Professor Friedman's remedy, or formula, is summarized below.
Excerpts from Capitalism and Freedom, Milton Friedman, Chicago: The University of Chicago Press, 1962, (pages 102 – 107): Nobel Laureate Milton Friedman’s Remedy for Racism:
Probably the best suggestion for leveling the “playing field” of education in order to safeguard the underlying premise of democracy (the equality of human beings) was offered in 1962 by Professor Friedman. (Shortly before he died, I asked him if his idea had been tried anywhere. His sad answer: “No.”)
The Problem: “The under-investment in human capital presumably reflects an imperfection in the capital market. The device adopted to meet the corresponding problem for other risky investments is equity investment plus limited liability … of the shareholders.” (p. 102)