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The End of Milton Friedman s Reign

In April this year, President Joe Biden’s national security adviser, Jake Sullivan, gave a speech outlining America’s major economic problems, and the administration’s plan to address them. The industrial base had been hollowed out, he said, and the country had become so unequal that it threatened the foundations of democracy. He identified “one assumption” that had fueled these transformations: the idea “that markets always allocated capital productively and efficiently—no matter what our compe

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