Final answer:
Milton Friedman's economic theory supports free-market capitalism and minimal government intervention. He endorsed Monetarism, focusing on the natural growth of the money supply with the economy, and suggested that private spending is more efficient than government spending.
Step-by-step explanation:
Milton Friedman was a prominent economist known for his support of free-market capitalism. He advocated for minimal government intervention in the economy, warning that such intervention often leads to economic instability. His economic theory is closely associated with Monetarism, which emphasizes the importance of controlling the supply of money to coincide with economic growth. Friedman argued that the Federal Reserve Bank should not manipulate the money supply, but let it grow naturally with the economy.
He famously claimed that individuals do not spend others' money as carefully as they spend their own, suggesting that government spending is often inefficient compared to private spending. Friedman's influence extends to the U.S. free enterprise system, where his ideas have been instrumental in shaping economic policies and discussions about the role of government in the economy.