milton friedman capitalism and freedom sparknotes

In Chapters 6-7, Friedman discusses the roles of capitalism and government in education and discrimination. Friedman decries the use of fiscal policy as an economic-stimulus tool in Chapter 5. Chapter 4 contains a case for instituting floating exchange rates and opening markets to any country interested in trading with the U.S. In Chapter 3, Friedman argues that the severity of the Great Depression was largely due to poor decision-making by the Federal Reserve.

Friedman also discusses how government is useful for resolving situations where two or more individuals’ freedoms come into conflict.Ĭhapters 3-5 focus on government’s role in fiscal and monetary policy. This role is limited to a handful of functions, such as enforcing laws and contracts, protecting property rights, and managing money. In Chapter 2, Friedman fleshes out a liberal concept of government’s role in a capitalist society. He stresses the importance of voluntary cooperation in a capitalist system, noting that an absence of coercion is a defining characteristic of political freedom. Friedman argues the kind of economic freedom capitalism provides is needed for political freedom to occur. He also ponders what role government should play in a society that values freedom, and makes a case for letting the free market drive most economic activities.Ĭhapter 1 explores the relationship between economic and political freedom. In the thirteen chapters following the Introduction, Friedman discusses competitive capitalism’s role in preserving economic freedom and making political freedom possible. He characterizes these viewpoints as “liberal,” descending from the classical liberal tradition that pushed for limited, decentralized government and free trade in the 18th and 19th centuries. In particular, he warns against having a central government in which a few people hold the bulk of the power. He asserts that government is neither a citizen nor a master, as Kennedy suggests, but a tool for achieving goals shared by a consensus of citizens.įriedman argues that government can work against a society’s most important goal-protecting individual freedom-when used improperly. Kennedy: “Ask not what your country can do for you-ask what you can do for your country.” Friedman uses this quote to introduce his ideas about government’s role and purpose in a capitalist society. He opens the book with a quote by President John F.

Friedman wrote Capitalism and Freedom while he was an economics scholar at the University of Chicago.

Milton friedman capitalism and freedom sparknotes