ABSTRACT
Milton Friedman was telling his readers that such intervention is, more often than not, destructive to individual freedom, to the efficiencies of the economy, and ultimately, to our standard of living. Friedman’s observations on price controls of natural gas, again using the principles of supply and demand were, in retrospect, quite correct. He pointed out that a price ceiling would discourage production and encourage wasteful consumption. Another early Friedman idea was “the Negative Income Tax” (NIT). The NIT would give families or individuals a portion of their “unused exemptions and deductions” if their incomes happened to fall below the poverty line—a simple, logical idea which would efficiently offer everyone in need a guaranteed minimum income. Friedman also went on to discuss the detrimental effects of licensure in relation to all licensed professions—from pharmacists to librarians, from teachers to stockyard commission agents.
