On Thursday, Nobel Laureate economist Milton Friedman died at age 94. He was the most influential economist of the last 50 years, and his legacy will continue in the many economists he mentored. His book, Free to Choose, was a major best seller and PBS series. In my next column, I will link to some of the better discussions of his career and some of his recent interviews.

The return of a Democratic-run House and Senate will be certainly be quite interesting. It is likely that the new leadership will attempt to assert themselves with populist actions to improve their chances of securing the Presidency in 2008.

While some of their agenda may be quite popular, it is a time to be cautious about the longer-term outlook because many government actions have unintended effects on economic growth and international competitiveness. A protectionist mood and a desire to create more—or more stringent—regulations all have an impact beyond their immediate effects and good intentions. Economists since Adam Smith have long warned about how barriers created by governments with the full support of big businesses protect vested interests and limit the ability of competitors to enter markets. Both parties are guilty of this, often calling for tariffs, such as those the steel industry received in the early part of this decade, that ultimate had a negative effect on economic growth and employment until they expired.