Capitalism And Freedom

Milton Friedman is one of the most famous economists that ever lived, yet reading his most famous book, Capitalism And Freedom; it is hard to see why. The book is surprisingly basic and doesn’t offer much of an argument. Friedman merely states things (such as the minimum wage causes unemployment) without offering any supporting evidence. It is as though simply saying it was enough to make it true. There are hardly any references or citations in the book, which makes it very difficult to know if any of what he says is actually true. There is no reference to history or current affairs or if any of his ideas have worked before or if his criticisms reflect reality. Continue reading “Capitalism And Freedom”

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Economics Of Discrimination

If we were rational logical people living in a neo-classical world there would be no discrimination. People would only be judged according to their productivity and nothing else. All races would receive equal pay and job opportunities. In fact Milton Friedman even developed a theory in which racist firms would be driven out of business by inclusive firms. Yet discrimination does exist. For generations many businesses would only hire white people. Even today ethnic minorities are paid less than white people and suffered from higher unemployment. The perfect neo-classical utopia does not exist. Social norms determine action just as much as pure economics. We need government to right the wrongs of the free market. Continue reading “Economics Of Discrimination”