Skip to main content Accessibility help
×
Hostname: page-component-8448b6f56d-42gr6 Total loading time: 0 Render date: 2024-04-18T05:50:49.917Z Has data issue: false hasContentIssue false

Two - Markets, Politics, and Democracy at Chicago

Taking Economics Seriously

from Part One - Economics Built for Policy: the Legacy of Milton Friedman

Published online by Cambridge University Press:  05 November 2011

J. Daniel Hammond
Affiliation:
Wake Forest University
Robert Van Horn
Affiliation:
University of Rhode Island
Philip Mirowski
Affiliation:
University of Notre Dame, Indiana
Thomas A. Stapleford
Affiliation:
University of Notre Dame, Indiana
Get access

Summary

In September and October 1975, New York Times columnist Anthony Lewis reported on the University of Chicago pedigree of the Pinochet government’s economic program. The so-called Chicago Boys, a group of Chilean alumni of the University of Chicago, had written a set of policy recommendations for Jorge Alessandri when he was a candidate in Chile’s 1970 presidential election. The election was won by Salvador Allende. In October 1973, a month after the military coup led by General Augusto Pinochet, the Chicago Boys published their policy recommendations as “El Ladrillo” (The Brick). Several members of the group were subsequently appointed to positions in the government. Anthony Lewis portrayed Friedman, who had visited Chile in the spring of 1975 with Arnold Harberger, as the “guiding light” of the Pinochet economic policy, a “policy that could not be imposed on a free society” (October 2, 1975). He attributed to Friedman the idea that a growing disparity of incomes between the rich and poor is part of the mechanism by which anti-inflation policy works. Lewis asked “if the pure Chicago economic theory can be carried out in Chile only at the price of repression should its authors feel some responsibility? There are troubling questions here about the social role of academics” (October 2, 1975).

Almost immediately, protests began on the University of Chicago campus under the auspices of the “Committee against Friedman/Harberger Collaboration with the Chilean Junta.” Protesters demanded that Friedman be driven out of the university. The protests and harassment lasted for the next five years, reaching a peak after the announcement that Friedman would receive the 1976 Nobel Prize. Friedman had fewer defenders among academics than one might expect given the collegiate totem of academic freedom. Some balanced their defense of Friedman’s rights against the gravity of the charges of giving policy advice to a repressive regime. Other academics joined the protesters. Nobel laureates George Wald and Linus Pauling wrote to the New York Times (October 24, 1976) accusing Friedman of being an accessory to human rights crimes. In a second letter published alongside theirs, two other Nobel laureates, David Baltimore and S. E. Luria, characterized the Nobel Prize committee’s selection of Friedman as “an insult to the people of Chile, burdened by the reactionary economic measures sponsored by Professor Friedman.”

Type
Chapter
Information
Building Chicago Economics
New Perspectives on the History of America's Most Powerful Economics Program
, pp. 36 - 64
Publisher: Cambridge University Press
Print publication year: 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baltimore, DavidLuria, S.E 1977 Letter to the EditorNew York Times18Google Scholar
Brender, Valerie 2010 Economic Transformations in Chile: The Formation of the Chicago BoysAmerican Economist 54 111CrossRefGoogle Scholar
Burns, Arthur F.Samuelson, Paul A. 1967 Full Employment, Guideposts, and Economic StablityWashingtonAmerican Enterprise InstituteGoogle Scholar
Courtois, StéphaneWerth, NicholasPanné, Jean-LouisPaczkowski, AndrzejBartošek, KarelMargolin, Jean-Louis 1999 The Black Book of CommunismCambridgeHarvard University PressGoogle Scholar
Dicey, Albert Venn 1905 Lectures on the Relation Between Law & Public Opinion in England During the Nineteenth CenturyLondonMacmillanGoogle Scholar
Friedman, Milton 1948 A Monetary and Fiscal Framework for Economic StabilityAmerican Economic Review 38 245Google Scholar
Friedman, Milton 1951 Neo-Liberalism and Its ProspectsFarmand 7 17Google Scholar
Friedman, Milton 1953 Essays in Positive EconomicsChicagoUniversity of Chicago PressGoogle Scholar
Friedman, Milton 1955
Friedman, Milton 1962 Capitalism and FreedomChicagoUniversity of Chicago PressGoogle Scholar
Friedman, Milton 1975 Letter to Anonymous ProfessorChicago Maroon 16 595Google Scholar
Friedman, Milton 1983 An Economist’s ProtestGlen Ridge, NJThomas Horton and DaughtersGoogle Scholar
Friedman, Milton 1986 Lives of the Laureates: Seven Nobel EconomistsBreit, W.Spencer, R. W.CambridgeMIT PressGoogle Scholar
Friedman, MiltonFriedman, Rose D. 1984 Tyranny of the Status QuoNew YorkHarcourt, Brace JovanovichGoogle Scholar
Friedman, MiltonFriedman, Rose D. 1998 Two Lucky People: MemoirsChicagoUniversity of Chicago PressGoogle Scholar
Friedman, MiltonSchwartz, Anna J. 1963 A Monetary History of the United States, 1867–1960PrincetonPrinceton University Press for the National Bureau of Economic ResearchGoogle Scholar
Friedman, MiltonSchwartz, Anna J. 1970 Monetary Statistics of the United States: Estimates, Sources, MethodsNew YorkNational Bureau of Economic ResearchGoogle Scholar
Friedman, MiltonSchwartz, Anna J. 1982 Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975ChicagoUniversity of Chicago PressCrossRefGoogle Scholar
Galbraith, John Kenneth 1952 A Theory of Price ControlCambridgeHarvard University PressGoogle Scholar
Galbraith, John Kenneth 1973 Power and the Useful EconomistAmerican Economic Review 63 1Google Scholar
Galbraith, John Kenneth 1973 A China PassageBostonHoughton MifflinGoogle Scholar
Galbraith, John Kenneth 1981 A Life in Our Times: MemoirsBostonHoughton Mifflin CoGoogle Scholar
Galbraith, John Kenneth 1984 Reflections: A Visit to RussiaNew Yorker 3Google Scholar
Galbraith, John Kenneth 1996 The Good Society: The Humane AgendaBostonHoughton MifflinGoogle Scholar
Galbraith, John KennethMcCracken, Paul W 1983 Reaganomics: Meaning, Means, and EndsNew YorkThe Free PressGoogle Scholar
Groenewegen, Peter 1995 A Soaring Eagle: Alfred Marshall, 1842–1924Cheltenham, UKEdward ElgarGoogle Scholar
Hammond, J. Daniel 1992 Research in the History of Economic Thought and MethodologySamuels, W. J.Biddle, J.Greenwich, CTJAI PressGoogle Scholar
Hofstadter, Richard 1964 A Long View: Goldwater in HistoryNew York Review of Books 8Google Scholar
Lerner, Eugene 1961
Lewis, Arthur 1975 For Which We Stand: IINew York Times 2Google Scholar
Lite, Jordan 1998 www.sfgate.com
Marshall, Alfred 1925 1885 Memorials of Alfred MarshallPigou, A.C.LondonMacmillanGoogle Scholar
Mitchell, Wesley C 1927 Business Cycles: The Problem and Its SettingNew YorkNational Bureau of Economic ResearchGoogle Scholar
Morley, Felix 1958 Essays on IndividualityPhiladelphiaUniversity of Pennsylvania PressGoogle Scholar
Revel, Jean-François 2009 Last Exit to Utopia: The Survival of Socialism in a Post-Soviet EraNew YorkEncounter BooksGoogle Scholar
Robinson, Joan 1968 The Cultural Revolution in ChinaInternational Affairs 44 214CrossRefGoogle Scholar
Robinson, Joan 1969 The Cultural Revolution in ChinaHarmondsworthPelicanGoogle Scholar
Samuelson, Paul A. 1952 Economic Theory and Mathematics – An AppraisalAmerican Economic Review 42 56Google Scholar
Samuelson, Paul A. 1973 The Samuelson SamplerGlen Ridge, NJThomas Horton and CompanyGoogle Scholar
Samuelson, Paul A. 1983 Economics from the HeartSan DiegoHarcourt Brace JovanovichGoogle Scholar
Samuelson, Paul A. 1986 Lives of the Laureates: Seven Nobel EconomistsBreit, W.Spencer, R.W.CambridgeMIT PressGoogle Scholar
Schlesinger, Arthur F. 1953 The Highbrow in American PoliticsPartisan Review 20 156Google Scholar
Shlaes, Amity 2007 The Forgotten Man: A New History of the Great DepressionNew YorkHarper CollinsGoogle Scholar
Silk, Leonard 1976 The EconomistsNew YorkBasic BooksGoogle Scholar
Solo, Robert A 1955 Economics and the Public InterestNew Brunswick, NJRutgers University Press
Stigler, George J. 1959 The Politics of Political EconomistsQuarterly Journal of Economics 73 522CrossRefGoogle Scholar
Stigler, George J.Friedland, Claire 1962 What Can Regulators Regulate? The Case of ElectricityJournal of Law and Economics 5 1CrossRefGoogle Scholar
Stigler, George J.Samuelson, Paul A 1963 A Dialogue on the Proper Economic Role of the StateChicagoUniversity of Chicago Graduate School of BusinessGoogle Scholar
Tintner, GerhardPeek, Peter 1976 Marginalism and Linear Economics, East and WestHistory of Political Economy 8 367CrossRefGoogle Scholar
Van Horn, RobertMirowski, Philip 2009 The Road From Mont Pèlerin: The Making of the Neoliberal Thought CollectiveMirowski, P.Plehwe, D.Cambridge, MAHarvard University PressGoogle Scholar
Wald, GeorgePauling, Linus 1976 Letter to the EditorNew York Times 14Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×