The Indispensable Milton Friedman: Essays on Politics and Economics

by Milton Friedman, Alan Ebenstein (Editor)

Milton Friedman is one of the most famous economists in history. His writings and theories on everything from capitalism and freedom to deregulation and welfare have inspired movements, influenced government policies, and changed the course of America’s economic history.

Now, acclaimed Friedman biographer Dr. Lanny Ebenstein brings together twenty of Friedman’s greatest essays in his new book, The Indispensable Milton Essays on Politics and Economics. The only collection of Friedman’s writings to span his entire career, The Indispensable Milton Essays on Politics and Economics features some of Friedman’s never-before-republished writings as well as the best and most timeless of his works.

These exceptional essays not only illuminate the progression of Friedman’s thought, but explain how America might overcome some of its most difficult challenges. Broken into two sections, politics and economics, The Indispensable Milton Friedman shows how we can ultimately turn America around, and is more necessary than ever during this critical election year and time of economic uncertainty.

Genres: Economics, Politics, Nonfiction, Audiobook, Finance, History, Business

256 pages, Hardcover

First published September 11, 2012

About the author

Milton Friedman was an American economist who became one of the most influential and controversial figures of the twentieth century, widely recognized for his profound contributions to monetary economics, consumption theory, and the defense of classical liberalism. A leading figure of the Chicago School of Economics, Friedman challenged the prevailing Keynesian consensus that dominated mid-century policy and instead placed monetary policy at the center of economic stability, arguing that changes in the money supply were the primary drivers of inflation and fluctuations in output. His groundbreaking permanent income hypothesis reshaped the study of consumer behavior by suggesting that individuals make spending decisions based on long-term expected income rather than current earnings, a theory that profoundly influenced both academic research and practical policymaking. Alongside Anna Schwartz, Friedman coauthored A Monetary History of the United States, 1867–1960, a monumental work that emphasized the role of Federal Reserve mismanagement in deepening the Great Depression, a thesis that redefined historical understanding of the period and helped establish monetarism as a major school of thought. His broader philosophy was articulated in works such as Capitalism and Freedom, where he argued that political and economic liberty are interdependent and advanced ideas like educational vouchers, voluntary military service, deregulation, floating exchange rates, and the negative income tax, each reflecting his conviction that society functions best when individuals are free to choose. Together with his wife Rose Friedman, he later brought these ideas to a global audience through the bestselling book and television series Free to Choose, which made complex economic principles accessible to millions and expanded his influence beyond academia. Awarded the Nobel Prize in Economic Sciences in 1976 for his achievements in consumption analysis, monetary history, and stabilization policy, Friedman became a prominent public intellectual, sought after by policymakers and leaders around the world. His ideas strongly influenced U.S. policy in the late twentieth century, particularly during the administration of Ronald Reagan, and found resonance in the economic reforms of Margaret Thatcher in the United Kingdom, both of whom embraced aspects of his prescriptions for free markets and limited government intervention. Friedman’s policy recommendations consistently opposed measures he regarded as distortions of market efficiency, including rent control, agricultural subsidies, and occupational licensing, while he proposed alternatives such as direct cash transfers through a negative income tax to replace complex welfare bureaucracies. His teaching career at the University of Chicago shaped generations of economists, many of whom extended his research and helped institutionalize the Chicago School as a major force in global economic thought, while his later role at the Hoover Institution at Stanford University provided him with a platform to continue his scholarship and public advocacy. Beyond technical economics, Friedman’s clarity of expression and ability to frame debates in terms of individual freedom versus state control made him one of the most recognizable intellectuals of his era, admired by supporters for his defense of personal liberty and market efficiency, and criticized by detractors who accused him of underestimating inequality, social costs, and the complexities of government responsibility. Despite the controversies, his impact on the development of modern economics was immense, reshaping debates about inflation, unemployment, fiscal policy, and the role of the central bank. His writings, lectures, and media appearances consistently reinforced his belief that competitive markets, voluntary exchange, and limited government intervention offer the most effective means of promoting prosperit

Reviews

[Otto Lehto · Rating 4 out of 5]

Although Friedman developed a reputation of being a hardliner, partially due to his acerbic TV appearances and uncompromising policy positions, he was an open minded and tolerant intellectual who respected and engaged with other economists whose ideas he vehemently disagreed with. In many ways, his intellectual curiosity, generosity, and fair mindedness provide a model that we should emulate in our toxic intellectual culture today. These both sides of his reputation - the uncompromising free marketeer and the tolerant intellectual - are on display in The Indispensable Milton Friedman. This wonderful collection of essays, while not perfect, is easy to recommend for newcomers, researchers, and collectors alike.

The selection of the essays spans the full scope of his interests. The best essays range from intellectual history of liberalism (“Liberalism, Old Style” and "The Tide in the Affairs of Men”) to cogent expositions of monetarism (“The Counter-Revolution in Monetary Theory”). I will refrain from debating the substance of Friedman's arguments here, since that would take forever. I disagree with some of them and agree with many others. His views on drug legalization, criminal reform, and universal basic income should find sympathetic ears on both sides of the ideological spectrum. His views on monetarism are highly technical and above my pay grade. However, I have to highlight one major substantive flaw that is glaringly obvious in this collection. This, of course, is Friedman's frequent (mis)appropriation of Adam Smith as a "Chicago School" economist avant la lettre. With the help of selective quotations and interpretations, Friedman distorts Smith's views to more resemble his own. This is a regrettable but probably unintentional blemish which is not made any more excusable by the fact that the left likes to appropriate Smith for themselves too.

The editing of the book is good. I only have a few editorial gripes. The ordering of the essays is a little bit all over the place and a handful of the essays are arguably "dispensable" (but everyone will undoubtedly have a different take about which ones - this is the problem with a contested canon). The other caveat is that some of Friedman's most technical (and indispensable!) papers are not included here, since the aim of this collection was undoubtedly to appeal to a broad audience. Lastly, the framing of the book, from the preface on, is a little bit too ideological to my taste. I wish they had tried to include some critical voices as well; but I applaud the essays themselves.

So, does the book live up to its name? Yes, for the most part it does. It is indispensable for any student of Friedman. It contains some of his best essays (outside of the highly technical literature) and some of his most influential ideas. Most of the essays are readable even if you are not an economist. And they are all fun and intellectually stimulating, whether you agree or disagree with him. This is an appropriate intellectual legacy for a man who valued honest dialogue.

[John Biddle · Rating 3 out of 5]

These essays fall into 3 categories, hard economics, biographical infoon fellow economists and commentary on econ related policy issues. I was really only interested in the 3rd category as the 1st is somewhat over my head and the second just isn't what I wanted at this time. Sadly, the 3rd category is the least well represented. They were excellent but not enough to push the book up from a 3 star rating.

[Lea Avi · Rating 3 out of 5]

Lots of interesting essays and articles. Definitely recommended if you've read or plan on reading Capitalism and Freedom.

[Sotiris Makrygiannis · Rating 5 out of 5]

20 perfect essays. I liked the most the letter to Regan against the war on drugs, on education and also the philosophical debates through mathematics on the economic theories of the last 200 years. Chicago school of economics, the same city that Obama came out, looks like that had an impact on the management of the economy and needs further studying. Some essays are not simple but then again is funny to hear that some of the techniques are known to produce errors but still are used by IMF. The reason, probably no better alternatives and lots of conservatism from the Economists, probably for not going a bigger damage.

Most interesting was the definition of the system man versus Adam Smith invisible hand, in this case, and in my opinion, the system man and great architect are Soros on the economy and Gates on the technology. Don't blame them for anything bad on this world, blame our education.

[Sam · Rating 4 out of 5]

An excellent introduction into the policy stances and thoughts of a brilliant political philosopher and economist . His views on healthcare in the US remain extremely timely, showing how many of the hot button political items of our moment are actually recurring issues resulting from ultimately ideological differences. These essays are definitely worth revisiting.

[Marty · Rating 5 out of 5]

loaded with great reference to the world and challenges we have faced and will face again soon. The political world pays no attentiojn to what is good for the country only padding pockets and keeping seat...As many have said follow the money and see the truth.

[Kshitij Dawar · Rating 1 out of 5]

So confidently wrong in his interpretations. It is so ironic that the shift from Keynesian to neo liberal policies that he oversaw the adoption of (thus, lending it legitimacy in his mind), has since been moved away by researchers in favor of neo keynesian policies.

[Jay · Rating 5 out of 5]

A nice blend of political commentary, economics and personal ruminations. There's nothing earth-shattering here, but good insights into the man.

[Joel Tweeten · Rating 1 out of 5]

It isn’t readable by anyone but an economist.

[Luciano · Rating 4 out of 5]

It's good reading, gives perspectives of what influenced Friedman, a little bit of history as well. The gem of the book is the interview part in the end.

[Rolf · Rating 1 out of 5]

An important read because of its impact on libertarian politics, even if an infuriating and short-sighted one. I had to listen to these essays in short bursts.

[Don · Rating 5 out of 5]

private property protected and free enterprise flourish, school vouchers and drug legalizations, cannot be 2 classes need better education, fix health care as no one spends money better than self spends own money, never says anything off the record, trend of legislation to collectivism and naive central planning beliefs vs no tariffs and subsidies, Sherman antitrust aids competition, no min wage no min food consumption, old style liberalism as freedom of individual, against govt intervention in economic affairs if loose then loose political too, anti-Keynes, objective pursuit of knowledge, need to understand arguments against vs lame personal response, when rate restricted most abused, compare real with real and ideal with ideal do not mix, invisible hand better than visible govt hand, no passports and unrestricted immigration prior to ww1 and 1837 panic, limited govt has little to give, post-depression socialist policies in 28 and 32 election were implemented, Hong Kong stayed independent of socialists, govt failure as real as market failure, typical is tyranny servitude misery, 72 lecture on prohibition and drugs, third party payer vs own payer, post ww2 seniors most affluent, Essays of Liberty, Wealth of Nations, Law and Public Opinion, Road to Serfdom, Ann Rand, Free to Choose, vouchers, a fact ought change policy, Keynes political judgment highly defective put to test and facts not correct, private property is freedom, 32 was mistake of monetary policy causing more bank failures, support some of new deal not all, Nixon implemented most socialist regs doubled, Reagan recession to break inflation and ½ regs, no crime for drugs as victimless, eternal vigilance is price of freedom. A society that puts equality before freedom will get neither, a society that puts freedom before equality will get a high degree of both. Cannot understand you are right unless you understand opponents views better than they do, narrow homogeneous views of academia, state help kills self-help, 1976 Columbia dull not open to other views, socialist vote 1-2%, post great depression was government failure vs market failure, do not criminalize drugs, economic civil and political freedom, libertarian books: Essays on freedom Wealth of Nations Lectures on law and Freedom Road to Serfdom Free to choose, nea in 1965 to trade union, Mitchell and use of money to complement what is TGB true good beautiful, 1931-32 31% decline in money supply due to Fed Res System which created after 1907 depression, 1/3 less liquidity due to Fed Res System, cycles are normal, never judge master by disciples, a sketch on the introduction of teaching in education by George Stigler, intellectuals welcome disagreements to test and improve theories, non intellectuals do not.

[Daniel · Rating 3 out of 5]

A good introduction to Milton Friedman, for me. This book is a collection of essays, articles, and speeches by Milton Friedman, followed by an interview in the appendix. I learned the original meaning of "old style" liberalism as distinct from neo-liberalism, progressivism, and socialism. I now have been introduced to the Chicago School through Friedman's eyes. I learned more about the meaning of monetary policy versus fiscal policy, and I see better, though not perfectly, the difference between Friedman and von Mises and the gold standard position. All these I think are opposed to central planning, i.e., socialism. Some of the speeches were written to honor Friedman's colleagues, including, Wesley Mitchell, Leon Walras, Henry Simons, George Stigler, and John Maynard Keynes (rhymes with "brains"). This list might provide leads for me for future reading. In addition, Friedman gives a list of his personal favorite books on economics. My next volume is Capitalism and Freedom by Friedman.

[عدنان العبار · Rating 5 out of 5]

This book has a colorful and wide assortment of Milton Friedman's essays. There are essays on history of economics, history of the United States, the nature of Money, George Stigler, the University of Chicago, Monetary Theory, George Stigler, Keynesianism, Richard Nixon, and so on. In every essay or article here, one can find the absolute charm of this genius. His writing is always lucid and clear, and never can someone have a dull moment with him.

[Steve Hadfield · Rating 5 out of 5]

One of the great economists of our time. Milton is both gracious to those he disagrees with, and articulate about what he believes. He gave me a better understanding of Keynes and his flawed economic thought.

[G · Rating 2 out of 5]

uber libertarian

[Mac · Rating 5 out of 5]

What a great introduction to the philosophy of this great American. He deserves as much accolades. He should be seen as a true American Founder.

[Travis Fasko · Rating 5 out of 5]

I think that Milton Friedman was one of the intellectual juggernauts of the 20th and into the 21st century.

I think everyone should have to read some or all of this writings.