Economic Freedom and Political Freedom, pp. 12-13

Way

“A government which maintained law and order, defined property rights, served as a means whereby we could modify property rights and other rules of the economic game, adjudicated disputes about the interpretation of the rules, enforced contracts, promoted competition, provided a monetary framework, engaged in activities to counter technical monopolies and to overcome neighborhood effects widely regarded as sufficiently important to justify government intervention, and which supplemented private charity and the private family in protecting the irresponsible, whether madman or child—such a government would clearly have important functions to perform. The consistent liberal is not an anarchist.”

Milton Friedman

Source: (1962), Ch. 2 The Role of Government in a Free Society, p. 34

Family , Law , Game

“How much attention is paid to agreement between Galbraith and myself in opposing a draft and favoring an all-volunteer armed force, or in opposing tariffs and favoring free trade, or on a host of other issues? What is newsworthy is that Galbraith endorses wage and price controls, while I oppose them.”

Milton Friedman

A 1973 Interview with Milton Friedman – Playboy Magazine
“Interview with Milton Friedman”, Playboy magazine (Feb. 1973)

“Over the period covered by these data, a drastic change has occurred in the responsibilities undertaken by the state to provide assistance to the aged, unemployed and otherwise dependent. This change has had divergent results on the particular data under discussion. The availability of assistance from the state would clearly tend to reduce the need for private reserves and so to reduce private saving—it is equivalent, in terms of our hypothesis, to a reduction in the variance of transitory components.”

Milton Friedman

A Theory of the Consumption Function (1957)

Age , Change , Dependency

“Although I wish the anarchists luck, since that’s the way we ought to be moving now. But I believe we need government to enforce the rules of the game. By prosecuting anti-trust violations, for instance. We need a government to maintain a system of courts that will uphold contracts and rule on compensation for damages. We need a government to ensure the safety of its citizens–to provide police protection. But government is failing at a lot of these things that it ought to be doing because it’s involved in so many things it shouldn’t be doing.”

Milton Friedman

A 1973 Interview with Milton Friedman – Playboy Magazine
“Interview with Milton Friedman”, Playboy magazine (Feb. 1973)

Way , Game

“If we have system in which government is in a position to give large favor - it's human nature to try to get this favor - whether those people are large enterprises, or whether they're small businesses like farmers, or whether they're representatives of any other special group. The only way to prevent that is to force them to engage in competition one with the other.”

Milton Friedman

Milton Friedman - Big Business, Big Government http://www.youtube.com/watch?v=R_T0WF-uCWg

People , Way , Business , Nature

“The basic problem of social organization is how to co-ordinate the economic activities of large numbers of people.”

Milton Friedman

Source: (1962), Ch. 1 The Relation Between Economic Freedom and Political Freedom, p. 12

People , Problem

“The strongest argument for free enterprise is that it prevents anybody from having too much power. Whether that person is a government official, a trade union official, or a business executive. If forces them to put up or shut up. They either have to deliver the goods, produce something that people are willing to pay for, are willing to buy, or else they have to go into a different business.”

Milton Friedman

From The Tyranny of Control, an episode of the PBS Free to Choose television series (1980, vol. 2 transcript) http://www.freetochoosemedia.org/freetochoose/detail_ftc1980_transcript.php?page=2

People , Business , Personality

“The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.”

Milton Friedman

"Why Government Is the Problem" (February 1, 1993), p. 19

Hate , People , Religion , Color

“I am convinced that the minimum-wage law is the most anti-Negro law on our statute books—in its effect, not its intent.”

Milton Friedman

Source: An Economist's Protest: Columns in Political Economy (1966), p. 163

Books , Law

“I have no right to coerce someone else, because I cannot be sure that I'm right and he is wrong.”

Milton Friedman

"Say 'No' to Intolerance", Liberty magazine, vol. 4, no. 6, (July 1991) pp. 17-20.

“The broader and more influential organisations of businessmen have acted to undermine the basic foundation of the free market system they purport to represent and defend.”

Milton Friedman

Lecture "The Suicidal Impulse of the Business Community" (1983); cited in Filters Against Folly (1985) by Garrett Hardin

“Every friend of freedom… must be as revolted as I am by the prospect of turning the United States into an armed camp, by the vision of jails filled with casual drug users and of an army of enforcers empowered to invade the liberty of citizens on slight evidence.”

Milton Friedman

"An Open Letter to Bill Bennett" in The Wall Street Journal (7 September 1989)

Freedom

“So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no they do not.”

Milton Friedman

Interview "Milton Friedman Responds" in Chemtech (February 1974) p. 72.

Money , Law , Question , Business

“Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those methods of production that are least costly and thereby use available resources for the most highly valued pur poses; third, they determine who gets how much of the product—the distribution of income. These three functions are closely in terrelated.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", p. 14

“Spending by government currently amounts to about 45 percent of national income. By that test, government owns 45 percent of the means of production that produce the national income. The U. S. is now 45 percent socialist.”

Milton Friedman

Article "We Have Socialism, Q.E.D." http://www.sangam.org/taraki/articles/2006/11-25_Friedman_MGR.php?uid=2075 in The New York Times (31 December 1989)

“I think it is only because capitalism has proved so enormously more efficient than alternative methods that it has survived at all. (…) I'm not sure capitalism is the right word. There is a sense in which every society is capitalist. The Soviet Union was capitalist, but it was state capitalism. Latin American societies in the past have been capitalist, but it has been oligarchic capitalism. So what we really need to talk about is not capitalism but free market or competitive capitalism which is the system that we would like to have adopted, not just capitalism.”

Milton Friedman

Interview with Parker in Randall E. Parker(ed.), Reflection on the Great Depression (2002)

Thinking , Sense , Past

“There's no such thing as a free lunch.”

Milton Friedman

Also often misattributed to Robert A. Heinlein because both helped popularize the expression – Friedman with a book with that title. The phrase actually dates to at least the 1930s.
Misattributed

“The price system transmits only the important information and only to the people who need to know.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 "The Power of the Market", 15

People

“The heart of the liberal philosophy is a belief in the dignity of the individual, in his freedom to make the most of his capacities and opportunities according to his own lights, subject only to the proviso that he not interfere with the freedom of other individuals to do the same.”

Milton Friedman book Capitalism and Freedom

Source: Capitalism and Freedom (1962), Ch. 12 The Alleviation of Poverty

Freedom , Light , Heart

“Over short periods, the relation between growth in money and growth in nominal income is often hard to see, partly because the relation is less close for short than for long periods, but mostly because it takes time for changes in monetary growth to affect income. And how long a time is itself variable. Today's income growth is not closely related to today's monetary growth; it depends on what has been happening to money in the past. What happens to money today affects what is going to happen to income in the future”

Milton Friedman

Source: Money Mischief (1992), Ch. 2 The Mystery of Money

Money , Change , Time , Past

“The need for government in these respects arises because absolute freedom is impossible. However attractive anarchy may be as a philosophy, it is not feasible in a world of imperfect men.”

Milton Friedman

Source: (1962), Ch. 2 The Role of Government in a Free Society, p. 25

Men , World , Freedom

“Keynes was a great economist. In every discipline, progress comes from people who make hypotheses, most of which turn out to be wrong, but all of which ultimately point to the right answer. Now Keynes, in The General Theory of Employment, Interest and Money, set forth a hypothesis which was a beautiful one, and it really altered the shape of economics. But it turned out that it was a wrong hypothesis. That doesn't mean that he wasn't a great man!”

Milton Friedman

As quoted in Opinion Journal (22 July 2006) http://www.opinionjournal.com/editorial/feature.html?id=110008690

Money , People , Beauty

“The unions might be good for the people who are in the unions but it doesn't do a thing for the people who are unemployed. Because the union keeps down the number of jobs, it doesn't do a thing for them.”

Milton Friedman

Interview with Brian Lamb, In Depth Book TV (2000)

People

“[A] society which is socialist cannot also be democratic, in the sense of guaranteeing individual freedom.”

Milton Friedman

As quoted in "Capitalism, Socialism, and Democracy: A Symposium" https://www.commentarymagazine.com/articles/capitalism-socialism-and-democracy/ (1 April 1978), edited by William Barrett, Commentary

Sense , Freedom

“Is there some society you know that doesn't run on greed? You think Russia doesn't run on greed? You think China doesn't run on greed? What is greed? Of course, none of us are greedy, it's only the other fellow who's greedy. The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Einstein didn't construct his theory under order from a bureaucrat. Henry Ford didn't revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you're talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it's exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear that there is no alternative way, so far discovered, of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system.”

Milton Friedman

from an interview with Phil Donahue (1979): partial transcript http://www.slobodaiprosperitet.tv/en/node/847 from SiP TV ; or find link to full interview in the External links Section

People , World , Way , History

“The liberal conceives of men as imperfect beings. He regards the problem of social organization to be as much a negative problem of preventing 'bad' people from doing harm as of enabling 'good' people to do good; and, of course, 'bad' and 'good' people may be the same people, depending on who is judging them.”

Milton Friedman book Capitalism and Freedom

Source: Capitalism and Freedom (1962), Ch. 1 The Relation Between Economic Freedom and Political Freedom, p. 12

Men , People , Problem , Dependency

“If a tax cut increases government revenues, you haven't cut taxes enough.”

Milton Friedman

As quoted in "Milton Friedman's Last Lunch" at Forbes.com (11 December 2006)

“Corruption is government intrusion into market efficiencies in the form of regulations.”

Milton Friedman

Frequently misattributed to Milton Friedman based on a monologue from the 2005 movie Syriana
Misattributed

“To paraphrase Clemenceau, money is much too serious a matter to be left to the Central Bankers.”

Milton Friedman

Source: (1962), Ch. 3 The Control of Money, p. 50-51

Money

“The smaller the unit of government and the more restricted the functions assigned government, the less likely it is that its actions will reflect special interests rather than the general interest.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 10 “The Tide Is Turning”, p. 314

“A worker is protected from his employer by the existence of other employers for who he can go to work. An employer is protected from exploitation by his employees by the existence of other workers whom he can hire. The consumer is protected from exploitation by a given seller by the existence of other sellers from whom he can buy.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 8 "Who Protects the Workers?", p. 246

“The threat to public schools arises from their defects, not their accomplishments. In small, closely knit communities where public schools, particularly elementary schools, are now reasonably satisfactory, not even the most comprehensive voucher plan would have much effect. The public schools would remain dominant, perhaps somewhat improved by the threat of potential competition. But elsewhere, and particularly in the urban slums where the public schools are doing such a poor job, most parents would undoubtedly try to send their children to nonpublic schools.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 6 “What’s Wrong with Our Schools”, p. 170

School , Children , Parent , Communication

“A society that puts equality—in the sense of equality of outcome—ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests. On the other hand, a society that puts freedom first will, as a happy by-product, end up with both greater freedom and greater equality.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 5 “Created Equal”, p. 148

Sense , People , Freedom , Happiness

“In the past century a myth has grown up that free market capitalism—equality of opportunity as we have interpreted that term—increases such inequalities, that it is a system under which the rich exploit the poor. Nothing could be further from the truth. Wherever the free market has been permitted to operate, wherever anything approaching equality of opportunity has existed, the ordinary man has been able to attain levels of living never dreamed of before. Nowhere is the gap between rich and poor wider, nowhere are the rich richer and the poor poorer, than in those societies that do not permit the free market to operate.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 5 “Created Equal”, p. 146

Truth , Dreams , Past

“As these remarks indicate, the Social Security program involves a transfer from the young to the old. To some extent such a transfer has occurred throughout history—the young supporting their parents, or other relatives, in old age. Indeed, in many poor countries with high infant death rates, like India, the desire to assure oneself of progeny who can provide support in old age is a major reason for high birth rates and large families. The difference between Social Security and earlier arrangements is that Social Security is compulsory and impersonal—earlier arrangements were voluntary and personal. Moral responsibility is an individual matter, not a social matter. Children helped their parents out of love or duty. They now contribute to the support of someone else’s parents out of compulsion and fear. The earlier transfers strengthened the bonds of the family; the compulsory transfers weaken them.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 4 “Cradle to Grave”, p. 106

Family , History , Country , Making love

“The supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number—for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs—jobs that will mean more goods and services to consume.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 2 “The Tyranny of Controls”, pp. 40-41

Support , People , Personality , Self-confidence

“When everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union — like public housing in the United States — look decrepit within a year or two of their construction.”

Milton Friedman book Free to Choose

Source: Free to Choose (1980), Ch. 1 “The Power of the Market”, p. 24

Housing

“The combination of economic and political power in the same hands is a sure recipe for tyranny.”

Milton Friedman book Free to Choose

“Introduction”, p. 3
Free to Choose (1980)

“What country in the world today engages in the most extreme anti-Semitic persecution? The Soviet Union. It’s not an accident, because if you have a society with concentrated power, if you have a collectivist society, it’s going to be in a position to exercise the preferences and prejudices of its rulers. Moreover, it’s going to have an incentive to do so, because it’s going to need a scapegoat and it will choose some group like the Jews or the blacks to be the scapegoat.”

Milton Friedman

“Interview with Milton Friedman”, Playboy magazine (Feb. 1973)

World , Country , Exercises

“The average income of blacks here is far higher than the average income of all the people in the Soviet Union. The official government definition of the poverty line in the U. S. is higher than the average income in the Soviet Union; it’s higher than the income received by 90 percent of the people on the world’s surface. Now, that doesn’t mean blacks aren’t subject to injustice; of course they are.”

Milton Friedman

“Interview with Milton Friedman”, Playboy magazine (Feb. 1973)

World , People