• Read the Case and answer Question 1 and Question 2 at the end of the Case.
• The length should be a minimum of one paragraph.
• Be sure to answer the questions using information from the case
• Use an economic lens and useeconomic terms and concepts in your answers.

Profiles In Economics

A popular column in Newsweek helpedMilton Friedmanbecome one of the best-known economists. His views appealed to people: "I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible."

Milton Friedman

received the Nobel Prize for economics for his theories on economic stabilization

policy strong proponent of monetary policy

It's About the Money Supply

As a founder of the Chicago school of economic thought, Milton Friedman has largely defined modern monetary policy. In an era when most economists believed in fiscal policy, or government spending on public projects, Friedman disagreed. He argued that monetary policy, or controlling the supply of money in circulation, was the key to economic health and stability.

Friedman's research fundamentally changed U.S. economic policy on inflationr unemployment, and business cycles. His findings, for exampler rejected the idea that high inflation helped to limit unemployment. His influential books and articles in Newsweek promoted the steadying role of the Federal Reserve in monitoring the amount of money available to individuals, households, and businesses in order to maintain the value of the dollar.

Stay Off Our Backs

A fervent believer in individual freedom, Friedman advocated free markets with minimal government involvement. In his book Capitalism and Freedom, he argued for a flat tax rate and the elimination of deductions, such as those for mortgage interest. Friedman also voiced opposition to such popular policies as agricultural subsidies, price controls, and the minimum wage.

Friedman also wanted parents to be free to choose their children's schools.

Together with his wife Rose Director Friedman, he established the Friedman Foundation to promote the use of school vouchers in the United States. Vouchers, he thought, would improve education by forcing schools, through free market competition, to either excel or shut down. While many of Friedman's ideas were once considered radical, some have become widely accepted.

Q1.Contrasting

How did Friedman disagree with other economists about achieving economic stability?

Q2.Predicting Consequences

How do you think the quality of education would be affected if free market principles were applied to schools?