RIP Milton Friedman

At the ripe old age of 94, Milton Friedman, the free-market economist and founder of the Chicago school of economics has passed away.

"He has used a brilliant mind to advance a moral vision — the vision of a society where men and women are free, free to choose, but where government is not as free to override their decisions," President Bush said in 2002. "That vision has changed America, and it is changing the world."

Friedman favored a policy of steady, moderate growth in the money supply, opposed wage and price controls and criticized the Federal Reserve when it tried to fine-tune the economy.

A believer in the principles of 18th century economist Adam Smith, he consistently argued that individual freedom should rule economic policy. Outspoken and controversial, Friedman saw his theories attacked by many traditional economists such as Harvard's John Kenneth Galbraith.

In an essay titled "Is Capitalism Humane?" he said that "a set of social institutions that stresses individual responsibility, that treats the individual ... as responsible for and to himself, will lead to a higher and more desirable moral climate."

Friedman acknowledged that "pure capitalism" did not exist, but said that nations that cherished freedom must strive to keep the economy as close to the ideal as possible.

He said government should allow the free market to operate to solve inflation and other economic problems. But he also urged adoption of a "negative income tax" in which people who earn less than a certain amount would get money from the government.

He lived to see free market reforms spread in the former communist world and Latin America, but played down his own influence.

"I hope what I wrote contributed to that, but it was not the moving force," Friedman told The New York Sun in March 2006. "People like myself, what we did was keep these ideas open until the time came when they could be accepted."

Born in New York City on July 31, 1912, Friedman began developing his economic theories during the Great Depression when President Franklin D. Roosevelt's based his New Deal on the ideas of Britain's John Maynard Keynes, the most influential economist of the time.

Keynes argued that the government should intervene in economic affairs to avoid depressions by increasing spending and controlling interest rates.

Other tributes to the great thinker by Andrew Norton and by Jason Soon at Catallaxy, and Peter Boetke at the Austrian Economists blog.

UPDATE: This fitting epitah from Samizdata:

"The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. And that's why it's so essential to preserving individual freedom."

He forced back force by the power of argument. His epitaph might be: the pen is mightier than the sword.