Christy Hovanetz, Ph.D., is a Senior Policy Fellow for ExcelinEd focusing on school accountability and math policies.
Nobel prize-winning American economist Milton Friedman was born more than a century ago, on July 31, 1912, in Brooklyn, New York. As a student and aspiring actuary, he started college specializing in math and took the actuarial examinations. But his growing interest in economics rivaled actuarial work, and he ended up with majors in both fields.
Friedman’s success as an economist was built on his extensive coursework and deep understanding of mathematics. He is regarded as the founder of monetarism, a school of thought that explores the complex connection of the money supply with an economy’s performance. When Friedman won the Nobel Prize in Economic Sciences in 1976, it was for his “achievements in the fields of consumption analysis, monetary history and theory and for his demonstration of the complexity of stabilization policy.”
Friedman asserted that economic models should be judged by the accuracy of their predictions, including about human behavior in the economy. In his 1957 book, A Theory of the Consumption Function, Friedman used math to explain that consumer choices are driven by rational calculations to maximize utility. His logic was admired even by critics of his theories.
Math is used extensively to explain many aspects of economic and financial theory. Check to see if you’re familiar with any of these examples: Linear and quadratic functions are used for demand and supply analysis. Geometric sequences, exponential functions and logarithmic functions are essential in finance. Single-variate calculus helps explain a firm’s profit maximization problem. And analyzing a consumer’s utility maximization requires multivariate calculus. To learn more, each of the hyperlinks connects to Khan Academy’s instructional videos on these math topics—check them out!
Math skills are essential in the business world and beyond. We can secure our economic future by increasing the supply of successful math students by implementing ExcelinEd’s math fundamental principles and comprehensive K-8 math model policy. Both are based on recommendations by the National Mathematics Advisory Panel and are sure to meet the demand for improving math policy in states.
Did you know?
Milton Friedman’s public policy ideas included support for and promotion of school vouchers. In his 1955 paper, The Role of Government in Education, Friedman used economic arguments to advocate for reforming K-12 education via school choice. But he had to know math to do it!
