Capitalism and Freedom

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Summary: great book and great message
Review: It is funny that the negative review came from a fellow Brazilian. As someone that lived there for 25 years, I can tell you that if the Brazilian people and its government understood the message of Friedman's book the country would not be in the deplorable position it is (and it has ever been). It is not the corporations that will look over the people, it is the people who will look over themselves, and use the corporations to achieve their goals. The real problem is when government intervenes, and people think that is the right way to do things, since they are "entitle" to this and that. It is because of people like you, dear Brazilian, that the country is what it is.

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Summary: A great work by one of the century's great intellects
Review: "Capitalism and Freedom" is not quite as easy a read as another one of Friedman's fine books, "Free to Choose," but, it is still accessible to non economic majors. Friedman sets forth some of his classic views in this book such as the negative income tax and free trade. One of his most interesting discussions is his questioning of the role of state universities and colleges. He likens the low tuitions at these public institutions to scholarships and wonders why those who go to public, as opposed to private universities deserve such scholarships. He raises, in 1963, a topic that is timely now... school vouchers. Most controversially, Friedman believes that almost all professional licensing should be done away with. In other words, he believes the free market can protect the consumer and that even licensing of physicians may not be necessary. In fact, such licensing may stifle innovation. Whether o9r not you agree with Friedman, this book raises fascinating questions and provides well thought out answers.

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Summary: Review of Capitalism and Freedom
Review: Once this topic is discussed, it no longer can be denied that it,
having breeched itself, is a topic. Capitalism is indeed Freedom and Freedom is itself repeated, therefore Capitalism is as such the multiple of the same. Looking back through the years, Friedman has drawn on experience and observation to write this book. Crafting together letters to form words and thus meanings, Friedman expresses himself in a written language. The cover is also very cool.

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Summary: Compelling and informative
Review: Milton Friedman, far from just paraphrasing Keynes, has given a grand refutation of Keynesian economics as well as argued persuasively for the free-market.

"Capitalism and Freedom" dispels the myths about capitalism that have become so prevalent in our society: that the free-market caused the depression (it was actually a tyrannical Federal Reserve), that socialism can be democratic, and others. Milton's prose is clear and the book is good for those who haven't majored in economics. He gives an unwavering defense of personal freedom and individual autonomy from a minimalist government perspective.

This book is an important contribution to public discourse and although written about 40 years ago, still has relevance today.

Friedman discusses public education, roads, minimum wage laws (which he calls, "the most anti-black law on the statute books," and rightfully so as you'll see if you read this book), as well as the how so-called "progressive" tax system and welfare actually hurt the poor.

Friedman's other great contribution is "Free to Choose," which was written about 20 years ago and expounds on the ideas in "Capitalism and Freedom" in a bit more depth. But this is a good, short, concise book to start with that'll get you asking questions.

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Summary: Excellent, brief articulation of Friedman's beliefs
Review: Friedman's critics and fellow travelers in the libertarian fold rightfully viewed Capitalism and Freedom as a landmark book in 1962. The author brilliantly, if albeit briefly, articulated his theories of human behavior, which stood in contrast to the prevailing Keynesian ideology. The book has stood the test of time, and has become a classic part of libertarian literature. Like Marx's Das Kapital, the book has become a common point of reference for review in many college courses for members of the Left and the Right.

Some quick notes. The book was not written as an exhaustive economics treatise that purported to evaluate every single possible component of economics. Friedman did not present every single ideological permutation's view of price supports for farm products, as an example. Anyone looking for Every Possible Libertarian Opinion on a Given Economic Question, much less the contrasting viewpoints of Marxists/Neo-Keynesians/Flat Earth Society proponents, will need to look elsewhere (Keynesian Paul Samuelson's classic work, "Economics", is recommended for as a starting point). Friedman's reputation in the economics profession was not earned from this book, but his other works, especially his "Monetary History of the United States".

As for Paul Krugman's criticisms of Milton Friedman, the potential reader should heed the old axiom, "consider the source". Krugman is a brilliant economist, who after being exposed for decades to a mass of information on the failings of government meddling in the economy, persistently recommends a watered down version of the same failed policies that didn't work in the past. Interestingly enough, he belongs to that peculiar breed of economist who stridently defends "free" trade between nations, but somehow believes that individual entrepreneurs in a national economy require "guidance" from Big Brother (regulate, baby, regulate).

Krugman, like many economists of all political preferences, carefully chooses data that conforms to his preconceived opinions (monetarism under Thatcher and the early Volker years in the US), while excluding any information that might challenge his assumptions. Krugman fails to mention that in 1979, with 21% interest rates and 13.5% CPI in the US, his fellow Keynesians were recommending as a "cure" an increase in inflationary spending, higher marginal tax rates, and increased spending by the government. Some cure. Which is exactly why so many people anxiously embraced the monetarist creed at the time. Equally bogus is his claim that Volker's altered policies in the mid-1980s were a reversion to Keynesian monetary doctrine. Krugman's analysis of supply-side economics, which Friedman never supported, contains many of the same "ignore the facts" approach.

Final note. Many of the same economists who criticize Friedman for his lack of intellectual rigor slam Robert Lucas, another University of Chicago Nobel Prize Winner, for being too rigorous and dependent on advanced mathematical models that don't reflect the "real world".

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Summary: Capitalism and Freedom
Review: How can we benefit from the promise of government while avoiding the threat it poses to individual freedom? Milton Friedman presents his view of the proper role of competitive capitalism as both a device for achieving economic freedom and a necessary condition for political freedom.

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Summary: Insight for those who wish to be free
Review: Nobel laureate Milton Friedman is quite possibly the most brilliant economist in the world today and a man on the cutting edge of libertarian (classical liberal) thought. And in "Capitalism and Freedom" he lays out a basic political philosophy in the classical liberal tradition in the first two chapters of the book and alternately defends and expands upon that premise for the remainder of the work. In much the same way that F. A. Hayek - an ideological predecessor - spelled out his basic thesis in one concise book and then fleshed it out in another, Friedman provides the basics here and fleshes them out in the larger (and somewhat better written) "Free to Choose". In addition, while not wishing to rehash some of the detailed support for his assertions, he does - through footnotes - provide the reader with opportunity to delve deeper.

Given the nature of the subject matter and the expertise of the author, the writing can be dry and may appear difficult to approach, particularly in the initial chapters, but the reader who sticks with it will be well rewarded. Subsequent chapters, largely adapted from lectures by the author, are easier reads. And Friedman avoids, for the most part, the economic jargon that can make works such as this hopelessly confusing to the layman.

Friedman is often tagged with the "monetarist" or "supply-side" labels (if you don't believe me, read some of the other reviews), largely because he believes that these methods of economic manipulation are infinitely preferable to the fiscal manipulation that has been the norm in this country. Those who actually READ this book will find that he advocates intervention by neither means, preferring instead stable monetary growth removed from the hands of either fiscal or monetary interventionists.

He provides one of the most succinct explanations of the monetary actions (of the Fed) that created and worsened the Great Depression that I have ever come across, though mentioning only briefly the fiscal policies that subsequently lengthened it considerably: the New Deal and, to a much lesser extent, Smoot-Hawley. This alone makes the work valuable.

He goes on to examine a number of things that are now taken for granted in this country (the Welfare State, Social Security, public education, licensing requirements) and asks the question, "Have these government actions made things better or worse?" The record is less than stellar (especially in the subsequent 40 years since this was written). And he proposes some alternatives such as the negative income tax and other alternative roles for government that are, arguably, less intrusive on the liberty of the citizenry.

And he uses examples that are easy to follow and understand including one about men stranded on desert isles that is NOT as presented in another review.

As an economist, I would say that this work has aged remarkably well. The analysis has clearly not become dated as have those of Galbraith and, to a certain extent Keynes. [Keynes WAS a genius, providing the mathematical and econometric bases for much of current economic thought, but, contrary to the assertion by another reviewer, much of what he proposed should be done by the state has been discredited.] Friedman, for example, was one of the first to advocate a school voucher system, which is only now receiving serious attention.

It is noteworthy that a number of economists from the left have criticized Friedman in general and this work in particular. But those attacks (by Krugman, Herman and Diesing, among others) have proven to be, for the most part, without merit.

If you accept the basic premise that freedom is vitally important and that the actions of the state should be viewed from that point of view, you will find this work to be invaluable. If not, you will certainly not be pleased. And if you believe the utter nonsense that capitalism is in any way "oppressive", well, if you can't see reality...

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Summary: A legend in his own time.
Review: Without a doubt, Milton Friedman is the most important and influential economist to emerge in the past half century, and is only surpassed, at least in terms of influence, by Keynes when one considers the entire 20th century.

As we all learned in macroeconomics, Friedman is best known for his "monetarist" movement. That is, the belief that inflation is always caused by excessive monetary growth and that changes in the money supply directly affect aggregate demand both directly and indirectly.

In "Capitalism and Freedom," Friedman argues that politics and economics are practically impossible to separate. Therefore, one can not have political freedom without economic freedom, and vice-versa. However, Friedman does acknowledge the need for government as a "rulemaker and umpire," as well as to control externalities.

While this book was written in the 60's, it covers some surprisingly contemporary issues: public schools, international trade, corporate social responsibility, etc. Friedman even suggests a school system that is publicly funded but privately administrated. Unfortunately, the vast majority of the population (cattle) are too ignorant to ever allow such a thing. Last year, a voucher system that would allow parents to choose a private school instead of a public one for their children was placed on the ballot. It was rejected by the voters.

Of course, conservatives will love a book such as this, while the something-for-nothing types will cry foul. I suppose that I am neither. I just know the truth when I see it regardless of the package it comes in.

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Summary: Clearly Pro-American
Review: Capitalism has risen and crushed its opponents, socialism and communism, because the principals of capitalism rely on sheer power. We see the United States as a shining symbol of Capitalism and Freedom, yet the US is only one part of it. Capitalism is controlled and perpetuated by the middle class, but relies on the workforce of the lower class. In the United States, there is virtually no lower class. Instead, the United States has become THE middle class of the world, exploiting workers in foreign countries - Liberia (in the earlier 20th century), China, India, and countless other countries have become victim to the United States' corporate power.

One cannot look at the United States alone and say "Look! Here is capitalism's glory! Here are millions of rich people!" We must also look at the rest of the world, of billions who are poor, of hundreds of millions who are starving.

Then you could argue that the US's capitalism is better than other countries' capitalism. But how is this possible? Capitalism extends over the entire world, interconnected all countries. Yes, the US government has more regulations for the economy, but ultimately this is worthless because US corporations can transgress those regulations outside the country, where they truly operate.

So, what gives Americans freedom? Money. We are wealthy, and others sacrifice their freedoms, hundreds of millions of under-minimum-wage workers living in dirt-poor conditinos, so that the great United States of America can be rich and free.

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Summary: I am at disagreement on your opinions
Review: Respectfully Dr. Friedman, you are a world known scholar and an intellect, and I lay claim to neither. But nonetheless I find myself in disagreement to some of your opinions; perhaps a result from my limited knowledge. In the first chapter you meticulously detail the direct relation between increased economic prosperity to greater personal freedom. This view certainly holds true to the western world; but a broader look into Asian countries show a contrary picture. At first United Arab Emirates (GNP per capita $20,000),
Kuwait (GNP per capita $24,000), Singapore (GNP per capita $27,000) have strict restrictions on personal freedom and are ruled by an absolute monarch. The said countries have economic indicators comparable to the countries in the west as United States of America (GNP per capita $30,000), United Kingdom (GNP per capita $20,883) and Spain (GNP per capita $16,700). On the other spectrum India with an instilled democratic state for the last 50 years has its economic indicators comparable to a third world nation (GNP per capita $2140).

Further along the reading you profess the need for smaller governments; with lesser intrusion from the government into the workings of a free market. But I feel disheartened that even with the government interventions there have been cases of utmost corruption in the corporate arena e.g. Enron, Martha Stewart. In the same breath I feel that with minimal government intervention we would eliminate the spirit of a free market; as corporations like Microsoft and Intel would in a flash wipe out their smaller competitors and create a monopoly.

In your suggestion for the elimination of minimal wages; are guarantees that the workers at the lower end of the scale are not left further in poverty. With no such barriers there would be a greater glut of cheap labor ready to work at lower wages. This creates an endemic of poverty and social/society ill-will. In addition I believe in the utter greed of capitalist who would pressurize the congress to allow more cheap labor for them to fatten their pockets. At present the economic divide is significant; I feel with the elimination of minimum wages would create a greater disparity.

The concept of providing parents with the vouchers is a great idea; at present being adapted by President Bush with the program "No child left behind"; but steps need to be ensured that the vouchers are only provided to lower income families. As the system can be abused by kids already going to private schools getting subsides for their education.

I find it difficult to comprehend your belief to unilaterally eliminate trade barriers. This gives a great edge to foreign competitors to move in their products. This would be comforting for the consumers; but placed at the expense of increased trade deficits. I believe the elimination of trade barriers not unilaterally but in a multilateral approach.