In 1951, Milton Friedman received the John Bates Clark Medal, a highly prestigious prize given to an American economist under the age of 40 who has made a significant contribution to economic thought and knowledge. As Jennifer Burns points out in her monumental new study of Friedman — the first full-length, archivally researched biography to have been published — the academic economic profession viewed Friedman as a promising young pioneer in the fields of statistics and mathematics at the time. Ironically, at that very moment, Friedman redirected his intellectual interests toward the seemingly outdated and even retrograde studies of the quantity of money, the consumption function, and other ideas outside of the mainstream. For the next two decades, many economists would regard Friedman as, at best, an eccentric and, at worst, a dangerous reactionary.

However, as Burns describes in Milton Friedman: The Last Conservative, with the coming of stagflation — the combination of inflation and stagnation — that afflicted the American economy in the early 1970s, and which seemingly was impossible according to the conventional academic wisdom, Friedman came to be perceived a visionary. Over time, his views on capitalism, free markets, and limited regulation came to be adopted by both parties — but his influence was powerful in the Republican Party, where they helped define modern conservatism. In recent years, however, progressives have condemned the Friedman-influenced ideas of neoliberalism. At the same time, “National Conservatives” on the right have embraced the idea of using state power against their enemies in Big Business. 

In this podcast discussion, Burns discusses Friedman’s life and times and how her biography is also a history of economic thought and development in the twentieth century. She explains why Friedman continues to matter and why some of his more abstract theories fail to adequately explain human behavior and account for the impact of government investment. And she makes the case why the generally conservative Chicago School of Economics, of which Friedman was the most famous representative, was not as hostile to moderation as it has usually been portrayed.