A society simply cannot have political freedom without the ability of individual buyers and sellers in a marketplace to engage in voluntary transactions that satisfy their needs. Any form of coercion is an assault on freedom.Įconomic freedom is vital to political freedom. How the government often harms economic freedom through aggressive deficit spending, the creation of public monopolies, excessive professional licensure, and a poorly designed tax and welfare system.Įconomic freedom is an essential component of total freedom-the ability of an individual to pursue her own happiness and fulfillment without any external impediments, provided that she does not infringe on the freedom of others.Why the government has a responsibility to protect economic freedom by breaking up monopolies, providing those services that the private sector cannot, and prudently managing the money supply.How economic freedom is essential to political freedom.While reasonable people can disagree about the effects of Friedman’s ideas in the real world, no one can deny their influence. Over the past 40 years, governments across the Western Hemisphere have reoriented their economic strategies toward more market-based solutions, including reducing marginal tax rates, all but eliminating tariffs, privatizing public monopolies, and even introducing choice and competition in public education. Today, it is hard to overstate the extent to which Friedman’s once-controversial ideas have triumphed. For capitalism to function best, it must be as free of government interference as possible. Friedman argues that a society cannot maintain liberal democracy and representative institutions without a robust commitment to free-market capitalism. 1-Page Summary 1-Page Book Summary of Capitalism and FreedomĬapitalism and Freedom is Nobel Prize-winning economist Milton Friedman’s classic 1962 treatise on economic freedom.

Friedman 1962 capitalism and freedom