Income From Independent Professional Practice By Milton Friedman

Milton Friedman was an economist born in New York City in the year 1912 to Jewish immigrants. He earned his bachelor’s degree at the age of twenty from Rutgers’s University and earned his Masters from the University of Chicago in 1933. He also received a PHD from the Columbia University in 1946. Friedman’s breakthrough work was in 1945. He released a book entitled ‘Income from Independent Professional Practice’ which was co-authored with Simon Kuznets. The book talked about the limited entry into the medical profession which was put in place my licensing procedures. Friedman argued that doctors were allowed to charge higher fees than they would be able to if competition was more open. Friedman became known as economist with his 1957 work entitled ‘A theory of the Consumption Function’ which took on the Keynesian view of economics that stated the household sector adjusts their expenditures on consumption to reflect their current income. Friedman argued that instead

He presented evidence to support the quantity theory of money and stated that in the long term increased monetary growth increases prices but has little or no effect on output. He also argued that in the short increases in money supply growth cause employment and output to increase and decreases in money supply growth have the opposing effect. He presented solutions to the problems of inflation as well as short-run fluctuations in employment and real Gross National Product (GNP). If the Federal Reserve Board were required to increase the money supply at the same rate as real GNP increased, he argued, inflation would disappear. He faced scrutiny from the Federal Reserve Board when he stated that the Great Depression was a result of the Federal Reserve’s ill-conceived monetary policies. However this did not stop the impression and influence he made in economics and on other follows of the Keynesian