Tag Archives: Economics

Jew of the Week: Milton Friedman

The Great Liberator

Milton Friedman (1912-2006) was born in Brooklyn to poor Jewish immigrants from what is today Ukraine (then part of Hungary). He graduated high school at just 15 and earned a big scholarship to Rutgers University. Initially wishing to be a mathematician, the Great Depression inspired Friedman to become an economist instead. After post-graduate studies at the University of Chicago, and a fellowship at Columbia University, Friedman headed to Washington to work as an economist for the government. To help pay for World War II, it was Friedman who introduced the payroll withholding tax system (“pay-as-you-earn”), where income taxes are deducted automatically from an employee’s paycheck. (Friedman later regretted it very much and said he wished it hadn’t been necessary.) He also spent much of the war working on weapons design and military statistics. He finally earned his Ph.D from Columbia after the war, following which he took a professorship at the University of Chicago, where he taught for the next 30 years. He wrote a popular weekly column for Newsweek, for which he won a prestigious award. His 1962 book Capitalism and Freedom was an international bestseller and made Friedman world-famous, while his A Monetary History of the United States became the standard textbook for understanding the Great Depression and the effects of monetary policy. Friedman argued passionately for a free-market economy and for the government to stay out of business. He proposed such important concepts as the permanent income hypothesis, the quantity theory of money, floating exchange rates, sequential sampling, and the natural rate of unemployment. He also argued for abolishing the Federal Reserve, whom he blamed for many economic ills. He was opposed to minimum wages and foresaw that they would actually lead to increases in unemployment. He is also credited with bringing an end to America’s military draft, transitioning the US military into an all-volunteer paid army. He believed conscription was unethical and prevented young men from choosing their own life path. Friedman later said abolishing the draft was his greatest and proudest accomplishment. Friedman won the Nobel Prize in Economics in 1976. After retiring from the University of Chicago the following year, he continued to do research in San Francisco, and also worked on a popular ten-part TV show called Free to Choose (the companion text of which was the bestselling nonfiction book of 1980). Friedman was an economic advisor to Ronald Reagan, and was called the “guru” of the Reagan administration. In 1988, he won a National Medal of Science and a Presidential Medal of Freedom. Friedman stayed busy until his final days, and his last article for The Wall Street Journal was published a day after his death! He has been called “the Great Liberator” and has been compared to Adam Smith. The Milton Friedman Prize for Advancing Liberty is named after him. He is widely considered one of history’s most significant economists. Today was his yahrzeit.

The End of World War I and the Beginning of the Jewish State

Words of the Week

A society that aims for equality before liberty will end up with neither equality nor liberty.
– Milton Friedman

Jew of the Week: Ruth Dreifuss

President of Switzerland

Ruth Dreifuss (Photo Credit: Chatham House)

Ruth Dreifuss (b. 1940) was born in Switzerland to a Jewish family that had been living in the country for many generations. She studied commerce and social work, and later earned a Master’s in economics from the University of Geneva. Dreifuss worked as a hotel secretary, journalist, and social worker before joining Switzerland’s Socialist Party. Throughout the 1970s, she worked for the Swiss Ministry of Foreign Affairs. In the 80s, she was the general-secretary of the Swiss Trade Union (the first woman to hold that position), and by 1993, was elected as an executive member of the Swiss Federal Council, the country’s official head of government. The council is made up of seven officials who collectively run the federal government, with each taking a turn as president for one year. Dreifuss’ turn as president came in 1999, making her the first female (and Jewish) president of Switzerland. This was a tremendous achievement, especially because Switzerland was the last country in Europe to grant equal rights to both women and Jews. During her tenure, she brought forth many improvements to Switzerland, including revisions of the country’s health insurance and social security systems. She helped make Switzerland a full member of the United Nations, implemented paid maternity leave, enhanced the country’s policies on pensions and drugs, introduced programs for prevention of HIV and drug addiction, and helped Holocaust victims retrieve their money from old Swiss bank accounts. After serving two and a half terms, the popular Dreifuss resigned from the federal council in 2002. Since then, she has chaired the World Health Organization’s Commission on Intellectual Property Rights, Innovation, and Public Health, and is also an important member of the Council of Women World Leaders, an organization composed of former female politicians and heads of state working to improve women’s rights globally. Dreifuss continues to play an important role within the European Union, and has been awarded honourary degrees from both Haifa University and Jerusalem’s Hebrew University for her tireless work in social justice, gender equality, and combating anti-Semitism.

Words of the Week

If my theory of relativity is proven successful, Germany will claim me as a German and France will declare me a citizen of the world. Should my theory prove untrue, France will say that I am a German, and Germany will declare that I am a Jew.
– Albert Einstein

Jew of the Week: Janet Yellen

Janet Yellen

Janet Louise Yellen (b. 1946) was born to a Jewish family of Polish descent in Brooklyn. Though initially interested in studying math, science, and philosophy, she ended up majoring in economics, and eventually earned a Ph.D in economics from Yale. She went on to teach economics at Harvard, The London School of Economics and Political Science, and UC Berkeley. In 1997, Yellen chaired President Clinton’s Council of Economics Advisers. Between 2004 and 2010 she was president and CEO of the Federal Reserve Bank of San Francisco, and following that, the vice-chair of the US Federal Reserve. Last year, she became the Fed’s chairwoman, the first woman in history to hold that position. Yellen has been described as a “dove” in economics, focusing on relieving unemployment and keeping inflation in check. She has been hailed for redefining the Federal Reserve, and has stated her objective as helping “Main Street, not Wall Street”. In 2014, Forbes ranked her the second most powerful woman in the world, and more recently the 6th most powerful person on the planet.

Words of the Week

In this world there is no beauty without ugliness, no joy without sorrow, no pleasure without pain. You cannot invent a thing that will provide benefit without threat of harm. Neither is there a human on this earth who does only good without fault… Therefore, do not reject any thing for the harm it may render, nor despise any man for the ugliness you find within him. Rather, use each thing towards the purpose for which God conceived it, and learn from each person all the good they have to offer.
– Tzvi Freeman, based on the teachings of the Lubavitcher Rebbe