Thoughts on Milton Friedman’s Positive Economics
A Critical Review on Monetarism
Milton Friedman, “one of the most gifted economists of the 20th century” as recognized by the Encyclopedia of World Biography, is one of the most significant American economist. Born in Brooklyn, New York in 1912 Friedman was a revolutionary man with many different positions hold during his life, such as university teacher, journal writer, and research economist. He was a non-stop person who loved his career, and even more to cooperate to the world economy with his reviews and strong believes about the economic systems and government interventions. He was a strongly believer of non-government intervention on economic related issues, a courageous position which …show more content…
Nevertheless, a mix economy has been shown to be effective, so the government intervention is necessary to obtain a stable economy where buyer, sellers, and workforce can coexist without irretrievable disadvantages something that Friedman did not contemplated on his writings. Likewise, Monetarism also holds the idea that “positive economics’ minimum wage legislation doesn’t lessen unemployment, on the contrary it races poverty” (Friedman). In the Price Nobel’s writing Essay in Positive Economics, the author speaks of the impossibility of lowering regular numbers of unemployment because its consequent negative results on inflation (Friedman). However, what the author does not contemplate on his critic economic theory is that those strict budgetary ideas based on the free market may not be always appropriate; similarly to the free market economy, it could lead to unequal distribution of wealth and as a result less demand. Taking into account that consumerism …show more content…
Monetarism seeks to respond to the political, social and economic problems, and in modern society where the governments hold most of the power over the markets and don’t necessarily take the opinion of households, Friedman’s contributions to organize amounts of money created and distributed really helps to moderate what in other centuries could end in a
A Critical Review on Monetarism
Milton Friedman, “one of the most gifted economists of the 20th century” as recognized by the Encyclopedia of World Biography, is one of the most significant American economist. Born in Brooklyn, New York in 1912 Friedman was a revolutionary man with many different positions hold during his life, such as university teacher, journal writer, and research economist. He was a non-stop person who loved his career, and even more to cooperate to the world economy with his reviews and strong believes about the economic systems and government interventions. He was a strongly believer of non-government intervention on economic related issues, a courageous position which …show more content…
Nevertheless, a mix economy has been shown to be effective, so the government intervention is necessary to obtain a stable economy where buyer, sellers, and workforce can coexist without irretrievable disadvantages something that Friedman did not contemplated on his writings. Likewise, Monetarism also holds the idea that “positive economics’ minimum wage legislation doesn’t lessen unemployment, on the contrary it races poverty” (Friedman). In the Price Nobel’s writing Essay in Positive Economics, the author speaks of the impossibility of lowering regular numbers of unemployment because its consequent negative results on inflation (Friedman). However, what the author does not contemplate on his critic economic theory is that those strict budgetary ideas based on the free market may not be always appropriate; similarly to the free market economy, it could lead to unequal distribution of wealth and as a result less demand. Taking into account that consumerism …show more content…
Monetarism seeks to respond to the political, social and economic problems, and in modern society where the governments hold most of the power over the markets and don’t necessarily take the opinion of households, Friedman’s contributions to organize amounts of money created and distributed really helps to moderate what in other centuries could end in a