Explained Simply, Milton Friedman
I remember the first time I ran into Milton Friedman's teachings, and I remember flat out rejecting his ideas as my younger self was too idealistic to be open to them. I guess it's not uncommon for us humans to be a little more unicornian in our youth, but I wish more young minds would take a few minutes to really study Milton's teachings.
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I fully realize that some more left leaning friends of mine, would find his ideas on "equal pay for equal work" regressive, but it's actually very cognitively consistent. Of course we can sit here and deny these ideas, call them irrational even, but it seems to me the evidence is there for us to see what our current way of governing the economy has not been working that well.
For the sake of throwing a wrench into the gears, try to listen to this, more so if you blatantly disagree and try to let the concept sink into your mind. I loved the fact that he was challenged, passively accused of sexism and his demeanor stayed professional and friendly.
Do yourself a favor and consume this knowledge, its out there, there is no reason for us not to learn from wise minds that left us a body of knowledge we simply could not collect on our own.
I agree with you. People who decide to link their lives with economy are obliged to know Milton Friedman. He is not only one of the founders of modern macroeconomics, his economic views are based on deep philosophical convictions.
very well said... you simply have to run into him.
Friedman is one of my favorite economists. He can generally be regarded as against socialism. However, he was for a basic universal income. I have been meaning to research what his reasoning was on this issue. My own thoughts lead me to solving the problem of liquidity traps, thus stabilizing the economic cycles. But, this is just guessing.
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“A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.” “One of the great mistakes is to judge policies and programs by their intentions rather than their results.” I love this quote from Milton Friedman
re: Equal pay for equal work
What he is saying doesn't make sense to me.
Using his own logic , if a woman is out of labor force and has lower skill level then obviously she won't be hired for an experienced professional job. That comparison is a red herring , since that particular woman would be competing for a job suitable to her skills , we all know each job has Levels ( 1,2, 3 , sr , etc).
The correct argument would be 2 peers on the same level should be paid the same hence substantiating the equal work determined by their level of responsibilities.
you might be too fixated on the fact that its a woman in the example. the idea is that its someone applying for a position they yet dont qualify for, but they could learn and get good at if they want.
and same explanation ( comment above) would apply to them ...equal pay for equal work does not mean an intern needs to be paid the same amount as a manger ..just because they worked same number of hours.
look at the quote that pastrane shared on here (above). It sums it up perfectly. Now, this seems to be true, in practice that is... in theory however, I see why you reject it, and I was more on your side not that long ago.
It's basically an argument of market efficiency. Friedman's right in a totally efficient market, with high transparency and high liquidity. In the pay gap example this would mean that:
a. Everyone is free to choose whether or not they want to take a job or not
b. Women are aware that they're getting a lower pay than their male peers
Don't think either of the two is actually the case, which makes the argument much more difficult.
In an ideal market, imposing artificial rules to pay equally is counter productive as Friedman points out. In the existing market, stressing the fact that a pay gap exists at least can lead to transparency, even if that transparency doesn't automatically close the gap.
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Reminds me of all the books and artciles I read in college! Think about how technology now has a role in this discussion and how it will continue to evolve as AI comes into the mix!
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Do you have a good book to recommend about him?
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https://en.wikipedia.org/wiki/Capitalism_and_Freedom
This is the one that talks about Welfare, very powerful insights imo.
Capitalism and Freedom
Capitalism and Freedom is a book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society. It sold over 400,000 copies in the first eighteen years and more than half a million since 1962. It has been translated into eighteen languages.
Friedman argues for economic freedom as a precondition for political freedom.