Milton Friedman, you are my hero
First and foremost let me dismiss the hysteria over Friedman having gone to Chile. Before ever going there, he had refused 2 honorary Chilean university degrees from schools that received government money in order to make it plain and clear that he disapproved of the Pinochet dictatorship. Secondly, he took it upon himself to explain, in person, to the Chilean administration that free markets don’t work without democracy and that democracy doesn’t exist without a free market.
To observe Prof. Friedman’s genius in action one can look at the obvious Chilean success story or one can look across the globe. Estonia was amid economic chaos in ‘92 with 1000% inflation and 35% unemployment and massive food shortages. It had just elected Mart Laar, her youngest prime minister at 32 and lucky for her he was a great admirer of Milton Friedman. As a matter of fact he claims that the only education he had had in economics was from reading ‘Free to Choose’, Friedman’s masterpiece. Estonia today has 5.8% unemployment and enjoys a $19,600 per capita GDP with only 5% of its population below the poverty line. Unbeknownst to Mart Laar, Estonia was the first country to attempt a flat income tax (24%) as suggested by Friedman. Estonia also employed a no tax rate on companies re-investing Estonia, boosting business and entrepreneurship. Estonia’s economy grew 9.2% last year and today is a solid place to invest as is Chile and many other countries that benefited from Friedman’s wisdom.
When China and India decided to open her markets moving away from their previous socialist economies it was Friedman who was called upon for advice. Prof. Friedman was also instrumental in getting the American economy up and running, Alan Greenspan can vouch for that, and he is also accredited with ending the military draft in the US. Friedman comes from the Chicago school of economics, the natural inheritors of von Hayek’s Austrian school of economics and it is no exaggeration to credit him and his brilliance with alleviating poverty all over the globe. He was a champion of the very true ideal that free markets and free governments are absolutely essential for each other’s existence. Professor Friedman passed away last year, his genius and enthusiasm will be missed.