Milton Friedman Essay

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Milton Friedman Milton Friedman is known as one of the top economists in the world. He has a Ph. D. from Columbia University, won a Noble Memorial Prize in economics and has also been awarded many honorary degrees by other Universities in the United States. As you can tell, Milton Friedman has played a significant part in helping to solve the economy problems of the world. You've probably heard all about his accomplishments and awards he has received, but what about how Milton Friedman played a very important role in helping us get into a huge national debt? This paper will discuss how Milton Friedman played a negative role in our economy. When the Great Depression hit worldwide, it was up to the economists to explain it and to devise a…show more content…
     In seven short years, under the Keynesian policy, the U.S. went from the greatest depression it has ever known to the greatest economic boom it has ever known. The success of Keynesian economics was so astounding that almost all capitalist governments around the world started using it. And the result was the extinction of the economic depression! Before World War II, eight U.S. recessions worsened into depressions (1807, 1837, 1873, 1882, 1893, 1920, 1933, and 1937). Since World War II, under Keynesian policies, there have been nine recessions (1945-46, 1949, 1954, 1956, 1960-61, 1970, 1973-75, 1980-83, 1990-92 ), but not one has turned into a depression. The success of Keynesian economics was such that even Richard Nixon once said, "We are all Keynesians now(Keynes, 289)."      Well, that was the theory the governments were using at the time to control the economy. Obviously there were some people who objected against use of this theory. One of them was Milton Friedman. He believed that the only function the government should be allowed is to control the circulation of cash. Although he accepted Keynes' definition of recessions, he rejected the cure. He believed that the government should butt out of the business of expanding or contracting the money supply. It should keep the money supply steady, expanding it slightly each year only to allow for the growth of the economy and a few other
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