During 1940, Friedman was appointed an assistant professor teaching Economics at the University of Wisconsin–Madison, but encountered antisemitism in the Economics department and decided to return to government service.
Tijekom 1940. godine, Friedman je imenovan Docentom ekonomije na Sveučilištu Wisconsin-Madison, ali je naišao na antisemitizam u odjelu za ekonomiju i odlučio se vratiti u državnu službu.