Friday, November 17, 2006

Capitalism And Friedman

Milt to the rescue
Milton Friedman was a giant - a brilliant man who made sound money respectable again after the wild and dangerous socialist experiment with "Keynesianism".

It was Friedman who provided the intellectual foundations for the economic stability we now enjoy, and it was Friedman who gave the confidence to politicians around the world to change course.

When I was learning economics at undergraduate level, leftie profs told us Keynes had saved capitalism by showing governments how to manage its supposed tendency to generate mass unemployment. But the real saviour of capitalism in the twentieth century was Milton Friedman.

PS The BBC's Friedman obit has been predictable- yes, he rediscovered the importance of sound money, and yes, he won a Nobel Prize, but he was tied up with that dreadful Thatcher woman who destroyed Britain's manufacturing industry and caused mass unemployment. Shame on you Evan Davis.

PPS Yes, I do know Keynesianism was not actually what Keynes himself said. And yes, maybe if he'd not died, he could have pointed that out. Which might have fended off the cloud cuckoo land of Butskelism. But somehow I doubt it.

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