Capitalism and Freedom

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Summary: One of the 25 most important conservative books
Review: As befitting a Nobel Prize winner in economics and a former president of the American Economic Association, Dr. Friedman has written many fine scholarly works. But you don't need a doctorate in economics to read Capitalism and Freedom. This is a jargon-free explanation of the principles of economic freedom, which Friedman demonstrates is a necessary condition for political freedom. Get and read this razor-sharp book.

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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: Illuminating
Review: It is ironic that the book (an attempt into political theory by a leading economist) has given me some of the answers that I could not find in any Economics textbook. However, one warning: the book, outstanding when it deals with economic issues (International Financial Agreements, Monetary Policy and Fiscal Policy) is weaker in the more "political" chapters. Mr. Friedman justifies public financiation of schooling in terms of neighborhood effects: society as a whole benefits of my going to school, therefore, it should pay for it through taxes. This is of course just an economist's approach to the matter.I suspect the valid justification is more one of priciple: if one of the main sources of inequality is different education (and therefore, ASPIRATIONS), then let's try to promote at least equal opportunities by granting access to school for everybody. For a broader perspective of these subjects, I suggest Ludwig Von Mises' "Liberalism,the classical tradition".

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Summary: Best Single Book on Economics available
Review: No other book anywhere is more important for the student of economics. Compared to other books on economics, it is very concise and well written. You will gain more insight per minute of time expended than from almost any other text.

The book is timeless because the principles Professor Friedman explains are bedrock foundations of the Capitalist economic system. In almost all universities you are taught a system of thought that inevitably leads to an emphasis and reliance upon Government and the State, basically, socialism as a solution to our economic problems. Professor Friedman clearly spells out better solutions in which markets can solve our problems more efficiently than Government and Socialism. More important, Friedman shows that only Capitalism is consistent with the concepts of Liberty that motivated the Founding Fathers of the United States, principles that led to the drafting of the Constitution. The book Captialism and Freedom has stood the test of time, and still represents the single best source to obtain an understanding of economic markets and how they work, without jargon or mathematics. Instead, Friedman goes directly to the essence of market economics, and liberty, in a simple and straightforward manner. This book will show you how you can use the economic system to make yourself an independent person, capable of taking advantage of the liberty that free markets promote.

This book will help you understand why the institutions of Government, such as the public schools, the Post Office, and the Federal Reserve Board, inevitably become inefficient and problematic compared to private enterprise solutions. At present, Professor Friedman heads up a foundation, The Friedman Foundation, which promotes free enterprise within the public school system, referred to as School Choice and Vouchers. The intellectual concepts for this suggested improvement in our public schools were spelled out in Captialism and Freedom. Finally, Professor Friedman spells out the intellectual foundation for the results of his study of the history of monetary policy and the inevitable problems of the Federal Reserve Board. The problems of the Federal Reserve that were discussed in Professor Friedman's Monetary History of the United States are problems that are inherent in government enterprise, issues that are discussed in Capitalism and Freedom.

This book is a must read for any serious student of Politics or Economics. Also, because the book is written in a simple and straightforward manner, any lay person without training in economics will gain fundamental insight into the structure of the Capitalist system and the inevitable problems of Socialism.

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Summary: The groundwork for freedom
Review: The test of time had vindicated Milton Friedman. When this book was published, its ideas and concepts were far from mainstream. Today, the tide has turned decisively in his favor and away from Keynesianism and corporatism. His critical and thoughtful defense of the marketplace and critique of socialism laid the groundwork for the resurgence of the American economy. Friedman is not anti-state, after all he recognizes the need for the state as an impartial umpire. He cautions against relying to heavily upon state intervention as it leads to a consistent reduction in personal freedom.

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Summary: Monetary policy is more effective than fiscal policy
Review: Although I have not read Friedman's book, I sometimes like to read the reviews on economic books and see what people like to say (my favorites are the Ayn Rand lovers and haters). I agree that Friedman has an agenda; however, I would have to disagree with the statement that Keynes's fiscal stimulus is better than Freidman's Monetary policy in terms of promoting long-run growth in an economy. Ever since the oil shocks of the 1970's, fiscal policy has taken a back seat to the control of the money supply. The fact of the matter is fiscal policy can only promote long run growth by spending on capital goods. And no, supply-side economics doesn't work as planned. In essence all that fiscal policy does is shift resources around. The economy will eventually return to full-employment. A little history: FDR met Keynes and the two hated each other. FDR would never claim his policies were Keynesian. In fact, the LBJ's Keynesian policies in the 1960's (War on poverty and Vietnam) probably hampered the ecomomy (see the slowdown in productivity in the early 1970's) by crowding out investment. However, Monetary policy effects the money supply, which in turn effects the interest rate. The interest rate determines the level of investment and savings. These two items lead to the long-run growth of the economy as more resources are devoted to capital goods which allow the economy to grow in the future. Well that's my two cents (no economics pun intended)

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Summary: a caution about Milton Friedman
Review: As an economist, I'd like to offer a caution about Mr. Friedman, if I may. Mr. Friedman is one of the greatest economists, and certainly the pre-eminent living one. However, Mr. Friedman does have an agenda, and the economic theories he advocates most strongly are not houses built upon rock. In particular, they do not consistently agree with Keynesian theory. Keynes wasn't always right, but he did have an astonishing amount of predictive ability. The test of time weighs strongly in favor of Keynes and against Friedman. By all means read what he has to say, but please remember that his theories describe a special economic situation that is rather rare. Thanks.

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Summary: Very good defense of the free market
Review: This book quite concisely demonstrates Milton Friedman's gift as an economist. It, however, also depicts his inferiority to Hazlitt in terms of writing ability. While many of his essays and points are very interesting and precise, the book is VERY dry. One should not let the small size fool them when purchasing this book, it takes quite a commitment and interest in the subject to make it through the book. That said, Friedman elucidates just what capitalism is and should be. He does believe in some government, however, he argues (and quite successfully) that it should be as limited and nonactivist as possible. I certainly recommend this for anyone interested in just why Milton Friedman (and other laissez-faire capitalists) thinks the way he does. Henry Hazlitt's, "Economics in One Lesson" is a less difficult read and is also better constructed. I would recommend that as prerequisite for tackling this book.

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Summary: all 100% correct except for one glaring ommission
Review: Mr. Friedman is certainly the greatest living economist and this book is the best there is for an introduction to what capitalism really is. Mr Friedman explains to us the complex basics of economics that most still don't understand. For example when two capitalists exchange money or goods is one getting ripped off, are they doing something trivial, selfish, or wasteful that should be regulated by the gov't, or are they advancing the cause of prosperity ,civilization and freedom? Mr. Friedman walks us through these issues, and more, very brilliantly but in the end he doesn't tell us what to do. When we watch the evening news or walk into the voting booth we are not asked for our opinion of capitialism,rather, we are asked our opinions of Democrats and Republicans. The real issue is not capitalism vs. other; it is Republicans vs Democrats. The book: Understanding The Difference Between Democrats and Republicans is still one of the very few, unbelievably, that deals with this, the most important issue we face. And it isn't ashamed to point out at great length the connection between Republicans, capitalism, and freedom.

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Summary: Vintage, yet compact, Friedman
Review: In the tradition of Hayek, Friedman's Capitalism and Freedom attempts to show the dangers of centralized power. Although it is rather short, much like the Road to Serfdom, and lacks the comprehensiveness of a Free to Choose (also by Milton and Rose Friedman) it still comes across rather forcefully. His attention to principle's, something lacking in our 'pragmatic' politics of today, and his ability to come to logical conclusions is remarkable.

I gave the book five stars because I welcome such analysis and believe the book to have achieved what it set out to do (at varying points in the book Friedman would point out that this book is not meant to be 'thorough' in the sense of a complete exposition and refers the reader to alternate books for further discussion). A must read for all politicians and government types alike (whether in Canada or abroad).