Happy Birthday Milton Friedman: The Man Who Saved Capitalism

Today marks the 100th anniversary of economist Milton Friedman's birth and the Wall Street Journal - where Friedman penned some of his wisest columns - has an excellent retrospective on the Nobel laureate's work by Stephen Moore: In the 1960s, Friedman famously explained that "there's no such thing as a free lunch." If the government spends a dollar, that dollar has to come from producers and workers in the private economy. There is no magical "multiplier effect" by taking from productive Peter and giving to unproductive Paul. As obvious as that insight seems, it keeps being put to the test. Obamanomics may be the most expensive failed experiment in free-lunch economics in American history. Equally illogical is the superstition that government can create prosperity by having Federal Reserve Chairman Ben Bernanke print more dollars. In the very short term, Friedman proved, excess money fools people with an illusion of prosperity. But the market quickly catches on, and there...(Read Full Post)

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