Milton Friedman and the Fight Against the Draft

The past few years have seen a major invasion of mainstream economic thought by what is known as modern monetary theory (MMT). Proponents of MMT, along with other Keynesians like Paul Krugman, have been arguing that an expansionary monetary policy and a more expansionary fiscal policy can successfully bring an end to unemployment. As such, MMT proponents argue that governments should be using monetary policy combined with an expansionary fiscal policy to bring unemployment down to natural levels. What many people do not know is that Milton Friedman, one of the most important figures in the development of modern free market economics, believed that a full employment policy combined with an expansionary monetary policy would cause growing inflation. Friedman famously argued that while Keynesians could reach full employment using monetary policies, it would only come at a cost of rising inflation. In fact, Friedman and his colleague Anna Schwartz argued that monetary policy alone was the cause of the Great Depression, and that an expansionary monetary policy would be better suited for achieving full employment. While many know Friedman for his advocacy of a gold standard and limited government intervention in the economy, many are less aware of Friedman’s work on the topic of conscription. Many are also less aware of the fact that while Friedman was an advisor to Barry Goldwater and Richard Nixon, he also advised none other than socialist Democrat Eugene Debs during his presidential campaigns.<br><br>Milton Friedman the Conscientious Objector<br><br>Milton Friedman, a self described philosophical anarchist who was also an advocate of a limited state, was also an outspoken advocate against conscription, or as it is more commonly known, the draft. Conscription occurs when the government requires citizens to perform national service without their consent. This often means the government conscripting citizens to fight on the front lines of a war. Throughout history, the government has drafted citizens against their will to fight in wars, with the last major draft being the one the United States government used to conscript citizens to fight in the Vietnam War. Milton Friedman believed that just as conscription was an infringement on civil liberties, the government should not conscript citizens to fight in wars. Friedman argued that the draft was not only economically inefficient, but also an infringement on civil liberties.<br><br>Friedman argued that while a volunteer based army would be more expensive than a conscript-based army, the economic and social benefits would be worth the additional costs. In a paper published by the journal *The American Economic Review* in 1967, Friedman and his colleague Walter Oi argued that in the long run, the cost of a conscript-based army was far higher than a volunteer army. Friedman and Oi also found that an all volunteer army promised to be more efficient and that it would also bring more benefits than a conscript based army. Friedman also argued that the draft had the potential to bring on youth unrest, which was a rising issue in the United States during the sixties, when the US was involved in the Vietnam War. Friedman also famously argued that while Keynesians could reach full employment using monetary policies, it would only come at a cost of rising inflation. In fact, Friedman argued that the government’s decision to pursue full employment policies combined with an expansionary monetary policy would only cause growing inflation. Friedman famously stated that while inflation was a monetary phenomenon, it was ultimately a political phenomenon. Friedman argued that the decision to pursue inflationary policies was ultimately a political one, and that monetary policy would not matter if the politicians were the ones responsible for setting monetary policy. Friedman also famously argued that monetary policy was less effective at bringing down unemployment than fiscal policy was. Friedman argued that an expansionary monetary policy would only cause growing inflation, and that a more expansionary fiscal policy would be better suited for bringing down unemployment. Friedman also famously argued that due to the Phillips Curve relationship, the government could only hold unemployment below the natural rate by holding inflation above the expected rate, and that the expected epicenter of inflation would rise by the rate that inflation had deviated from the expected rate. Friedman also famously argued that monetary policies are not a suitable instrument for implementing countercyclical policies.<br><br>Milton Friedman as Eugene Debs Advisor<br><br>Less well known is the fact that Friedman advised Eugene Debs in his presidential campaigns. Eugene Debs, who ran for president five times on the ticket of the Socialist Party of America, was a socialist and an anti war activist. Debs was the leader of the Pullman Strike, an 1894 railroad strike that saw nationwide walkouts against railroad companies. Eugene Debs was also a conscientious objector to World War I, and was arrested for making an anti war speech in Canton, Ohio in 1918. Debs was convicted under the Espionage Act of 1917 and sentenced to 10 years in prison. Debs received one million votes while in prison during his 1920 presidential campaign. Debs was eventually let out of prison in 1921 after posting bond. Friedman argued that Eugene Debs was a man of great integrity who was wrongfully imprisoned for speaking his mind while also being a threat to the establishment. Friedman argued that Debs decision to publicly oppose American involvement in World War I was admirable, and that he had a right to express his views. Friedman also argued that Debs was a true American patriot who was willing to die for his views. Friedman also stated that Debs decision to oppose World War I was the right decision, and that it was a decision that was based on a desire to protect democracy and freedom. Friedman stated that while Debs was misinformed on many issues, he was a good man who was a true patriot. In fact, Friedman argued that Debs decision to oppose World War I was better than Woodrow Wilson’s decision to send American boys to the slaughter, and that Debs decision to oppose the draft was better than Wilson’s decision to conscript American boys to fight in World War I.<br><br>Friedman as Barry Goldwater Advisor<br><br>Friedman was also a major advisor to Barry Goldwater during his presidential campaigns. Goldwater was famously known as “Mr. Conservative” for his advocacy of limited government and individual liberty. Friedman argued that Barry Goldwater was a man of great integrity who was the right choice for president. Friedman argued that Goldwater was a man who stood up for what he believed in and was willing to take a stand against the political establishment. Friedman argued that Goldwater understood how free markets could be used to promote individual freedom, and that he was willing to take on the establishment to ensure that individual freedom was protected. Friedman believed that Goldwater was the right man for the job, and that he would do what was right for the American people. Friedman also famously advised Goldwater to oppose the Civil Rights Act of 1964, which Friedman famously argued was a piece of legislation that would give the state too much power over the decision of business owners to discriminate against race, sex, religion, and the like. Friedman famously argued that while businesses had no right to discriminate, the government could not solve the issue of discrimination by giving itself more power. Friedman famously stated that the government was not a solution to the problem of discrimination, but that it was an enforcer of it. Friedman famously argued that the only way to end discrimination was to end government-enforced discrimination. In fact, Friedman famously stated that the only way to end private discrimination was to end the government’s power to discriminate.<br><br>Friedman as Richard Nixon Advisor<br><br>The other famous presidential campaign that relied on Friedman’s advice was the 1968 presidential campaign of Richard Nixon. Friedman famously advised Nixon to allow the value of the dollar to float on the open market. Friedman also famously advised Nixon to end the draft and to start an all volunteer army. Friedman argued that the draft was economically inefficient and that it was an infringement on civil liberties. Friedman argued that an all volunteer army would be better since it would be less prone to capital misallocations, and that the benefits from a volunteer based army would far exceed the costs of a conscript based army. Friedman famously argued that while Keynesians could reach full employment using monetary policies, it would only come at a cost of rising inflation. In fact, Friedman argued that the government’s decision to pursue full employment policies combined with an expansionary monetary policy would only cause growing inflation. Friedman famously stated that while inflation was a monetary phenomenon, it was ultimately a political phenomenon. Friedman argued that the decision to pursue inflationary policies was ultimately a political one, and that monetary policy would not matter if the politicians were the ones responsible for setting monetary policy. Friedman also famously argued that monetary policy was less effective at bringing down unemployment than fiscal policy was. Friedman argued that an expansionary monetary policy would only cause growing inflation, and that a more expansionary fiscal policy would be better suited for bringing down unemployment.<br><br>The Chicago School and the Fight Against the Draft<br><br>The Chicago School, a school of economic thought that is the intellectual successor to the Austrian School, also protested against the draft. The Chicago School, which consists of famous economists like Friedman, Gary Becker, and Ronald Coase, believed that the draft was economically inefficient and that it was an infringement on civil liberties. The Chicago School argued that the only way to make the military more efficient was to use markets, and that using free markets was the best way to achieve full employment. The Chicago School argued that a volunteer based army would be better than a conscript based army, and that the benefits from a volunteer army would outweigh the costs of a conscript army. Friedman, who was a key figure of the Chicago School, argued that an all volunteer army would be better for the economy than a conscript based army. Friedman argued that a volunteer army would not be prone to capital misallocations, and that a volunteer army would promote economic growth. Friedman argued that a volunteer based army would also reduce dissent, and that a volunteer army would make the military more efficient.<br><br>Conclusion<br><br>In conclusion, while many are familiar with Milton Friedman’s advocacy of limited government and free markets, many are less aware of the fact that Friedman advised none other than socialist