Why Friedman Misunderstood Physics and Mises Was Right about Economics
Milton Friedman published in 1966 an essay, which arguably, combined with Keynes’ General Theory were the two pieces of literature most responsible for shunting economics on to the wrong track, to use the same expression William Stanley Jevons used to describe the influence of David Ricardo on the science’s development. FA Hayek once said he regretted later not writing responses to both these works.
I hope I have done my own small part in providing a response to Milton Friedman’s “The Methodology of Positive Economics” in the following essay I am providing a link to. I have also decided to dedicate it to the memory of a friend and not so long ago fellow classmate of Mises University, hosted by the venerable Ludwig Von Mises Institute.
A succinct version of this essay shall soon be published at mises.org.