Milton Friedman--The Loss of an Economic Patriot

The death of Milton Friedman is a monumental loss for the American system of economics and government. Friedman held to the Jeffersonian mandate of free markets in a free society when practically everyone else had succumbed to European styled socialism. His landmark writings were thus ignored by the intelligentsia in modern academia.

Yet his theories caught the attention of one Ronald Reagan, who made Friedman a member of his council of economic advisors. Nonetheless, Friedman was still the subject of scoffing and disdain among the mainstream media, leftist politicians, and academia who routinely condemned his views.

Three of Friedman's works became best-sellers and helped propel the famed economist into the consciousness of the general public, in addition to launching an entire new generation of economists who subscribed to the Friedman school of thought.

The country is infinitely better off with these Friedman disciples now teaching in some of the best schools of economics across the land. They are, however, in a distinct minority.

Friedman lamented this fact in a 1994 interview he granted to C-Span, which was rebroadcast during the past week to commemorate Friedman's death. His low-keyed, charming, yet sharp indictment of modern America society was stark.

Having graduated high school in the year 1928, Friedman stated that at that time the government consumed roughly 20% of the GNP. By the year 1994, that figure was up to over 50%. Friedman sounded the alarm that a free society cannot long sustain an economic system where the private sector is responsible for only 50% of the GNP.

The reason, according to Friedman, is not far to find. The private sector alone is responsible for ALL, 100% of the innovations that make life better. The government has produced nothing, zilch, ZERO. In short, the imbalance created by a government that consumes over 50% of the GNP yet produces absolutely nothing to contribute to the economy, to create wealth and capital, is a trainwreck that will eventually doom the society to economic failure.

Friedman cites the evidence that proves that every single recession, including the Great Depression, was not created by free markets but by government forces interfering with the markets.

When asked whom among the Presidents best exemplified the economic policies envisioned by the Founders of the Republic, Friedman named Ronald Reagan at the top of the list in modern times. By far the most exemplary was Thomas Jefferson, the quintessential libertarian. Bill Clinton, says Friedman, is a socialist because he believes that the greatest good is accomplished by government programs. This, of course, would include persons like Hillary, Kennedy, Kerry, Dodd, Conyers, Pelosi, and even Biden.

Socialism is a creeping nightmare that is gradually overtaking American society as more and more of our resources are consumed by a large government bureaucracy that confiscates wealth from its citizens in order to disperse it to those who are non-producers.

While Friedman never mentioned Ayn Rand by name, it is clear that Rand's philosophy was prominent in Friedman's thinking in that he insisted that as individuals looked out for their self-interests, they ultimately work for the good of everyone else. It is selfish pursuit that leads to prosperity for all.

Said Friedman, 'No society in history ever survived or excelled by sending wealth to the bottom sector and then expecting it to propel upward. It always moves from the top down. As the top rung--the wealthiest--prosper, that prosperity moves downward to those below. Societies eventually collapse when they attempt to thwart to ability of those at the top to produce wealth and instead confiscate wealth to give to those at the bottom.'

Lest anyone think Friedman's views harsh toward the poor, he had an answer for his detractors. Instead of welfare, aid to dependent children and the like, Friedman advocated a negative income tax program, where the poor would benefit from tax credits and refunds.

One of the more interesting aspects of the 1994 interview was Friedman's take on the labels we often use to designate political philosophy--conservative, liberal, moderate, etc. Often referred to as a 'conservative,' Friedman insisted that he was no such thing. In actuality he thought of himself as a Jeffersonian Liberal, which at one time denoted individual and economic liberty, unlike liberals of today. Today, he said, he would be considered a libertarian who belongs to the Republican party. The only two labels that really matter anymore, he said, are libertarian and socialist. Those who promote more government action in the economic sector are socialists. Those who advocate for small government and more action in the private sector are libertarians.

Presently, the socialists are winning, according to Friedman. Despite the attempts of those like Reagan to reign in the gargantuan government bureaucracy, it continued to creep forward. People who are elected to office buy their re-election by giving to their constituents the taxpayers' money that the government confiscated. Thus, government becomes a self-perpetuating entity the growth of which is almost impossible to thwart.

The most recent election is a perfect case in point. Voters decided to elect those persons who would advocate for more government confiscation of wealth, money that would be given to individuals in their districts in some form of federal redistribution, which will then, in turn, buy the re-election of their socialist representatives.

A great vacuum has been created by the loss of Milton Friedman. His voice, like a lone voice for liberty crying in the wilderness, was an oasis in the middle of the desert of government control over our lives.

Our freedoms today are precious few compared to that of our forefathers. Friedman's was a voice of warning that unless the electorate wakes up to what's happening, we are going to wake up one day to a complete communist society where there are no individual freedoms, no private property, no free markets, and no private enterprise.

My only hope is that other American patriots will rise to take up the mantle where Friedman left off. May this great American patriot rest in peace.